December 7

A Beginner’s Guide to Business Transformation: Everything to Know


Have you noticed lately that your employees seem discouraged and your sales are dropping? Does it seem to take forever to make simple decisions, and do you feel trapped with your current technological systems? Do you feel like you’re in a rut and you don’t know how to get out of it?

A business transformation can shake the cobwebs off your old way of doing things and give your company a new life. Read on to learn more about this and the different ways you can approach your transformation.

What Is Business Transformation? 

Business transformation can be a powerful initiative if you’ve noticed your bottom line, customer retention rates, or employee satisfaction slipping lately. As the name suggests, a business transformation is completely restructuring one or more aspects of your business. This is not a mere course correction or tweak; this is a bottom-up reevaluation and rebuild. 

A business transformation can help you get rid of the aspects of your original business plan that just aren’t working for you anymore. You can improve your efficiency, compete more effectively, and even pivot your entire business approach if needed. Most of the time, these processes take years of evaluation, work, and change, but the rewards can be immense.

Process Transformation

There are five main types of business transformation. The first of these is process transformation.

During a process transformation, you’ll rework the ways things get done in your company. You’ll reevaluate the day-to-day tasks of every person in your business. You can also find new, more efficient ways for them to work.

Oftentimes, a process transformation will involve lots of automation of repetitive processes. This allows your employees to spend more time on high-value projects. You’ll want to start by focusing on your most common processes and then moving out to the rarer tasks. 

Digital Transformation

As you might guess, a digital transformation focuses on your company’s technical operations.

Too often, it can be easy for us to get in ruts with the systems we use. We know how to make those systems work. We don’t want to upgrade to something better because it means learning a new system. 

A digital transformation challenges that, taking a hard look at every one of your company’s digital and information systems. It makes sure everything is up to date and examines whether there are more efficient systems you can be using. It also takes a look at what new products or services you could offer thanks to technological advances.

Organizational Transformation

An organizational transformation tackles the way your business is structured. It takes a look at every different department you have, how they interact with each other, and how people move through your promotion chain.

Often, these systems grow organically as your business expands. Taking time to reevaluate them and make sure you’re using the most efficient system is a good idea.

You may spend a large portion of your organizational transformation breaking down silos. You’ll need to get departments communicating more effectively.

You may also realize you don’t need a department or that two departments could be combined. These changes should be handled delicately so your employees don’t feel threatened or overworked.

Management Transformation

Oftentimes, we think that as our businesses grow, they need to develop a top-down hierarchical structure. But this can decrease your efficiency and result in miles of red tape that makes any change or decision a hassle. A management transformation looks for innovative new ways to arrange your business’s power structures.

Oftentimes, management transformation is more about empowering your workers. Employees shouldn’t feel like they have to ask for permission every time they wipe their nose. Managers shouldn’t feel like they need to sign off on every action.

Instead, focus on empowering your team members and setting up clear channels of communication.

Cultural Transformation

In some cases, a cultural transformation can make a huge difference for your business. This can also be one of the most challenging of the five transformations to tackle. Company culture tends to evolve naturally, and changing it in specific ways can take some delicate maneuvering.

You may want to work your cultural transformation into an accompanying management transformation. This can allow you to implement new policies and approaches that will build the sort of culture you want for your company. Focus on rewarding people who embody your new cultural ideals, and promote people who display desired qualities.

How to Implement a Business Transformation

Implementing a business transformation can be a huge and overwhelming process, and it can be tough to know where to start. The best way to begin is to work out your strategy for the transformation. You’ll need to start with the big-picture goals you want to achieve and work your way down from there to the nuts and bolts of how that will happen.

Once you know what goals you’re working towards, figure out what capabilities you need to acquire or improve to make them happen. You may need to rethink your mission, generate better insights, or improve integration. You might make your processes more efficient, update your technology, or recruit better talent.

You also need to figure out how you’re going to make these changes stick, rather than allowing your company to lapse back into its old habits. 

Discover the Benefits of Business Transformation

Undertaking a business transformation can be an important way to improve your efficiency and grow your bottom line. You can make your processes more efficient, update obsolete technology, or rework how your business is organized. You can also make sure your management is running efficiently and maintain a healthy, productive company culture.

If you’d like to start transforming your business, check out the rest of our site at MPL Consulting Services. We help you start your business transformation with data and a sprinkle of fun. Start a conversation with us today and discover the competitive advantage you’ve been searching for.

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