What is business transformation?.
Business transformation is a term used to describe what happens when a company makes fundamental changes to how it operates, typically with the aim of enhancing both operational and financial performance. A business transformation initiative could apply to the organization as a whole or a part of it, such as a department or product line.
The big difference between business transformation efforts and other kinds of business improvements is the commitment by company leadership to a wholesale change in how something is done, as opposed to making incremental changes to a business process or product.
Companies that stay in business for decades or even generations do it by transforming themselves as the market changes. Nintendo started in 1889 making playing cards. Colgate started out selling soap and candles. Transformation is the only way to stay relevant and thrive in an ever-changing world.
Pulling off a company-wide transformation is no small feat. It takes a tremendous amount of work, commitment and tenacity from leadership and all employees. If you’re considering overhauling your company in a big, transformative way, here are steps that will help it go smoothly and lead to great results.
Step 1: Assess Your Current Situation.
The first step is to assess what you’re walking into. Where are you now, and what does the journey look like ahead
A great place to start is talking to your employees. People with boots on the ground always have better insight into what customers want, what their complaints are and what moves your industry is making. Talking to them can help you adjust and stay ahead of the curve.
Also, assess your organization’s culture. Companies are built on culture. Figure out what’s great about your culture that made your business successful in the first place, and be a good steward of those attributes during the change. You’ll need to draw on those strong values going forward.
This is the point where you’ll do a SWOT analysis as well, assessing your company’s strengths, weaknesses, opportunities, and threats. How did you get to the place where a big transformation was necessary or deemed the best path forward?
Pro tip: Most businesses find themselves scrambling to survive because they’ve lost focus on who their customers really are and what they want. Investing in market research to understand your customers and what separates them from the general market is key to making sure your transformation is on track, sustainable in the long run, and will lead to profitable growth.
Step 2: Find Your ‘Why’.
This is when you discover your “why,” which is one of the most powerful parts of the transformation process. Find the true, bigger-than-the-bottom-line reason for your company to undergo the transformation.
Your “why” should be something larger and more inspiring than just profit. It should be something that speaks to the core of the good you’re doing in the world, something that gets your employees out of bed in the morning, or another noble cause.
Whatever your “why,” think in terms of real impact, something that gives you and your team a sense of purpose and satisfaction. That’s what will keep your employees pushing forward during the transformation, even when it’s super challenging.
Step 3: Create Your ‘From Here To There’ Vision.
Now that you’ve identified your “why,” it’s time to dive deeper into the strategies and KPIs that will make it happen. This is where you define what success looks like.
Step 4: Develop The Implementation Plan.
Next comes the most time-consuming part—developing the plan for your transformation. This is a long-term process, so take your time and keep working until you’ve developed something that is both realistically implementable and effective.
Some things to consider include:
• What’s not working?
• What do you need to stop doing?
• How can you use what’s already working to your advantage?
How much money and time can you invest in your transformation?
Plan on implementing like you would train for your first marathon: one step at a time. Don’t expect to change everything all at once. Start with the lowest-hanging fruit, where you can get the greatest impact with the least effort, and work from there. Those initial wins will go a long way toward building the confidence and motivation your team needs to keep going.
Step 5: Evangelizing.
Change is hard. It’s going to take time, effort, and resilience to keep your staff on the path of transformation, and they can’t do it if they start to lose motivation. It’s up to you and the leaders within your company to evangelize on behalf of your transformation to keep motivation high throughout the process, even through the inevitable roadblocks.
Employ all of your department heads and team leads in cascading inspiration to their own teams. Lots of companies stall here because they forget that every person is motivated differently. Some people are more motivated by stories, others by spreadsheets, etc.
Without motivation, implementation will lag. Keep your people inspired to keep going with success stories, impact statements, “eyes on the prize” pep talks and more.
Transformation Is Tough But it’s Worth It
