Business Transformation - Strategy 4 Growth

Business Transformation

Business transformation is differentiated from continuous organisational improvement in that it requires leadership rather than management in driving through business-wide changes. Business transformation can last several years to address major disruptions and new market opportunities and incorporates the way the business is structured, its route to market driven by defined outcomes and with a real focus on generating customer value.

Getting transformation started is often the biggest problem, e.g. it’s easier to initiate transformation when the organisation is a failing rather than successful but complacent business. A successful business transformation strategy includes the market and channel strategy, business model strategy and operating model strategy.

The market and channel strategy focuses on growing sales and revenue while winning new customers and keeping churn to a minimum whereas as the business model strategy focuses on the business role in the market place, its target customer, its channel to market etc. and the operating model strategy is concerned with internal organisation, its people, skills and processes. Business transformation can be initiated to address growth, the market or performance issues but it needs to incorporate all three strategy elements to be successful.