Business transformation: making fundamental changes in your organisation

Business transformation is an inevitable process which every organisation goes through a number of times. Transformation of an organisation is usually driven by the need to grow, scale its operations and maximise productivity. It also emanates from an organisation's need to reset, realign or even restart some or all aspects of the organisation. Business transformation can be brought on by factors such as responding to economic, social and environmental factors, legislation, competition or simply a need to review and realign the strategy. Regardless of the drivers, every organisation needs to constantly transform in order to grow, maximise productivity, remain relevant and competitive. 

The need for business transformation

As the world changes due to factors such as global pandemics and digitisation, organisations find themselves faced with a ongoing challenge to transform. No organisation can afford to remain stagnant when the world around it is changing. We have seen from various disruptions that organisations need to constantly ensure that their strategies, operating models and technologies are future-fit, but also agile enough to change direction when needed. ​

​No organisation can ​afford to remain stagnant when
everything else is changing.  

​"Change before you have to" - This quote by Jack Welch clearly emphasises the need for organisations to transform and adapt to changes happening around them before they are forced to. It is when organisations make a deliberate effort to redefine, realign and even restart some of their strategies and operations that they can rapidly respond to disruptions and opportunities in the market. For organisations to thrive and remain relevant, the ability to transform becomes critical. 

In initiating transformation, there are various areas that organisations can take into consideration. At the core of a business transformation is the business strategy, as it defines the direction an organisation will take and the goals set to achieve the strategy. However a clearly defined strategy without proper implementation will not move the organisation forward. Enabling and implementing the strategy requires a focus on the people - those  entrusted with the effective execution of the strategy. Another driving factor is the organisation's level of agility, as it defines how rapidly an organisation can adapt and respond to change. ​

Key Considerations for a Business Transformation

Business Strategy 

​A well defined strategy is critical to an organisation's success, growth and sustainability. Equally important is the organisation's ability to effectively implement the strategy. If an organisation's strategy is to be more than just a future outlook, it needs to be effectively implemented, the goals and initiatives to implement the strategy must be clearly defined and cascaded to all levels of the organisation. 

Also critical in transforming an organisation, is a frequent review of the business strategy. This is necessary  for organisations to create new value creating opportunities, optimise operating models and ensure alignment across all functions of the organisation. An additional consideration is that a turnaround strategy also needs to be in place, should the initial strategy not be effective in yielding the desired results.  ​

Workforce Strategy 

Another critical component of a business transformation is ensuring organisations have a clear workforce strategy that will support the holistic and value creation strategy of the the organisation. A workforce strategy has many facets to it, and is a challenge to get right. An organisation can however apply various strategies to ensure that their workforce fully buy into the strategy, that they are aligned and are clear on their contribution towards the strategy.

• Organisations need to make a deliberate and proactive effort to upskill and develop their talent. With organisations operating in a fast paced, changing world, an upskilled workforce enables the organisation to grow, to remain competitive and relevant. In any organisation, managers are pivotal in ensuring that those they manage are well aligned and clear on the strategic goals of the organisation. These managers need to be continually developed to ensure that they stay abreast of the latest trends and market influences but most importantly that they are able to effectively manage their teams to adapt quickly to the transforming organisation.  

In any organisation, managers are pivotal in ensuring that those they manage are well aligned and clear on the strategic goals of the organisation. 

• The environment in which people work matters. It impacts on their engagement, collaboration efforts and their productivity and performance. The Covid-19 pandemic showed us that organisations who quickly decided to put suitable working models in place were able to navigate the disruption brought on by the pandemic. At a time when most could not work from the office, plans were initiated by organisations to enable their workforce to continue to function. Most organisations are now finding themselves evaluating what the future model looks like, whether it is fully back to the office, fully remote or hybrid. Whichever way, careful evaluation needs to be done by the organisation to ensure that the model it implements supports its transformation strategy. 

• In defining or reviewing a workforce strategy, organisations need to embed critical behaviours needed to shape the growth culture. This certainly needs a culture definition, one that fosters diversity, equity and inclusion. It is when an organisation's workforce know that the culture embraces and celebrates their uniqueness that they thrive. It is when organisations embrace diversity, uniqueness, when they champion fairness and equality that they thrive. 

Embracing Agility 

An organisation's ability to transformation lies in its agility. An organisation's agility defines how rapidly an organisation can adapt and respond to change. Change comes in many forms, it can be as a result of external factors such as global pandemics, natural disasters, legislation or competition. It can result from inside the organisation due to a need to streamline operations, cut costs, re-align the strategy etc. Whatever the causes, for organisations to thrive, they need the ability to respond to these factors rapidly and effectively. 

​There are many barriers to agility such as culture, lack of clarity, customer isolated strategies, and a lack of collaborations. The cited barriers touch on key factors that are critical to the success of every organisation. A risk-averse or rigid organisation is most likely to be slow at taking advantage of market opportunities, thus losing out to the competition. A lack of clarity across all functions of the organisation results in major misalignments and members of the organisation working on non-strategic, value creating initiatives. Organisations can no longer afford to embark on customer isolated strategies. With customer demands changing, and customers using digital platforms to actively communicate their expectations, organisations cannot afford to ignore the voices of their customers.

Business transformation is all about making fundamental changes to your organisation to ensure it is fit for growth. It is when organisations see a need to reset, realign or restart whenever needed. 

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