To assign roles, responsibilities and accountabilities appropriately. KEY MESSAGE: An organization with these particular management roles has clear roles and responsibilities that help to drive business transformation as an integrated program of manageable projects. This favors feedback loops. He or she has considerable interest and experience in the topic of transformation and works in the line. This informal role is also very important because the functional promoter can answer specialist questions with expert know-how and has a good reputation as a specialist in the organization.
We fnd these informal management roles at all described levels of transformation: at the overall transformation level, the program level and the project level. In terms of content, the promoters differ in their degrees of specialist detail: strategic, tactical or operational. The combination of these informal management roles in itself requires a great deal of coordination.
For this to be ensured, the business transformation manager will be involved in the whole of the transformation process. This puts great demands on an individual since a transformation agent runs a number of risks, including isolation, being negatively perceived, unable to reintegrate back into the organization and being made a scapegoat in the event of poor execution Beer and Nohria, So a good degree of courage, resilience and spirit are required on the part of the business transformation manager Bossidy et al.
In addition, of course, the skill and behavioral set for such an individual is unevenly distributed in the population individuals who possess such a repertoire are highly sought after and valuable.
Part of an organizations responsibility to ensure its sustained success is to develop and retain such individuals. Meta Management also provides guidelines to internalize and institutionalize the transformation purpose and goals. A successful business transformation is grounded on the following principles: Business transformation objective: defne clear und comprehensible goals. Communication and coordination: communicate and live the vision.
Leadership: Walk the talk. Culture and value: defne values and facilitate internalization. These principles are explained in the next sections. To find people with sociality and perspicacity in particular an appropriate business transformation manager. Great deal of coordination. An approach that has gained broad acceptance is the balanced scorecard.
As we stated earlier, although the balanced scorecard does not describe a change process, it nevertheless provides a valuable model by which different management disciplines can be integrated through the identifcation of mutually supporting goals. The balanced scorecard is an ideal tool for a well-balanced goal defnition within a business transformation project. Goals are operationalized through key performance indicators KPIs and serve as a basis for value management, evaluation and feedback.
The recognition given to the different aspects of organizations is important. At a very broad level, change has been classifed into economic aspects and organizational aspects Beer and Nohria, , with the economic aspects tending to dominate, primarily because of their greater capability to be measured and often the immediacy of their impact.
However, the organizational aspects are no less important, given the need to build both employee and structural capability into the organization to ensure sustainable success. The dual requirement to build economic and organizational capability, highlighted by Beer and Nohria, is given a fne-grained working through, with the core fnancial and process metrics aligned with customer and people dimensions.
The other major beneft of the balanced scorecard is its relative simplicity in terms of breaking down the major aspects of the strategy and, for our purposes, the transformation goals, and enabling clear linkages between the core activities. Furthermore, it provides a clear rationale for the cascading of transformation goals through and across the levels of an organization.
In this sense, the balanced scorecard provides strong support for the communicative aspect of the transition. However, what is often overlooked is the need to develop a common understanding of a transformation effort as a frst principle.
This essential frst step the Communication Principle has often been an implicit ingredient in transformation efforts rather than an explicit one, but the whole change enterprise rests on this step.
Without a compelling articulation of the need for transformation, the mobilization of commitment from the workforce will be not forthcoming. Specifcally, this principle is not responsible for communication within and between individual disciplines.
Though this activity is very important, it forms part of the regular communications process within organizations. Diffculty with communication has long been viewed as a major contributing factor in the lack of transformational success.
The importance of communication in change processes is undoubted and there are numerous models and practical prescriptions, highlighting communication intensity and channel choice Garvin and Roberto, At the heart of communication approaches is a basic process framework which identifes: 1. Under the frst dimension rests the credibility and trustworthiness of the sender. The second dimension addresses the issue of tailoring the message and the salience of its content.
The third dimension identifes the capability of the receiver to understand the message their absorptive capacity and also the motivation of the receiver to act upon it. The need to segment stakeholders to the transformation process is a requirement in order to gauge reaction to the change and the degree of acceptance and resistance that is encountered.
The literature identifed a number of typologies of stakeholder identifcation that address different tiers of business transformation: 1st tier: Those imminently affected by the business transformation for example, people working in HR being relocated through the creation of a shared service center. Naturally, each of these tiers may have different attitudes towards the transformation program, ranging on a broad continuum from highly accepting of the transformation to strongly resistant.
Those on the frst and second tiers who are positive about the transformation would become ambassadors for the program and would aid in spreading the benefts and the vision of the transformation.
Persuading those indirectly affected is also important since though they may not be in the frontline of changes, their effect on organizational morale, should they distribute negative messages, is considerable Hardy, This means that the cascade of overall transformational goals must be made specifc for each management discipline and organizational member.
