The Inside Truth About Transformation

By Tania Misteli

For many years, I have helped businesses around the world deliver organisational change, from my roots in project management, progressing through to transformation delivery and then into leadership roles. I recall when transformation first became a new term in our corporate language and have seen it evolve into a fundamental part of business culture. It is now an essential tool for any progressive organisation wanting to stay ahead of the competition and keep up with our rapidly changing world. Yet in spite of it becoming BAU and the advances we’ve made with processes and technology to help businesses run more efficiently, many organisations struggle with it. Statistics show more transformations fail than succeed.

During my career I’ve worked with different types of companies at various stages of their transformation journeys. Every business is unique, and so is the approach they take. Yet, the things that can prevent them from successfully reaching their transformation goals are, in my experience, usually the same. The most common causes being….

1. Lack of understanding around what transformation is

Many people believe that transformation is a piece of work that you start and finish, and something you can pick up and put down. But transformation should not be seen as finite, or a fixed transaction – it’s a journey, a mindset, the evolution of becoming what you want to be. It needs to be embedded into your culture and connected with all parts of your organisation from strategy through to operations, and most importantly – your people. Of course, change must be structured and able to be measured, but the work cannot stop once you reach your transformation goals. Believing you are ‘done’ and there is no further room to improve will hinder growth and innovation, and eventually start to undo any progress you’ve made. To keep ahead, you must always be looking forward and asking, ‘where to next?’.

Another common misconception is that technology alone will transform your business. While it can certainly help to improve your operational efficiency and is essential for any modern organisation, it is only one part of the solution. Before selecting your technology, you first need to decide how you want your business to operate differently to how it does today. Define the outcomes of what you want to achieve and why, what needs to change to achieve this, and then the processes, roles and responsibilities, and ways of working required. When this is done, then look at how technology can support i.e. technology should not be the driver of your transformation strategy, it should enable it.

2. Uninformed planning and decision making

Transformations are often planned within the confines of senior leadership and decisions may be made without consulting more broadly within the organisation. This can lead to assumptions around what needs to change and the best approach to take. Without engaging with all the relevant people who understand the finer details of how the business operates and taking the time to understand exactly where the issues and improvement opportunities are, key insights can be missed, and potential benefits misunderstood. Equally, neglecting to involve the right people in the planning process (e.g. those who understand how plans will practically impact the business and can advise whether they are viable), will significantly increase the risk of failure.

Another pitfall in planning can be locking in budgets and timelines before properly defining what is involved and understanding whether they are in fact achievable. Costs and timelines must be carefully estimated and well managed throughout, but there will always be movement (up or down) once you get into delivery as you learn more about the proposed changes by exploring the detail. Trying to deliver on a rigid budget and timeline is often unrealistic and typically results in corners being cut in places that are needed the most, such as dedicated resources or change management. This only puts extra pressure on the delivery team and always ends up costing more in the long run.

3. Underinvestment in Change Management

I have long held the belief that Change Management is an essential part of delivering successful business change and champion it when shaping up a transformation. Yet, more often than not, I experience resistance on this front, with senior leaders believing it’s a ‘nice to have’ versus a ‘must have’. Companies will sign up to spend millions on new technology but can be reluctant to invest the money to ensure people have the knowledge and skills they need to use it. Almost two decades on from when I was first introduced to this practice, it amazes me that I still find myself having to convince people of its importance. Change resistance is one of the key challenges for transformation, because the reality is, most people don’t like change. It can be very unsettling and create high levels of anxiety. You may be able to force people through it and get the tangible change over the line e.g. new processes and technology. But if people don’t want to use them, don’t know how to, or feel disgruntled that they are being made to use them, then your return on investment is hugely at risk, as may be your ability to retain good people. This has always been the case, but with the post-pandemic surge in mental health issues, underestimating your people component could cause much greater challenges for your organisation than failing to deliver on your transformation goals.

So how do you avoid the pitfalls and set up for success?

The where and why

It’s easy to be influenced by the latest market trends and exciting advances in technology. But before jumping to solutioning, take time to understand what is driving your transformation agenda. What is it that needs to change and why? Where do you want to get to, and do you fully understand the gap(s) with where you are now? How does it align to your strategy? There are many ways you can approach finding the answers to these questions, but the main thing is that you ask the questions and find the answers that you can stand behind. If you’re going to ask people to get invested and come on a long and, at times, challenging journey, you need to be clear about where you are going and why.

As you shape your business case, it’s also important to be realistic about goals and benefits. Benefits can be hard to quantify, especially if you’re planning a transformation to replace manual processes or complex, aged technology. I’ve seen people put this in the ‘too hard basket’ and go in with assumptions rather than facts. But going into transformation without substance to your numbers will only lead to a disappointing finish and undermine any future changes. So take the time to produce the data where you can, and where you can’t, be transparent and provide rationale for the improvement and its potential value. Make sure everyone understands what they are committing to and what the business has to gain from it. Create a solid business case that everyone can truly get behind.

