The Pillars For a Successful Business Transformation

Identifying solutions. Prioritizing execution. When talking about business transformation, people tend to look at where they are and where they want to be. What they forget is that what happens in between are the critical factors that impact their success.

You can have a good strategy. You can have a groundbreaking vision. You can also have the financial and resource means to put these plans into action. But fully understanding and managing the transformation process is the key to successful execution.

If your company is in the process of planning for 2021, or is in the middle of a current transformation program, “The Eight Pillars to a Successful Business Transformation” information below can serve as a guide to help you move from point A to point B.

Pillar #1: Gap Identification

To kick-off a transformation, you first need to identify what is lacking in an organization. This process is what I refer to as the Gap ID. It can be a performance gap, a product or market gap, a profit gap or a manpower gap.

Pillar #2: Strategy

Once you’ve identified the gaps, it’s time to jump into strategizing. This will serve as a framework to ensure that the solutions you plan to pursue is perfectly suited for your organization’s limitations, needs and goals.

Pillar #3: Strategic Initiatives

Having a strategy is only the beginning. The strategy has to segregated into to key initiatives that you can manage. These specific initiatives must align with the overall direction. They need to be digestible and manageable by the organization and can be funded individually.

Pillar #4: Benefits

Identifying the expected benefits (financial and non-financial) is critical to determining the next steps. Having clearly acticulated outcomes ensures the organization is focused on the most important initiaitives.

Pillar #5: Prioritization

Now that all strategies and action steps are identified and set, it is now time for prioritization. This will depend on a many factors including strategic necessities, financial benefits (sales increases or cost reduction), and / or operational efficiencies. Some factors might be in conflict. Regardless, it should align with both the expected benefits (financial and non-financial) and internal capabilities.

Pillar #6: Roadmap

Planning the timing of the initiatives assists with managing corporate resources and funding. It also needs to be aligned with the business priorities. The program must identify and coordinate the major initiatives steps and milestones across the organization. The result is a transformation roadmap for the whole organization. It serves as a communication tool to support management in understanding what is happening and what is coming to support short term and long term strategic planning. The Roadmap should be managed as part of overall enterprise strategy.

Pillar #7: Metrics Measurement

Plans are nothing if they are not supported by data. Having the right measurements (data) available and a timely and accurate metrics management process are a must for understanding the success of the program. This process also serves as a compass to assist with guiding resources and funding to the most important successful efforts. Actively tracking the numbers is a key component to provide visibility into the effectiveness of the strategy.

Pillar #8: Manage & Evaluate

Starting the transformation can be difficult, and actively managing the ongoing programs can be a much larger challenge. It is imperative that the company has the resources with the right skills to manage the initiatives. The business transformation office is charged with developing and managing the processes, resources and analytics of the overall program. It must also have leadership support to remove obstables that hinder its effectiveness. Transformation is not a one-time task. Constant assessment of how the company is faring is what will ensure the sustainability of the transformation’s benefits.

If you’d like a detailed explanation of each pillar, my book The Space Between Strategy and Execution: 8 Pillars to Successful Business Transformation is now available on Amazon!

It can serve as your guided journey through the process of Business Transformation, complete with overviews of the process, an in-depth analysis and discussion of the eight pillars, the common pitfalls, tips for success, journaling prompts and illustrative examples that you can apply to your own company’s reconstruction. Click here to order your copy.