E XCERP T
An important distinction must be made between
Mission and Vision statements: while the Mission
Statement defines the organization’s purpose, the Vision Statement outlines its future aspirations, or what
it hopes to be “post-transformation”.
DEVELOP AN ORGANIZATIONAL CHANGE MANAGEMENT PLAN
The logical step after conducting the Current State
Assessment and developing the organizational strategy may seem to be designing the future state. Proceeding to that step immediately, however, would
place the success of transformation in doubt. Given
that a business transformation is by nature a transformational change for the whole organization, it
is critical to consider and plan for its impact on all
aspects of the business and its employees. Organizational Change Management (OCM) is the “soft” side
of business transformation. While numerous technical considerations help to define and implement the
future state vision, the focus of OCM is to make employees aware of, and engaged in, the change effort.
Executed properly, OCM can remove obstructions
that prevent change from occurring, accelerate the
transformation, and positively impact post-transformation sustainment. Three common components of
OCM are stakeholder analyses, communication plans,
and training plans. The communication component of
OCM is critical to successful business transformation. If employees and stakeholders do not understand
the purpose and vision for the change initiative, they
may become resistant, stopping progress in its tracks.
Effective communication plans often overcome these
challenges by communicating the vision for change
repeatedly and through all available channels.
DESIGN THE FUTURE S TATE AND DEVELOP AN IMPLEMEN TATION
Once the need for Organizational Change Manage-
ment has been accepted, business transformation can
proceed to designing the Future State and developing
an Implementation Plan. Once complete by the orga-
nization, this step will have defined the way forward
and developed a plan for making the business vision
a reality. Using the organizational strategy as a start-
ing point, business leaders must outline technical as-
pects of proposed changes. Re-visit the Organizational
Alignment model from Step One to test the complete-
ness and alignment of the future design. Is the orga-
nizational strategy supported by adequate measure-
ment and management systems? Do the processes and
technology solutions achieve the desired results rela-
tive to the strategy? Are the organization’s resources
(employees or equipment) aligned to the new produc-
tion system? If the answer to each of these questions
is “yes” then management can proceed to develop an
implementation plan that, in concert with the Organi-
zational Change Management Plan, can be enacted to
turn the aspirational vision into reality.
IMPLEMENT CHANGES AND SUSTAIN IMPROVEMENTS
Although implementation and sustainment are the
final components of business transformation, plenty
of risks to success remain. Rushing implementation
can place extreme pressure on existing operations and
staff, resulting in the re-emergence of employees’ resistance to change. Business leaders must be careful to
ensure that the change initiative doesn’t fall victim to
“the way we’ve always done it”.
The most direct method to ensuring a proper pace of
implementation is to follow these steps: apply the Plan,
Do, Check, Act (PDCA). The PDCA model is commonly
used in lean management. It dictates that required changes are made one at a time and in proper sequence. This
meticulous approach allows each change to be properly
implemented, measured, and adjusted as needed before
moving on to the next item on the implementation plan.
Implementing multiple changes to a system at once
makes it difficult to ensure that each change is having
a positive effect.
Another benefit of the PDCA model is that it can help
drive a post-transformation, continuous improvement
program—a critical component to ongoing sustainment.
Following these five steps in sequence, and with realistic timelines, will be a leap in the right direction for
any business transformation initiative.
TIP TO THRIVE
“True leadership is about making other people better as a result of your presence and making sure your
impact endures in your absence.”
HARVARD BUSINESS SCHOOL; LEADERSHIP