People, stakeholders, employees, business leaders, customers, and advisors must all recognize the need for change and plan and create it. The most successful transformations turn ideas into detailed business plans with trackable metrics and defined deadlines for measuring results. These plans should generate value, save costs, provide growth opportunities, and other improvements. To gain a competitive advantage, organizations must embrace disruption and learn to mobilize quickly, modifying business strategies in real time. This misalignment prevented them from achieving their business objectives, contributing to high employee turnover.
But what is the minimum level of employee engagement needed to ensure the success of the transformation? McKinsey recently analyzed data from 60 organizations that have been undergoing transformation for at least two years and found that transformations in which at least 7% of employees own part of the transformation are twice as likely to generate better total returns for shareholders. For example, a compelling vision guides overall transformation, but it must be based on an understanding of the realities of customers, the industry, and the company. If you constantly monitor the market, foster an agile culture, reevaluate your vision, and improve business capabilities, you'll see a gradual increase in value over time. Without a clear vision and strategy for shaping execution, business transformation initiatives can fail even in the best-performing companies. This is what years of research have taught us about how to start a holistic and lasting business transformation. To stay ahead of the competition and gain market share, make solid knowledge the core of your business strategy. With a 360-degree view of information about your customers and your company, you can quickly discover opportunities for digital transformation.
Deloitte's business transformation practice identified six keys to successful transformation based on hundreds of commitments to some of the world's leading companies. These keys are:
- Create an Agile Culture: You need an agile approach to business transformation by creating agility across the organization so that you can respond in real time to changing business dynamics and change quickly to stay ahead of the competition.
- Develop a Compelling Vision: A compelling vision guides overall transformation but it must be based on an understanding of the realities of customers, the industry, and the company.
- Monitor Market Dynamics: Constantly monitor the market to foster an agile culture, reevaluate your vision, and improve business capabilities.
- Make Knowledge Core: Make solid knowledge the core of your business strategy to meet and exceed expectations.
- Gain 360-Degree View: Gain a 360-degree view of information about your customers and your company to discover opportunities for digital transformation.
- Adjust Operating Model: In today's complex and rapidly evolving business environment, organizations often underestimate the importance of operating model adjustments needed to achieve transformation.