Many business owners think business transformation is only for huge companies with many resources. This is not the case. Business transformation can benefit any company, regardless of size or industry.
In this article, we will discuss what business transformation is and the four key types of transformations. We will also provide steps to start your company's business transformation.
Business transformation is about making significant changes to how a company does business. It's about taking a hard look at what's not working and making the necessary changes to improve performance and work smarter. For some companies, this might mean completely revamping their business model and operating system or undertaking digitalisation.
For others, it might mean making more incremental changes, perhaps due to inertia from digital disruptions. But regardless of the approach, business transformation can be a powerful way to achieve significant performance improvements to build agile workflows with digital acceleration. When done right, it can help a company to better compete in today's marketplace and position itself for long-term success with better work performance and a high-performance culture.
There are a few different ways to transform your business, but the most important thing is to ensure that all of your employees are on board with the changes. Once everyone is on the same page, you can start implementing new processes and procedures.
It might take a little while to get everything up and running smoothly, but it'll be worth it in the end. Just remember, business transformation is a journey, not a destination. So don't get discouraged if things don't go perfectly at first - keep moving forward, and you'll eventually get there.
According to Harvard Business Review, there are four key types of business transformations:
Let's take a closer look at each type of business transformation.
Negotiated transformation is when a business needs to adapt its model due to external demands. Government regulations are a typical example of this. Change is usually done slowly and incrementally as the private sector is responsible for making the required changes. The stakeholders will be heavily involved in this type of transformation.
This occurs when one or more external forces bring disruptive change to the business model. An excellent example of this is the introduction of new technology. The business will need to adapt quickly to survive in the market. The business transformation will need to happen quickly and efficiently with little room for error.
Slow-motion transformation is when a business slowly starts to change its model over time. This is often done in response to changes in the marketplace or new technologies. The business managers will develop a long-term plan and make changes gradually.
Sprinted transformation is when a business needs to change quickly following internal decisions. This could be because the company has new management or a change in strategy. This kind of transformation needs buy-in from the entire staff. Otherwise, motivations may suffer. Businesses need everyone on board to bring about sweeping changes in a short period.
Now that you know the different types of business transformations, let's discuss how you can get started with business transformation for your company.
There are many steps involved in business transformation. The most important thing is to have a clear vision and project objectives of what you want to achieve. Once you have that, you can start putting together a plan and making some changes. Here are a few steps to get you started:
The first step is to develop a business transformation strategy. This will help you decide what needs to be done and how you will do it in your project pipeline. Ensure your strategy is aligned with your company's goals and objectives. It would help if you got buy-in from senior management before moving forward.
Once you have a strategy in place, you'll need to put together a leadership team. This team will be responsible for overseeing the business transformation process and making sure that it stays on track.
The next step is to appoint a project manager. This person will be responsible for coordinating all of the different aspects of the business transformation. They'll need to understand the process well and be able to keep everything on track.
Following the appointment of a project manager, develop the business transformation roadmap. For instance, this can include a cloud strategy or digital transformation roadmap. This will map out all the steps that need to be taken to complete the transformation. Make sure that you involve all of the stakeholders in this process so that everyone is on the same page.
Once you have a roadmap, you'll need to build your teams and resources. Resource or workload management tools can help you strategise in this step. This means mapping out your team's resource utilisation and resource capacity planning. Hence, putting together the right mix of people with the skills and knowledge you need for optimal project collaboration is a crucial step. You'll also need to ensure that you have the right corporate tools and systems.
The final step is to execute the business transformation plan. This includes putting all of the pieces together and making it happen. Engage your staff about the changes. Start training, building, and testing. The project manager should monitor progress, report to the stakeholders, and adjust strategy as necessary.
Business transformation is a big undertaking and will require many resources. Understanding the risks and challenges involved is essential before you start. Here are a few things to keep in mind:
Business transformation can be daunting, but it's important to remember that it's not something that can be achieved overnight.
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