Representatives from 28 companies in a broad array of industries from high-tech (25%) to manufacturing (29%), logistics, services, banking and insurance, were asked to participate in a business transformation management survey.
72% of the companies were from Europe, Middle East and Africa, and 70% of the companies employed at least 10,000 staff. The transformation programmes assessed had a typical duration of 2 to 4 years and a budget of between 10 and 100 million Euros.
All survey participants indicated that a holistic transformation management approach would have been beneficial, but not one of the companies leveraged such an approach.
Current Transformation Management Approaches
An analysis to identify typical transformation management approaches currently used in companies, identified three approaches:
1. The value-driven approach
Used in 57% of the companies and can be characterised by a high degree of target driven planning and benefit management.
2. The change-driven approach
Used in 18% of the companies and characterised by the importance of the governance model, change management and management commitment.
3. The un-governed approach
Used in 25% of the companies and characterised by the initiative being dominated by little people and technology governance.
All three approaches focus on specific areas, but on their own, do not provide a balanced, holistic transformation management approach.
The outcome of the survey can be distilled into three key conclusions:
1. Companies that consider themselves as experienced in transformation management, assess certain components of a holistic approach differently than less experienced companies.
2. While technology is now a prerequisite (enabler) for successful transformation, the most common transformation objectives are not technical. In the survey, they were cost reduction, increased revenue, and improved agility.
3. Drivers and hinderers of successful transformation are dominated by soft factors.
.The source of information used in this post was “Business Transformation Essentials“.