Transformation Vs Change

It's going to become increasingly difficult for many companies to survive long after the Covid-19 crisis. But for the best leaders, the decade ahead will become another roaring twenties era, which a hundred years ago, was a decade filled with incredible economic growth and prosperity. It was a period of dramatic social, political and economic shifts, and the spirit of the roaring twenties was marked by a break with tradition. And here we are again - a century on - waving goodbye to what worked well in the past and welcoming disruption in almost every industry. Instead of just trying to do what you've done in the past, learn how to reinvent your business models. Get more strategic about how you take advantage of the digital economy. Of the opportunities on offer, the threats you face, the strengths you can capitalise on, and the weaknesses you need to address. Get clear about the outcomes you want from transformation. Understand the difference between transformation and change and the type of operating model you need to thrive.

Digital Use Cases

Digital use cases describe how to reach a particular goal of enhancing a particular digital capability. You simply apply one or multiple technologies to realise a specifically defined set of benefits. To start creating digital use cases that could generate new value for the business, create a 2 x 2 matrix and populate it as follows. 1) Solution Description - a high-level description of your solution and the possible technologies that might be used to develop it. 2) Current Situation – what your solution could change along with any of the problems it could remove. 3) Value Proposition - the value that either the business, people or customers would enjoy as a result of this digital use case solution being implemented. 4) Business Benefits - the various business benefits you expect to realise as a result of the solution being implemented. This is a basic template to get going. Remember that new technology alone typically won’t generate any financial gains for your business. But the new processes that the technology enables could.

Digital Economy Capabilities

Leaders need the right people to help them define and deliver winning strategies by harnessing the power of the digital economy. It's about having a clear vision of what their business should look like in the future and acquiring the right people, tools and technologies to make that vision become a reality. It’s clear that some leaders need new people who think differently and have new capabilities. Because their initiatives have so far achieved little if anything more than small change. Which is a world away from legitimate transformation. From the impact on customer experience to enhanced productivity in operations and improvement in the way people collaborate, there are so many opportunities for leaders to take advantage of new technologies. Leaders need people who can facilitate discovery workshops, review technology and business systems, identify untapped digital opportunities, develop strategic transformation roadmaps and orchestrate transformation.

Customer Centric Transformation

Customer Centricity is one of six capabilities in Building Block 1 of the Digital Capability Framework. It's the capability of focusing on the most valuable customers by using modern technologies. This helps organisations achieve a strategic advantage and better long-term profits – by aligning its products and services with the needs and desires of the right customers. You can kick off the customer conversation with the senior leadership team with these five questions: 1) How will we be able to ensure our customers achieve huge value from what they buy from us? 2) Do we have any antiquated offerings that no longer provide customers with incredible value? 3) How can we capitalise on the value realised by our customers? 4) What’s the current maturity level of our customer centricity capability? 5) What can we do to improve on that maturity level? What other questions would you suggest to ensure digital transformation is customer-centric? What other questions would you suggest to ensure digital transformation is customer-centric?

Holistic Business Transformation

You’ll often find at least one of the following are poorly managed or undertaken in silos. Meta Mgmt. - integrating the transformation lifecycle, management disciplines and leadership. Strategy Mgmt. - goal setting, analysis, strategy formation and implementation. Value Mgmt. - managing the value of an investment throughout the full lifecycle. Risk Mgmt. - providing guidance to the planning, development and execution of a transformation. Business Process Mgmt. - designing new processes that give rise to new business practices. Transformational IT Mgmt. - designing, implementing and deploying new technology. Organisational Change Mgmt. - paying attention to the fact that people’s abilities and motivations are key drivers of success. Competence and Training Mgmt. – equipping people with the right skills to contribute to transformation and operate the company in a new state. Programme and Project Mgmt. – implementing upon strategy to achieve the expected benefits of transformation.

