{"id":27713,"date":"2019-09-12T08:28:25","date_gmt":"2019-09-12T12:28:25","guid":{"rendered":"https:\/\/centricconsulting.com\/?p=27713"},"modified":"2023-01-17T10:32:31","modified_gmt":"2023-01-17T15:32:31","slug":"business-transformation-an-initiative-or-way-of-life","status":"publish","type":"post","link":"https:\/\/centricconsulting.com\/blog\/business-transformation-an-initiative-or-way-of-life\/","title":{"rendered":"Business Transformation: An\u00a0Initiative\u00a0or\u00a0Way\u00a0of\u00a0Life?"},"content":{"rendered":"

Companies must apply an agile mindset toward business transformation by building business agility across all aspects of an organization.<\/h2>\n
\n

As customers, competitors and technolog<\/span>ies<\/span>\u00a0evolve at a rapid rate,<\/span>\u00a0business leaders\u00a0<\/span>must<\/span>\u00a0<\/span>be\u00a0<\/span>proactive\u00a0<\/span>to<\/span>\u00a0effectively\u00a0<\/span>address the threat of disruption and drive competitive advantage in the marketplace<\/span>.\u00a0<\/span>In fact,\u00a0<\/span>almost\u00a0<\/span>75<\/span>\u00a0percent<\/span>\u00a0of companies<\/span><\/a>\u00a0<\/span>expect<\/span>\u00a0to increase the number of\u00a0<\/span>significant\u00a0<\/span>change\u00a0<\/span>initiatives\u00a0<\/span>planned for<\/span>\u00a0the next\u00a0<\/span>three\u00a0<\/span>years<\/span>.<\/span><\/p>\n

Although this may surprise some<\/span>,\u00a0<\/span>this increase is<\/span>\u00a0becoming<\/span>\u00a0the\u00a0<\/span>norm\u00a0<\/span>as\u00a0<\/span>t<\/span>he\u00a0<\/span>relentless\u00a0<\/span>pace of change\u00a0<\/span>continues to\u00a0<\/span>increase<\/span>\u00a0exponentially<\/span>.\u00a0<\/span>Hence,\u00a0<\/span>t<\/span>ransforming<\/span>\u00a0your business\u00a0<\/span>continuously\u00a0<\/span>in an agile fashion is key to success<\/span>.\u00a0<\/span>We define business agility\u00a0as\u00a0the willingness and ability to respond to changing business dynamics in a flexible, adaptive and rapid manner.<\/strong><\/p>\n

Companies that\u00a0<\/span>can\u00a0<\/span>pivot quickly in transforming their business will have a significant competitive advantage<\/span>.\u00a0<\/span>Those that\u00a0<\/span>don\u2019t\u00a0<\/span>will cease to exist<\/span>.\u00a0<\/span>One recent\u00a0<\/span>survey<\/span>\u00a0<\/span>show<\/span>s<\/span>\u00a0<\/span>over 90<\/span>\u00a0percent<\/span>\u00a0of companies<\/span><\/a>\u00a0believe business agility is key to their success, but only\u00a0<\/span>10<\/span>\u00a0percent\u00a0<\/span>believe they\u00a0<\/span>meet the mark<\/span>.<\/span><\/p>\n

Embarking on<\/span>\u00a0<\/span>business transformation<\/span><\/a>\u00a0<\/span>is<\/span>\u00a0a daunting effort\u00a0<\/span>in its own ri<\/span>ght<\/span>, but doing\u00a0<\/span>so<\/span>\u00a0in an agile manner is even more\u00a0<\/span>challenging<\/span>.\u00a0<\/span><\/p>\n

To accomplish<\/span>\u00a0this<\/span>, companies must first understand th<\/span>e<\/span>\u00a0scale and complexity of business transformation and then understand\u00a0<\/span>how to take an agile mindset toward transformation.<\/span><\/p>\n

Defining\u00a0Business Transformation<\/h2>\n

Many companies are initiati<\/span>ng<\/span>\u00a0business transformation efforts to address\u00a0<\/span>critical\u00a0<\/span>challenges<\/span>.\u00a0<\/span>Unfortunately,\u00a0<\/span>\u201c<\/span>business transformation<\/span>\u201d<\/span>\u00a0<\/span>is now<\/span>\u00a0an overused\u00a0<\/span>term\u00a0<\/span>that means different things to different people<\/span>.<\/span><\/p>\n

People widely and inconsistently use\u00a0<\/span>\u201c<\/span>t<\/span>ransformation<\/span>\u201d<\/span>\u00a0to describe varying degrees of \u201cbusiness change<\/span>.\u201d<\/span>\u00a0<\/span>This use ranges\u00a0<\/span>from tactical improvements around a given operation to the development of new business model<\/span>s<\/span>\u00a0causing broad-based industry disruption<\/span>.<\/span><\/p>\n

