Sunday, November 15, 2015

Digital Master Tunning #113: Three Aspects of Business Transformation

In many ways, the organization is a reflection of the personality of its top leader, or leaders.

Transformation is a leapfrogging change when the final result is not fully defined at the beginning of it and with the expectation to reach the next level of progression. The most difficult topic during transformation is managing uncertainty especially when you change many things: processes, culture, systems and organization at the whole in the same time. It is a complicated moment for all people in the organization at all levels and at the same time, the business has to operate as usual. If you do not get the organization trained and prepared before, the transformation probability of success decreases fast.


Leadership: In many ways, the organization is a reflection of the personality of its top leader, or leaders. Every organization has a story: a set of beliefs, values, myths, history and judgments about the inner world of work, and the external environment around them. Many change agents omit this “story gathering” process before embarking upon change initiatives. Further, many chapters of the story are hidden with its functional units, when an organization becomes sufficiently large to warrant the creation of divisions. Organizations over time, as they grow by necessity, develop silos. Silos are a by-product of the need for functional specialization of knowledge, and in some senses, one could say they are a necessary evil. The neurosis of the siloed organization often has its roots in the inertia, weariness, the inability to make a decision or the physical or psychological absence of a leader, which creates a leadership vacuum. Where the situation becomes indicative of an organizational neurosis is when many of the following symptoms begin to appear over time: the hoarding of information, the need for control, the exercise of power over other divisions, the close guarding of “silo secrets”—all of these form the “collective psyche” of the silo, often the reflection of its leadership.


Assessment: Performing an organizational change impact assessment is very important to understand the 'cultural current state' factors: Then determine what the impact, risks and challenges of any proposed changes are. The bigger the 'change' the more important to take these into account early rather than late. Also, it’s very important for any high performing organization to get the best alignment and leverage the great human potential that exists or is needed to achieve great results and to tap into the passion of the people! Often change is proposed from one source in a way that people feel excluded from the decision. Active engagement of the team and working together to make a transformation roadmap would help a team to create successful change and transformation. A change champion is needed who is responsible for following through the road map and bring the team together on check-points.


Management: Communication, integration, planning, and training are indispensable when you are on the ride already. Many projects fail because of lack of preparations and beliefs that suppliers “know” how to make transformation within specific organization better than the “rider.” They don’t and they cannot do it for the organization. In most projects, the objective, scope and expected results to be implemented, are not properly communicated to all levels of the company and everyone involved in the transformation. Only if you analyze how identities and beliefs of the human beings are impacted by the change and address these changes, provide new identities and adapt behavior to new roles communicating and convincing the human being that this change is an advantage with a positive impact then something new and consistent can develop and scale up seamlessly.


During transformation scenario, although you can change an outcome directly, its overall effect is limited. It becomes much more powerful if you first change your intention, or thinking, behind it. The transformation has to go a step further and involves internalization of the new values and conceptual model so that the newly acquired behaviors don't require the same kind of effort and vigilance. Instead, the newly established behaviors will be in harmony with the internalized values, the transformed person or organization as a whole, and ultimately achieve the new level of efficiency and lead to the next level of innovation. From the top down transformational leadership to bottom up culture of reflection, although you can not predict every event happening on the journey, surely you need to proactively create a vision, make a good strategy, and execute it via an iterative continuum, and create a business - talent synergy to accelerate the flywheel of digitalization.

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