Business transformations can take many forms and often occur at the same time. To understand what approach you should take, ask yourself two questions: 1) Is your transformation driven by internal needs or external forces? 2) Do you need to move quickly or do you have more time to transform?
Business transformations can take many forms and often occur at the same time. To understand what approach you should take, ask yourself two questions: 1) Is your transformation driven by internal needs or external forces? 2) Do you need to move quickly or do you have more time to transform?
Transformation has become a buzzword for big business. Technological developments create a need for digital transformation. Climate change creates a need for green transformation. Clashes, such as the Covid-19 or the Ukrainian war, create a need to transform the crisis.
Business transformations vary in content, pace, and place of start-up, and it’s rare that companies are only going through one at a time. Doing business today means navigating a complex landscape of interconnected and interdependent issues, each with multiple stakeholders and agendas. Therefore, organizations need to understand the different types of transformations and know how to manage them.
Based on our work on business transformations, we have developed a typology that helps clarify four types of business transformation from two dimensions: 1) Is transformation driven by internal organizational needs or external forces? and 2) What is the pace of transformation?
Slow-Motion Transformation
That’s when organizational leaders introduce a new, long-term vision for implementation. To see also : Google says it’s time to pay for longtime small business users. Cultural changes and corporate changes are typical slow motion transformations.
A recent example of a high-profile slow-motion transformation can be seen in the digital transformation efforts taking place at Maersk Line, the Danish container transport company. These ongoing efforts to provide more visibility and transparency to customer supply chains require technical, organizational, and cultural change. And despite the significant investment, which began in 2016, there is still an ongoing dialogue about the company’s strategic positioning and corporate identity: while digitization enthusiasts proclaim that Maersk Line is increasingly a technology company, other senior executives argue that it is the first and foremost container shipping company.
The managerial challenge with slow motion transformations is to stay focused on the direction and purpose of change. This requires long-term vision and patience, as well as a spirit of continuous learning and improvement throughout the transformation process.
Sprinted Transformation
These initiatives are also introduced in response to internal needs, but are characterized by an urgent challenge to the status quo. Examples of a rapid transformation include a sudden corporate restructuring or the introduction of a new strategic initiative. On the same subject : Abbott, the Governor’s Commission for Women announces the Women-Owned Business Series. They are sometimes enacted in response to management fads or new corporate fads, but when the right initiatives are put in place, it can be a very efficient and effective way to change.
An example of a recent sprinting transformation is the evolution of Facebook into Meta. When Mark Zuckerberg announced in October 2021 that his company was in full swing, it caused a radical and unprecedented transformation for the 68,000-person social media company. Suddenly, Facebook and Instagram engineers were asked to forget about their work goals for 2022 and instead apply for new positions in the growing augmented reality and virtual reality teams. This rapid transformation was sudden and rapid, creating uncertainty and stress among former Facebook and Instagram employees. However, it could also be argued that Facebook had to sprint towards becoming a Meta for a first-rate advantage.
The managerial challenge in a rapid transformation is to build a powerful narrative to create the energy and motivation needed for change. Without a motivated workforce, it will be impossible to follow the desired direction.
Negotiated Transformation
These initiatives are usually carried out in response to external demands, such as regulatory efforts, where the company cannot change, but only influence the contents of the transformation. Read also : The diversity business case is being pushed back. They are characterized by a slow pace and extensive management efforts by stakeholders.
Take for example the General Data Protection Regulation (GDPR) of the European Union. These requirements were approved in 2016 and applied to all companies operating in the EU; however, they did not take effect for several years. Although the legislation has had some unclear aspects that have been pending further clarification and interpretation along the way, companies have been forced to transform many of their operating procedures accordingly.
The tasks of management in a negotiated transformation are to participate in the debates, to exert influence, and to skillfully prepare the organization for the transformation. A common mistake is to move too fast, which can lead to the need for further efforts when the actual scope is finally known.
Hijacked Transformation
These initiatives are characterized by sudden and disruptive changes brought about by external forces. As such, external parties essentially hijack the company’s agenda, forcing a transformation to align with the new reality.
