A Process for Business Transformation and Organizational Growth

By: Kensel Tracy

A process for change in a company and for business transformation should start at the top of the organization and requires the support of those in charge of the business. There is also a need to engage the total organization in the process.

It is important to realize that business transformation will not be the ultimate cure for all of the organizations business problems and that transformation is an ongoing journey and continuous process. Since there is really no one end point every step that a company takes on the journey will help to move the company in the right direction.

The first step is to mobilize the executive leadership team. Organizational change begins with executive leadership, and it will be the business owner, president of the senior executive team that will need to become involved and help to redefine the organization’s transformational strategy.

There are differing schools of thought as to where to actually start. For example Ron Wiens a well-known transformation consultant and adviser to the Center places the emphasis on culture as the starting point for transformation. His cultural approach focuses in on structure, strategy, leadership and people components of every company. All of these areas within an organization then are taken into consideration as part of the strategy for change.

Other consulting organizations sometimes solve a problem area within a group or within the company however it is important to better understand in full the cultural makeup of the company and the key components involved before developing on any transformational strategy.

Many times a transformation strategy is predicated on an overall financial objective, such as return on investment or capital. However in order to formulate a strategy executives will also need to devise a plan that enables the business to adapt quickly and perhaps even venture into unfamiliar terrain. This will mean understanding and improving and simplifying processes and infrastructure to help make the business perform at a higher level or become more agile and also means getting buy in from everyone in the company and challenging them to think differently or more creatively about the business.

The process for change starts with awareness. For example, most business leaders say, we know we have some problems or issues, our markets are changing our profits are down and productivity and employee engagement and moral or down or we are not sure what to do next. This is a common refrain in talking with most business owners and senior executives within a company. A leader’s role is to understand and provide an environment for growth and change.
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Every company has some issues within the structure of their company where they know they need to make a change or improve. A number of business leaders think that these things are just part of every business and that it is something that they cannot change. A favourite expression of mine is when a leader says “well these are just growing pains”. Only thing is these pains continue to grow.

Becoming more aware is the actually a major part of transformation. Too many company executives or business owners continue along a path that has been successful in the past and have blinders on in regards to changing realities in both their business and their people in the present. Cultivating awareness means actually becoming more truthful with existing situations that are occurring and making a commitment that you are going to do something about them. Awareness or knowing then becomes the first step in every business transformation.

The second part of the process is the assessment phase. In this phase assessing your people and processes identifies the key issues impacting performance inside your organization. In order to increase the performance of your people you need to be aware of the issues that are getting in the way of growth or performance.

For example are leaders traumatizing your people with old management techniques or building partnerships and using 2020 thinking? Is the environment you have created conducive to growth? Are you listening to the needs of your people, your customers or your suppliers and what changes need to be made to help the organization perform better?

An assessment is usually carried out by interviewing at least of third of your people and getting a finger on the pulse of your company. Another approach is a Business Management Review process that for small to medium sized companies is highly effective in becoming aware of the issues that are holding the company back from performing at a higher level. This half-day program helps owners and employees work together to identify the key issues required to improve the quality of the company and identify those areas that are important for change.

Once these steps are completed then a process can be put in place that will consist of small incremental changes that can be implemented to fine-tune the company or a larger strategy for change can then be implemented to help the company perform at a higher level and grow and prosper.

Finally a transformational strategy can be developed from four inter-related perspectives which can include the people prospective of the organization, the financial perspective, the customer perspective and the internal processes that are critical to satisfy both customers and shareholders and the infrastructure that is needs to be developed to improve and optimize the critical processes to identify how the organization should be equipped to move forward.

Organizational TransformationReal Transformation Starts with What’s Running Good and Making it Run Better