Organizational Transformation Essay Paper

Organizational Transformation Essay Paper

Many senior managers today are aggressively trying to transform their companies, seeking radically to improve performance by changing behavior and capabilities throughout the organization. Unfortunately, most leadership groups lack a proven way of thinking about the challenge.Organizational Transformation Essay Paper

Ask your management team what a good business plan looks like, and you will probably find close agreement. But ask them—especially in the middle of a major change effort—what a good change plan should include, and opinions will vary all over the map. A CFO will insist on creating new financial measures; an operations VP, on installing a quality program; an HR specialist, on revising compensation and training; a marketing executive, on getting everyone to be more customer focused. And all these managers will have handfuls of articles to wave—and mantras of buzzwords to invoke—to defend their choices.

The chaos of opinion created by hype and buzzwords is doubly unfortunate. Most obviously, if left unresolved, it can easily turn a desire for bold, systemic change into a rag-tag collection of discrete, ad hoc initiatives. Less obviously, but perhaps more troublingly, it can also prevent the kind of meaningful discussion that keeps a management group pulling together toward a common end.Organizational Transformation Essay Paper The CEO of a company facing transformational change must be, by definition, the driver and facilitator of just this sort of top-level “conversation.” Without it, no change program will stay focused, integrated, and in balance. And without balance, integration, and focus, no disjointed set of initiatives will lead to significant performance-enhancing change.

Today, however, generating and capturing such quantum leaps in performance lie at the heart of many CEOs’ jobs. “To meet our performance goals—or to stay ahead of the competition—we need to reinvent ourselves,” they acknowledge. “Virtually everything about the way we do business must change.” But if leaders are unable to translate these beliefs into a coherent basis for conversation and learning with their leadership group, then the chances of developing an effective, tangible, and manageable program of change are much reduced.Organizational Transformation Essay Paper

For that, the right kind of conversation is essential. Which, in turn, means having in place a shared framework for structuring activities and responsibilities, a road map for laying out their proper sequence, and a background set of guiding principles about the “natural laws” that govern organizational transformations. All three of these—framework, road map, and guiding principles—are necessary for a successful conversation, because all three have a critical role to play in giving CEOs the practical means to shepherd through a balanced, integrated change program.

Axes of change

Our experience indicates that no single type of change initiative is sufficient to bring about acceptable levels of performance improvement. Though companies spend a lot of time, money, and energy on a broad-scale quality program, or a training program, or a program to refocus their organization’s culture, measurable downstream benefits—in, say, customer satisfaction or on-time delivery or cost reduction—fall well short of expectations. Organizational Transformation Essay PaperThe inevitable result: frustration, an exhausted and increasingly cynical organization, and a deteriorating competitive position.

Examples of the failure of single-initiative “magic pills” abound. Recent work indicates that nearly two out of three companies launching quality programs to increase worker involvement are dissatisfied with their progress. Other equally well-intentioned initiatives face similar difficulties.

One industrial firm began its aggressive efforts in the mid-1980s by cascading, top down, a well-crafted vision of change throughout the company. Each mill and factory took the corporate vision and developed its own companion vision. Senior executives traveled the country describing their objectives and signaling their personal commitment. An ambitious array of corporate training programs was developed, emphasizing participative management and situational leadership skills, team development, and group problem solving.Organizational Transformation Essay Paper Managers were called in to head office every quarter to describe how they were implementing the program in their area.

After three years, however, it became clear that only sporadic progress was being made. Top-down assertions of the need for change were not enough. No agreed-on process existed for translating broad objectives into specific, focused performance goals at functional, plant, or machine-operation level. Nor did managers have the skills to define these goals in a way that would engage their people in finding new ways to improve performance—not once, but continually. Though the new training programs were useful, they had no vital or clear-cut connection to the primary levers of performance improvement.Organizational Transformation Essay Paper

Of the dozens of leading US companies that have embarked on transformational change efforts in recent years, we have looked in detail at the experience of more than thirty. Although each company’s program is unique, the successful programs have developed points of view on all three types of initiative. Where any one is absent, the ill-matched collection of initiatives under way is falling short. Poor results are invariably the result of focusing efforts along only one or two—rather than all three—of the key axes of change:

• Top-down direction setting to create focus throughout an organization and develop the conditions for performance improvement.
• Broad-based, bottom-up performance improvement to get people at all levels to take a fresh approach to solving problems and improving performance.
• Cross-functional core process redesign to link activities, functions, and information in new ways to achieve breakthrough improvements in cost, quality, and timeliness.

