Successful Business Transformation


9 implementation principles that will guide you toward a successful transformation:

The problems facing every company are different. They largely depend on history, culture, capabilities, and information technology. However, the importance of vision and communication cannot be overestimated.


Therefore …

A clear vision of the tasks ahead and good communication skills will enable you to navigate around the most difficult obstacles and prevent the organization sliding back into its old habits. The following principles will guide you toward a successful transformation:

  1. Think like a revolutionary

  2. Build an urgent case for change and convince the board

  3. Establish a ‘guiding coalition’

  4. Create a compelling and coherent vision for change

  5. Communicate the vision

  6. Enable and encourage people to change

  7. Look for quick wins

  8. Work around the resistors

  9. Consolidate the gains and maintain the momentum

Ed: These are principals that form the core of my friends at the Beyond Budgeting Institute – bbrt.org – and form the business model of such diverse companies as AstraZeneca, Arla, Danfoss, Handelsbanken, HILTI, Lego, MAERSK, Michelin, Sodexo, SKF, Timpson, Volvo and many more.

But getting back to point number 2,

because it is crucial to discuss how we sell the case for change to the people that matter.

Who are the key ‘influencers’ that you need to convince?

In most companies, the two primary persons to convince will be the CEO and CFO. However, it is of great importance to engage the whole organization. I will get back to that later.

While the case for change might appear to be compelling to you, it can seem too vague and “in the future” for others.

Hard-pressed managers need more organizational change like a hold-in-the-head. Therefore, the reasons must be compelling and the case well prepared and presented.


So how do we convince key influencers?

Ask yourself the following questions:

  1. What will it involve?

  2. What are the costs and benefits?

  3. Which parts of the business are affected?

  4. Is this the only option?

  5. What evidence do we have that it will work?

  6. What are the risks?

  7. How long will it take?

  8. How will we know if we have succeeded or failed?

Addressing them objectively will strengthen your credibility and increase your chances of success even though these questions are difficult to answer. 


Remember …

One common pitfall of implementation is believing that the total transformation of the model can be driven by finance (or any other one function) alone, and failing to engage other parts of organization such as Human Resources or members of the management team.

Author: Anders Olesen – Director, Beyond Budgeting Institute.  E-Mail: info@bbrt.org

transformation

Curated by Trevor Lee

tblee@ceo-worldwide.com

http://www.ceo-worldwide.com

@trevorblee

 

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