True business transformation is complex\u00a0and\u00a0multi-faceted\u00a0and\u00a0impacts all part of your business.<\/strong><\/p>\n

Hence, we<\/span>\u00a0define business transformation as\u00a0<\/span>\u201c<\/span>d<\/span>riving competitive advantage\u00a0<\/span>in the market through\u00a0<\/span>the deployment of strategic changes and performance improvements across the organization, encompassing\u00a0<\/span>strategy, process,\u00a0<\/span>people, culture<\/span>\u00a0<\/span>and technology<\/span>\u00a0<\/span>elements.<\/span>\u201d<\/span><\/p>\n

Each element, as illustrated in the relationship model below, is critical on its own but collectively\u00a0<\/span>requires<\/span>\u00a0structured integrat<\/span>ion<\/span>\u00a0with others to deliver new business capabilities and achieve world<\/span>–<\/span>class performance levels<\/span>.<\/span><\/p>\n

\"Business<\/a><\/p>\n

 <\/p>\n

So<\/span>,<\/span>\u00a0how do companies\u00a0<\/span>address large<\/span>–<\/span>scale change and complexity and do so in an agile fashion?<\/span><\/p>\n

Taking an Agile<\/a> Mindset Toward Transformation<\/h2>\n

Based on business transformation complexity, a thoughtful approach is required.<\/span><\/p>\n

It starts with an analysis of your current<\/span>\u00a0situation and\u00a0<\/span>the business drivers impacting your business<\/span>,<\/span>\u00a0including customer, competitor,\u00a0<\/span>re<\/span>gulatory and internal pressures<\/span>.\u00a0<\/span>Essentially<\/span>, you need a 360-degree understanding of your organization\u2019s performance.<\/span><\/p>\n

From there,<\/span>\u00a0you can develop<\/span>\u00a0a\u00a0<\/span>compelling vision, strategy and business architecture\u00a0<\/span>to guide the ideation, design and delivery of\u00a0<\/span>world<\/span>–<\/span>class business capabilities in an agile fashion<\/span>\u00a0<\/span>to quickly drive\u00a0<\/span>value<\/span>.\u00a0<\/span>And of course,\u00a0<\/span>you\u00a0<\/span>must\u00a0<\/span>enabl<\/span>e<\/span>\u00a0and sustain<\/span>\u00a0this change<\/span>\u00a0thr<\/span>ough<\/span>\u00a0an\u00a0<\/span>intentional focus on people, culture and change governance.<\/span><\/p>\n

The graphic below defines Centric Consulting\u2019s point of view around the six key elements<\/span>\u00a0<\/span>essential to\u00a0<\/span>successful business transformation<\/span><\/a>.<\/span><\/p>\n

\"PC<\/a><\/p>\n

 <\/p>\n

It is important to note that this does not imply a sequential or waterfall-based<\/a> approach to address the various aspects of transformation.<\/span>\u00a0<\/span>As companies respond to changing market dynamics,\u00a0<\/span>they need\u00a0<\/span>to integrate each of the above elements on an\u00a0<\/span>ongoing<\/span>\u00a0basis<\/span>:<\/span><\/p>\n

1. Business and Customer Insights<\/span><\/b><\/h4>\n

It\u00a0<\/span>is imperative<\/span>\u00a0<\/span>to know where you stand today<\/span>\u00a0to transform your organization<\/span>.\u00a0<\/span>Based on<\/span>\u00a0<\/span>the\u00a0<\/span>rapidly\u00a0<\/span>changing nature of customer expectations, technological advancements and\u00a0<\/span>new competition,\u00a0<\/span>where you stand can shift in the blink of an eye.\u00a0<\/span>As a result,<\/span>\u00a0<\/span>companies must\u00a0<\/span>gather and process\u00a0<\/span>real-time\u00a0<\/span>business and customer insights<\/span>\u00a0and effectively\u00a0<\/span>leverage these analytics to feed<\/span>\u00a0both\u00a0<\/span>plan<\/span>ning<\/span>\u00a0and operationa<\/span>l activities.<\/span><\/p>\n

2. Vision and Strategy<\/span><\/b><\/h4>\n

Companies can no longer rely on three- to five-year strategies (or even one-year strategies) to guide their organization. Dynamics\u00a0<\/span>change<\/span>\u00a0too rapidly.<\/span>\u00a0<\/span>While<\/span>\u00a0you still need a North Star\u00a0<\/span>to<\/span>\u00a0guide your organization<\/span>, it can\u2019t be so rigid\u00a0<\/span>that\u00a0<\/span>you can\u2019t\u00a0<\/span>make adjustments<\/span>\u00a0based on current and future\u00a0<\/span>business drivers<\/span>.<\/span>\u00a0<\/span><\/p>\n

