Studies and surveys show that even after the vast availability of rampant technology, resources, and data, only 30% of businesses succeed in their business transformation plan. It is because they don’t strategize well. Many companies still fail to understand the cruciality of employee communication, engagement, and alignment. And all of them combined contribute to the high transformation failure rates.
But before we dive deeper into developing a well-formed plan, let’s understand what business transformation means. Business transformation or business process transformation involves the radical alteration of the variables of the processes to meet new business goals. It includes analyzing and utilizing techniques and technology to their maximum potential to gain a higher market share and increase revenues.
Several different kinds of business transformations occur in organizations. These include management transformation, cultural transformation, information system transformation, and the most common one, digital transformation. Whichever form of business transformation a company adopts, it must follow a well-drafted and formulated plan. Some helpful tips include:
Evaluate current performance
Business evaluation is necessary for business transformation. The foremost and first thing you must do is understand the challenges you might face and strategize how to tackle each. For this purpose, you might have to evaluate everything from the procedure, policies, current workflow to various practices in different business units and divisions.
An entire business evaluation will help you gain an accurate and precise image of your organization. It will help you understand your business’s worth and how feasible a transformation would be currently. Hence, doing a thorough evaluation is critical.
It would be helpful to hire experts and experienced individuals to carry out the task, preferably someone with impressive qualifications such as a general MBA and relevant experience. Professionals possessing general MBA credentials are well-versed in managing any business function and challenge, given their vast knowledge and extensive skill set.
Ask the necessary questions
Implementing a business transformation requires understanding the need for such a change and defining focus.
Hence, while considering undergoing any transformation within your organization, ensure to address these questions:
- Is the change necessary?
- Will all people be part of this transformation? (if not, then who?)
- What will be the effect of this transformation?
- What will the business achieve from this transformation?
- Does the entire business structure require a transformation or some parts only?
If you can answer and address these questions, you are on the correct path to a successful business transformation strategy.
Convince the upper management
Upper management is usually the most hesitant, doubtful, and uncertain about a business transformation. They think it might disrupt the entire business structure and lead to unrepairable losses. However, getting approval from the C-suite executives is pivotal and mandatory. And because these individuals set company goals, objectives, and culture, it becomes even tougher to sell them an idea.
Therefore, your best bet would be to make them understand all the short and long-term benefits of the business transformation.
Explain to them how the transition will lead to higher profits, increased sales, more agility, and overall benefit to the company. It would be best to lay out some advantages specifically for the upper management. Once you successfully convince them, you can follow your plan without any obstacles. At times, these executives might even help communicate the role of business transformation by setting redefined objectives and goals in place.
Once you secure the executive buy-in, your next step must be to get the employee buy-in. Remember, your workers are the ones who will have to work with you during the entire transition. So, convincing them is as, if not more, essential as convincing the top C-suite executives.
Employees need to know why the collaborative process is vital and how it aligns with their business goals. You must also explain to employees how these changes will benefit them and the company. Tell them clearly and concisely how the work environment will evolve and become better, more inclusive, and interactive.
Effective communication is crucial to ensure employees are on-board with your transformation plan. Every employee must feel well-informed and knowledgeable about the project. And it would be reassuring and helpful if you also allowed them to give their opinions and suggestions regarding the transition.
Every plan and idea requires concise and effective leadership. Leadership allows for successful execution, effective communication, and implementation of visions and values. Appointing management for business transformation would help boost workers’ morale, motivate employees, and ensure safe access to resources. Leaders also help retrain and guide employees regarding the new and altered company culture, goals, and objectives.
However, you must hire and appoint effective management – one that can guarantee a seamless and successful transformation. Individuals with relevant project management, people management, training skills, and expertise would suffice.
Sometimes business transformation becomes necessary, but you must understand that it is not easy to implement. Many obstacles come in the way, and your job is to find reasonable solutions to combat each. These challenges might include weak sponsorship, insufficient change management practices, and integration challenges.
Likewise, communication is critical during a business transformation and is the solution to more than half of your concerns. To create a communication strategy, set short-term and long-term goals, encourage departments to collaborate, eliminate fear, and you’d be good to go.