One Central Vision – Six Areas of Action
The Trexcelerator Transformation Board is designed to be an easy-to-understand, easy-to-apply tool. It will help entrepreneurs, divisional heads, project managers, and senior executives facilitate their business transformations. Moreover, the Transformation Board can be used to support every step of any potential transformation journey. Whether it is applied to shape a transformation vision, further highlight a transformation approach, or define and execute a potential transformation roadmap, it creates comprehensive transparency regarding the targeted change and provides a clear focus on the relevant areas of action of your business transformation.
Businesses around the globe pinpoint digital transformation as one of their top priorities and key challenges as they struggle to keep up with the immense speed of technological innovation. In consequence, many business owners and corporate leaders task their executives with developing strategies and roadmaps to increase digitalization and implement “agile” methods of working.
However, even though digital technologies are undoubtedly a key trigger of fundamental change in business ecosystems, it would be wrong to limit the transformation vision, strategy, and approach solely to digital aspects. In essence, digital transformation equals business transformation, and business transformations require a comprehensive set of activities that re-direct all areas of a company.
Six Areas of Action That Must Be Managed When Transforming Your Business
The Transformation Board emphasizes six key Areas of Action in the context of enterprise ecosystems that must be fleshed out and addressed comprehensively to successfully design and execute a corporate transformation:
Clients — An enterprise’s clients are its most valuable asset. However, the term not only refers to customers who purchase and pay for your solutions and services, but also includes users who interact with your products. They can do so as private consumers or business representatives. In the latter group, they can be internal or external to your organization. Understanding your clients’ real needs and preferences, and designing an effective customer relationship strategy, are crucial steps when you plan to re-direct your business.
People — In order to serve clients, enterprises can employ individuals and contract freelancers, or engage with human resources from partner companies to complete the work at hand. Leading company staff through a period of transformation requires a multi-level approach; competencies and capacities need to be developed while managing the “people side” of change. However, effectively changing employees’ mindsets and behaviors related to the transformation will have significant impacts on its overall success.
Culture — Constituting the broader context for employees’ way of thinking and acting within an organization, enterprise culture can best be described as “the way we actually do things around here.” Transformations aim to change exactly that (i.e., what and how things are done within an organization). Culture is the handbrake to this change. If under tension, things will move slowly and eventually scorch. If released, change can be driven forward at full speed.
In Business, Organization Ties the Knots Between All Areas of Action
Solutions — Companies serve their clients by providing products and services that resolve their problems, address their needs, or speak to their preferences. The strength of a solution's value proposition is a large factor for market success. In most transformation scenarios, implementing new solutions with better value propositions is a core aspect. However, effective solution design is not just about customer centricity. To be valuable for all stakeholders, the goods and services offered must be attractive for clients, competitive in relation to rivaling products, and feasible for the company from a technical and commercial perspective.
Technology — Digitalization has been one of the largest creators of value since the invention of the wheel. Yet, technology is more than hardware and software; it also refers to the machinery and tools companies use to create and deliver products and services. Technology enables companies to organize and perform production processes effectively and efficiently. Thus, transforming a business is always a matter of changing technology as well, including the multiple impacts that such change has on solution design, and organizational structures and processes, as well as on employees and clients.
Organization — Company structures and processes describe the planned standard way of working, aimed to achieve an efficient value-creation process. Transforming an organization, therefore, is akin to open-heart surgery: it is the single most important Area of Action and requires special attention to keep the business alive, and yet it is also highly integrated with the other five activity fields. Successful transformations therefore comprehensively reform organizational aspects based on the changes required in all Areas of Action.
Structure Follows Strategy: Successful Transformations Build on a Comprehensive Vision
Defining an integrated transformation approach requires a clear vision of where the company wants to go. Before detailing these six Areas of Action, it is necessary to develop a clear and compelling image of an enterprise’s future business. Declaring to “go agile” with your IT and digital development is not a sufficient.
Once the transformation vision is defined, it is time to work on strategy and derive a holistic transformation approach that covers all Areas of Action. The Transformation Board supports you in doing so. It helps you consider all relevant aspects of your transformation by facilitating a structured discussion, creating transparency about dependencies and prerequisites, and promoting focus.
If you do not have a clear transformation vision yet, or need to challenge your current vision statement and transformation strategy, you can leverage the Transformation Board. Read more about how the four environmental perspectives included in the structure of the Transformation Board can help you assess whether your transformation approach focuses on relevant triggers of change or if you need to adjust.
To learn more about the Transformation Board, its other building blocks, and the best way to work with it, check out further articles on our blog, or participate in one of our training sessions.