Furthermore, the cascaded goals must be meaningful for the employee in terms of motivational content as well in relevant language that enables them to understand both Whats in it for me? Though communication is important, obviously, for such a process to work, it is clear that acceptance of the transformation message is dependent not only on the message content but also on the credibility and trustworthiness of the leadership. This means that one message fts all does not achieve the desired objective.
Depending on the respective target groups functional and hierarchical affliation within the company, the communication must be individually adapted. Naturally, this does not mean that contradictory information should be provided; the communication of strategic objectives is standardized but it must be adapted for individual target groups in terms of its signifcance.
Financial Process People 1sttier 2ndtier 3rdtier Customer People, organizational units, business lines Tiers of a Business Transformation 2nd tier 3rd tier 1st tier imminently affected by the business transformation, e. Need to segment stakeholders to the business transformation process. Identification of a clear line of sight define transformational goals for each management discipline and organizational member. Individually adopted communication principles. Skilled leaders use frames to provide context and shape perspective for new proposals and plans.
Because transformation initiatives are open to numerous interpretations and fltering, it is important that employees are helped to gain a shared and consistent understanding of what the transformation requires. A prime mechanism is the establishment of a clear working language for the transformation process, in which all major concepts are defned for instance, in a glossary and measures are identifed and understood. This shared language of transformation can be a constant reference point as the change moves into different areas of the organization, where different professional and technical languages can distort the meaning of the change concepts.
The basis for leadership is to build an organization that can effectively achieve its goals. There is a wide range of leadership theory, from instrumental approaches to inspirational ones Bass and Avolio, ; all center on the nature of the relationship between the leader and the followers.
In light of the arguments from the resource-based view of the frm that competitive advantage stems from valuable, rare and hard-to-imitate resources Barney, ; Wright and McMahan, , and the related literature on the importance of using talent for developing ideas and sustaining success, the emphasis on transformational leadership Bass and Avolio, is not surprising.
It is no coincidence that the transformational agenda in transformation management should mesh with the dominant view of transformational leadership. BTM 2 suggests a new leadership approach, which has the following characteristics: The role of the business transformation manager must allow for suffcient responsibilities and power to manage the overall transformation.
The business transformation manager must have the respective competences and capabilities for such a complex task. For the relationship between the leader and the follower, the dimensions include the following: Provide vision and sense of mission, gain respect and trust.
Use symbols to focus efforts, express important purposes in simple ways. Promote intelligence, rationality and careful problem-solving. Give personal attention, treat each employee individually. Live the transformation: Walk the talk. Be clear in what is accepted and what is not. In conficts, fnd fair solutions and avoid winners and losers. The link between transformational leadership and involvement is direct transformational leadership embodies the idea of empowerment and involvement Bass and Avolio, Furthermore, implicitly bound up with leadership style is the issue of organizational culture.
Traditionally, leadership style has direct effects on the culture of an organization and vice versa, showing the example that others might imitate and also articulating the key values. All organizations have cultures of some kind, and there g o w e r p u b. These are not static descriptions but rather represent a dynamic, with organizations becoming more or less unifed over time depending on changes both within and external to the frm. For communication to work, there must be a cognitive element where employees understand what is being proposed and what it means for them.
However, there must also be an emotional aspect to the communication, to ensure both yielding to the change message and commitment to it. Ensuring that the cultural ground is fertile is a major task of the communication principle. Employees need to feel that the organization has a purpose and that the change will contribute to their sense of what the organization stands for and is congruent with its core values. To move towards the unifed end of the continuum, the following three elements are required: 1.
Socialization involves the immersing of employees into the values and objectives of the transformation, and the internalization of these objectives and values Schein, Central to this is the instilling of a sense of belonging, together with a non-coercive approach to the transformation, allowing autonomy for the employee.
In essence, the journey between the axes see Figure 2. Control represents a strong behavioral focus on compliance enforced by appropriate incentives and sanctions, but commitment, at an affective level, entails the sense of identifcation with the business transformation and the belief in the overarching goals of the process see Figure 2. Sufficient responsibilities and power to manage the overall business transformation.
Respective competencies and capabilities for the transformation process. Moreover, the position of a transformational leader must be seen as a position with high reputation: leaders need to be selected carefully, they need to have shown outstanding achievements in earlier change projects and their career path must be planned clearly.
I do it because I think its right. I do it to avoid twinges of conscience. I do it because I like to do it this way.
First, the communication principles cover partner-oriented or relationship-oriented approaches, comprising the aspects of appreciation, empathy and openness. Employees who are appreciated during the transformation process will have higher commitment and positive intent towards it.
