The only constant in business is change. It does not matter if you like it or not – change happens and all elements of a business are subject to change. Organizational structures, compensation, responsibilities, strategies, how products and services are produced, sold and so forth are changing either autodidact or because of business transformation programs being implemented by senior management.

Managing change or business transformation is not easy. To be a successful change manager, one has to know how to setup informal networks, motivate, delegate, empower and lead.

Since this paper is about the steps to a successful change, we have to assume that you have already defined why you need a radical change, the goals and the strategies on how to get there. The steps below are not sequential, but a more of a collection of “issues” that normally turn up in some form during business transformation projects. By reading through, you will be able to make provisions for them before getting started and thereby avoid some of the problems and have contingency plans for those that cannot be avoided.

Now the time to roll up the sleeves and go to work has come.

Managing Business Transformation

Identify the three or four strategic concepts that define the direction the business, department or unit is supposed to move towards. Keep them simple and clear. No one succeed with complex strategies.
Position the strategies clearly in the organization and build a team of believers around them to drive them forward and deliver the results. Ensure they are empowered and that the escalation path is clearly defined to avoid losing momentum when problem arises.

Our project manager can double as a change manager

Being a change manager or business transformation manager is nothing like being a project manager. On paper it might look similar but the reality of the situation is another. Business transformation managers need to keep people motivated. They must be diplomats with strong leadership abilities who can work across departments, skill sets and organizational barriers.

They must have strong leadership skills and the charisma to inspire the team(s) to press forward toward the mark. They have to be able to motivate and should have a infectious enthusiasm causing people to follow and get the work done.

Take a look at the person you have in mind for the job (maybe you need to look in the mirror?) and ask yourself, “Is this a person which will cause the change atheists in our organization to become true believers?” If not, you should keep looking.

We have the right person for the job – success is given

No matter how well you plan the business transformation, you will run into situations where you will have to revisit the strategy, make adjustments or even changes. You will have to re-evaluate the plan, goals and your tactics on how to get there. Not everything will go as planned, so expect the unexpected and be prepared to adjust quickly to avoid losing momentum.

Managing resistance

Resisting change is something deeply rooted in most people. The uncertainty of the change makes it uncomfortable and hence something to be avoided. Questions along the lines of, Will they still need me? Can I keep my old job? Whom will I have to work with, in the new organization? are all questions that employees are asking themselves. Identify the individuals in need of help to deal with the situation. Help them adapt by offering them coaching and training.

Navigating the political minefield

Announcing change almost instantly cause the corporate politicians to emerge. They are working constantly behind the scenes to position themselves in the best possible way. They will appear to be working with you but more often than not they have their very own agenda and will be trying to achieve certain outcomes. They act in their own best interest and you need to identify them quickly to ensure that you don’t get sidetracked by them.

Before you know who they are, you need to consider what the real motivation behind each person’s actions might be. Once you have identified the ones with their own agenda you need to incorporate them in your work and use their energy to drive the change – not personal agenda’s.

Dealing with corporate culture

One of the problems with corporate culture is that it does not change just because someone has decided that it would be best for the company and for the new strategy. Including the required change in culture into the business transformation project can be what makes or breaks the transformation.

Changes in corporate culture which are not correctly addressed will pose a significant barrier to the business transformation and can effectively block any further work until addressed. Take any culture change into account even before launching the change programme and ensure that you have concrete plans on how to achieve the necessary change.

Fueling the transformation engine

The car is not going to run without fuel. Assuming that your business transformation will move along automatically is a recipe for failure. In Jim Collins book “Good to Great” he talks about the flywheel and how it takes a lot of effort to put it into motion. Once it is moving, the effort to keep it moving is significant smaller, but still necessary. It is however necessary to continuously apply energy to continue the movement and get momentum. If the energy is not applied the wheel starts to slow down and ultimately comes to a halt. The same high amount of energy used the first time to put it into motion is needed to put it back into motion. The problem is that the second time, exhaustion is kicking in and the same amount of energy is not available – the organization has become tired.

A business transformation cannot be launched and then re-launched. Most organizations have one chance at success and the flow of energy and ideas needed have to be secured before the project starts. The recipe for success is to make sure that it is clear who is driving, keep the team focused and be clear on where the “energy” for your engine is going to come from.

The battle for power

If there can be any discussion about who has the authority to drive change, it will be discussed. Road blocks will turn up and discussions will break out everywhere, if the change manager responsible does not have the explicit authority needed. For a period of time it can be worked around, but ultimately it will lead to the project failing. The change manager must report to the CEO directly or to the board of directors and take orders directly from them. A battle for power is an unacceptable situation for a change management project to go through and basically mean that the homework was not done correctly.

Changing our organization is easy – we are very flexible and dynamic

You will be surprised how inflexible your organization really is when you start to rework the org. chart. Every manager have the opinion that only they are qualified to make decisions in their area and with the need to “create” a position for themselves in the new organization, the politics will be heavily at work.

All of the managers will have to work together as a team towards the goals of the business transformation. The whip and carrot concept will apply in most organizations and the change manager will have to work both as a boss as well as a trainer and coach.

Say what you do and do what you say

This statement has been my motto for several years. Especially in business transformation projects, the information to the whole organization is of the outmost importance. But information alone does not do it. You must be truthful and accurate in your information. Your teams will have to be able to trust what is said and be able to track the progress against statements made. So say what you do and do what you say.

Building capabilities

While an organization is in the change modus, it can be filled with positive or negative energy. The negative energy occurs when the information flow is bad or non-existent and anxiety is building up.

Change programs where management has made capabilities building, learning and growth  a part of the strategy often experience a different kind of energy. Both technical and people skills are quickly build and gaps are filled. The fuel for the change engine is easier produced and the organization is quickly moving towards a successful conclusion of the change program. When asking employees about the process they will use adjectives like fun, interesting, inspiring etc. to describe their experience with organizational change and business transformation. 

Measuring success

Most organizations seem to be task focused. They break down the business transformation project in smaller more manageable stages. When the stages are completed the team can declare victory.

Success must be measured in business value or business outcome. The tasks in the project have to be completed, but the success of a business transformation project has to be measured in the value it produces. Success does not lie in having conducted 12 focus workshops with current and previous customers. It lies in having understood the outcome of the workshops and having used this outcome to conduct real changes resulting in a 15% revenue increase. It is about the business value and not the action.

Conclusion

No matter what the reason for the business transformation program is, it is disrupting. People’s everyday life is being taken apart and they become anxious. Companies who have managed to transform their business both successfully and positively (when rated by the employees) have invested substantial amounts in the transformation process, building of capabilities amongst the employees and in involving the whole organization through workshops, information events and more passive vehicles such as intranet and e-mail.

Business transformation and the management of the change is not something that can be easily done. It is work – hard work which requires a lot of motivation and diplomacy. But with the right amount of both along with a careful planned transformation, it can bring results beyond the expectations.

© 2008 Jan A. Jensen – All rights reserved