What is an operating model transformation made of?

Plenty of milestones and a bit more…

…or to put it more rightfully, I think it is a lot more considering the full depth and breadth from both an organisational and personal standpoint.?

This piece is focussing on my learnings and takeaways from a recent relatively large global finance function operating model transformation, and in particular it covers elements that I felt critical for promoting success - some of those are of such nature that I will certainly put even more emphasis on next time around.

While it may not do full justice to capture a multiyear undertaking in a few lines, I wanted to make it relatively brief and to the point. And surely it is not exhaustive, yet I would argue that the ingredients below are relevant considerations for transformational change initiatives in general.

Purpose and messaging

We are encouraged to start with WHY, and that is for a reason - having absolute clarity on purpose will pave the way for the change, and ideally purpose is something that people can embrace and even get excited about.??????

While introducing a change that is somewhat unfamiliar, or even unaccepted, you need to put a tremendous emphasis on managing the change and communication right out of the gate.

What I find somewhat challenging and worth focussing is;?

• Being concrete enough in the light of sensitive nature and impact of the programme (organisational changes), often being a balancing act, as maybe it is very little that can be said, so you better communicate that very well
• Maintaining consistency in messaging over a number of years, also recognizing that different parts of the (large) organisation are in very different stages of the journey
• Being able to articulate not only what good looks like, but also what rough looks like - that is to say, it is a winding and bumpy road from time to time, and hence you should be able to explain what transition stages you will take the organisation through before getting to the ‘end game’

It sure is a lot of repeating and repeating, and being very mindful of communicating transparently what can be communicated, also realising that it might take a very long time for change to become real.??

At the end of the day, I think we should always face it and understand that no matter how well you deliver, there are bumps on the road and it’s fair to call it out clearly and often enough - and what ultimately matters is how you address and overcome those.???

Setting the bar right and making the change digestible?

Looking at it from a more practical standpoint, how does one make the change digestible? Sometimes a full-blown transformation may be unavoidable in the sense that you need to drive a massive change in organisation, processes, technology, competencies, culture, etc. on one go across the globe.

Regardless of the starting point and delivery structure, it is easy to underestimate complexity and overestimate an organisation's execution capability, and that is a dangerous mix once the bar is being set.?

Then again, thinking small may lead to a self-fulfilling prophecy and if you line up for a global transformation in a global company, you better have enough to go with in order to avoid going back ‘out there’ repeatedly.?

For me it comes down to striking the balance between thinking ‘big enough’ and yet slicing it to manageable and executable pieces - and very importantly, not posing the organisation to a massive disruption for too long a time.?

Furthermore, you can rarely (if ever) deliver your transformation in a vacuum, meaning there’s often a range of other initiatives that you need to align with, considering sequencing and practical implications those are posing - the tricky part is that some of those may not be on the radar when you are at the drawing board, but rather those need to be addressed down the road, hopefully facilitated by an enterprise PMO capability or something of that nature.????

Measuring transformation

Closely related to the previous items, covering both WHAT we accomplish and HOW we accomplish is highly essential in terms of measuring the delivery. The ‘what’ side is a relatively easy one, it is very much about hitting your milestones timely, reaching roll-out coverage, getting systems deployed, materialising business impact, and so on. Ideally including some metrics that early on indicate whether you are on the right path or not.??

The ‘how’ component is the one that puts you in the spotlight and keeps you honest - it is about how you treat the organisation and people - and you really should go and measure it. After all, it is often impossible to hide this highly critical aspect under the rug. Furthermore, having a robust change measurement approach surely helps you to separate signals from noise.?

In this respect it’s all about listening and hearing, both in terms of daily collaboration with a vast number of people, and in terms of systematically gathering feedback and acting according to it. I find it exceptionally important to go way beyond asking how well we have managed communication (that is hugely important too) - rather it is about asking around whether the purpose and change vision are understood and credible, what is the capability for change (also considering behaviours), and how people are being treated. Sounds like a no-brainer, but in my experience this is sometimes overlooked or done in a too light fashion.

As for the tangible and quantifiable benefits, while there is often a natural tendency to focus on the direct programme delivery, it is also relevant to consider a longer term view, recognizing that some of the benefits might only be materialised over a very long period of time, going beyond the programme closure.

Starting things is easy, getting things completed is less so

Quite naturally there is often much excitement (besides a whole lot of uncertainty) in the very beginning and along the way you might lose a big portion of it, also relating to ‘stamina’ mentioned in the next chapter.

Having had the luxury of working with multiple organisations in the past, in my experience there is generally a great appreciation on getting the work done, even if the objectives have been shaped along the way and the outcome looks somewhat different than originally envisioned.????

While one should acknowledge and celebrate the closing of any big transformation chapter, it may not mean you are done, in fact you never are when it comes to functional operating model change, be it ways of organising, processes, technology, etc. - so very often the story continues in some shapes and forms, yet there is a point in time once the transformation programme is no longer required and it really comes down to identifying it and calling it a day in this respect.

Mindset, stamina and ‘shoulds’ & ‘coulds’?

Lastly, but very importantly, it all comes down to having that drive, having the ‘spark in your eyes’, as I like to say. This is represented by being mindful of what has taken place, but being much more geared to seeing every day as an opportunity to move ahead and do more. And this is not to say you should not celebrate little wins along the way, you certainly should do that.????????

Undoubtedly it is sometimes challenging to effectively maintain programme governance over a very long period of time, managing and steering the efforts by the ‘playbook’ - day in, day out. While it may sound trivial, in reality I think it requires quite some stamina at personal and organisational levels to undertake a systematic effort over an extended period of time, sometimes multiple years of delivery.??????

Especially when you are on a longer path, it is easy to start questioning the purpose and rationale behind the change. You can argue that we would be better off by doing something else, or doing nothing at all and maintaining the status quo. In reality, however, it is the one and only road that we go down to, and one should keep in mind that the road not chosen and travelled may not be any smoother…

Closing thoughts

So how does one manage all of the challenge and complexity laid out in the points above - I believe it comes down to both applying your personal transformation ‘playbook’ and at the same time experiencing and ‘inhaling’ the transformation at hand, being able to react and play by ear whenever needed.?

That is to say, while it’s essential to have a very systematic and structured approach, you also often need to adapt and manoeuvre in unforeseen ways.?????

Looking at any transformation retrospectively, surely there are things one could have done in a different and perhaps better fashion - and in this context one can always improve, arguably without an exception. Thereby one should consider major corporate transformations as personal transformations as well, and tap into that opportunity - it may be tough, but certainly it is massively rewarding also.???