Market disruptions continue to have adverse and even detrimental effects on traditional business models and, in some cases, are rendering them completely obsolete.
How an organization has historically delivered their service or product may be under extreme pressure due to:
- Feasibility of internal and external resources (supply side)
- Desirability of the service or product (demand or value proposition)
- Viability of cost structures (margin)
- Adaptability in the delivery of a service or product
- Lagging Customer Experience (Cx)
- Weak Employee Experience (Ex)
Business models that were previously highly relevant and successful may now be operating as “Playing-Not-to-Lose” (Change) versus “Playing-to-Win” (Transformation).
Change is about implementing finite initiatives either selectively or broadly across the entire organization
The focus of change is on executing a well-defined shift in the way things have been done in order to deliver a service or product. Change is created by the need to move from the way things used to be to the way they need to be now. An example might include the introduction of a new boss, a move to a work-from-home environment, or a shift in policy. Change can be small and incremental or it can be large and complex. Your current services or products may be fixed or improved while processes may be made smoother or leaner. Change is something that needs to be constantly monitored and maintained — think of all of the change management processes and procedures in an organization, every one of these processes has an owner and metrics and involves continual improvements. Adapting to change requires flexibility and a conscious effort to maintain the actions required to achieve the desired result.
Transformation can be described as another beast altogether
While almost always large and significant, transformation is an internal fundamental change in your beliefs of why you perform certain actions or do things a certain way. Unlike change, transformation does not focus on a few discrete and well-defined adjustments or shifts, but rather on a portfolio of initiatives which are interdependent or intersecting. The overall goal of transformation is not just to execute a defined change, but to fully create an entirely new business unit or completely reinvent a current one. It involves the exploration and creation of a new or highly-revised business model based on a future vision for a business unit or the entire organization.
Transformation is unpredictable, iterative, experimental and involves significant risk. While transformative initiatives require change management disciplines, leaders also have to leverage their use of a broader set of leadership capabilities, like; more flexible and dynamic coordination of resources, stronger collaboration across business unit boundaries, and leadership communication in amid uncertainty.
Transformation is as much a process of discovery and experimentation as it is execution and success, and transformation is not guaranteed no matter how effective the applied change management skills are. Transformation initiatives do, however, have a far greater chance of success if the organizational culture, values, beliefs are aligned with the objectives and goals of the initiative.
So then, why transform?
In short, the rewards can well-exceed the risk. We know that customers are more than simply a cycle of transactions and consumption of our services and products. Customers want – and even demand – experiences and relationships with your organization that assert a partnership, a relationship that addresses their head, heart and wallet, making the experience a result of well-understood mutual value exchange. Companies that are reinventing their business models with customer experience in mind are “Playing-to-Win,” and thus increasing market penetration, revenue, margins, customer satisfaction and employee satisfaction.
Transition is the process of adapting and moving successfully from what was to what is to be — the old to the new.
A transition can happen quickly or slowly, depending on the degree of change or transformation. The process of transition management involves the implementation of change through systematic planning, organizing, and implementation of change to reach the desired future state without affecting the continuity of business during the process of change. Transition management begins before an actual change occurs and the members of the executive and senior management may play various roles as transition change agents and managers in that change. During the entire process of transition, effective direct and indirect communication to stakeholders is key for organizational change and transition management to take place.
Strategy + Innovation + Execution = Transformation
Strategy is significantly more difficult to deploy than it is to develop, and the execution of strategy, time, scope, and budgets are frequently exceeded due to weak orchestration and commitment of resources to the transformation initiative. Leaders now recognize that to accept transformation not only implies innovation, but that transformation cannot happen without innovation and that innovation is accompanied by risk. With all that said, when strategy meets innovation and world-class execution the transformation initiative and outcomes become a force multiplier.
“Strategic transformation allows a company to move at the speed of opportunity itself!”
Excellerate resources are uniquely qualified to support your organizational journey for Change, Transition, or Transformation!