The "Always-On" Transformation

Do you feel like running a never-ending marathon every quarter? Business frequently feels like being on a steep treadmill with the speed dial set to maximum for executives at traditional companies. You might have just completed a cost-cutting transition three months ago, removing managerial layers and streamlining operations. At the same time, another large-scale transformation initiative, based on new digital technology, is just around the corner to improve service delivery and generate new revenue sources. Sounds familiar?

Welcome the “Always-on” Transformation Era!

You blink, and everything is different and new again. New competitors, new technologies, new emerging leaders, new ways to motivate your talents. Take the example of Nubank’s valuation we’ve seen the last week. In last than eight years, Itaú, Banco do Brasil, Bradesco and others have seen a small well lead startup becoming one of the most fascinating new class of bank, generating not only value to its shareholders but to its customers and to the ecosystem.

Unprecedented disruption and market volatility challenge existing business models and practices across practically all industries, pushing businesses to initiate increasingly frequent transformations in response to globalization, technology innovation, changing regulations, and other causes.

Companies that survive and thrive in the age of continuous transformation focus on some particular imperatives which we will talk about in this article. The most important one is, of course, the quality of people you have in leadership.

Purpose and Vision

The majority of reforms are geared toward achieving financial or operational objectives. While such goals are fundamental—and inspiring to the board, investors, and senior management—most employees find them to be lackluster motivators. Employees must buy into a transformation if its aims are linked to its more profound and inspirational purpose (which transcends any given shift). Bright House, a Boston Consulting Group subsidiary that helps firms adopt a more purpose-driven culture, has discovered that when firms can clearly define and express their mission to employees, the ""why"" employees experience a sense of belonging. Employees are intrinsically compelled to go above and beyond when they believe in the mission of the firm.

All future transformations should be linked directly to a company's primary mission once it has been defined and stated. Furthermore, all employees should perceive how their contributions aid the company's success in those transformations—and therefore better serve the company's overall mission.

The following are some practical steps that businesses may take to embed a clear purpose in their transformation efforts:

• It is assuring that the company's purpose is well defined and expressed and conveys the "why" behind how it operates.
• Translating the transformation's goals and objectives into language and plans that are meaningful to individual employees (beyond making money for shareholders)
• They consistently communicate the company's objectives throughout the transformation project, from senior management down to peer-level personnel.

Happy people make the impossible happen

Companies must tackle transformation as a triathlon, not a sprint, in an environment where change is always on. Transformations are usually large-scale initiatives that require individuals to work beyond their daily responsibilities. An all-out sprint may work for the first six months. Still, tiredness will set in after that, and staff will be less able to contribute—especially because another transformation is almost certainly on the horizon.

A better approach to think about is imagining yourself as a triathlon who must swim, ride, and run. Triathletes develop the ability to pace themselves to excel in all three sports. Likewise, companies should intersperse commitments to high-demand transformation projects with time for actual recovery rather than asking people to maintain a high level of engagement all of the time. Employees will be able to engage actively in each new task assigned to them without running out of energy if the pace is set correctly. The following are some of the practical measures that businesses can use to keep their employees energized:

• Rethink your workplace model. What is the best way to get your people to be at their best?
• Invest your time in getting to know your people
• Having open and honest dialogues about resistance and how to overcome it
• Organizing activities and employee responsibilities in such a way that leads to personal development and growth
• Allowing staff to recover from time-consuming transformation activities before allocating them to the next one

Always-on leearning mode

Companies are progressively undergoing revolutions that rewire their business models, including new business models, digitization, and fundamental shifts in the roles of business units and services. As a result, businesses must constantly develop new capabilities, including processes, knowledge, skills, tools, and behaviors. Therefore, it is critical to understand how to recognize and build these competencies in every particular change.

As a result, employees in learning-oriented firms are encouraged to follow their curiosity and question traditional wisdom. They come up with innovative ideas for improving processes and finding better methods to do things. This type of learning culture needs an recognition system to floorish new ideas. Some will fail and that failure is an unavoidable element of growth.

A corporation wanting to improve its innovation capabilities, for example, may require more outstanding qualifications in primary research, product development, evaluating the market potential of new ideas, developing a business case, and bringing new goods to market rapidly. The organization will need to increase its understanding of changes in client behavior to develop these capabilities. In addition, it might need to improve its rapid prototyping and design-to-value methodology skills. At the employee level, essential adjustments could include redefining roles, improving performance management, and rethinking recruiting methods and approaches to training, coaching, and development.

To develop critical competencies, businesses can take the following practical steps:

• We are interviewing experts and researching competitors to determine which capabilities are essential to the transformation'stransformation's success.
• Understanding the underlying reasons for capability gaps, which include both behavioral and technical concerns
• We create plans to close capability gaps and allocate the appropriate resources, which usually entails a mixture of process adjustments, updated skills, new tools, and activities to reinforce new ways of working.
• He chooses when to grow these capabilities organically vs. when to use acquisitions, partnerships, or outsourcing to accelerate the process.
• Create a culture of flexibility.

In a company environment defined by continual and widespread upheaval, the capacity to quickly change direction in reaction to market movements and enable people to adapt their working styles becomes crucial. Truly agile organizations don'tdon't merely accept change and demand speed; they embed these characteristics into their culture and working practices.

Agile or Die

Excessive levels of administration and bureaucracy are a problem for agile businesses. Employees must have a high level of autonomy and are trusted to tackle numerous issues without direct supervision. They can quickly adapt to different work environments and take on new jobs and responsibilities. They are quick to pick up further information, knowing that another shift is almost indeed on the way. Furthermore, agile businesses foster experimentation and are unafraid of the unknown. These companies'companies' executives encourage risk-taking, but they do not penalize failure (only the failure to experiment).

Firms may increase their agility by implementing some of the adjustments listed below, which we've seen in practice while assisting companies with transformations:

• Getting rid of bureaucracy through decreasing layers of the organization, simplifying rules and procedures, and identifying and eliminating non-essential activity
• Hiring and promoting individuals that enjoy working in dynamic environments, as well as taking the effort to instill this mindset in other personnel
• Employees who effectively adjust to new jobs and habits should be publicly recognized.
• Creating mobility programs to assist employees in obtaining experience in new roles and acquire new ways of thinking can better grasp how other departments work and what they need to succeed.