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Business Transformation: Indispensable Choice For Leaders
The transformation involves changing the very essence of the company let us say the diversification decisions and changing the business line all together
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Transformation provides the context for every change concept or improvement initiative that will follow. Any business transformation can be carried out through three important steps namely - Proper Direction , Due diligence and development with robust delivery mechanism .These steps must be well integrated with the company's Vision , mission , purpose value and ultimately pertinent strategy .
The strategy of the company may change but vision is mostly constant. Take the example of the Car's Satnav. The final destination is the vision and the route is equivalent to strategy which can be recalibrated as per the traffic information. The due diligence must focus on appropriate structure, values & behaviors, leadership and management. The next stage is development with robust delivery mechanism .This may be done by analyzing the leadership behaviors like initiative by example and other competencies. There should be healthy flux of corporate talent renewable .A specific time frame must be assigned for the development phase as transition is a process .The delivery mechanism should involve strong HR focus with financial metrics in mind like return on investment Jargon's like 4 p's ie - Person, Purpose, Process and Product must be used to save 25 per cent of meeting time, and sharpen focus.
If we analyze the business leadership has to constantly adapt itself to reinvent for better results and meet the aspirations of exacting customers .The study suggests that 80 % of the S&P 500 will be on a slowdown or will become defunct in the next 15 years. Most of these companies will delist in the next five years. The so called the topple rate of the industry leaders from their peak will double in a generation .Software companies would dominate the world with focus on digitalization and the business leaders need to recognize that it is the time for change.
Most senior executives today say that transformation is in theirs priority list. What do they really interpret from such a notion and how do they plan and execute in their businesses. Broadly defined such paradigm shift can be categorized as the operational, the second is the business model, and the final is the strategic in nature.
Introspecting what do leaders mean if they eliminate the word transformation can bear great results.
The transformation involves changing the very essence of the company let us say the diversification decisions and changing the business line all together. Changing business line liquid to gas, gold to Lead , gadgets to consumers and from driverless cars to advertising .Wall greens from Pharmacy retailing to driverless to treating chronic illness and so on . If executed successfully it reinvigorates the growth engine of the company and enhances the brand proposition. On contrary if not executed well it is bound to pounce and the company may demise.
Defining what it means when they drop the name transformation it may measure the changes in the metrics of the company which is an instrument to track the performance of the company. For Netflix the DVD model of the business requires large warehouse and optimizing its utilization. It also involves the physical distribution costs. The streaming business model requires website uptime and the bandwidth costs which may bring down the profitability of the company. Strategic transformation changes the competitive landscape and can be reflected in the core advertising business .Google competes against other content and the technology players. It's driverless car will compete against the like of the BMW .Another case of the business transformation is the Apple competing against the like of Microsoft, IBM ad dell. Their IPOD has competed with companies like Sony and Motorola eroding up their market share.
Some of these efforts may have long term impact. Focusing on the today's better operational efforts may create equilibrium and parity integrated with best execution practices. It is the recipe for long term sustainability. Transformation can be strengthened by reinventing the core operating model .It creates future of core the businesses. The efforts may be well coordinated with the disruptive changes and the collective will to drive profound change.
Some of the key ingredients of executing best business transformation may be recapitulated as follows:
Dream is an important aspect of transformation. It provides a context for change and improvement initiatives that will follow .This achieves with so called pragmatic approach and conducts its affairs into actions and hence achieving bright future.
Trust is an important ingredient of building great businesses .The focus should be on high quality and achievable targets. Environment of high trust are resilient and well crafted. Trust provides the strength against adversity within the enterprise. It binds together people and addresses head on the problems with no place for excuses.
Strategic planning is one of the important things that company claims to be pivotal for attaining success and high growth. Most of the mistakes made during the budgeting process take place during the strategic planning .So the assumptions need to be well documented. The organizations need to be well prepared to the competitive demands of the discipline and the rigor needed to identify, organize and execute the appropriate work in an extremely sustainable manner.
It is extremely important for a workforce to be dynamic and adaptable to the changing environment .The situation can be well characterized by melding the new with the old one. The older personnel are extending their successful careers due to the financial pressures which are brought by the shrinking environment and systematic dissolution of the employer's sponsored pension plans. Couple of the emerging trends suggests next younger generation is entering the work force with new set of assumptions and aspire for better standard of living then before.
Strictly speaking the project portfolio plays an important role to administer the strategic effort to the right direction and optimum growth of the organization. The execution is made much easier as a means of the direct control and strategic initiatives ad can be used as the means of
It is extremely mandatory for an organization to be of choice. Every organization wishes to be employer of choice which would attract the best employees who can take the organization to the next level. To be of choice underpins virtually every strategic initiative and the team imagines, staff funds and executes.
Internet and mobile computing devices, and all of their related offshoots and requisite supporting substructures can have disruptive impact. Seamlessly integrating the technology is becoming ubiquitous that will one day be consumed as utility just as electricity and or the telephone services.
It is very important to Transform Your People for Success. This can be achieved through
training, measurement and reward as three pillars on which the platform for staff transformation can shaped. Each of these pillars must be well integrated and are important hence mutually supporting of the other. If one of the pillars is weak the transformation effort can tumble; if one of the pillars raises past the others the whole change process can be jeopardized leading to stagnation.
It is imperative to have extremely transparent communications for the relevant information to flow in succinct manner. The staff member of the company should be very well versed with the company values and also have the renewal strategy for embarking any new ideas that can really drive change in the organizations.
The new organizational structures may play vital role. The command and control organization model should be replaced by more fluid and greater autonomy should be given to the freedom of choice and in a way that is well managed and executed. The offshoots and obsolete business model should be replaced with the open and more dynamic one where all the employees play their part and leaders make the best decisions.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.