Do you really need to undergo transformation?

Every firm and its dog seem to be talking about transformation these days. It has become a dirty word, synonymous with business activities that are not what you would call ‘transformative’ at all, but rather a gradual evolution of the status quo. Or even worse, cost out restructures that inspire fear and anxiety in the hearts of employees everywhere.

While it may feel like every organisation around you is on a thrilling transformation that will see them transcend above their competition, in reality this is just not true. The ‘T word’ is not something to be taken lightly, and in fact requires a significant amount of time, energy and resources to do it justice – assuming your business really needs to take this step in the first place.

So, the real question here is do you need to transform your business to become more customer-centric, or are you better off incrementally evolving your existing operations?

Let’s take a look at 3 key elements that you should reflect on to answer this dilemma:

1. Has there been a fundamental change to your external operating environment?

If you are seeing radical change in the way your customers are interacting with you, or your competition has drastically changed their approach on how they service the market, then a customer-centric transformation could be the answer.

However, if your external environment is static and your industry seems to be in a steady state, there is no need to consider such a revolutionary act. Instead you may be better off engaging in a reset of your BAU strategy, planning and execution.

2. Are you operating in a way that is inhibiting your ability to be customer-centric?

If your operating model is stopping you from being consistently responsive to the needs of your customer, then you should look into reorganising your business and the infrastructure that supports it, to remove these pain-points.

However, if your operating model aligns well to customer expectations – instead invest some time and effort into revamping your organisational enablers, processes, ways of working and management disciplines to improve the efficiency and effectiveness of frontline execution.

3. Are the underlying economics of your business being challenged?

If you are struggling to understand where the value lies in your customer base and the most cost-effective way of servicing each of your customer cohorts, then it may very well be worth transforming your channel strategy and go-to-market approach.

However, if your organisation is experiencing a momentary economic slump, or the market is going through a period of decline, then it may be beneficial to consider tactical cost-out initiatives – improving the efficiency and cost-effectiveness of your business over the short to medium term.
 
Key Takeaway

If you answered yes to all three of the elements above, then a transformational change could be exactly what the doctor ordered. It seems you have a burning platform to address, to ensure that your organisation remains relevant to the customer now and into the future.

Just remember, the decision to engage in a full-scale transformation journey should not be made lightly or trivialised. It is something that needs to be done properly, by working back from customer insight to fundamentally reshape your business. This requires considerable effort but can lead to significant gains in customer and commercial outcomes.

Written by Tammy Scott.

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