When you consider some of the global businesses that have seen rapid growth in the past decade, many of these are following disruptive models rely on the gig economy and turn the way we traditionally considered running a business on its head.
The brains behind these organizations are a new generation of forward-thinking, boundary-breaking entrepreneurs who don’t care about the rule book and just focus on growth and innovation. From day one, they introduced strategies for growth that can be flexible, and were savvy enough to streamline processes and prioritise technological innovations to ensure any changes could be made easily and quickly.
But, what about organizations, large corporations, public sector bodies, charities and family-owned businesses that were set up decades ago? How can they continue to remain competitive and evolve when many of their systems, processes, and culture was set in place years ago? The buzzword in business these days is “business transformation” – and by this, we don’t just mean digital improvements, it’s about changing mindsets and putting people first to affect real change.
But, what exactly does this mean and how can leaders implement?
What is Business Transformation?
Business transformation is about identifying techniques or processes that aren’t being serviced to their maximum capacity, and how alternate solutions can be applied to digitize or streamline technology, to further gain market share, increase revenue and customer satisfaction or reduce inefficient expenditure.
This strategy ensures that the absolute best processes and systems are being implemented within an organization, in order to achieve measurable improvements in efficiency, effectiveness and, of course, satisfying shareholders.
For many organizations, this is not a simple process, particularly if out-dated technological systems have been in place for decades and staff hold a mindset that fears change. Whilst leaders may need to make tough decisions relating to their business, ultimately it’s how you deal with the people that will dictate how successful a transformation is.
Why Businesses need Business Transformation in 2019?
Every business can benefit from transformation – even the cutting edge “gig economy” brands coming out of Silicon Valley. But, what about for a traditional business which may have been running for decades, with all manner of issues and stakeholders?
1. To direct the business in the way of a newly identified strategic goal
Often businesses find that they have a new strategic imperative through identifying customer or market needs, or through seeing a disrupter enter the market. To deliver on this they need to step change the business and so transformation in the organisation’s way of working as needed.
In many cases, advances in technology dictate the need for organisations to create new goals. Remember, it was only a couple of decades ago we will still typing up and printing out long documents – a whole generation had to adjust to a new online world.
Introducing new systems can create friction within areas if not executed properly. To ensure positive growth to new organisational goals, a carefully thought out people-first strategy of business transformation must be introduced.
2. To keep innovation at the forefront for the business
Our biggest and most renowned global corporates value innovation as a foundation for their strategies. Without pushing boundaries and trying new things, we wouldn’t have the amazing technology and infrastructure that we see around the world today. Imagine life without a smartphone, streaming video, or the gig economy?
Business transformation allows for businesses to continuously be looking at how to achieve better results not only for their own corporation but for the world.
3. To reduce costs where possible
It’s easy for antiquated and expensive systems to fall through the cracks of a company when transformation isn’t a priority. Businesses using outdated tech or systems could be slowing down work pace or costing more than its newer alternative. Cut costs for the future of your company by updating in the areas that can increase productivity and output. Ultimately, it should reduce staff turnover – morale will be low if the team is frustrated with slow systems that make their job more challenging than necessary. Listen to employee’s priorities, and see where business transformation can improve motivation.
Remember, cutting costs as the only strategy is not ideal; without team buy-in, it’s unlikely you will achieve real success that has longevity.
Why Business Transformation is Crucial
Business transformation isn’t just a 21st century buzzword, it’s a strategy that all CEOs globally need to embrace. Why? Because business transformation is about intent; identifying what needs to change and strategically updating from within in a focused way.
With our markets growing and expanding on a daily basis, prioritising effectiveness and efficiency in our systems and the employees who use them is absolutely paramount.
It can be daunting when reviewing systems implemented decades ago to start all over again, but if we don’t, we risk falling behind in the pack with a dwindling market share while competitors charge ahead with consistent updates and transformations.
With a business transformation plan that works effectively in your organisation, it can help drive lasting positive change in your people and their work through better leadership, strategy, and culture.
It’s important to think of business transformation as an evolving strategy – don’t implement a plan and then put it on a back burner for another decade. Take note of when your employees come to you asking for the budget to update their software or when they pitch the idea to overhaul your business processing technology.
Don’t be afraid to try something new with the possibility of altering the flow of work for the better and setting the precedent that your company is leading the way through business transformation.