3. Business Architecture<\/span><\/b><\/h4>\n

Companies must inherently build agility into their process designs, organization structures<\/span>, workforce<\/span>\u00a0and technology infrastructures to enable adaptive change.<\/span>\u00a0<\/span>So<\/span>,<\/span>\u00a0each of these elements\u00a0<\/span>must\u00a0<\/span>work together\u00a0<\/span>cohesively\u00a0<\/span>to\u00a0<\/span>ensure you can continue delivering\u00a0<\/span>world-class<\/span>\u00a0capabilities<\/span>\u00a0as business requirements change<\/span>.<\/span><\/p>\n

4. Agile<\/span><\/b> Value Delivery<\/span><\/b><\/h4>\n

Organizations must\u00a0continuously<\/span>\u00a0<\/span>and incrementally\u00a0<\/span>deliver value to the marketplace. Business and IT teams must collaborate closely to provide new business capabilit<\/span>ies<\/span>\u00a0at an accelerated pace.<\/span>\u00a0To do that, your company must\u00a0<\/span>leverage<\/span>\u00a0<\/span>agile and\u00a0<\/span>modern software delivery\u00a0<\/span>techniques<\/span>\u00a0that can help you create and\u00a0<\/span>bring\u00a0<\/span>new products and services to the market<\/span>.<\/span><\/p>\n

5. People and Culture<\/span><\/b><\/h4>\n

Without a focus on people, your organization\u00a0<\/span>can\u2019t effectively<\/span>\u00a0transform, let alone transform with an agile mindset.\u00a0<\/span>Companies must build change leaders across their company and establish a culture of change that engages all employees.<\/span><\/p>\n

6. Enterprise Portfolio Management<\/span><\/b><\/h4>\n

Enterprise\u00a0<\/span>P<\/span>ortfolio\u00a0<\/span>M<\/span><\/a>anagement (EPM)<\/a> historically received a bad reputation\u00a0<\/span>due to<\/span>\u00a0<\/span>a bureaucratic way of doing things.\u00a0<\/span>Today, EPM\u00a0<\/span>emerges\u00a0<\/span>as a strategic\u00a0<\/span>business capability required to\u00a0<\/span>accelerate strategy execution and value\u00a0<\/span>realization\u00a0<\/span>\u2014 not hinder it.<\/span><\/p>\n\n

\n
\n Business resilience requires preparation and adaptability. Our 11 question assessment can help you determine how resilient you currently are and next steps for improvement.\n <\/div>\n
\n \n\n Download the Assessment\n <\/a>\n <\/div>\n <\/div>\n

Final Thoughts<\/h2>\n

Based on today\u2019s business climate and\u00a0<\/span>increasing\u00a0<\/span>pace of change, business transformation is no longer a period<\/span>ic<\/span>\u00a0or every\u00a0<\/span>five<\/span>–<\/span>\u00a0<\/span>to<\/span>–<\/span>\u00a0<\/span>ten<\/span>–<\/span>year\u00a0<\/span>initiative. <\/span>Companies must take an agile mindset toward business transformation by building agility across all aspects of an organization.\u00a0<\/strong><\/p>\n

However,<\/span>\u00a0we know<\/span>\u00a0building business agility and driving ongoing\u00a0<\/span>business\u00a0<\/span>transformation<\/span>\u00a0is complex and a\u00a0<\/span>big undertaking for any company<\/span>.\u00a0<\/span><\/p>\n

To learn more about\u00a0every aspect of a business\u00a0transformation, and how to implement it, read our in-depth guide, \u201cRethinking Business Transformation:\u00a0Build Business Agility Throughout Your Organization To Keep Pace With Rapid Change<\/a>.\u201d\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Business agility is the willingness and ability to respond to changing business dynamics in a flexible, adaptive and rapid manner.<\/p>\n","protected":false},"author":32,"featured_media":27715,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[1],"tags":[19127,18559],"coauthors":[15013],"class_list":["post-27713","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-business-transformation","tag-enterprise-collaboration","resource-categories-blogs","orbitmedia_post_topic-business-strategy","orbitmedia_post_topic-business-transformation"],"acf":[],"publishpress_future_action":{"enabled":false,"date":"2025-03-27 01:48:23","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category"},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/posts\/27713"}],"collection":[{"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/comments?post=27713"}],"version-history":[{"count":0,"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/posts\/27713\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/media\/27715"}],"wp:attachment":[{"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/media?parent=27713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/categories?post=27713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/tags?post=27713"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/coauthors?post=27713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}