Business Transformation: How to Effectively Carry Out the Process
The business world has always been volatile and unpredictable, compelling organizations to remain proactive and steadfast. However, in recent years there have been drastic transformations and innovations occurring in this field, altering the entire sector. Therefore, organizations must respond with vigilance to maintain their viability. One viable way to do so is by focusing on business transformation. In the contemporary business world, transformations have become a necessary strategic element for business sustainability.
One can define business transformation as crucial modifications in the overall business operations. It is a process of change that introduces a radical shift or realigns the business. This change equips your business to tackle modern-day challenges. In a survey conducted by BIE, 80% of respondents stated that they were going through a business transformation in the workplace. Around 82% of business executives said that leading and delivering change was their utmost priority.
Unfortunately, the success rate for most business transformations is significantly low. Research conducted by SMARP showed that the success rate is even less than 30%. Such a low success rate despite a large number of businesses opting for transformation is indeed alarming. The biggest reason behind its failure is a lack of planning and due diligence. Since transformation is a complex strategic process, it requires proper sequential steps with thorough planning.
This article helps you determine those steps and sketches the process of carrying out business transformation effectively.
1. Understand the current business situation
Before delving into business transformation, you must gain a clear understanding of the current industry situation. To know where to reach, you must first understand where you are. For this purpose, you must hire competent business professionals who can assist you in analyzing the market, eliminating corporate loopholes, and drafting workable strategies. Search for individuals having accredited online MBA programs credentials as they possess a thorough understanding of the overall business environment. Since eLearning allows them to experiment with the concepts learned through online programs in real-life scenarios, they can execute the change process properly.
Consequently, you can make better decisions when you’re aware of the external and internal business situations. Similarly, it’s imperative to analyze the weaknesses and strengths of your existing business model. Only then can you make decisions that will help you capitalize on your strengths and overcome your weaknesses. Otherwise, you will fall prey to the same trap, and your business transformation will result only in a loss.
2. Designate proper leadership
Business transformation is indeed a complex process that affects not only business functionalities but also your human resources. Therefore, effective leadership is of crucial importance in this entire process. It doesn’t only overlook the process to ensure its accuracy but also removes confusion among the workforce. Leadership also ensures that all the stakeholders remain on one page.
Business transformation can change people’s role, their job requirements, and their routine tasks. Employees are always resistant to change, and that’s where leadership ensures that employees welcome the change with minimum resistance. Only then can the entire change process be executed on time and with minimal hurdles.
3. Effective communication of the plan
According to a survey conducted by SMARP, 29% of employees believe poor internal communication is the reason for the failure of new transformation projects. Communication is not just crucial inside the organization but also for external stakeholders, and it consists of two essential steps. One is to effectively communicate the plans and future outlook to existing employees and the change in their roles. Second is the communication of the transformation process itself with all the relevant stakeholders.
General Electric transformed its entire organization through effective communication. And even in today’s era, they serve as an ideal example for any other organization opting for business transformation. The timely and effective communication of the entire innovation program to the whole organization landed them market competitiveness. Their LIG (Leadership, Innovation, and Growth) program focused on effectively communicating the goals to every stakeholder. So, effective communication should be an unavoidable step in your transformation process.
4. Develop necessary resources for transformation
To attain the desired change, you must possess all the necessary change agents. You must have all the resources required to ensure satisfactory implementation and completion. Therefore, you must first carefully consider all the essential resources and develop or attain them beforehand.
According to research conducted by BIE, only 42% of organizations have internal resources to execute the business transformation. It means a vast majority lacks the basic machinery required to ensure a successful business change process. Given the current disruptive business environment, it is nearly impossible for an organization to possess all the needed resources. Unavailability of these resources at the time of transformation restricts progress. Therefore, developing the resources required for change is essential for actively indulging in the process itself.
5. The right execution
Business transformation is a tenuous process and can take months or even years. When the time comes, proper execution is of utmost importance. Years of hard work and persistent effort can go to waste if the implementation phase fails. Keeping all the stakeholders engaged is an essential element of the execution process.
Leadership, respondents of the change, and the entire organization must be on the same page before implementation. The process of transformation introduces shocks into the system, which may even unearth organizational shortcomings. Smart execution is all about minimizing those shocks. Since it’s a long process, it might require some eleventh-hour changes. So, prepare to incorporate those changes to attain the most effective execution of your transformation plan.
In today’s age, organizations that maintain pace with the advancements of the business world can survive the tide. Continuous response to the evolving market needs has become an inevitable aspect for businesses. As a result, several organizations are embracing and focusing on business transformation. However, only those who approach this process with proper strategic steps, such as those mentioned above, successfully pull it off.
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