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  • Paul Glass

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Businesses who develop their own people’s business transformation capabilities, are better placed to create and sustain additional value growth in a world of constant and accelerating change.

Enterprise level business transformation capabilities offer a competitive advantage, that is increasingly important for success in times of rapidly changing market demands and innovation.

Despite change being constant, many businesses outsource their business transformation capabilities, often at high cost and with limited success, rather than building their own capabilities at a lower total cost and with greater rates of success and benefits in the longer term.

1+1=3 Adding enterprise level business transformation capabilities to your business

All businesses today are operating in an environment of unprecedented and accelerating change. These consequences of such change can result in either increased risk of failure and losses, or for those most able to take advantage, the opportunity for success and value growth.

Businesses invest in the needed capabilities to be successful in providing a service or product to their customers. These organisational capabilities generate value based on the strategic and operational demands of their business model to be successful. In a business environment of constant change, how many businesses recognise that their ability to respond and take advantage of change provides an increasingly critical capability in their organisation to create value.

Change programmes, projects or improvement are increasingly becoming less of an infrequent individual exercise but more a normalised way of working, as businesses continually innovate to not only survive but thrive in the future.

This situation has been amplified during the Covid pandemic but had existed prior to that. For those with such internal capabilities they have enjoyed a competitive advantage by being able to more effectively react and to take advantage of rapidly evolving consumer demands, new possibilities driven by innovation and new business models developed at an increasing rate in response.

Those who have been least able to work with change have been the least successful in weathering the challenges created by the pandemic, but also the relentless and exponential speed of change in recent years, a rate that will only continue to increase in the years to come.

New business environments offer new opportunities to grow value, for those who can make change work for them. Therefore, investing in your business transformation capabilities, in addition to your own business intelligence on an enterprise level, will strengthen your ability to respond and create additional value than without.

Such capabilities are not however exclusive or relevant only to the largest of businesses, in fact these scales of organisations can prove the most challenging in which to develop business transformation capabilities, if they are not already established as an organisations founding culture.

Business of all sizes require these capabilities to be sustainably successful in growing their value, and it can be easier to enable these in the small to medium size business sizes, who are often more agile, more innovative, and often have a lower level of organisational maturity and established culture – meaning its easier for them to act and to take advantage of changing established bad habits and business models.

Why does business transformation so often fail despite all the knowledge and consultancy firms that exist?

With all the knowledge out there, the high level of failures are not through a lack of knowledge, but often a lack of applying that knowledge well i.e. competence – which is formed through working as practitioners who bring real life experience of being successful, and who have actually instigated or developed organisational enterprise capabilities rather than solving a specific problem for a short term gain?

In the pursuit of a ‘unique’ offer and fee, many consultancies add complexity to the most effective yet simple processes that yield the greatest levels of success as a way of justifying their specialism and rates.

By over complicating things it can often cloud the transformation objective, and overwhelm a whole organisation, making it more difficult for the organisation to lead transformations using their own business intelligence. Such situations also often fail those in the organisation living through such profound change, ignoring the fact that such people are usually those who make change successful, and bring the capability to continually improve.

Most of the reasons for failures in business transformation are people related, and most of these reasons can be positively influenced to achieve sustained success.

The evolvereia offer was established on the principle of simplicity with excellence, rather than complexity with mediocrity, utilising our proven experience in delivering success. We work with organisations based on three areas of potential, and work together with our clients to build such capabilities through their own business transformations.

Holistic end to end business transformation approaches are 3 times more successful in reaching expected outcomes.

Often business transformation is confused with making a business improvement, or a change project in isolation. Holistic and ‘All in’ approaches (McKinsey) are generally three times more successful than isolated approaches. Organisations who have developed such a culture at all levels find it easier to act in such a way and to maintain consistency in creating additional value, through the multiple transitions that generally form a business transformation.

Excellence in change management can give 100% greater success than without it.

It seems everyone these days is jumping on offering change management capabilities. Training and certificates can help, however they do not necessarily mean such people are experienced and therefore competent in leading change management - if so, the success rates would be far higher. Successful real-life experience of practitioner based execution, is relatively rare based on the levels of business transformation failures. The average success rate of business change outcomes is 33%, however when undertaken with excellence the outcomes are on average 133% (Conor Partners) – even moderate levels of change capability bring higher success rates.

People in general only express 40% of their potential in working environments.

How much more successful could an organisation be in change with greater levels of their people’s potential being actively engaged, to take responsibility and be involved in creating successful change? On average only 40% of people’s potential is expressed in their everyday work (PCI), it highlights a huge untapped potential in your people. Often failed change management is apportioned to the failed leadership of change and the organisational resistance to change, when a different approach can be achieved through adopting the principle that we are all leaders in change, some are leaders of leaders, some are leaders of others, but everyone is a leader of themselves in change. Top down and bottom up involvement creates the strongest movements.

