The essence of Business Transformation rests in achieving fundamental change throughout an organization. Transformation must be foundational, in how business is conducted, in how potential customers interact, and in confronting a shift in economic conditions.
When does an organization need Business Transformation?
The need for business transformation may be caused by external changes in the market such as an organization’s products or services being out of date, funding or income streams being changed, new regulations coming into force or market competition becoming more intense. This management approach is widely used:
- simultaneously to maintain and increase revenue or market share
- to improve customer experience
- to investigate opportunities to reduce cost
Business Transformation is realized by aligning the way staff work (including leadership), realigning how an organization is structured and transforming how technology is implemented. Typical organizations go through stages to transform themselves:
- identifying the need to change and create consensus among stakeholders that dramatic change is required
- agreement in what form the change should take, objectives for change, and a vision that illustrates a better future
- a foundational understanding where the organization is and where the direction the organization needs to change, in detail
- design the new organizational way of working and its support and management
- incorporate an Organizational Transformation plan
- testing and implementing changes, usually in waves, typically over a number of years
- imbedding changes so that the organization cannot move back to how it was, wait for change to go away, and achieve the intended benefits