Kicking off a Business Transformation Strategy
Business transformation is an exciting, sometimes scary but very necessary reality in today’s world. Whether you're just starting to think about transforming your business or you’re already in the thick of it, there’s plenty to be aware of to make the project a success.
What is business transformation?
Businesses must grow, evolve and adapt to survive in unpredictable environments. Business transformation is the process of revitalizing an organisation to help it do this. It’s about fundamentally changing the way your business operates, across processes, technologies, people and culture, to achieve better outcomes, stay competitive and be ready to meet new challenges.
Why is business transformation so important?
Just like in every aspect of our life, being open and ready to change can be the key to unlocking new opportunities and growth. Here are a few reasons why it’s important that businesses consider a transformation every so often:
Staying relevant: When markets change, consumer expectations evolve and new competitors arise, the only thing keeping you relevant is you.
Improving efficiencies: Taking a chance on new technologies and improving processes is going to save money and time.
Innovation: Transformation can ignite innovation, leading to new products, services or business models.
Growth: It’s not just about surviving; transformation can position your business for growth, opening up new revenue and market opportunities.
The fundamentals of a business transformation framework
Understand your business goals
A solid business transformation strategy typically includes several elements but always starts with a vision. Having a clear picture of the businesses long term and short term goals and turning those goals into something measurable is a vital first step.
Understand the current state of the business
You also need a comprehensive understanding of the current state of your organisation, every little bit of it. This means examining the culture, the current operating systems, the technology you use, the financial performance and everything in between.
Outline priorities
From there, you can outline priorities. What needs the most TLC? Identify this area and figure out how you can create a new direction for these elements that merge with your business goals. This could be implementing a new technology, tool or platform that will improve efficiencies, like AI. Or it could mean reevaluating leadership, diversity, equity and inclusion and employee wellbeing.
Create a roadmap
Break down your strategy into actionable steps until you have a useful roadmap that includes individual responsibilities and deadlines. Set up some KPIs throughout your roadmap and regularly measure progress. There’s nothing wrong with changing things in response to new developments and ideas, but it’s best to do it proactively before anything irreversible happens.
How to start a business transformation
We’ve outlined what you might consider in creating a business transformation strategy, but how do you actually get the ball rolling? Well, first off, now is a really good time to implement Change & Transformation Coaching. Coaching can help you deliver a vision to your business, shape strategies with your team, create authentic connections built on trust throughout the transformation and generally be an invaluable support throughout the process.
Convince the decision-makers
Coaching will equip you with the all-round confidence you need to convince the other decision makers in your organisation that it’s time for a switch. Build a business case that champions change and shows why this change is necessary and exciting. Come into the proposal armed with a compelling story backed up by as much data and market research as you can gather. Make it clear that stagnation is a risk, and that there are many benefits to embracing transformation.
Create a dream team
Once you have buy-in from your C-Suite executives, create a cross-functional team of all-stars that can pull off the transformation. You must feel comfortable trusting the people in this team, as they’ll be making some key decisions. Change is not possible without teamwork, and learning to delegate tasks as a leader is a surefire way to help you reach your business goals quicker and help you manage stress and avoid burnout.
Involve your employees
Keep your wider workforce informed and involved in the process. Practice open communication, provide training and create regular feedback opportunities to help manage the disruption that the changes will inevitably cause.
Pilot your strategy
To reduce interruptions further, prototype your strategy in a smaller area of the business first and take away any necessary learnings to adapt and improve the roadmap. Once you’ve done this, you’ll be in a better position to scale the transformation across the entire organisation. Throughout the process, keep an eye on those KPIs you established and adjust as needed. After all, transformation is a malleable process not a one and done project.
Mistakes to avoid in a business transformation strategy
Transformation isn’t easy, and there are plenty of traps that businesses can fall into. Here are a few to watch out for:
Lack of clear vision: If you don’t know where you’re going, you’ll never get there. Make sure your vision is clear, attainable and communicated across the organisation.
Underestimating resistance: People naturally resist change. Expect it, plan for it and manage it.
Ignoring culture: You can change processes and technology, but if the culture doesn’t support the transformation, it won’t stick.
Poor communication: Transformation can fail if people don’t know what’s happening or why. Keep communication channels open and active.
Business transformation can be a mammoth undertaking, but it’s also an incredible opportunity to reposition your company for the future. Stay focused on your vision, be ready to adapt and don’t be afraid to take big and bold steps.