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Challenges and Success Determinants of Business Transformation (Part 1) *
This article was written by the SEViX Managing Partner, Mr. Rainer E. Ulrich.
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A strategic business transformation represents a massive intervention in the routines of a company that need of improvement. This requires intervention at all levels of the organization, as the following subsections will show.
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(1) Collaboration of C-level executives in meta-management.
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The success of strategic business transformation in a complex economic system depends above all on the interaction of the meta-level players. As the authors of the book "UNTERNEHMENSWERTSTEIGERUNG - Business Transformation als Chance" understand it, the focus of meta-management is on providing a framework that helps to manage the complexity of business transformation (see Figure 1).
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Figure 1: The interaction of C-Leaders is the key to success for business transformation[**].
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(2) Objective of meta-management in strategic business transformation
The first important cornerstone of meta-management is dealing with management disciplines that are coherently integrated into this approach. Strategic business transformation management encompasses the following eight management disciplines:
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- Strategy Management
- Value management
- Risk management
- Business process management,
- Program and project management,
- Transformational IT management,
- Organizational change management, and
- Competence and Training Management.
[*] Excerpt from the SEViX book "UNTERENEHMENSWERTSTEIGERUNG - Business Transformation als Chance".
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[`**] CEO = Chief Executive Officer; COO = Chief Operating Officer; CSO = Chief Sales Officer; CFO = Chief Financial Officer; CHRO = Chief Human Resources Officer; CTO = Chief Technical Officer.
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Typically, each management discipline has its fundamental set of knowledge, requirements, and processes that traditionally have their own assumptions, theories, and terminology, but this makes them largely opaque to colleagues in other disciplines. This in turn can lead to a disjointed overall process that risks fragmentation, lack of clarity, and cohesion across the change chain. To address such risks, strategic business transformation management integrates and extends these disciplines, providing a multidisciplinary view of the business's transformation.
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The intent of meta-management with respect to management disciplines is to strategically dovetail all disciplines within change management, as shown in Figure 2.
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Figure 2: The framework of meta-management
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The eight management disciplines are divided into two types.
1st Direction
The three disciplines of strategy management, value management and risk management can be described as the strategy loop of business transformation management. Here, the transformation strategy is defined taking into account time and budget constraints as well as associated risks. In addition, these directional disciplines create both a need for action and a vision for the future and provide direction for transformation efforts.
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2nd Enablement
Enablement involves the management and synchronization of changes ranging from IT to process to organization, as well as the creation of new competencies through training and education orchestrated by program management. The last point is not about creating "super managers" but about elevating people to all levels of business transformation who are well trained and well informed. "Enablement" in this sense can also be described as the feedback loop of business transformation management. Learning feedback leads to strategy adaptation.
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CHALLENGES OF THE MANAGEMENT DISCIPLINES
- Understand interdependencies and impact factors between management disciplines.
- Efficiently and strategically dovetail the management disciplines.
KEY MESSAGE
Business transformation must balance economic, social, and technical aspects. This requires the psychological inclusion of areas such as management, psychology, and IT, which are reflected in the afore mentioned management disciplines.
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We help the entrepreneur - from a joint situation analysis - to filter the real problems of the company together with their implications. Then, sustainable solutions that generate lasting, positive, measurable value are developed and implemented.
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If a time-critical transformation management project cannot be carried out by existing management competence, then a managing director/CEO ad interim experienced in strategy would be the solution.
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Please contact us directly if you need concrete help in change management projects or a managing director/CEO ad interim or a business transformation manager and a well-practiced team with implementation competence.
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Web: https://sevix-group.com/en/
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