Business transformation maturity levels

Our diagnostic process generally works with five enterprise maturity levels to understand the current situation in a business, and to determine the level of support necessary to establish the needed capabilities to reach a clients desired outcome.

The higher the enterprise maturity level existing in an organisation, the higher the business transformation capability to respond and generate increased value from changing market conditions and innovation.

This simplified example will enable you to understand where your business is, and to what extent your business has the potential to grow its value.

Level 5: Demonstrated Enterprise Competence transformation capability.

Transformational capabilities are in evidence across all levels of the organisation and are situationally applied to transformational activities in achieving strategic directions. This approach is applied with consistently high levels of consistently demonstrated achievement of transformational goals and strategic directions.

This level will include a high level of capability in all roles, the strategic positioning of being a learning organisation and consistent levels of active continual improvement in place and forming their competitive advantage.

Level 4: Standardised Enterprise transformation capability

A standardised approach exists across the organisation which is applied to transformational activities in achieving strategic directions. This standardised approach results in low levels of failure, however transformational goals may not consistently be achieved.

This level will include having capabilities defined for specific roles, supported by learning development and consistent use of standardised applied methodologies.

Level 3: Multiple transitional capability

A comprehensive approach in transformational capabilities is applied to multiple transition activities within the organisation to achieve strategic directions. Some examples exist of demonstrated success, though not standardised across the organisation.

This level will include capabilities defined for specific activities, performed through specific leadership or management roles.

Level 2: Isolated transitional capability

Some elements of transformational capabilities are consciously applied to specific transition activities with isolated examples of directly achieving goals or strategic directions.

This level will see inconsistent application of some methodologies with a low level of capability defined consistently for organisational roles and expected results achieved.

Level 1: Ad hoc transitional capability

Little or no elements of transformational capabilities are consciously applied to specific transition activities or strategic directions, with few examples of directly achieving goals or strategic directions.

This level will see informal or unplanned application of some methodologies with no level of capability defined consistently for organisational roles and regular failure.

Research by Prosci into enterprise change capabilities indicated that the majority of companies operate between level 2 and 3, with level 4 and 5 being the least achieved. The fact that most companies fail to realise their business transformation objectives and value growth correlates to these findings.

The sustained benefits from higher levels of enterprise capability are wide ranging but include increased levels of engagement in people, greater agility and responsiveness to change, greater levels of continual development and improvement bringing improved productivity, quality and efficiency, with reduced risks and project failure costs. In totality these enterprise transformation capabilities often result in more accurate expected outcomes and greater rates of achievement.

If change is constant, why outsource your change capabilities?

"Give a man a fish, and you'll feed him for a day. Teach a man to fish, and you've fed him for a lifetime." Confucius

Given the increasing impact of change upon businesses and their success, it always surprises me how few businesses adequately invest to secure the competitive advantage of having these capabilities on a true enterprise level, instead often they outsource these capabilities on an ad hoc basis.

Often businesses reach out to consultancy firms for support in their business transformation, this of course can be for valid reasons such as a short-term resource need or for accessing a specific technical capability not needed in the long term. However in doing so, such outsourcing can be at the expense of using the opportunity of change to develop their own internal change management capabilities which are demanded constantly.

This to me is not only a reflection on the general levels of enterprise change management capabilities that exist today in businesses, but also the limitation that traditional outsourcing gives in improving these capabilities for the future. How else can traditional consultancy business model remain relevant otherwise, if businesses had their own stronger internal capabilities and less reliance on external help?

Outsourcing consultancies often argue that their approaches bring faster and more effective solutions – however look beyond the self-promotion and you will find that despite such expertise, the results often do not bear that out with the stubbornly low levels of transformation success existing – where the failure to reach transformation outcomes are greater than those that are successfully achieved, and also the lack of enterprise level ownership that often exists after the consultants have gone.

Evolvereia was established to challenge the traditional consultancy model and business idea, by applying a democratic approach to business transformation, through enabling all business to create their own capabilities to grow value through their business transformations.

We therefore generally expect to work together with our clients once, and through a process to achieve successful business transformation outcomes and the development of the enterprise level capabilities that enable future ‘insourcing’.

It is the difference between giving someone a fish or teaching someone how to fish. By using a business need to make transformational change happen successfully – we work to provide businesses with the internal capabilities to lead their own transformations and to ‘insource’ their change capabilities in the future – every day.

If we accept that Change is constant, then we should also accept that businesses who do not establish enterprise level capabilities to work constantly with change, are failing in their core business model and in maximising stakeholder value, by being unable to utilise the full organisational strength to respond and take advantage of change.

#evolvereia #BusinessTransformation

#TransformationalChange #ChangingPeople #DealingWithChange

#BusinessGrowth #AddingValue

Paul Glass – founder of evolvereia

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evolvereia gives businesses an end-to-end transformation concept based on proven methodologies and tools, using our experience from some of the world’s leading innovative companies, to help and coach businesses to achieve their transformation goals and increase value growth.

Contact us to arrange a free consultation that will help your business and people to grow.

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