Chief Transformation Officer

With transformation being enterprise-wide the role of the Chief Transformation Officer (CTO) is vital for successful transformation. Often reporting into the CEO they're key to business model design, the value creation agenda, and operating model design. They help people understand the difference between transformation and change, along with the company's threats, opportunities, and response options. They take a big-picture and holistic approach to transformation and have an abundance of cognitive, emotional, political and moral intelligence. While they work closely with other members of the C-suite they also have a strong rapport with other business and functional leaders. The CTO assesses the availability and readiness of resources and they ensure capability gaps get closed sooner rather than later. They're responsible for incorporating agile ways of working to accelerate transformation along with the definition and funding of the transformation portfolio. And they ensure appropriate governance is in place.

Digital Capability Framework

The way established organisations approach transformation differs dramatically. Some take a well-orchestrated structured approach, while others make it up as they go along. For decades good practices have played a significant role for the best performing companies, but what approach is your organisation taking with digital transformation? One your entire workforce read about and understand. One tool you can use is the Digital Capability Framework, which is a strategic management toolset designed to help companies innovate and orchestrate digitally enabled business transformation. The Digital Capability Framework consists of four building blocks: 1) Digital Capabilities, 2) Digital Capability Maturity Models, 3) Digital Use Cases, 4) Digital Transformation Roadmap. Whether you use the Digital Capability Framework or anything else, if you use one common approach the entire workforce can learn about and refer to, you can help clear up the ambiguity and confusion that plagues so many established organisations.

Meta Management

To orchestrate successful transformation  that, leaders need to understand the importance of Meta management as a fundamental management discipline and success factor. Meta management is one of the nine management disciplines of the Business Transformation Management Methodology (BTM2). It integrates three business transformation pillars which are: Management Disciplines, Transformation Lifecycle, and Leadership. Here are six guidelines for successful transformation: 1) Orchestrate the individual management disciplines in an integrated and holistic manner. 2) Specify the cascade of the overall transformation goals for each management discipline. 3) Establish a transformation lifecycle such as the BTM2 4-phase lifecycle of Envision, Engage, Transform, Optimise. 4) Assign roles and involve a business transformation manager in the overall process. 5) Create commitment across all involved parties and facilitate buy-in from stakeholders and staff. 6) Facilitate an environment that embraces transformation.

The Transformation Office

Project and Programme Management Offices have existed for decades. But transformation-focused organisations have gone one step further and established Transformation Offices. The best Transformation Offices propel the company forward at a new speed and set new rules of engagement. They help executives make informed decisions with a crystal-clear data-driven view of the entire transformation landscape. They’re particularly vital to the success of The Chief Transformation Officer in everything from setting the tone of transformation to tracking threats, opportunities and business value. The Transformation Office helps individual disciplines such as data managers and programme managers technology and business process managers work in an integrated and aligned manner. It develops and maintains governance that stakeholder groups such as an International Business Transformation Council would align with, and it helps the workforce understands the organisation’s guiding principles of transformation.

Four Stages of Disruption

Many established companies go through four stages of disruption. Stage-1 is when they feel almost no impact to their business. Loss of market share is blamed on other factors such as Covid. Stage-2 is when a new industry trend becomes apparent and new business models get validated on a small scale - often by start-ups. Stage-3 is when new business models prove themselves to be superior, and established firms are forced to prioritise transformation. And some executives who hang on to old beliefs get replaced. Stage-4 is when disruption reaches a point where companies have no choice but to accept the fact that their industry has fundamentally changed. Their old business models become nothing more than nostalgia – like little rolls of Kodak 35mm film. The key is to act before you're forced to and ask questions such as ... What capabilities do we need to undergo legitimate transformation? What drives the economics of our business model? Are we victims of digital sugar coating and fake transformation?

Learn The Fine Art Of Digital Transformation

Learn The Art Of Digital Transformation

For Seasoned Managers, Leaders, and Consultants

For Seasoned Managers, Leaders, and Consultants

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