Business Transformation
Business Transformation is foremost about change to improve business performance. What distinguishes transformation from other types of change is the very large business improvement that is expected.
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Improved business performance depends on the strategic nature if the organization and can measured in terms of:
¤ Increase to the bottom line
¤ Increased sales
¤ Greater market share
¤ Reduced costs
¤ Increased operational effectiveness
¤ Improved client service
¤ Increased shareholder value
Transformational change is distinguishable by its:
DIRECTION: Transformation implies a significant improvement in performance. The direction of business transformation is to higher levels of performance as defined in the transformation plan.
SPEED: Transformation means change at an accelerated rate. An element of speed is an integral part of transformational change. Businessess and Government cannot both operate and transform for an extended period of time. Implement the change quickly so that the business can operate at the new level of performance. The quicker the change, the greater the benefits.
MAGNITUDE: Transformation means being bold in terms of determining scope, reach, and extent of change (what will change and by how much, who will be affected) and setting performance improvement targets that go beyond incremental improvements (how much gain / benefit).
INVESTMENT: Business transformation that yield dramatic improvements and value require an initial investment in effort, resources, and / or assets. The benefits from the transformation must outweigh the investments needed for the transformation.
Getting value from business transformation
Develop a roadmap for the transformation
Anchor the investment on a business case that generates immediate and long-term benefits.
Anchor the investment on a business case that generates immediate and long-term benefits.
Organize for success
Separate the transformational initiatives from the day-to-day operations, assign the people with the skills and competencies necessary for success.
Separate the transformational initiatives from the day-to-day operations, assign the people with the skills and competencies necessary for success.
Manage rigorously
Maintain a disciplined approach throughout the transformation, constantly monitor progress against the business case.
Maintain a disciplined approach throughout the transformation, constantly monitor progress against the business case.
Measure and adjust
The progress of the transformation is measured in terms of the benefits it delivers; based on the results, adjust the transformation activities to maximize the benefits.
The progress of the transformation is measured in terms of the benefits it delivers; based on the results, adjust the transformation activities to maximize the benefits.
