{"id":27713,"date":"2019-09-12T08:28:25","date_gmt":"2019-09-12T12:28:25","guid":{"rendered":"https:\/\/centricconsulting.com\/?p=27713"},"modified":"2023-01-17T10:32:31","modified_gmt":"2023-01-17T15:32:31","slug":"business-transformation-an-initiative-or-way-of-life","status":"publish","type":"post","link":"https:\/\/centricconsulting.com\/blog\/business-transformation-an-initiative-or-way-of-life\/","title":{"rendered":"Business Transformation: An\u00a0Initiative\u00a0or\u00a0Way\u00a0of\u00a0Life?"},"content":{"rendered":"
As customers, competitors and technolog<\/span>ies<\/span>\u00a0evolve at a rapid rate,<\/span>\u00a0business leaders\u00a0<\/span>must<\/span>\u00a0<\/span>be\u00a0<\/span>proactive\u00a0<\/span>to<\/span>\u00a0effectively\u00a0<\/span>address the threat of disruption and drive competitive advantage in the marketplace<\/span>.\u00a0<\/span>In fact,\u00a0<\/span>almost\u00a0<\/span>75<\/span>\u00a0percent<\/span>\u00a0of companies<\/span><\/a>\u00a0<\/span>expect<\/span>\u00a0to increase the number of\u00a0<\/span>significant\u00a0<\/span>change\u00a0<\/span>initiatives\u00a0<\/span>planned for<\/span>\u00a0the next\u00a0<\/span>three\u00a0<\/span>years<\/span>.<\/span><\/p>\n Although this may surprise some<\/span>,\u00a0<\/span>this increase is<\/span>\u00a0becoming<\/span>\u00a0the\u00a0<\/span>norm\u00a0<\/span>as\u00a0<\/span>t<\/span>he\u00a0<\/span>relentless\u00a0<\/span>pace of change\u00a0<\/span>continues to\u00a0<\/span>increase<\/span>\u00a0exponentially<\/span>.\u00a0<\/span>Hence,\u00a0<\/span>t<\/span>ransforming<\/span>\u00a0your business\u00a0<\/span>continuously\u00a0<\/span>in an agile fashion is key to success<\/span>.\u00a0<\/span>We define business agility\u00a0as\u00a0the willingness and ability to respond to changing business dynamics in a flexible, adaptive and rapid manner.<\/strong><\/p>\n Companies that\u00a0<\/span>can\u00a0<\/span>pivot quickly in transforming their business will have a significant competitive advantage<\/span>.\u00a0<\/span>Those that\u00a0<\/span>don\u2019t\u00a0<\/span>will cease to exist<\/span>.\u00a0<\/span>One recent\u00a0<\/span>survey<\/span>\u00a0<\/span>show<\/span>s<\/span>\u00a0<\/span>over 90<\/span>\u00a0percent<\/span>\u00a0of companies<\/span><\/a>\u00a0believe business agility is key to their success, but only\u00a0<\/span>10<\/span>\u00a0percent\u00a0<\/span>believe they\u00a0<\/span>meet the mark<\/span>.<\/span><\/p>\n Embarking on<\/span>\u00a0<\/span>business transformation<\/span><\/a>\u00a0<\/span>is<\/span>\u00a0a daunting effort\u00a0<\/span>in its own ri<\/span>ght<\/span>, but doing\u00a0<\/span>so<\/span>\u00a0in an agile manner is even more\u00a0<\/span>challenging<\/span>.\u00a0<\/span><\/p>\n To accomplish<\/span>\u00a0this<\/span>, companies must first understand th<\/span>e<\/span>\u00a0scale and complexity of business transformation and then understand\u00a0<\/span>how to take an agile mindset toward transformation.<\/span><\/p>\n Many companies are initiati<\/span>ng<\/span>\u00a0business transformation efforts to address\u00a0<\/span>critical\u00a0<\/span>challenges<\/span>.\u00a0<\/span>Unfortunately,\u00a0<\/span>\u201c<\/span>business transformation<\/span>\u201d<\/span>\u00a0<\/span>is now<\/span>\u00a0an overused\u00a0<\/span>term\u00a0<\/span>that means different things to different people<\/span>.<\/span><\/p>\n People widely and inconsistently use\u00a0<\/span>\u201c<\/span>t<\/span>ransformation<\/span>\u201d<\/span>\u00a0to describe varying degrees of \u201cbusiness change<\/span>.\u201d<\/span>\u00a0<\/span>This use ranges\u00a0<\/span>from tactical improvements around a given operation to the development of new business model<\/span>s<\/span>\u00a0causing broad-based industry disruption<\/span>.<\/span><\/p>\n True business transformation is complex\u00a0and\u00a0multi-faceted\u00a0and\u00a0impacts all part of your business.<\/strong><\/p>\n Hence, we<\/span>\u00a0define business transformation as\u00a0<\/span>\u201c<\/span>d<\/span>riving competitive advantage\u00a0<\/span>in the market through\u00a0<\/span>the deployment of strategic changes and performance improvements across the organization, encompassing\u00a0<\/span>strategy, process,\u00a0<\/span>people, culture<\/span>\u00a0<\/span>and technology<\/span>\u00a0<\/span>elements.<\/span>\u201d<\/span><\/p>\n Each element, as illustrated in the relationship model below, is critical on its own but collectively\u00a0<\/span>requires<\/span>\u00a0structured integrat<\/span>ion<\/span>\u00a0with others to deliver new business capabilities and achieve world<\/span>–<\/span>class performance levels<\/span>.<\/span><\/p>\n <\/a><\/p>\n <\/p>\n So<\/span>,<\/span>\u00a0how do companies\u00a0<\/span>address large<\/span>–<\/span>scale change and complexity and do so in an agile fashion?<\/span><\/p>\n Based on business transformation complexity, a thoughtful approach is required.<\/span><\/p>\n It starts with an analysis of your current<\/span>\u00a0situation and\u00a0<\/span>the business drivers impacting your business<\/span>,<\/span>\u00a0including customer, competitor,\u00a0<\/span>re<\/span>gulatory and internal pressures<\/span>.\u00a0<\/span>Essentially<\/span>, you need a 360-degree understanding of your organization\u2019s performance.<\/span><\/p>\n From there,<\/span>\u00a0you can develop<\/span>\u00a0a\u00a0<\/span>compelling vision, strategy and business architecture\u00a0<\/span>to guide the ideation, design and delivery of\u00a0<\/span>world<\/span>–<\/span>class business capabilities in an agile fashion<\/span>\u00a0<\/span>to quickly drive\u00a0<\/span>value<\/span>.\u00a0<\/span>And of course,\u00a0<\/span>you\u00a0<\/span>must\u00a0<\/span>enabl<\/span>e<\/span>\u00a0and sustain<\/span>\u00a0this change<\/span>\u00a0thr<\/span>ough<\/span>\u00a0an\u00a0<\/span>intentional focus on people, culture and change governance.<\/span><\/p>\n The graphic below defines Centric Consulting\u2019s point of view around the six key elements<\/span>\u00a0<\/span>essential to\u00a0<\/span>successful business transformation<\/span><\/a>.<\/span><\/p>\nDefining\u00a0Business Transformation<\/h2>\n
Taking an Agile<\/a> Mindset Toward Transformation<\/h2>\n