Empathy is important in understanding what people are going through as the business transformation affects their working lives and relationships, and openness is crucial in order to bring any constructive voices to the table or to surface confict and resolve it. Second, the intrinsic basic needs highlight the requirement to focus on motivation in the transformation process, rather than pure rewards and sanctions. Again, there are three fundamental elements.
First, the transformation must be driven by autonomy people must be given responsibility and freedom to enact the transformation process. The alternative is to get somebody to do something by using extrinsic motivation tools such as rewards or sanctions, but it is not possible to force people to like something.
Second, the competence need highlights the importance of employees moving outside their comfort zone to embrace new practices and skills. There is not enough emphasis on managing the human, behavioural and cultural aspects of the change … Expand. Highly Influenced. View 4 excerpts, cites background. This popularization of IT sparked multiple ad hoc … Expand. View 8 excerpts, cites background and methods.
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The … Expand. Methodology Description. Management Types. In summary, the following general guidelines need to be considered to execute a successful business transformation project: Orchestrate the individual management disciplines as an integrated and holistic approach.
Specify the cascade of the overall transformational goals for each management discipline and organizational member. Install and establish the transformation lifecycle with the four phases: envision, engage, transform and optimize. Assign roles and involve the business transformation manager in the process of transformation. Create commitment across all involved parties and facilitate the buy-in from all important stakeholders and employees.
Cultural environment is set by skilful use of communication in order to provide a clear purpose and good understanding of transformation need, benefits, risks and change needed. Value Management. Risk management within BTM 2 involves the following steps: Envision: degree strategic risk assessment addresses the identification and assessment of strategic risks. Risks can be identified using such tools as scenario planning. The outcome of this step is a strategic risk map with a consistent and aligned degree view on key strategic risks for the business transformation.
Engage: Risk analysis and Risk response plan involves the assessment of underlying business cases of proposed transformations in light of potential risks. Generally speaking, the impact of risks is assessed based on cost, schedule and deliverables.
Transform: Execute risk response plan and monitor risks refer to the monitoring of the emergence of risk events or execution of planned responses. During this step a status report of risks is provided to the steering committee of the transformation programme and programme reviews are conducted at set milestones.
Optimize: Review and evaluate risks encompasses inspection and improvement of risks and opportunity identification. This step is most likely to be successful if an open risk dialogue is created between management and the board and critical alignments of strategy development and execution are monitored.
In particular, BPM within BTM 2 addresses the following steps referring to the transformation lifecycle for business transformation success: Envision: create the big picture of process management.
Essential steps comprise both designing an enterprise process framework and assessing the organizations process maturity. Engage: conduct specific action in order to perform process-related work. Most significantly, this involves both analyzing as-is processes and innovating to-be processes. In addition, a governance structure needs to be put in place to frame the implementation of new processes. Transform: conduct work aiming at implementing the new processes according to the to-be processes.
This relates to technical implementations but also to organizational implementations comprising the definition of performance indicators as part of the process controlling. Optimize: carry out continuous monitoring in order to find ideas for continuous improvement of the processes.
Transformational IT Management. Transformational IT management within BTM 2 addresses the following steps referring to the transformation lifecycle for business transformation success: Envision: assesses and enables solution readiness of the organization. Engage: defines to-be IT analysis and assesses gap to as-is. Defines the application, data and technology architecture.
Sets up a transformation roadmap. Transform: deploys IT operations and services and implement IT governance. Optimize: improves IT operations and services and manage IT lifecycle management.
Organizational change management within BTM2 addresses the following steps referring to the BTM2 transformation life-cycle for business transformation success: Envision: Set up a foundation for an effective organizational change management with respect to governance and assess organizational change readiness. Engage: Initiate a definition of a comprehensive communication strategy and performance management that is related to both the particular transformation project team and the organization at large.
Transform: Apply and adopt stakeholder management, communication management, and performance management. Optimize: Receive feedback about the level of success of already implemented interventions. Competence and training management within BTM2 addresses the following phases referring to the BTM2 transformation lifecycle for business transformation success: Envision and engage: During these phases, the company need and objectives are specified with respect to business transformation strategy implementation.
The need and objectives are then compared with the results of the as-is analysis. Engage, transform and optimize: These phases develop training measures for the identified gaps, foster the learning transfer and, eventually, analyze the success of the measures. Program and project management mainly address the engage phase, with some also playing a role in the transform phase for business transformation success: Engage: During this phase, programs are set up and executed to deliver the specific benefits identified by value management.
Furthermore, programs are coordinated and its components and projects are integrated. Last, quality requirements are identified and the need for additional capacity and skills is evaluated Transform: This phase monitors the allocated budget and time to ensure that they are not exceeded throughout the business transformation.
It also considers realistically how much effort it would take to complete a business transformation in terms of duration and cost.
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