Business transformation is a complex process that requires collaboration and communication between many different departments. It involves rethinking the entire operating model and making fundamental changes to processes, technology, and people. To ensure success, organizations should take 14 key steps before and during their business transformation efforts. The first step is to recognize when it's time to take action.
The most successful transformations turn ideas into detailed business plans with trackable, time-bound metrics to measure results. Ultimately, these plans should result in value creation, cost savings, growth opportunities, and other improvements. The second step is to understand the impact of technological disruption on job creation. Research shows that 67.8% of companies say that technological disruption has had a neutral to positive effect on job creation.
Additionally, 90% of jobs are expected to require digital skills in the future. The third step is to develop a digital business transformation strategy with a strategic digital mindset. Leadership should decide how modern technology can improve the product and all aspects of the customer experience. The fourth step is to identify all areas, work processes, and systems that will be affected by the transformation.
This helps to outline subprojects, their objectives, timelines, and budget limits. It's also essential to plan how the changes will be communicated to staff and customers. The fifth step is to close the skills gap before and during business transformation efforts. This means investing in improving employee skills so they can keep up with the changing market and customer requirements.
The sixth step is to use the Modern Business Transformation (MBT) Framework. This framework takes a holistic approach and allows for incremental improvements. The seventh step is to set clear objectives and communicate them to employees throughout the transformation process. This helps ensure that everyone understands their role in achieving organizational objectives. The eighth step is to evaluate all current workflows, procedures, policies, and practices used by various functions, business units, divisions, or departments you want to transform.
This helps identify areas where changes need to be made. The ninth step is to focus on critical capabilities that can help deliver greater value and help the organization achieve its business transformation ambition. The tenth step is to create an implementation plan that takes into account the size of the company and how long it will take from strategy to execution. The eleventh step is to involve staff in the process and periodically reevaluate the implementation plan and adjust it if necessary. The twelfth step is to communicate the role of business transformation in setting and achieving organizational objectives throughout the organization. The thirteenth step is to break down the entire business model and decide what changes need to be made to processes, people, and systems. Finally, the fourteenth step is to make incremental improvements over time as market conditions change.
