With more than two-thirds of companies having started major transformation projects in the past 18 months and another 10% planning to do so over the next 18-241, managing transformational change is currently at the forefront of many executives’ minds.
Whether the key drivers are to deliver operational improvements through process consistency, enhance innovation to increase the companies’ footprint or reduce costs, managing these transformational projects can become a major challenge if the company’s assets are not analysed and understood. Not only does it make it difficult to ascertain where the business currently is, where it wants to go and the best routes to get there, but it can also have an impact on understanding what resources are required and how obstacles and risks would be managed along the way.
But that is not all. The change initiative could become even more challenging if information about these assets are not shared with all parties concerned to aid business as usual or programme activities.
Typically, organisations analyse their fundamental assets to gain an in-depth insight into:
However, simply undertaking this exercise is not enough to ensure the success of a transformation programme. This is because, although this information is important, it is what you do with it – how it is communicated and used, that adds true value to an organisation.
In reality, research over the years shows that well over half of major change initiatives fail. Kotter2, McKinsey3 and Blanchard4 put the failure rate at 70% whilst a recent IBM Corporation5 study reports a failure rate of almost 60%.
One of the reasons for this is that organisations have not thought about how this valuable information aimed at supporting the programmes vision, will be captured and delivered consistently across the business from the offset…does the information provide an accurate representation of the organisation during the transformation project? Are process maps and models and all the other information collated in a standardised format?
The above would not only ensure that changes can be communicated all the way from top level management teams down to individual members of staff in a format so that can be interpreted unambiguously, but would also allow businesses to re-use the same descriptive information to map out alternative scenarios if the transformation project needs to change course. Overall it offers organisations greater agility to manoeuvre around any unforeseen challenges that arise while ensuring that the change initiative remains on the right tracks.
Further to this, with functions not being properly integrated within organisations today, valuable information is often stored in silos. As a result, vital interdependencies between processes and functions are left uncovered. Management teams essentially gain an inaccurate view of the business, which in turn can impact any change decision that is made.
Therefore in order to ensure that the transformation has a real chance of succeeding, organisations need a centralised platform for communications. A one stop shop for stakeholders to access the company’s asset which includes all the latest, accurate information in a comprehensive format, accessible to all users at all times from within a single location.
A strong example of this has been demonstrated by a large global manufacturer that MEGA currently works with. This manufacturer took the strategic direction to host information in one central place whilst documenting their entire Target Operating Model. They saw the entire business as a key stakeholder who should be able to leverage the asset built on a day-to-day basis through a single communications medium.
They also believed that this medium should be trickled down to the all parts of the organisation, to create a common, consistent and globally aligned organisation. This led them to make their assets inventory accessible to their entire employee establishment.
Diagram above: A view of an integrated organisation
For business decision makers, executives and heads of functions, it enables them to:
For global process managers:
Transformation projects are by nature filled with complexity due to the vast number of elements involved. Therefore for organisations to fully protect their crown jewels, they need to ensure that firstly, information is captured in a standardised manner to make this easy to understand and interpret. Over and above this, and where the real value lies, is in how this information is distributed across the organisation to every individual depending on role and accountability. It is this initiative that can add the utmost value and increase the likelihood of success of an organisation’s transformation project.
Are you going through business transformation? How is you information captured, analysed, standardised and communicated? If you wish to find out more on how we can help with your business transformation initiatives, please visit www.mega.com