Business Transformation is on the cutting edge. Every business, big or small, is up for some form of innovation, whether it is ‘continuous alignment’ of strategy, or a wholesale turnaround. Studies by KPMG shows 93% of US multinationals are in the midst of business transformation.
There could be many reasons behind it. In fact 82% of the respondents, referred continuous improvement as a form of transformation. And, with the surge in the transformation, there are failures. KPMG also reported this rate to be as high as 50%.So if there is a process improvement, why are so many transformation initiatives failing? Transforming the thinking could bring about a positive difference to these incessant failures.
#1: Strategic Thinking should become a culture at an organization. Starting from the highest level down to the lowest layer, robust strategic plans should develop, regardless of the business or function of the organization. One of the many successful implementations were done at Kraft Foods, and with success.
#2: Innovation; that is again a process core that needs to develop, for effective business transformation. If every company begins with a process, in the most conventional way, with no innovation whatsoever, the failure rate will be as high as 75%. Tools like the Lean Startup Approach, VOC, Failure Mode and Effects Analysis help identify the plausible risks for a better approach.Bringing in new ideas, is essential for an actual transformation, and leaders should embrace the concept.
#3: Changing habits is vital. That might be a bit surprising, but the customary way of performing the daily jobs, reflects even on the way we do our projects. Experts need assess certain key facts such as the habit cycle and how to successfully change it, at an individual level. Organizational habits and change management process. Accepting that change might be required in the process, is the start to an active transformation.
To increase the 50-50 chance of success, adapting to a lean startup approach, will help measure the loops, the habits, and transform our thinking to be more innovative and willing to challenge and change the traditional business transformation tactics.