Why transforming your business boosts organisational performance

Why transforming your business boosts organisational performance

Companies can’t afford to simply survive. They need to thrive.

Yet no business can thrive without transformation.

Which is why transformation projects are happening everywhere, all the time.

They can be driven by changes in:

  • Technology
  • Climate
  • Crises or conflicts.

Perhaps you’ve seen one or many of these transformation projects firsthand.

The thing is, business transformation is all about boosting your organisation’s:

  • Efficiency
  • Agility
  • Competitiveness.

And if you can get those elements right, you’re setting yourself up for success.

But first…what exactly is business transformation?

No matter what’s driving business transformation (more about those drivers shortly), change projects by and large involve:

  • Streamlining processes
  • Removing inefficiencies
  • Optimising workflows

In other words, making your business more efficient. And here’s the best bit: those newfound efficiencies then drive:

  • Cost savings
  • Reduced time-to-market
  • Resource optimisation

Which every business needs.

But before you kick off your own transformation project, the experts at HBR recommend asking yourself 2 questions:

  1. Are internal or external forces driving your transformation?
  2. How quickly does your transformation need to happen?

See, there are 4 types of business transformation. And the one you undertake depends how you answer the questions above.

Here’s a quick rundown of each:

1. Slow motion transformation

As the name suggests, slow motion transformation has a long implementation timeline. Often, it involves cultural and corporate changes that happen gradually over a number of years.

For example, Danish shipping company, Maersk line, has been moving towards digitisation since 2016.

(Yes, it takes patience to see through long-term visions!)

2. Sprinted transformation

These projects are about responding quickly to urgent challenges. A great example is Facebook taking on the metaverse trend by simply…becoming Meta.

Yes, the sudden shift can create uncertainty. But, rapid change can also create a competitive edge. And whatever you think of Meta, they stay current by constantly chasing that edge.

3. Negotiated transformation

These transformation projects arise from external pressures – such as regulatory changes. Organisations can influence (but not control) the transformation and must engage in extensive stakeholder management.

For example: the European Union’s General Data Protection Regulation (GDPR) was a negotiated transformation. Businesses weren’t in charge of the changes, but took part in discussions and, ultimately, had to adjust their procedures accordingly.

4. Hijacked transformation

Hijacked transformations are also driven by external forces. Sudden and disruptive, these essentially mean outside events take control of a company’s agenda.

An example of this is how streaming companies have threatened free-to-air TV, cinemas and the movie industry. Streaming services have hijacked the transformation agendas of these mediums for the forseeable future.

How does business transformation impact your organisation’s performance?

Like we said earlier, transformation projects can do wonders for a company’s:

  • Revenue growth
  • Cost savings + operational efficiency
  • Customer acquisition + retention rates.

But what does achieving those KPIs actually mean?

Let’s use a digital transformation project as an example – a path many organisations have trodden.

So, if a company embarks on such a project, they might see results like:

Improved revenue growth

That’s because digital strategies broaden the customer base and boost sales.

Increased cost savings + operational efficiencies

Technology can streamline processes and reduce manual work. In turn, this cuts inventory costs and improves efficiency.

Higher customer acquisition + retention rates

Digital channels go a long way in attracting (and keeping) customers. A user-friendly mobile banking app, for example, appeals to many existing and potential customers.

We’ve seen this in motion with Tranzformd when we partnered with an Australian tech startup. The business wanted to shift from a monolithic platform to a microservices/domain-based environment and were struggling to scale with their current setup. Tranzformd began with a technology and architecture review, creating a strategic and actionable roadmap. Leveraging their expertise in microservices, Tranzformd completed the transition on time and within budget.

The startup transitioned from limited operations to a thriving business. The new microservices solution improved workflow, productivity, and allowed for rapid iterations. Tranzformd's enhancements enabled the client to release updates daily instead of biweekly, future-proofing their processes and boosting overall efficiency.

What to think about before your transformation project

Ready to kick off your own business transformation?

First step: consider both the holistic impact and business reinvention aspects.

In other words, ask yourself a few critical questions (and answer them honestly!).

Business impact

When we talk about the holistic impact of business transformation, we mean how it will affect your organisation as a whole. Where are the potential pain points across our business?

That means looking at these 5 factors:

1. Performance

How well do your financial and operational indicators stack up against the best?

2. Organisational health

Does your business culture fuel energy and inspire change?

Are you cultivating the behaviours needed to reach your organisation’s goals

3. Talent + capabilities

How does your company attract new talent?

How do you plan to promote existing employees?

How will you train and develop your teams?

4. Customer experience

Is the customer your business’ top priority?

How would your customers rate their experience with your organisation?

5. ESG

Where is your environmental, social and governance focus?

Is it integrated into the organisation’s purpose, strategy and culture?

Business reinvention

The business reinvention element is how your organisation transforms the way it creates, delivers and captures value. 

So understanding where your unique business transformation project begins means closely examining your organisation's:

1. Operating model

Is there a customer-focused operating model in place?

Does it have flexible organisational structures?

2. New business

How is your company expanding?

Is it creating new products to address your client's needs?

3. Big strategic moves

Is your organisation making strategic decisions about the market and where you fit?

Will it look at M&A to stay competitive?

4. Analytics

Does your business use advanced analytics to make informed decisions?

5. Digital + technology

Is the right tech infrastructure in place to achieve business objectives?

Is that infrastructure designed to reduce security risks?

(Source)

Get going on your business transformation journey

As we said, transformation projects are simply part of doing business today. But let’s be honest: they won’t always be smooth.

You could well encounter one, some or all of these challenges along the way:

  • Resistance to change
  • Resource and talent constraints
  • Cultural barriers.

But for the love of all-things new, don’t let that stop you!

Because business transformation projects aren’t just another trend you should jump on board with. They’re essential for driving your organisation forward in today’s crowded, competitive landscape.

And when you lean into that change, you’ll set your organisation up for long-term innovation, growth and success.

Want to talk transformation?

Talk to Tranzformd today. Or, check out how the team has supported organisations like yours to embrace transformation and boost their performance.