Strategic Change Defines The How Of Strategy Which Creates The Desired Behaviours Responsible For The Best Outcomes Of Organisations
Change before you have to as our only security is our ability to change.
As each year passes the world becomes a little more volatile, uncertain, complex and ambiguous (VUCA).
The need to change has never been greater and the fact that the human race has survived for as long as it has is a testament to its ability to adapt. Organisations must do the same.
By far the best kind of change is continual and adaptive which must be embedded into the strategic decision making of the organisation. However, this has not been possible for many companies as it requires a type of leadership that is at worst democratic and at best meritocratic in nature. This means that many organisations are faced with changing to keep up with the decision of the organisation.
The failure rates of change programmes though are staggeringly high with some industry experts and commentators quantifying it to be over 70%. Unsurprisingly this is very similar to the failure rates experienced within M&A programmes and for very similar reasons.
Where change fails is in focusing on strategy at the exclusion of implementation, not recognising the complexity involved or prescribing change that isn’t tailored to the context of an organisation. Ultimately it fails to recognise the importance of the people it affects.
Organisations are comprised of;
- Individuals
- Collectives – Groups and Teams
- Systems – Management, Structure and Sub-systems
Change therefore can occur at any level and will only be successful if all levels change to facilitate the desired outcome. It also requires the influencing and communication skills often found in sales and marketing.
Individual and Collective Change
Unless you understand your
Management, Structural and System Change
Digital Transformation
Digital technology should be used to support organisations and more specifically individuals and collectives to help them do what they do and for whom they do it, better.
The process of digital transformation fundamentally changes how an organisation behaves and delivers value to customers which is underpinned by technology.
It’s not a straight line journey and requires experimentation, the ability to embrace and learn from failure and to be willing to challenge the status quo against opposition.
Often, it will result in the widespread integration of digital technologies into many parts, if not all areas of a business. Whilst technology can help facilitate change by itself, it will fail to deliver the desired outcomes.
Digital transformation is more about people and their environment and strategic change than it is about the technology itself.
Unsurprisingly digital transformation initiatives, much like their change umbrella, are said to experience failures rates as high as 70% costing enterprises worldwide £$billions to £$trillions in wasted expenditure.
Data, Predictive Analytics and Learning Systems
The world is generating more data and from that data new insights can be extrapolated which can help businesses change the way they do business more quickly and for the better.