B U S I N E S S T R A N S F O R M A T I O N A N D E X E C U T I V E S E A R C H
Crisis Management - Business Transformation Responses
If a crisis hits an organisation, its transformation programmes face the threat of disruption as priorities change and perceptions shift. When a crisis like COVID-19 affects the whole world, then it’s no consolation to know that everyone else is in the same boat. As a transformation leader, your ability to navigate a business transformation programme through difficult times and constant change in order to arrive safely into port will be critical.
The environment in which our transformations started has clearly now changed significantly and possibly permanently. With this in mind, we recommend a 4-step approach as an initial response strategy:
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Step 1: Acknowledge the problems (Recognition)
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Step 2: Understand the nature of the problems and how these are likely to have changed (Cognition)
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Step 3: Redefine what now constitutes success for stakeholders (Perception)
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Step 4: Accept that we still need to deliver (Action)
The first two steps are crucial – many of the organisations we talk to are wrestling with thematic transformation challenges presented by these unique circumstances and are taking a step back in order to evaluate the best course of action. The most common of these challenges are:
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Executive focus has shifted
The need to shore up business performance, product manufacture and supply, customer service and simply survive is overwhelming many businesses; business-as-usual is everything and large change programmes are now deemed a luxury. Executive sponsors’ focus has shifted away from changing the business to running the business.
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Businesses are losing key staff
Whether by choice or necessity, many organisations have furloughed key staff and had to let some people go entirely. In some cases, organisations have accepted that they will not be getting these people back any time soon. The result is increased competition for the remaining scarce resources, with many projects seeking access to the same, key, people
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Demotivated retained staff
Other staff issues include leading people who are demotivated due to project delays, a lack of access to key skills, work overload, etc. Some people are also feeling tense or insecure due the threat to their personal well-being and that of their families and need sensitive, understanding management.
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The transformation vision has been compromised
An unwelcome side-effect of a shift in executive focus is that the actions businesses are taking to survive are leading to compromises in transformation vision. In some cases, cuts are being made tactically, undermining the original strategic intent; in others, the shape of the business is changing in unpredictable ways, requiring adjustments to the vision in response
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Teams are losing momentum
Offices, colocation plans, and shared working spaces have ceased to be viable options right now. With people having to get used to remote working, teams being cut back, and only essential services being maintained, it is natural that transformation teams are slowing down and must find new ways to work effectively.
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Plans are being destroyed
With the factors already mentioned intertwining, many organisations' priorities are up in the air. Some transformation programmes will miss key deadlines, other competing priorities may lead to some programme being delayed still further, and some initiatives are being cancelled altogether. For those which continuing, almost none have plans which remain intact with more time being lost to ensure comprehensive re-planning and risk management takes place.
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Business cases are under pressure
As budgets are being cut there is always the temptation to try and complete projects for a fraction of the original cost. However, the danger inherent in this approach is that you lose the bulk of the benefits and though you finish something, it no longer adds significant value. If the business case is no longer viable, it is better to kill off the project and wait to start a new or different initiative and realise the full benefits later.
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Suppliers are struggling to meet commitments
Transformation programmes often rely upon a diverse network of suppliers. If even one of these experience difficulties, the knock-on into other suppliers, resources, deadlines and the objectives of the programme can be severe. Companies are currently facing a situation where multiple suppliers are hitting problems at the same time, resulting in a contagion effect.
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We all face continued uncertainty
The one thing business and transformation leaders hate most is uncertainty and, right now, uncertainty is the new normal. Planning a transformation, and implementing those plans is a very real challenge so it is important to retain a high level of pragmatism – if your transformation strategy is sound, and your objectives worthwhile they will still be worth achieving, albeit sometime later than you had imagined.
Solutions – The Good News
The first piece of good news is that a strong transformation strategy is unlikely to be undermined in a crisis – it will remain strong whether you carry on, slow down, or pause. A second positive is that you can learn from global organisations who transform themselves with remote teams, competing priorities and staffing pressures, all the time whilst under constant pressure.