The who

Involving the right people is key and starts at the top with your senior leadership. Do you have the right team to lead the organisation through this change? Are they aligned? If not, then work to resolve this first before making any big plans.

When you are confident in your senior team, it is important that you find the right person to lead and drive your transformation agenda. Don’t just look for the right skills and experience. Look for someone who fits your culture and shares your values. Someone with integrity who will always choose what is best for your business, even when it’s the harder road for them. It’s important too that when you find someone you can trust to lead your transformation, you actually trust them. Given the complex and fluid nature of large-scale change, they will likely end up having to deliver some home truths and bad news along the way. It’s human nature to get a bit defensive when we hear something we don’t like. But don’t let a little ego get in the way of success. Be sure to support them on both the good and bad days, and work together to come up with the best solution. As they say, leadership is a team sport.

When shaping up the broader team, you’ll need to fill certain roles with dedicated resources who can step away from their day jobs. Don’t make the mistake of thinking they can do both because I’ve never seen it work. People end up unable to do either role well and get frustrated and burnt out. Also, when selecting people, again don’t assume that technical skill and knowledge is all that matters. Resilience and the right attitude are also key – you will need people who are invested, who believe in what you are doing and will advocate for it, not undermine it.

Finally, ensure you have the right governance in place. Who are your decision makers? Who is accountable for the change? How will you manage and escalate issues? Having a clear structure in place and communicating roles and responsibilities will ensure all the moving parts can work efficiently together and any problems that arise are resolved as quickly as possible.

The how

As you start considering how you are going to transform, make sure you involve the right people each step of the way. You can’t include everyone who may have an opinion but should be able to identify who within your organisation has the expertise to advise on whether the proposed changes can be made and the impact they will have on the business. You may also need to bring in external support to help shape plans and advise on areas that require specialist technical expertise you don’t have in-house. But aim to do this once you have consulted your team and are sure you need it. Then, not only can you be confident it’s money well spent, but you’ll also avoid alienating your people and starting a transformation with them feeling overlooked and undervalued. It’s important to build trust from the start as you may need to ask a lot of them along the way.

One of the key roles not to be missed here is the Change Manager. Many organisations make the mistake of thinking they only need to assess the people impact and start communication once it is understood exactly what is changing and when, i.e. post-planning. But people will be your biggest challenge, so having someone at the table who understands how they may be impacted and what needs to be factored into plans to support them is essential.

The when

Once you’re confident in your transformation plan and feel you have everything in place, make sure you pause to check whether it is the right time for your organisation to go on this journey. Are you really ready? Are your people ready? Do you fully understand the impact this will have on your business? When the answer to these questions is yes, then you’re ready to go.

The journey

Even with the best preparation and people on board, no transformation will go exactly to plan. There are always unknowns at the start and factors out of your control that can impact along the way, such as staff attrition, company performance and external factors e.g. pandemics, economic crises. So the ability to be agile and adapt to a change in plans is key. When things change or issues arise, face them quickly and efficiently so they don’t derail you – come together as a team to understand what has happened and what can be done to keep you on track.

When mistakes are made (which they will be as humans are involved), don’t allow any time to be wasted pointing fingers and looking for blame. It’s important to understand what went wrong to avoid it happening again, but hunting down the offender won’t undo the damage and sends a message to the team that it isn’t all right to fail. Creating a fear culture will dampen creativity, discourage people from participating and potentially cause division and resentment within the team. Instead, give people the psychological safety they need to contribute and be part of the solution. Be clear that it’s all right to make mistakes as long as you learn from them.

Your leaders should be on the front line of your transformation with your people. Don’t limit their interaction to a formal Steering Committee or Board meeting where they may only hear headline activity and risk not getting the full picture. Instead, make sure they are connected into your organisation and get information first-hand by asking questions and listening to what people have to say. Also, ensure they are providing people with the support they need in real time, and follow through on commitments i.e. do what they say they will. If for some reason that hasn’t been possible, then make sure to explain why. Don’t try to move on and hope no one will remember because they will. Being authentic earns trust and respect, which will motivate people to work harder and ensure they stay with you on the journey.

The future

Significant change can take its toll on a business and it’s natural to want to look for a period of stability to balance things out after a major transformation effort. It’s important to take time to embed the changes, celebrate success and avoid change fatigue. But don’t lose momentum or get complacent. Develop new goals for your transformation roadmap so you have a plan for continuous improvement. Transformation isn’t only achieved through major changes. Smaller goals and innovations can also keep you moving in the right direction – to support your vision, deliver your strategy, and reach your full potential as an organisation.

In summary…

Transformation is complex and challenging. It will bring disruption, discomfort, and probably at times test your limits. However, if done well, the positive impact it can have on your organisation is well worth the effort. If you take the time to fully prepare, have clear purpose and leadership, a strong committed team, and adapt and refine as you go, it is possible to reach your goals and achieve the transformative results you desire.

If you would like to connect, please contact me via LinkedIn – https://www.linkedin.com/in/tania-misteli-82233321/