Delivering Transformational Success Requires the Right Structure

As we emerge from a global crisis, more than ever companies need to ensure transformation success with so many now looking at their operational cost bases, operating models, real estate footprints, cyber and technology upgrades through to what parts of their businesses they either divest or invest in. 

By now we all understand how culture, engagement, change, communication and training are pivotal to success. However the area of weakness we need to improve on is how we spot, trap and prevent transformation failure.

This is where the Transformation Programme Board is key as it is the single point where the CEO, Chief Transformation Officer, Transformation Office and Executive Board/Committee Members intersect and guide the transformation. 

Structure is crucial here. Structure is what enables results: “If you build it, they will come.” 

To demonstrate I am not going to focus on theory, instead I am going to focus on a real programme where I delivered the Year 1 targets. 

A few of years ago I was asked to take over a complex transformation for a communications and media business based in the Caribbean that operated in more than 30 markets across the Caribbean and Pacific. The business was delivering impressive EBITDA performance but still needed to significantly reduce its operational cost base. This was particularly challenging as the cost transformation needed to be balanced with changes to the operating model, customer experience, network upgrade and digital presence.  

The transformation was less than three months into a 24-month programme and was already off track. From a starting point that had a solid plan, robust governance and a well-developed pipeline of initiatives, it quickly fell off the rails. A wave of cynicism had set in across the business and instead of talking the “how” the conversations focused on the “can’t” and instead of tracking performance the weekly TO Workstream cadence was a barrage of excuses. This was despite a detailed transformation update being given at a monthly board meeting that was showing the programme being in good order!

After a review of the Transformation Office and Workstreams, my priority was to reestablish the two-in-the-box working principle (in this context this allows one person to focus on running and the other to focus on transforming) with the Chief Executive and each Regional CEO. A key second step was to reform the CALA (Central and Latin America) and Pacific Transformation Boards. This enabled confidence to rally, colleagues on the Regional Executive Committees to realign behind the initiatives and conflicting priorities to be addressed. Following a review with the Executive Chairman, a Board Sub-Committee was formed and chaired by the Vice Chairman: this group met immediately before each Group Board meeting. 

In 11 months we achieved the following successes:

• Cost Transformation: Delivered 8% above committed target.
• Cash Booster: Through disposals, divestments and Sale & Lease we significantly outperformed the target.
• Operating Model: Implemented a lean model that reduced group headcount by over 25% while improving spans and layers.
• Digital Transformation: Implemented a new mobile application that enabled customers to pay bills, top up pre-pay accounts and access streaming services from our media business. Within six months the app achieved a market penetration of 14% across 16 Caribbean markets. 
• Finance Transformation: Upgraded Finance Platforms and implemented Shared Services Business Process Outsourced partner.
• Customer Experience: Conducted a full review through consumer insight research, modelling consumer personas and improving measurement and metrics. These enabled improvement in customer service teams, commercial offerings and Net Promoter Score. Working with external consultants we refreshed the look and feel of our stores and introduced self-serve technologies for prepay and postpay customers.

The right structures freed us up to achieve these results.

Firstly, it was creating alignment with the Chief Executive and gaining the visible support of the Board of Directors. This then enabled the two regional Executive Teams to align behind the transformation and take ownership of the initiatives in their functional area. This then allowed my role of Chief Transformation Officer to focus on the transformation strategy & architecture, support the cross-workstream integration needs, ensuring performance through detailed workstream reviews, lead a small number of complex cross-functional initiatives, and provide coaching to support in execution and delivery. What was critical to the success of the role was being hyper-alert to deviation, relentless in the pursuit of deliverables and visibly positive about the outcomes.

And one of the best outcomes of all is when people whom you respect say good things about the work you did. As one of the Regional CEOs observed after the project: “This project was across many markets and time zones. Due to Shaun’s leadership, experience and management style this project delivered on all its key objectives.”

Shaun Taylor

Executive Interim – Chief Transformation Officer & Chief Information Officer

[email protected]

+44 (0) 7812 162288