The right approach for transformation starts with a clear understanding of how the transformation is supporting the strategic vision and business outcomes. This paper explores how businesses can increase their chances of success through attention to three mutually reinforcing transformation factors.
The right approach for transformation starts with a clear understanding of how the transformation is supporting the strategic vision and business outcomes. However, KPMG’s research reveals that many companies embark on business transformation only to be disappointed with the actual business results and value that the effort and investment achieves. This paper explores how businesses can increase their chances of success through attention to three mutually reinforcing transformation factors.
For a majority of companies, the approach to transformation is strategic in scope – rather than driven by a specific business function or technology implementation. Such an ambitious approach can either pay off with higher value or fail bigger. That is why the aspirational strategy guiding transformation needs to be well-conceived and well-communicated from the start. Making sure that everybody is exactly on the same page is the first step to a successful execution.
A 2015 KPMG transformation study indicates that only a third of companies consider themselves highly capable at executing complex transformation. Failure to adequately address required operating model changes is one of the chief obstacles to effective execution. If the dots are not connected on the ground, transformation won’t happen, even if everybody is clear about the value being sought. Once set in motion, if designed properly, the interlocked elements of the operating model should lead to sustainable value.
Value management is the third factor for successful transformation. Metrics are indispensable guideposts to reach the goal, yet only 14 percent of businesses currently define metrics and align them with the strategic vision and desired business outcomes before getting the effort underway. People are moved to action by the strategic vision, not tactical guideposts, and leaders are responsible for clarifying and connecting the vision behind the transformation to each aspect and person within their organization.
Explore these three transformation factors in depth and learn how executives and thought leaders drive the optimum value from transformative initiatives in their organizations.