Evolution > Transformation

Some time ago words started holding power over us. They could even be scary, some would say. As someone whose job title includes the word transformation, ??I spend a lot of time thinking about this word and what it means. Now it’s time to put all that thinking to “paper.”?

Why is Transformation Scary?

In 2016 an HBR study suggested that more than 70% of transformation efforts fail. As a leader, responsible for the growth of an organization that feels like a pretty bad bet. Combine that with these stats from a 2021 Digital Transformation Report by Third Stage Consulting Group.?

• Mid-Size Organizations (under $1B) noted the cost of transformation between 3% - 5% of annual revenue
• 51% - 54% of organizations surveyed noted an operational disruption?

Post financial crisis of early 2000s and post pandemic - leaders of organizations are generally more risk averse than they may have been previously.?

And Oh, by the way, most of the operational disruption was related to people - and not the method, process or technology you use in your transformation.?

Leaders Lead Right??

Taking it specifically to leaders and their role in evolving the organizations they lead - before they can lead an organization through change they must first align on what needs to change.?

In legacy organizations, the leaders or leadership team may be the same people that put systems in place that are now being considered “old school” or “out of date.” They may be used to making decisions from the top down, without input from the front line.?

Leaders need to find balance between performing for TODAY and being future ready. In a 2022 HBR paper “How Leaders Can Balance the Needs to Perform and to Transform,” there are three strong suggestions of how to move forward.?

1. Carve out time for the future - Some time each day, or each week is critical. It’s too easy to be distracted by today’s problem.?
2. Get control of the situation together - As a leadership team your alignment is an important start. At your change inflection point align on what’s most important and the outcomes you’re trying to achieve.?
3. Help your team find joy - Change is hard and leaders are required to create an environment where individuals can find the energy to build sustainable change

Slices of Value?

Results from a 2020 - 2022 Transformation Check by BCG noted that value from transformations is on the decline. Organizations self-reported that they saw “73% in 2020 to 45% in 2022.” This is combined with the cost to realize value on the rise.?

Hint: We’re getting back to my agile roots now

What if instead of big hairy transformations - we prioritized small slices of value. By breaking down a longer term transformation strategy organizations can:?

• Decrease risk - with a more frequent rate of analysis?
• Capture engagement of key teams as smaller changes are often easier to understand
• Realize value sooner on higher priority items

Strong transformation capabilities are found in organizations that are aware of their environment and understand the potential for disruption. Organizations that are ready for disruption and capable of pivoting as needed will find new ways to grow and thrive, keeping them relevant.?