When a new variable bursts into the environment that disrupts the operation of an organization, or when there are abrupt changes in the regulatory environment, the weakness of some business models and the need to intervene with timely responses becomes evident. The competitive environment that prevails in the business world today, pushes organizations to constantly question their operating model and to implement a competitive strategy with transformation processes to gain competitiveness and agility in changing markets.

Business transformation constitutes a large-scale challenge for a company, which must have the commitment of Corporate Governance, the support of all business areas and the support of Information Technology. To achieve a successful transformation, companies need to take four big steps and adopt best practices:

1. Establish the strategic vision

In principle, the company has to ask itself what it wants to be and how far it hopes to go. The answer is achieved by studying the current positioning and the demands of customers, suppliers, employees or authorities in order to define how to satisfy them. It is also necessary to identify the changes necessary to make the transformation and the critical areas to achieve the objectives.

The company must ask itself if a great transformation project is necessary, if it is the right moment and if it is a transformation that it needs now to achieve the objectives that are being pursued.

2. Execute change, a complex task

Most companies are able to achieve the correct strategic vision, but execution - a crucial phase - is usually the most difficult part:

more than fifty-percent-of-companies-fail-to-achieve-the-expected-results

According to the Transformation Survey, conducted on more than 900 companies globally by KPMG in the United States and Forbes magazine.

Organizations often underestimate the importance of establishing an operating model that achieves the necessary impact on people, processes, technology, information management, and risk management. Some of the challenges to consider include new stakeholders, such as risk and compliance executives, who have not been exposed to transformational roles in the past, but who have gained importance due to new regulatory requirements.

The task of execution falls on the organization’s ability to standardize the three transformation factors - people, processes and technology - towards a common goal, which is the company’s strategy.

3. Establish the culture of change

It is essential to establish the culture of change as a concept that facilitates the implementation of new processes and technologies, while promoting an innovative vision. It’s the way to keep moving and align with strategy. Promoting a culture of innovation will strengthen the idea that change must be assumed as a constant and absolutely necessary process, on which the survival or disappearance of the business may depend.

4. Reach the customer

How to hook a final consumer who changes consumption patterns quickly? The customer is typically the target in making the decision to implement a transformation. In organizations that sell services (banks, airlines or telephone companies, to name a few), transformation is even more important than in other industries, such as manufacturing. This is because models expire faster, there is greater exposure to a competitor adjusting the rules, and because of the great impact that the result of the transformation has on the service a customer receives.

GamdAi Media
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  Photo by Rodolfo Clix.