It's transform or wither in today's business environment. Forward-thinking executives continuously monitor strategic catalysts, identify business and operating model changes and embed these changes in the organization through a focused holistic execution process.
It’s transform or wither in today’s business environment, with multiple transformation triggers – including technology, regulatory and globalization shifts – 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 point to the importance of the right aligned corporate culture, business design, organizational structure, process, technology and information architecture and the application of metrics in business transformation and their correlation with results.
Execution is the hardest part of transformation. More than half of companies undertaking transformation fail to achieve the desired business result, according to KPMG analysis. A formal process that spans from strategy to execution is critical for success. In addition, the process should not be viewed as a one-time event that is triggered through seismic activity but rather a continuous program that monitors strategic catalysts, identifies business and operating model changes and embeds these changes in the organization through a focused holistic execution process.
The biggest challenge to transformation may be a leader wedded to a past or current success. Executives cannot lull themselves into complacency based on the present revenue stream, but must keep transforming for the future.
Top-down corporate cultures are better suited for business transformations than overly decentralized companies. The transformation process has to be carefully aligned with corporate culture at the outset. Leadership and engagement are essential to manage the change associated with business transformation. As part of an overall change management program, stakeholder involvement should be actively managed throughout all levels of the organization.
Silos are an impediment to business transformation. If the silos have power over whether to accept a change, they may hamper a transformation that would be good for the enterprise as a whole. To prevent silos, consider encouraging collaboration among different functions within one unit. For example, deploy IT professionals within non-IT departments.
Establishing a formal process is correlated with being active in transformation. That process should include metrics set up at the start of business transformation. The most effective metrics are outcome-based, not process-based. Key to a transformation program is value-centric approach that defines enterprise value at the onset and provides visibility into value capture as part of the transformation strategy development through execution.