Sparked by a chain reaction of challenges stemming from the pandemic, businesses are accelerating their transformation initiatives.
Some are doing so in an effort to harness new market opportunities.
Some are attempting to stabilize their companies after a very challenging period of uncertainty.
For others, it’s to better align operations with strategic business goals and the evolving economic environment.
As an example, US manufacturing is expected to have 2.1 million unfilled jobs by 2030. Attracting and retaining workers is harder than ever.
In the video (to the right), our panel of experts discussed the challenges and opportunities of the manufacturing industry talent shortage, including the return to work, automation, and the evolving workforce.
Like thousands of transformations that have taken place before, 70% of current initiatives will likely fail.
It’s a stark reality, but a fate that companies can avoid by developing a strategy with these five considerations in mind.
There’s no time like the present for business transformation - or is there?
Properly assessing business readiness is a huge predictor of a successful transformation.
Pump the breaks if you:
“It really starts at the top. CEOs set the tone for how open other leaders and employees are to change.” - Jennifer D’Angelo, Managing Director, Advanced Resources
Companies are too often nearsighted when it comes to identifying challenges. Business transformation isn’t about managing the gaps - it’s about preventing them. More than 40% of a successful transformation’s value comes from growth initiatives, according to McKinsey research.
How do companies balance real-time needs with strategic business objectives?
In order for a business transformation initiative to be successful, organizations must have support from a strategic perspective as well as on the execution side.
Strategy
Strategy & Execution
Execution
All of this to say, real change rarely happens without the support of frontline employees. For any initiative to be successful, companies must have frictionless adoption by all employees.
Keeping the lines of communication open with all frontline employees, especially during the early stages of execution, will help to uncover potential issues or roadblocks early on and proactively adjust for effectiveness.
The problem with change management strategies is that they were designed for a time when change was the exception, not the norm. While they’ve evolved significantly over the past few decades to accommodate our now digital-first business world, they still aren’t meant for a world of continuous change.
Businesses need to move to a culture where change is no longer the exception, it’s the rule.
How can companies build a culture that embraces change?
Focus on:
With success still largely elusive when it comes to business transformation, many companies rely on external partners to help them develop and execute on their strategies. 95% of leaders rely on outside help to shape business transformation strategy, according to a recent Insight Intelligent Technology™ Report.
Benefits of working with external transformation consultants:
“We have helped many businesses throughout their business transformation journeys. From developing a strategic workforce plan to addressing specific supply chain weaknesses, our consultants have played important roles in both strategy and execution of initiatives.” - Jennifer D’Angelo, Managing Director, Advanced Resources
Reach out to Advanced Resources to learn more about how we can support you on your business transformation journey.
Work Matters Report: All About Business Transformation
Transform or get left behind.
Dramatic effect aside, this certainly rings true in today’s environment. Companies are racing to find ways to rebuild their businesses, capitalize on new market opportunities, or optimize operations to meet new, often changing, business needs and challenges.
Business transformation is not new, but it’s never been as critical as it is today. Unfortunately, it’s also not typically a successful initiative. Research has found that 70% of business transformations ultimately fail.
Our latest issue of Work Matters is all about business transformation. It is far and away one of the most common reasons that companies reach out to us for support. Why?
In this Work Matters report, we cover everything from workforce planning to organizational effectiveness strategies. Reach out to our team so we can learn more about your unique challenges, and help you create a path forward on your business transformation journey.
Related Article: 3 Supply Chain Management Areas that Benefit from Enhanced Data Management