Together, these three axes make up what we think of as a “transformation triangle”—a balanced, integrated framework for combining separate initiatives into a coherent overall program.Organizational Transformation Essay Paper

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What is Organizational Change?

Organizational change is assessing the past, comparing it to the present and determining the ideal future state from the current business state. Success measurement of change is how much better the future state is from the current state.

What is Business Transformation?

Transformation is redefining what something is (the current state). It begins by first assessing the present to the desired future. Success measurement of business transformation is how much different the future state is from the current state based on the initial vision and organizational strategy definition.

Business Transformation is More than a Trending Buzzword

Throughout the 90s and into the first decade of the millennium, change management was the buzzword throughout corporate. It sometimes just plain got out of control. It seemed like changing a toilet paper roll required a change management plan from the organizational change management office.

I am witnessing a similar but more destructive pattern as it relates to ‘transformation.’ Every organization is using the newly-crowned buzzword, but few I have seen execute business transformation.

They are still very much focused and planning around change management but are now just calling it transformation. That is costly for many areas including budgeting, success measures and rates and overall culture and morale with the latter taking the biggest tolls.

The number one reason business transformation programs fail because most organizations and people do not fully understand what transformation is.Organizational Transformation Essay Paper

Business transformation is very different from change management. Each has a very defined role in organizational goals.

6. Goals and Process Differences Between Organizational Change and Transformation

The goals and processes of business transformation and change are entirely different. Additionally, you’ll soon learn that the dependencies on both are also different, which is key in defining specific goals for each.

Goal of organizational change

The need to change is identified by a standardized assessment of the present to the past.

Think about that for just a minute.

When you have decided to make a change, you are evaluating current state to the past. That process goes back and forth until there is a determination that something must change. The process continues even through all stages of change management. There is a constant evaluation of past and present to gauge progress and to measure completion and success.

From an organizational perspective, that measure of success is ROI.

Did the totality of the change management investment indirectly or directly drive revenue?

For an individual, change project success is still ROI but likely more intangible albeit should still be measurable.

One of the causes of failed change initiatives is the lack of business process documentation. Making major decisions based on assumptions sets you up for failure.

The result of change

You (organization, leader, team or individual) –  only better –  based on your defined change objectives. The result of change might even be you becoming what you were in the past because you broke something along the way.

It all depends on the goals of the defined change, but ultimately you are still ‘you’ but in a different state.

Goal of business transformation

Transformation assesses the present with little or no regard to the past to define an entirely different future.

The goal of different does not mean forgetting critical lessons of the past during the transformation process. You have learned through a series of changes, and you must bring those experiences forward – including to forgive but never forget the past.

Throughout the transformation process, there is a constant assessment of present and future with intermediate milestones to gauge progress and success.Organizational Transformation Essay Paper

The result of business transformation

The result of the transformation is something or someone that is completely different from the present. You (organization, leader, team or individual) became something entirely different and redefined based on your assessment of the future and your objectives of redefining the future.

What you do and how you do it is entirely different from today.

Based on the diagram above, your business transformation led you from a person to a dog.

Is a dog better than a person (well, there is much debate around that sometimes with dog lovers)? It does not matter. The comparison of whether the future is ‘better’ than the present is an organizational change comparison.

The comparison of whether the future is entirely different from the present is a transformation comparison.

5. Origination Differences of Organizational Change & Business Transformation

Transformation and organizational change must start from different levels of the business.

Origination of business transformation

Business transformation originates at the highest level of an organization due to its goals, magnitude, and scopes of timing and budget.

Transformation cannot originate in a department, division or team. Organizational strategy, process, and training will not support that transformation sustainably. If you are transforming a department, you are completely redefining the division and likely misalignment it out of the current operating structure.

The exceptions to this are for large divisions and departments that receive direct support from the highest level of the organization. The root support for the business transformation is still originating from the top.Organizational Transformation Essay Paper

 
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