An example of a hijacked transformation can be seen as a result of the invasion of Ukraine by Russia. In a matter of days, many companies had to leave or end their Russian operations to avoid sanctions, boycotts or political repercussions. Hijacked transformations can also occur when disruptive new entrants enter an industry and change the rules of the game, such as how streaming companies (e.g., Netflix, HBO, Amazon Prime, and Disney +) have threatened conventional streaming television. cinemas and the film industry. , essentially hijacking their transformation agendas in the coming years.
The managerial challenge with the hijacked transformations is to move forward quickly and not invest much effort in debating the trigger. Failure to accept external demand and the deadline will have detrimental effects on companies.
Managing the Multi-Transformational Reality
While it is essential that managers correctly diagnose the transformation they face, it is even more important that they also hone their ability to handle multiple transformations at once. This means that they must be able to:
1. Spot the need to transform.
Managers need to be able to identify and diagnose the types of transformations they face. We encourage you to practice regularly at weekly or monthly meetings to ask yourself what transformations you face or will face soon, how they differ from each other, and what can be done about them.
2. Develop the appropriate process for each transformation.
You will not be successful in trying to manage a hijacked transformation with processes aimed at managing a slow motion transformation, or vice versa. It is essential that you know the different processes required for each type of transformation and that you develop the four processes and implement them accordingly.
3. Understand the interconnection between transformations.
While different transformations require different approaches, transformations can also be interconnected. For example, a hijacked transformation of your supply chain, such as those imposed by the Ukrainian war, can put pressure on a rapid transformation of your e-commerce transformation in your home market. Therefore, make it a priority to understand the interconnections of transformations as well.
Transformations are inherently complex and varied, but are usually considered only one thing. Let’s avoid it by struggling directly with complexity to better manage it.
What are the 4 types of business models?
Four Traditional Types of Ecommerce Business Models
- B2C – Business to consumer. B2C companies sell to their end user. …
- B2B: business to business. In a B2B business model, a company sells its product or service to another company. …
- C2B – Consumer to business. …
- C2C: consumer to consumer.
What are the types of business models? There are several types of e-commerce business models, such as Business to Business (B2B), Business to Customer (B2C), Customer to Customer (C2C) and Customer to Business (C2B).
What are digital transformation enablers?
What are the facilitators of digital transformation? Digital enablers are technological tools that have the capacity to drive the digital transformation of the industry by bringing these technologies closer to the reality of companies and making their implementation possible in everyday life.
What are the three main components of digital transformation? Executives are digitally transforming three key areas of their business: customer experience, business processes, and business models. And each of these three pillars has three different elements that are changing. These nine elements form a set of building blocks for digital transformation.
What are digital enablers examples?
Clearly, mobile computing, cloud computing, enterprise application software, software as a service, and web service integration are key facilitators of the digital transformation. These facilitators, however, are major at the moment, well understood and are already incorporated into the vast majority of organizations and ICTs.
What are IT enablers?
Technology facilitators include governments, regulators, and other organizations that facilitate technology adoption through standards, guidelines, policies, funding, and investment.
What is transformative strategy?
Transformative Strategies is based on the idea that strategic thinking is critical to the organization’s success in today’s environment. The financial crisis, the continuing economic uncertainty, digitalisation, environmental problems and the social problems involved in globalization present strategic problems for companies.
What are the different types of strategies? For a better clarification of the term strategy, we should distinguish between three forms of strategy: general strategy, corporate strategy, and competitive strategy. The overall strategy is a strategy of how a particular goal will be achieved.
What is transformational change mean?
The definition of “transformational change” is “a change in an organization’s business culture as a result of a change in the underlying strategy and processes that the organization has used in the past.” A transformer switch is designed for the entire organization and is applied over a period of time.
What does transformative mean in business?
Business transformation is an umbrella term for making fundamental changes in the way a business or organization works. This includes staff, processes and technology. These transformations help organizations to compete more effectively, to be more efficient, or to make a strategic wholesale pivot.
What is transformation in a business?
Business transformation is an umbrella term for making fundamental changes in the way a business or organization works. This includes staff, processes and technology. These transformations help organizations to compete more effectively, to be more efficient, or to make a strategic wholesale pivot.
What does transformation really mean? : the act or process of complete change: a complete change. transformation. noun.
Why a business needs a business transformation?
You need to be able to keep evolving in the future. Effective business transformation means that your organization can survive and thrive as you look for new, innovation-driven opportunities as you respond to changing market demands and as you navigate evolving regulatory complexities.
