Business Transformation Is Not a One Time Thing
Moore’s Law, established by Gordon Moore, the co-founder of Intel, states that technology develops exponentially – and we experience this development every day. Thus, it’s only logical that customers who live in this world shaped by progress, have expectations that develop at a similar pace.
Businesses therefore have to be sure that long-standing changes can take form faster and faster. This also means that employees should be set up to always further develop themselves and the company – without providing value for customers, suffer.
In spite of this, many businesses still implement methods from classic Change Management. Structures break, change, and freeze again in their new state. Managers and Human Resources departments guide people to the “right” position, only to “relocate” them later instead of changing their foundations preemptively. In this way, classic hierarchical working structures are preserved in most businesses.
Always-On Transformation as the New Standard
So, what can we do about this? In Beyond Great, the Boston Consulting Group speaks about a marriage between traditional organizations and agile, fluid teams, which uses perpetual change as a founding principal. For them “Always-On Transformation” means being practiced in consistently, and permanently, making many changes.
But there are people who support this system – especially those who work with clients. They have to make decisions, and they have to do so faster and faster. Through this process, employees can burn out or leave the business, and are difficult to replace – especially when word gets out that this is the case in the company. People who work together in a team today should successfully work together in another team tomorrow – without burnout. Conditions have to be established structurally and emotionally in order to achieve this.
Business Transformation Affects the Entire Company
Business Transformation, however, cannot be carried out by single units of a company. Particularly, with digital business models, all steps of the process have to be perfectly integrated with each other – from the first contact with the client to customer invoicing.
Spontaneously, companies first try to create a parallel structure for new products, ideas, and services. However, if capable employees are simply moved around the organization, the quality of service for existing customers deteriorates. But, if you don’t use the available resources, you may be missing out on the available knowledge.
When asked by the Boston Consulting Group, almost all of the surveyed companies said that exactly this balance between traditional business and new business models is incredibly important, but also incredibly difficult to implement.