The true essence of a transformation is a marked change in form, nature or appearance. When we refer to the transformation of an organization, it states the process of developing a [strategic] plan to alter the business processes through modifying policies, procedures, and processes to move the organization from an "as is" state to a "to be" state.
Most transformations essentially fail because the leadership teams fail to deliver. So, what does it take to transform and succeed?
The first step is foresight and clarity of vision. It is imperative for the leadership team to understand the marketplace, key offerings, differential proponent vs. competition, value proposition of its (new) offerings, to name a few. There must be a definitive plan to execute the vision and mission of the company to the clients, employees, business partners, investors, government regulators, external stakeholders, etc. Many CEO's do not think through all these parameters carefully nor understand the 360-degree impact of these business decisions.
The second point is around flexibility or being open to change. We live in a Volatile, Uncertain, Complex and Ambiguous (VUCA) world that is forever changing and the velocity of change is also high, mostly triggered by technology changes. CEOs or organizations fail here as they are not able to adopt an approach which helps them align with the ever-changing requirements.
Thirdly, most transformations require a mindset change within the organization. This is a big challenge. Many leaders either do not put much weightage to this nor have the right advocates to enable a successful change-agent shift in the mindset and culture across the organization. Communication, Communication, Communication is the mantra here.
IBM is the only company in our industry that has reinvented itself through multiple technology eras and economic cycles. We do so for one reason: to create differentiating value for our clients, our stakeholders and the society. For an organization to achieve a successful transformation, a change in mindset alone is not sufficient. The management has to ensure that its workforce develops new skills and or re-skill themselves to meet the demands of the marketplace. Another key aspect of a successful measure of transformation requires listening deeply to clients, employees, partners etc. At IBM, we conduct pulse engagement surveys. The text analytics on the vocabulary that the internal IBMer's use or the Net Promoter Score (NPS) that is deployed with the customers provide a robust and candid feedback on the transformation taking place.
Organizations must also leverage relevant new-age technologies (Cloud, Digitization, AI, Machine Learning, Design Thinking, etc.) to counter the velocity of change.
Finally, it is the systematic approach which eventually defines success — this holds good for the implementation of people policies, talent management, communication strategy, understanding the clients, implementing ‘new ways of work’, addressing attrition, ensuring adequate training and re-skilling of the workforce, etc. The success of any plan depends on scheduling leadership reviews to ensure checks and measures and how work gets delivered at a measured frequency which allows for iterative adjustments so that the organization does not deviate from its end objectives. However, the pressures of transformation make it a highly challenging journey and one has to ensure that all through, there is sustained messaging around ethics and integrity.
In closing, I would like to reiterate that excellence in execution can be the biggest derailment factor that requires maniacal focus and passion which must flow from the top management to each employee across the organization.