Business Transformation takes time

Years of research shows consistently that 70 % of business transformation fail, ergo is it only 30% who succeed. When the failing rate is as high as 70 %, an organizational whether it is private or public needs a proven strategy to beat the odds.

For my part, I have always sought support in evidence-based research and academic models. I believe that leaders both in business and in the public sector must a greater extent become better at seeking support for all their transformation processes in evidence-based research and academia. In addition, I would say that cross‐industry experience is underrated when it comes to leading business transformations. One of the main reasons of the high failure rate is lack of employee communication, engagement, and alignment with the new goals.

Business Transformation is all about:

Identifying techniques, new processes, and technologies that aren’t being used to their maximum capacity. It requires understanding how alternate solutions can be applied to further gain market share, increase revenue and customer satisfaction, or reduce operating costs. Both private and public organizations undertake business transformations to create additional value. This may mean unlocking the potential of employees, harnessing intellectual property and proprietary technology for additional purposes, or becoming more efficient to maximize the company’s potential.

It is very important for organizations to focus on the main business capabilities that have a direct impact on how successful business transformation will be. Only a small number of total capabilities play a critical role in helping the organization find new ways to differentiate, gain a competitive advantage and compete. Focusing on those critical capabilities can help deliver greater value and help the organization realize its business transformation ambition.

Vision. The purpose of a capability, how it will operate, and what value it will deliver. The Vision is derived directly from—and supports—the company’s strategy. The vision is the leading star for the organization.

Insights. The decision flow, information, and analytics drive informed and timely decision-making.

Integration. Clear roles, decision rights, and policies that facilitate integration within and across other capabilities, functions, and partnerships.

Processes. An integrated and efficient set of processes designed to achieve the desired outcomes.

Technology. Are only the tools required to enable the capability?

Talent. The competencies, skills, talent infrastructure, and workforce planning enable an optimal talent base to execute the capability. This broader viewpoint allows organizations to frame and link execution to the value defined in the transformation ambition.

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One of the most important drivers of a successful business transformation strategy is employee engagement. Therefore, one need to focus on the following parameters:

1. You need to evaluate the existing business situation

Before going into a business transformation project to tackle challenges, one need a clear view of how extensive those challenges really are. Depending on the scope of the business transformation project, it may be necessary to evaluate all the current workflows, procedures, policies, and practices used by the various functions, business units, divisions, or departments one looking to transform.

Only after one have a clear picture of the organizations current processes and bottlenecks, one can better understand how new technologies and processes can eliminate the biggest business challenges.

2. Need to get the middle management buy-in

Because of their complexity and the resources needed, business transformation initiatives need buy-in from middle management. Because the middle management plays a pivotal role in defining the company culture, core values, and goals, it is crucial to prove the long-term benefits of the business transformation.

3. Need to get employees’ buy-in

After one get the middle management buy-in, the next crucial step is to get the employees’ buy-in. For employees to collaborate in the process and align with the business goals, they need to understand the benefits of the business transformation efforts. Employees need to understand why those changes are good for them and for the business. Only then one can expect employees to work towards the same goals. Proper internal communication is extremely important here. Employees need to feel informed and aware of how the changes will influence their jobs and lives.

4. Build an efficient change management team

Business transformation means changes within the organization. Therefore, effective change management is crucial during these projects.

5. Engage all employees in daily conversations and invite them to come with suggestion to improvements

For business transformation to succeed, employees need to understand what is going on in the organization before, during, and after the changes are being implemented. The best way to do so is by engaging your whole workplace in daily company conversations. This means creating dialogues and two-way conversations where employees can freely express themselves and share their thoughts.

6. Digital technologies are only a tool need to be communicated clearly

Digital technologies require human intelligence—and enthusiasm—to be used effectively. Without informed and engaged employees across the organization and a long-term digital roadmap built on supporting company vision and ambitions, the digital transformation will fail. Therefore, from its inception, any business transformation project needs to be founded on clear and constant communication at all levels in the organization. Efficient communication ensures everyone is in the loop and it helps employees understand their specific roles and the availability of resources to help them achieve their goals. In addition, continuous communication helps build a spirit of collaboration, encourages employees’ voice, and ensures everyone has the information they need to address any frustrations, roadblocks, or other challenges that may occur. Therefore, clear communication is critical during business transformation.

7. Set clear short and long-term goals

Setting clear goals and communicating them to the employees is very important during business transformation. Employees need to understand the goals they are supposed to achieve and how they're going to achieve them. Set smaller short-term goals to motivate your employees, and a few long-term goals or milestones to celebrate with the whole organization.

8. Foster a sense of urgency is crucial

Without a sense of urgency, it is hard to motivate and engage employees and other stakeholders to act and participate in the transformation process. Therefore, for business transformation projects to get implemented, senior leaders should foster a sense of urgency for making those changes. This is the practice where good leadership communication is crucial.

9. Eliminate fear in the workplace

Business transformation efforts within organizations can develop emotions of uncertainty and fear. This may cause employees to take their frustrations out on each other. Here, internal communicators and managers have the responsibility to overcome difficulties and resolve conflicts. Research shows that only 38% of people like to leave their comfort zone. The other 62%, however, are not comfortable with changes.

10. Enable cross-departmental collaboration

Business transformation is the process in which many different departments contribute and, therefore, they must be able to collaborate and communicate with ease. ?Therefore, company, and interdepartmental communication must become a priority.

11. Be agile and encourage new ideas

Organizations that are not agile are almost destined to fail in their business transformation efforts. ?Companies that are most advanced in their transformation efforts managed to turn their company culture into an internal accelerator of innovation and transformation.

12. Close the skill gap in the organization

Closing the skill gap before and during business transformation efforts is something that most organizations struggle with. Therefore, investment in people and new skill development is crucial for business transformation.

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