Leaders who successfully transform businesses do eight things right (and they do them in the right order)

Observations from a Decade of Change Efforts

Over the past decade, I have watched more than 100 companies try to remake themselves into significantly better competitors. They have included large organizations (Ford) and small ones (Landmark Communications), companies based in the United States (General Motors) and elsewhere (British Airways), corporations that were on their knees (Eastern Airlines), and companies that were earning good money (Bristol-Myers Squibb). These efforts have gone under many banners: total quality management, reengineering, rightsizing, restructuring, cultural change, and turnaround. But, in almost every case, the basic goal has been the same: to make fundamental changes in how business is conducted in order to help cope with a new, more challenging market environment.

The Eight-Step Process to Business Transformation

From my observations, I have identified eight key actions that leaders must take to successfully transform their businesses. These actions are not necessarily in the order in which they were implemented, but rather in the order in which they must be taken to achieve success.

Step 1: Establish a Sense of Urgency

The first step is to create a sense of urgency within the organization. This can be achieved by communicating the importance of change and the need for immediate action. Without this sense of urgency, the transformation effort is unlikely to get off the ground.

Step 2: Build a Guiding Coalition

The second step is to build a guiding coalition of leaders who are committed to the transformation. This coalition should include individuals from all levels of the organization, as well as external experts and partners. This coalition will provide the necessary support and guidance throughout the change process.

Step 3: Form a Vision and Strategy

The third step is to develop a clear vision and strategy for the transformed organization. This vision should be compelling and inspiring, and it should be communicated effectively to all stakeholders.

Step 4: Communicate the Change Vision

The fourth step is to communicate the change vision to all stakeholders. This requires a clear and consistent message, as well as a plan for communicating with each stakeholder group.

Step 5: Remove Obstacles to Change

The fifth step is to remove obstacles to change. This may involve restructuring the organization, eliminating redundant or unnecessary roles, and addressing any other barriers to progress.

Step 6: Enable Capability Building

The sixth step is to enable capability building. This involves providing the necessary training, resources, and support for employees to adapt to the new way of working.

Step 7: Consolidate Improvements

The seventh step is to consolidate improvements. This involves reinforcing the changes that have been made and ensuring that they become part of the organization’s standard operating procedures.

Step 8: Anchor the Sustainment of Achievements

The eighth and final step is to anchor the sustainment of achievements. This involves institutionalizing the changes that have been made and ensuring that they continue to improve over time.

Conclusion

In conclusion, transforming a business is a complex and challenging process that requires careful planning and execution. By following the eight steps outlined above, leaders can increase their chances of success and achieve the desired outcomes. Remember, the order in which these steps are taken is important, as each step builds on the previous one and sets the stage for the next.

FAQs

• What is the most important step in the transformation process?

Establishing a sense of urgency is the most important step in the transformation process. Without a sense of urgency, the transformation effort is unlikely to get off the ground.

• Can any organization undergo transformation?

Yes, any organization can undergo transformation, regardless of its size or industry. The key is to understand the organization’s unique needs and challenges and to develop a transformation plan that addresses them.

• How long does the transformation process typically take?

The transformation process can take anywhere from a few months to several years, depending on the organization’s size and complexity.