Organizational structure, portfolio of core products or services, systems, processes, people, and the way employees work are all essential components for a successful business transformation. The success of the transformation is measured by the achievement of the objectives, the schedule, and the budget at the time of launch. However, this is not indicative of the long-term sustainability of a transformation. Our experience tells us that long-term sustainability can only be achieved if there is a firm commitment at all levels of the organization.
In Japan, having resources and capabilities dedicated to managing change is more important than ever for the transformation to succeed. To drive meaningful change, it is essential to establish a new perspective that focuses on customer needs, wants, and priorities. The strength of leadership before a transformation begins also influences the company's ability to adapt to change. According to a study, the most common objectives of transformations initiated in the last 5 to 7 years were basic business expansion (65%), followed by business efficiency (59%). For companies looking to boost their digital transformation efforts, these factors provide a model for stakeholders from across the organization to come together, create a shared vision, and take the first steps to thrive in the new digital reality. Many companies have failed significantly in their attempts to change, wasting time, money, and resources in the process.
In successful transformations, employees were supported 63% of the time; however, in cases of failure, they had employees who supported them only 30% of the time. To stay ahead of the curve, companies need to continually evolve their offerings and customer experience. Looking ahead, transformation objectives are moving from basic business expansion and business efficiency improvements to significant changes in business strategy (78%) and cross-functional transformations (76%), both of which are larger and more complex. The most challenging types of transformations involved a significant change in business strategy (33%) and cross-functional transformation (27%). When planning and implementing a digital transformation strategy, considering “OPPOSITE” can help your organization succeed. Markets are changing rapidly and this opens up opportunities for innovation.
New products, services, and ways of doing business are becoming more common. However, dealing with change is not easy and leaders need information on how to successfully implement changes in Japan. A survey conducted this year with Professor Koide from Sanno University found that only 19% of transformations started in the last 3 to 5 years were fully successful. So how can you ensure that your company is successful during a transformation? In this post, I'll discuss some of the most important factors for successful business transformation:
- Organizational Structure: It is important to have an organizational structure that supports your goals and objectives.
- Portfolio of Core Products or Services: Having a portfolio of core products or services that meet customer needs is essential for success.
- Systems: Having systems in place that are efficient and effective will help ensure success.
- Processes: Having processes that are well-defined and documented will help ensure success.
- People: Having people who are engaged and committed to the transformation process will help ensure success.
- Technology: Having technology that is up-to-date and able to support your goals will help ensure success.
This will help ensure that employees are engaged in the process and committed to making it successful.