Introduction
When we discuss transformation, it is always useful look for successful experiences to draw upon. One of the most successful transformers is the Mimic Octopus. It survives by adapting its colour, shape and movements to appear like up to 15 different other species. It determines threats and reacts accordingly - by changing its appearance so that it looks like a predator to its own predators and, in doing so, avoids being eaten.
Before companies embark upon a major transformation it is important to ask yourselves whether or not you really possess a compelling reason to transform? The Mimic Octopus has a very real need to change – have you?
A Compelling Need
The phrase ‘burning platform’ is oft used in transformation circles to refer to a specific, compelling sense of urgency created by one or more serious business pain points. The existence of a burning platform for change empowers executive leaders to create a sweeping change strategy, resulting in a programme of transformation.
Like the Mimic Octopus, a transformation programme requires something which compels a need for change. The best piece of advice we can give anyone contemplating a transformation program is: if you do not possess an obvious burning platform then challenge whether there is a transformative need, or whether something less fundamental than transformation is required. Are you genuinely in need of an existential revolution, or will a far simpler, less risky, evolutionary process suffice?
In evaluating the situation there are four courses of action that you might choose to follow:
No change- doing nothing is always an option to consider, or discount. However, if you have a problem, it isn’t going to go away by itself; neither will an opportunity realise itself on its own
Continuous Improvement- where small, continual, increments in performance can be made within the existing operational structure. In this way, you can enhance what you do over time.
Specific changes- which can be made discretely or tactically, and do not involve a fundamental, structural change to the way you do business, nor do they require a complex transformation effort to make them happen
Business transformation- where you have a fundamental need to achieve a higher level of business performance that can only be accomplished by making structural, sustainable changes to the way that your business functions
When assessing the need, it is equally important to assess the consequence:
If we do nothing?Are we putting off the inevitable, closing our eyes to the need for change, or simply acknowledging that there is nothing compelling us to uproot our business?
If we only continuously improve?Will we be faced with a compelling event in the future but, for now, it’s ok to take small steps forward? If so, can we predict what that event will be and be proactive now rather than being reactive later; being a leader in the industry not a follower……in which case we might transform to get ahead of the game?
Make limited, specific changes?Can we generate key benefits by tackling specific products, services, solutions or operations which need improvement? Can we achieve those benefits whilst avoiding the costs and risks associated with transformational change?
Go for transformative change?Can we expect to gain major benefits from fundamentally shifting how we do business? Are we responding to a truly compelling set of drivers that make fundamental change a necessity, or even inevitable? Are the high costs and risks of transformative change worth it to reap the rewards of the resulting, improved business model we will produce?
Before taking the plunge into a transformation, like the Mimic Octopus, we must be confident that the need exists and the benefits of embarking upon root and branch change outweighs the costs and risks associated with its achievement.
The Double-take
A burning platform implies either (a) an urgent, important, fundamental or potentially existential, clear and present danger to the function, enterprise, or (b) a business opportunity that is simply too good to miss. Do your checks and balances equate to a need for transformative change? Some examples could be:
The competition is ahead, and we need to catch-up and overtake
The business environment is changing. Legislation, regulation or the competitive environment is moving in a way that we have no choice but to respond
Customers are deserting us in favour of different or more attractive options, putting us at risk
Customers behaviours are changing and their expectations of our business are increasing. We need to address these expectations and to reach customers in new ways to keep them engaged
The market is demanding product or service expansion and variation, so we need to move rapidly to devise and provide them
We need a new way to serve our customers, to retain or grow their loyalty to our brand and our products and services
Business performance is suffering, and we need to attack fundamentals in order to drive growth, control costs and maintain profitability, or improve competitiveness
We need to acquire or divest to create a shift in what our business does and how it does it
When the drivers of transformation are clear, ask two final fundamental questions before you rush heading into a costly, time-consuming journey:
If this were my money?The investors and shareholders of your company are looking for you to maximise their returns - isthistransformation truly the way to do that?
Have we manufactured the case for change?It can become a subconscious effort to pursue a business case for transformational change that doesn’t truly makes sense. People are swept along by what seemed like a great idea a few months ago but, over time, looks less relevant. Business cases rarely say that you shouldn’t undertake the initiative they propose – so, kick the tyres and weigh up the case for transformation against the wider portfolio of initiatives your organization needs to do
Tip: it is rare that you create a burning platform. It is something which exists and to which you must respond, so do a double-take and make sure that the business case reflects a compelling business need.
Articulating the Drivers of Change
People typically see through a thin argument for change quickly and easily. Business change is difficult enough without building a ready-made bank of resistance by instigating change based on a false or weak premise. An ability to articulate clearly the drivers of change will help you convince people to help you deliver successful transformation and an improved business model.
When communicating the need for change it is imperative to make clear the consequences of doing nothing. It may be the case that doing nothing leads to an undesirable end state. As most people feel threatened by change, primarily due to the fear of its consequences, demonstrating that the alternative may be worse for them than the outcome of a transformation, people will understand and accept your need to act. Being transparent with your communications can generate buy-in, create a sense of urgency, and gain widespread support for your analysis of the change drivers and the transformation journey required.
Tip: the compelling nature of the need to transform should be self-evident in the power of your argument to transform.
Conclusion
Have you decided that the appropriate response to the situation you face is a business transformation? If so, it is time to create a compelling transformation vision, strategy, operating model, customer proposition and strategic transformation road map.
To do this successfully, imagine for a moment that you are the Mimic Octopus, changing in a way which will mitigate threats or seize opportunities. By taking on board inputs from your team and wider stakeholder community you can develop a burning platform and a series of positive actions, helping your transformation programme generate buy-in and active participation. The results will set the tone, vision and road map for transformation – articulating the results the business needs to generate, bringing people along on the journey.
In conclusion, to be confident that business transformation is the right course of action:
Be clear that you possess a burning platform
Articulate and convince people about the compelling reasons for change
Build a strong case that demonstrates transformation is the right course of action – don’t force or manufacture it
Get everyone on board for what will be a long, costly, complex but ultimately worthwhile journey
Contact Claverton
To find out about how Claverton can help you with initiating and resourcing your business transformation projects or discuss the skills required to successfully deliver transformation success, contact Claverton via www.claverton.co.uk or call us to talk to one of our highly experience transformation advisors.
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