Has your transformation been superficial?

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Implementing new ways of working in organisations is incredibly challenging. So often this means transformation programs don’t go as deep as they should. To add to that, the distance between the waves of new technology is getting shorter and shorter. When you go back to when the internet was launched, then social media, mobile and now AI, each have required organisations to rethink how they do business.

The problem I’ve seen is that many organisations in their transformation journeys have added new technology and capability, but haven’t necessarily transformed how they operate at their core, leading to somewhat superficial transformations. The few who have changed how they are structured and how they operate and are set-up to adapt quickly are the ones leading the pack in today’s market.

To get some insight into this challenge I had Simon Belousoff join me on the Customer Smarts Podcast. Simon has spent the last 20 years in senior roles helping organisations like Bupa, IAG and Transport NSW with their transformation journeys.

We explored:

1.??????? Why some transformations, end up being superficial

2.??????? How to deliver a successful transformation

3.??????? 13 leadership sins of enterprise transformation

4.??????? Examples of the best transformations globally

If you would prefer to continue reading, scroll past the video for the top insights

Top Insights

1) Transformation is continual vs a one off project

The gaps between major innovations are shortening, compare the gap between the radio and television to mobile and AI. So, we’ve moved to a constant state of transformation. Which is why it’s so important to shift mindsets around transformation from a standalone project to a persistent program of change. It’s a statement of intent and helps build buy-in as there’s no hiding from it. However, if it’s done as a one off project or even worse done by an external team, then employees can wait it out until the project is over and “go back to normal”. It’s critical to set this from the start of your transformation and it helps you better prepare for the unknowns that will surface as opposed to being in a reactive state. A great example is Amazon they have constantly transformed, they now make more money from their digital services AWS than from selling books.

2) Too much reliance on tech, it’s People + machines

Too often new technology is brought in as the centrepiece of a transformation program. Expectations are high, it helps get a little uplift but nothing really changes from an operational point of view and everyone feels underwhelmed. It’s because not enough focus is placed on people. If everyone in the market has access to the same technology then people and how you operate is your strategic advantage. Technology enhances how you operate, so if you don’t addresses you core operating model as a business, not much will change.

3) High performance sport can teach us a lot about operating models

In most large organisations teams become disconnected, operating in silos competing against each other. Compare that to professional coaches who have to go amazing lengths to get their team working together optimally, to become number 1. It’s all about making sure players are connected to the mission, understand their role but most importantly understand how they need to work with their teammates. This is what’s lacking in the business world, so transformations present an opportunity to experiment and event a new game style (way of working), but too often this gets left until last or not addressed at all.

4) You can’t transform if your KPI's don’t change

People perform how they are marked. So, if you don’t change employees KPIs they wont perform any differently. Often this gets overlooked in transformation projects. For example in customer centric transformations, often you see organisations add all the latest and greatest tech and capability like voice of customer programs and customer innovation labs etc, but nothing really changes. It’s because the KPI’s are still centred around the product and structured in silos. Which is how their employees will continue to operate. If you truly want to transform how you operate you need to change how employees are marked and rewarded. It’s critical to reset KPIs to drive different behaviours and change.

5) Focussing on the customer drives better performance over the long term

Many organisations are stuck in short term cycles. Focussing on month to month, quarter to quarter numbers. They end up spending all their money in acquisition and short term tactics. It’s not sustainable. Putting the customer at the centre of transformations not only helps provide better context for why you are transforming but also helps the focus shift to drive long term change. If you treat customers well they will keep coming back, it’s pretty simple. And it’s the key to creating a sustainable business.

6) The 13 Sins of transformation

Simon talked through his 13 Sins of transformation. All of them hit home for me and if you’ve worked inside organisations on transformation projects I’m sure they will ring some bells for you too. So, it’s great to be aware of them. My top 3 were:

#1. Shiny Toy Syndrome

The mindset that if we get the latest, greatest software platform, it will solve all of our problems and do all the work for us. Of course it doesn’t, the company feels underwhelmed and then they blame the tech and repeat the cycle.

#2. Executive FOMO [Fear of Missing Out]

Rather than listening to the strategic people in your organisation who are trying to think ahead. Some execs wait until all their competitors have new tech and then make the move from behind because they fear they will miss out. Rather than focusing on what your customers need.

#3. The Silicon Valley FIFO [Fly-in, Fly-out]

This is when an exec or execs fly to one of the hot Silicon Valley companies to observe their innovative ways of working then try to bring them back to implement. The problem is, trying to embed these new ways of working into corporate culture takes more blood sweat and tears than they anticipated.

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About me

I’ve spent the last 20 years working on digital transformation and CX projects all around the globe with brands like Samsung, Virgin, Lexus, eBay, Australian Air Force as well as being Head of Brand and Digital CX at a professional football team. If you would like to get in touch or have any questions:

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