Abstract
Business transformation initiatives update a company’s production methods and aim to ensure it operates more efficiently. However, the author suggests that a reactive, piece meal approach to needed change relegates a company to lagging behind its market and stagnates its growth. A proactive, holistic approach to business transformation ensures that a company is attuned to its evolving market environment. It secures the long term the survival, sustainability and success of a company. Findings from this study suggest that customer focus, transformative strategy, ethical practices and well executed growth metrics are essential for successful business transformation. The study shows that transformative leaders step away from limited competitor driven tactics to focus on securing long term growth, superior service delivery and stakeholder satisfaction. These companies use technology to unlock new markets and engage in open collaboration with their customers to create valuable new products. The study reviews metadata drawn from published interviews with transformative CEOs to derive the rules of business transformation. While there are many business development options to choose from in the 21st century, the author challenges company management teams to rethink their company strategy and adopt the essential rules of business transformation to secure their long term survival and success. The study suggests that business transformation is not about making a profit from a bottom-line business plan. Rather, it is about taking the lid off performance, ensuring company sustainability and relevance while fulfilling stakeholder expectations, today and into the future. Key words: Transformative strategy, business transformation, ethical leadership, transformative leadership, sustainable performance, business rules, 21st Century.
Highlights
What’s new in business transformation (Faeste and Hemerling, 2016), why do we need transformative leaders to address contextual change (Grin et al, 2018) and why do we need to renew our organizations (Mckinsey and Company, 2016)? What has changed since Henri Fayol and Alfred Sloan put together scientific management theory to get factories to operate more efficiently
Though this analysis indicates that this study would mostly find application in financial institutions, manufacturing firms, educational institutions and regulatory authorities, it does give a broad spread between private and public organizations. This indicates that the principles of business transformation are not restricted to private enterprise, but can be implemented in noncommercial enterprises as well (Hammer and Champy, 2006)
The size of the organizations referenced indicates that business transformation can be activated in both small and large companies alike
Summary
A close examination of these structural, systems and philosophical business development approaches reveal an underlying need for companies to continuously change, adjust and transform themselves in order to keep pace with the advancing and evolving environment. A business that does not adjust is likely to suffer strategic dissonance with its evolving environment. Such a business will find itself with unsellable goods, outdated technology and a rotting philosophical core of a dying, irrelevant business outfit (Montgomery, 2013). The bottom line of business survival is that a business must transform itself and keep pace with the changing environment if it wants to survive the long term. The topline of business success is to either: a) study where the market is going and position the company to advance it, or b) advance the market to where it believes the market wants to go
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