The term “transformation” is thrown around many times in today’s evolving business world. However, it can have several meanings for different companies and individuals. In an environment of unprecedented market turbulence and disruption, transformational change revolves around generating new value to unlock opportunities, drive growth, and deliver new efficiencies.
All transformational changes require businesses to rethink how they create value now and in the future. Simply put, it requires you to think big because incremental improvement isn’t enough to thrive in today’s highly disrupted business environment. Your company requires sustainable growth and agility in the face of constant disruption. This will help you evolve in the future.
But what is business transformational change? Why do organizations undergo transformational change? And how do you unlock business growth through transformational change? Let’s find out.
What is Transformational Change?
Business transformation or transformational change is the opportunity to determine a bold ambition that goes beyond constant incremental change. It is the ability to rethink your operating and business models to provide breakthrough value.
This process involves implementing strategic decisions that impact how your business operates, where you’ll grow, and the types of performance enhancements to expect. Therefore, it requires you to make substantial changes to your organizational processes, strategy, culture, and systems. As a result, it enables you to capture new opportunities, drive innovation, and increase efficiency.
Why Do Businesses Undergo Transformational Change?
Here are some scenarios that trigger a transformational change in an organization:
- When a company adopts new technological solutions that demand drastic changes in team structure and processes.
- When a business provides a new core service or product to address third-party market forces.
- When an organization implements significant cultural changes.
- When a business introduces crucial strategic changes, such as acquisition or merger.
How to Unlock Business Growth Through Transformational Change
Here are some key principles and steps to consider when pursuing a transformational change to achieve business growth:
1. Start with a Strategy-Informed Vision
Transformational change is a highly disruptive and complex process. Therefore, a clearly articulated vision is crucial as it guides the process. In your vision, define what your business aims to achieve and outline the key strategic objectives.
The vision should be supported by an actionable and well-defined strategy that aligns with your customer’s needs and market trends. This will serve as the foundation for numerous enterprise-wide decisions, including those related to resource allocation, performance expectations, and investment.
A strategy-informed vision helps you build an executable transformation change initiative. So, it’s crucial to invest in building your strategy and vision, as it provides a blueprint of the process, streamlining its implementation.
2. Leadership Commitment
A transformational change initiative can never succeed without leadership commitment. Transformation change requires strong leadership commitment from top executives. Business leaders must actively encourage and promote the change and be at the forefront in driving it forward. They set an example for the rest of your organization.
As a leader, you should know where to start. This is critical in unlocking value through transformational change. Prioritize the processes accordingly, as it will help you evolve quickly to address emerging market demands and opportunities.
Ultimately, business leaders must move quickly beyond the people, technology, and process definition of capability. Instead, they should embrace a more holistic approach to transformational change. Their definition of transformational change should touch different dimensions, including the following:
- Technology, and
3. Train People to Embrace Change
As initially stated, transformational change is highly disruptive. It involves reshaping your organizational culture and other aspects that affect your employees. Embracing the new normal can be a challenge because of the natural resistance to change among employees.
For instance, people may be concerned about their job security or lack the necessary skills to perform their jobs when the change occurs. So, mandatory skill and personal development are recommended to ensure employees are ready for whatever comes next. This will help you get the best out of the transformational change initiative, as your employees will fully support the new changes.
4. Be Flexible and Agile
Change is inevitable in today’s evolving business and technology world. So, when implementing transformational change initiatives, leaders should prepare to continuously grow. Therefore, leaders should work hard to plant innovation, agility, and a disruptive mindset across all transformation initiatives.
Being flexible and agile will help you explore business growth opportunities as they emerge through transformational change. This means you must invest in modern, scalable technologies that support transformation. Some technologies worth investing in include data analytics, automation, and artificial intelligence (AI), to mention a few. These digital solutions can enhance flexibility and decision-making while streamlining business processes.
5. Invest in Talent Development Programs
People are arguably the most critical organizational assets. Therefore, the right talent and leader can make or break your transformational change initiatives. Invest in talent development and upskilling of your employees.
Equip your team with the necessary knowledge and skills. This will help you achieve sustainable business growth through transformational change. It enables your team to seamlessly adapt to new challenges and support transformational journeys today and in the future.
6. Drive to Value
Driving value is the ultimate goal of every transformational change initiative. Therefore, it’s crucial to clearly articulate upfront the value you expect to gain through transformational change.
Establish measures to monitor and track value throughout the transformational journey. The value should be the link between your organizational strategy and the transformation. Take your time to explicitly outline how you intend to create value. Afterward, develop a strong and clear connection to your transformation implementation plans.
A well-thought value case is a linchpin that connects the transformation vision to the execution and capability design. It does so by outlining and breaking down your transformational change initiative into manageable programs with specific target values. This helps you execute the transformational change effectively.
The Role of Sage IT in Delivering Transformational Change
Sage IT provides various business transformation solutions, helping organizations digitize and optimize their processes. Some services offered by Sage IT include the following:
- Advisory. Sage IT provides advisory services regarding transformational change and other digital transformation technologies, including cloud and automation.
- Implementation. Sage IT helps businesses implement transformational change. It has partnered with various leading technology providers, like ServiceNow and Automation Anywhere, to help businesses achieve growth through transformation.
- Migration. Sage IT helps companies migrate their legacy systems to more advanced digital solutions.
- Talent Provision. Sage IT provides talent to companies looking to implement transformational change by themselves.
- Managed Enterprise. Sage IT helps clients manage their IT, freeing up internal teams to focus on the core business transformation activities.
The collaboration between Sage IT and businesses has achieved substantial benefits. For instance, it has helped organizations gain a competitive advantage, transform customer experience, boost profitability, and increase efficiency. Also, it has helped companies grow their market share.
Business representatives have provided positive testimonials regarding Sage IT’s support in delivering transformational change. This proves Sage IT’s experience, efficiency, and effectiveness in implementing business transformation.
Transformational change can help you achieve significant business growth. However, it is a complex and ongoing process that requires patience, long-term commitment, and resilience. With a well-thought-out strategy, leadership commitment, employee training, talent development program, and focus on value and innovation, businesses can unlock significant growth and create a sustainable competitive edge.