New Year New Direction: Transforming your Business Model

In the face of rapidly shifting business environments and high competition, a key reason for cases of company failures or breakthroughs are the decisions made. Change is constant and executives find themselves saddled with the responsibility of initiating it both in small and large scales.

Different business terrains determine the approach to transformation. A company with subsidiaries competing with local manufacturers would approach transformation more sensitively. On the flip side, crises can inspire drastic transformation. The level of impact might demand a total overhaul of company systems and processes in order to save the company and return to previous growth levels.

Transformation does not necessarily mean from bad to good, a company can choose to move from good to great and this is not a bad target. A good example would be an attempt to boost revenue through cost cutting measures that alter the internal core processes. Leaders must therefore make informed considerations before embarking on drastic transformation that could either move the company upward or out of business; and also ensure that eventually, impressive values are presented to all stakeholders.

Funding plays a major role in attaining transformation, depending on whether it is partial or total. These costs come with momentary inconveniences but have long-term benefits. One good way to generate funding for any transformation exercise, is to bring in success-proven initiatives that are cost effective and have high ROI. Another way is to restructure or shrink certain core processes such as improving turn-around-time to enable you service more clients.

Company transformation can be stressful and it is important for the objectives and benefits to be clear and comprehensive to all parties to ensure their full support. Leaders need to constantly remind all stakeholders of the vision so that they remain motivated by the bigger picture. This helps them endure the hurdles of the transition process.

Transformation or change must be strategic. The management must factor in all the odds, consequences and sacrifices required for the process. It helps to also put a time frame to the desired changes and work quickly and effectively towards delivering prompt results. It is also important to pace changes using milestones so that teams do not become overwhelmed.

Transformation must be sustained and in sync with the company’s overall processes. You might need to upgrade the capacity of your digital technology infrastructure i.e. update existing software and consider installing new programs that would ease your new venture.  Introduce relevant training during the transition process to to avoid any skill-gap that may impair your efforts.

Good business performance is usually hinged upon the quality of leadership. Endeavour to reshuffle your team if you need to. Simply put the right people in the right places if you want this transformation to last.

Finally, transformation is a continuous process even for already established companies. It is not limited to crises scenarios only. Research and case studies have shown that not all companies that embark on transformation succeed. Hence, the importance of concrete analysis of all likely variables.

Read More