How to Successfully Lead Your Business Through a Transformation
Photo by Suzanne D. Williams on Unsplash
In the last decade globalization, advancements in digital technologies and artificial intelligence, and changing customer sentiment have pushed businesses to reassess how they operate. In most of those cases, businesses have concluded that they needed to transform to continue to exist.
Once the imperative for transformation has been confirmed and a desired ‘future state’ has been identified, the challenge starts with implementing the strategy. Execution of strategy is often hindered by a lack of organizational engagement, underestimating the degree of change and reluctance to adapt as the transformation progresses (McKinsey & Company).
With knowledge of these challenges, the following principles will help to successfully lead your business through a transformation.
Communicate, communicate, and communicate: The absence of information during a transformation leads to fears about job security and resistance, which impact employee morale and have a negative effect on organizational performance e.g., production efficiency, sales effectiveness and customer service. Clear and consistent communication is critical during any transformation. Share the ‘case for change’ highlighting the ‘What’s In It For Me’ (WIIFM) at the beginning of the transformation Canadian Association of Management Consultants. Commit to providing regular updates through emails and town halls to allow for questions and discussion. Ensure to celebrate the successes and recognize individual and team efforts. Equally important is to share any challenges and missteps, as this will reinforce transparency, and strengthen employee support (Forbes).
Engage Stakeholders at All Levels: Unknown or missed business requirements can result in inadequate functionality, cost overruns, inaccuracies in operational and financial reporting, and disruption to the business (CIO). This situation can occur when a transformation overlooks or overwrites customizations to IT systems, policies and procedures, that were implemented to accommodate specific business needs. This pitfall can be avoided by including stakeholders at all levels when defining the detailed changes that need to occur. Break down the changes and have an ‘open call’ for stakeholders to identify the impacts of the changes. Through a collaborative and time-bound process, stakeholders can identify the nuances and intricacies of the business.
Be Flexible on Tactics: There is no list of the unknowns during a transformation. The only certainty is that there will be unexpected changes to the implementation plan. The need for additional funding, unexpected regulatory requirements, delays to timelines, accessibility to raw materials, and scarcity of human resources are all ‘par for the course’. Response to these unknowns will require a level of agility and compromise. Build contingencies into the plan. Manage the expectations of stakeholders and be transparent that there will be unforeseen changes. The need to transform the business remains unchanged, however, the path to that destination will vary. As Jeff Bezos famously stated: “We are stubborn on vision. We are flexible on details” Inc. Magazine.
Transforming a business is a difficult endeavour. Adopting these principles can increase organizational commitment, mitigate risks of implementing change and ensure the future state is achieved, regardless of the journey.