Business Transformation involves fundamental and complex organisational changes within as well as across organisations alongside the value chain. Business transformation can also radically alter the organisation’s relations with the wider economic and societal environment.
Studies by the likes of the Business Transformation Academy have shown that despite the frequency and significance of business transformations, many leaders report their organisation’s business transformation competencies as being inadequate. This sentiment is reinforced by the low success rate of business transformation, and many organisations continue to rely on the adoption of project management methods to manage business transformation, and fail to understand the need for a business transformation management method.
The definition of business transformation is also widely misinterpreted, with confusion between transformation and change. Below is an excellent analogy which appeared in the 360° Business Transformation Journal.

When a snake sheds its skin it changes; when a caterpillar becomes a butterfly, it transforms.

What is Business Transformation Management?

Business transformation management is the holistic management of extensive, complex changes upon which an organisation’s future success strongly depends. Successful business transformation management can be seen as a Meta-Management discipline that is dedicated to the integration and extension of individual management disciplines which are:

  • Strategy Management
  • Value Management
  • Risk Management
  • Business Process Management
  • IT Transformation Management
  • Organisational Change Management
  • Competence and Training Management
  • Project and Programme Management

What are The Different Types of Business Transformation?

The following four types of business transformation are described in the post Business Transformation Types

  • Radical Business Transformation
  • Architectural Business Transformation
  • Modular Business Transformation
  • Incremental Business Transformation

What is Best Practice Business Transformation Management?

Over 70% of business transformations fail because best practice business transformation management is not used.
Learn about The Business Transformation Management Methodology (BTM²)

What Questions Can Help Assess a Business Transformation Programme Manager?

  1. What integrated and holistic transformation methodology do you use and how do you leverage it?
  2. Describe how you would establish governance, manage risk and engage with various stakeholder groups.
  3. How would you ensure the people element of transformation is addressed effectively?
  4. How would you coordinate projects and programmes and ensure they are aligned?
  5. Describe the tools and process you use to track and manage benefit realisation.
  6. How would you track time-and-costs and ensure we stick to the budget?
  7. How would you ensure we adopt best practices in terms of quality?
  8. How would you ensure that we have the right people in the right place at the right time?
  9. How would you ensure delegation to 3rd party suppliers and optimise our spend?
  10. Describe how you would initially assess the health of our transformation programme.

Watch a video about a fictitious company faced with the challenge of selecting the right Programme Manager for a major transformation programme.