It's clear that change has become the new normal for corporations. This report sheds light on the different types of transformation projects underway, the triggers behind them, and some strategic steps to take toward success.
It’s transform or wither in today’s business environment, with multiple transformation triggers creating strong pressure simultaneously. Most corporations understand this, with 93 percent of survey respondents saying that they have just completed, are planning or are in the midst of a business transformation. The research and interviews conducted during the survey point to the following lessons about the types of business transformations and understanding and addressing transformation triggers:
Getting the right strategic vision is critical. This means being able to anticipate what the customer is going to want and how best to achieve it. It also includes defining the depth and scope of the changes and the redesign of internal processes and structures. Is a major transformation necessary or will a more surgical, limited repositioning be enough? Is the current state of our organization optimal for this type of a transformation?
Execution is the hardest part of transformation. More than half of companies undertaking transformation fail to achieve the desired business result, according to some estimates. In the current complex and fast-changing business climate, organizations often underestimate the significance of operating model refinements necessary to effect Transformation across people, process, technology, data management and risk management components.
The biggest challenge to transformation may be a leader wedded to a past or current success. Executives cannot lull themselves into complacency based on a present revenue stream, but must keep transforming for the future. The transformation needs to be truly continuous, and thus never complete.
Take a broad view of customer demand when embarking on business transformation. Customers need solutions, not specific products or services. Business transformation needs to be aligned with customers’ needs – in fact, it needs to anticipate them.