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“Transformation” is a term that is widely used and often used to describe the state of a company. However, the reality is that the majority firms fail in their transformation efforts. In fact, in KPMG Global Survey 201696% of organizations report that they are undergoing business transformation, but only 47% expect long-term value, with an estimated 70% of firms fail in their change efforts.
Why? Because many simply aren’t ready for the challenges and long-term commitment that transformation brings. As the CEO of a company currently undergoing transformation, I can firmly say that it’s not for the faint of heart. You need to make sure you’re up for the challenge and that your team is engaged and motivated by what’s to come. Here are five key actions to take before you embark on your journey.
1. Be prepared for criticism
Jeff Bezos once said, “If you can’t handle criticism, don’t do anything new or interesting.” This is 100% true for any company embarking on a transformational change. There is no easy way to initiate change, so you have to have the stomach for it. You can’t be timid in your approach and you must expect that change will make some people uncomfortable. Once you have that mindset, you’ll have the option to focus on dealing with other obstacles that come your way.
2. Paint a clear vision
You can’t transform without a vision of what you wish your corporation to be on the other side of the transformation journey. Simplicity is key here. You need to come up with an easy-to-understand but inspiring way to express what you’re trying to achieve with your recent direction.
Your employees need to understand the “why” behind the change and be motivated and inspired by the vision for the future. I recently took the vision concept a step further with my teams: I asked each business area to create their very own vision that aligned with the company’s vision. We had too many priorities across the company and I knew this could help each worker focus, prioritize, and higher understand their individual and collective purpose.
3. Engage your employees
The truth is that not everyone shall be on board straight away. There will often be three different groups of employees: those that are excited about the change and want to pursue it, those that are unsure and would fairly wait and see what happens, and those that are not interested in the change at all.
You’ll need to use the people in Group One to help drive the momentum and show Group Two the advantages and opportunities that lie ahead—not only for the company, but for their personal growth. Then you would like to make decisions about Group Three. Often, those reluctant to change realize that the company is not a good fit for them as the environment becomes less predictable, and that’s OK. Transformation is hard. And it’s not for everyone.
4. Stay on track
Many transformations fail because the leadership team doesn’t buy in. You’ll have some big ups and downs along the way, including some really big failures. There shall be individuals who don’t imagine you’ll be able to do it, and that’s when you double down.
Learn from your failures and stick to your goals. At Chamberlain Group, we experienced a major sales shortfall in one of our most revolutionary products last yr. We learned from it, regrouped, and will use those lessons to proceed to grow this a part of the business.
5. Be ready to change… all the things
Many people think of business transformation as a corporate strategy, but it’s not. It involves changing every aspect of the organization, including the way you budget, the way you allocate and reallocate resources, the way you recruit, and the way you engage existing talent. You need to make sure you have the right people in the right teams who are committed to the right priorities. In many cases, which means making daring moves. Over the past few years, I’ve been changing leaders to run different parts of the company, uncovering previously untapped strengths and benefiting the entire company. It could seem surprising, but it’s not real transformation unless you challenge your whole old norms.
I often say that leading transformation requires continually keeping tension in the metaphorical rubber band; if you don’t, it’ll go back to its source. Sustaining change requires constant focus and persistence, because at its heart, change isn’t about effort; it’s about impact. Establish a consistent set of metrics from the outset—each qualitative and quantitative—that you’re going to use to track your progress throughout your transformation journey. These metrics will function a point of interest and rallying point for your team along the way, and will show everyone very clearly when you have truly achieved “transformation.”