In order to ensure your transformation implements successfully in the face of adversity, here are some tips about how serial global transformers make it work:
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Realign your transformation portfolio – to achieve the right mix of strategic and tactical initiatives, all change projects should be re-evaluated in response to COVID-19.
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Any projects with regulatory or compliance deadlines which governments or regulators are not relaxing must be given priority
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Priority should be given to those projects which:
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Form a critical part of your organisation’s COVID-19 response
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Deliver value quickly and are nearing the end of their implementation life cycle, or a key, valuable stage end
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Are strategically significant irrespective of other circumstances
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Projects should be deferred where they:
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Do not have access to resources in order to complete them right now
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Are not highly ranked in terms of ROI
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Create clashes of resources or releases with other, higher impact projects
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Think Global – many of the challenges encountered by transformations are those faced every day by global projects. While it remains impossible for teams to meet up face-to-face there are several strategies you can employ to deliver effectively:
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If there are different working hours and locations for different people, these collaboration tools can be used to hand tasks off and keep progress moving 24 hours a day
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Teams may suffer an initial productivity dip while they get used to new tools and work methods, but there is clear advantage in harnessing technology to boost performance over the medium term, potentially leading to systemic improvements for the long-term
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Working remotely necessitates checking in with team members more regularly where you are not in the same office. This can be used as an opportunity to aid communication, reduce confusion and foster a strong teamworking spirit
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It is important to empower people if they are to meaningfully contribute to a transformation programme. In adverse circumstances this becomes essential - to get the right people doing the right things, and to trust them to do them. You cannot watch over people’s shoulders, nor should you attempt to – global projects understand the wastefulness of this approach and build trust, avoid micro-management, and break down management barriers
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Accepting that projects will become increasingly distributed, with remote working the temporary norm, the use of already existing collaboration tools such as phones, collaboration software, and a fast expanding portfolio of video conferencing applications can be used to alleviate much of the strain
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Re-plan
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When effective transformation programmes have to deal with the unexpected, they take a pragmatic view, streamline and then re-plan if there is no alternative. Re-planning should be seen as an opportunity to:
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Validate the strategic vision and objectives in the light of changing circumstances
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Reprioritise in recognition of areas where some specific objectives are more important than others
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Re-evaluate resources and how to assign them to tasks
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Reassess risks and plan accordingly
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In the face of continuing uncertainty, setting short-term goals within the framework of your transformation journey is a great way to maintain progress. As you achieve each mini goal, reassess then next two or three and adjust if necessary. Employing Agile programme management in this way allows even the largest of transformations to stay focused.
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Realign the team behind refreshed goals and objectives
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Re-motivating and re-energising a team are also opportunities. Large transformation programmes often drift and lose momentum merely through their complexity and longevity; kicking-off (or kick starting) a programme again can generate a new sense of highly visible energy
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When realigning a team, draw upon what has gone well so that you can build upon positives first - recognise successes and achievements to date. This helps the team realise that they possess a strong foundation upon which to build
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Emphasise that you are all in this together. In the face of adversity people have a habit of pulling together. Engage everyone to ask what further constructive contributions the team can make help mitigate the impacts of the crisis and seize any opportunities it presents
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Conclusion
Whilst everything can look bleak in a crisis, there are opportunities to be found. If your transformation programme faces disruption, it is time to embrace the temporary ‘normal’. Stepping back and reassessing your vision, objectives amid changing circumstances will allow effective reprioritisation, re-planning and risk management to take place. An opportunity to reinvigorate your transformation team should always be welcome, potentially leading to better team-working and simpler outcomes. Remote working can be seen as an opportunity - we currently have no choice but to make it work for us so, as it gains wider acceptance, we will discover that it can benefit us in the long term through increased productivity, harnessing the working methods of global projects.
If you would like to discuss crisis management with us in more detail, please get in touch by email at info@clavertonconsulting.com or call us on 0117 325 7890.