Business transformation is crucial for companies in critical situationssuch as those experiencing financial, operational or market difficulties. Companies that find themselves in these situations may need to transform their business in order to survive and prosper in the long term.
Nothing new in Argentina where the majority of companies face critical situations in a cyclical way, but it is also new for those of the world that due to new regulations, armed conflicts, falling consumption, new technologies or many other factors, their businesses are strongly affected.
That is, the need to transform ourselves belongs to everyone.
Some strategies that can help resolve these types of situations include:
- Restructuring: Businesses may need to restructure to reduce costs, improve operational efficiency, and improve profitability. Restructuring may involve downsizing, consolidation of operations, or sale of non-core assets.
- Innovation: Companies may need to innovate to develop new products or services, improve the quality of existing products, or develop new business models that allow them to compete effectively in a changing market.
- Diversification: Companies may need to diversify to reduce their reliance on any one product or market and expand their customer base. Diversification may involve entering new markets or acquiring new lines of business.
- Management improvement: Companies may need to improve management to make more informed decisions, improve operational efficiency and improve strategic decision making.
- Cultural change: Companies may need to change their business culture to improve collaboration, communication and innovation. This may involve improving human resource policies, promoting a positive work environment, and encouraging creativity and initiative.
In these times of change, is it enough?
Possibly it is a necessary but not sufficient condition, let’s think about the classic examples of Blockbuster, Kodak. Nokia and many others that did make many efforts to “stop the decline” without success.
Reviewing a company’s purpose is a fundamental step in business transformation, as it allows the company to rethink its raison d’être and set a new course for the future. This may imply significant changes in the way the company operates and relates to its customers, employees, shareholders and other stakeholders.
Now yes, the process is taking shape.
That’s it? No, but it can be a good start. The decision to change is always healthier than the obligation because it may already be too late. According to the author Llewellyn 4 are the steps for transformation: visualize, engage, optimize and transform. The author argues that approximately 70% of organizational changes fail due to insufficient collaboration, integration, sourcing, or project management.
Change is a complex process that requires collaboration and teamwork from different areas and departments within the company and with key suppliers. By working together effectively, internal and external teams can identify problems and solutions faster, increase efficiencies and reduce costs, and ensure that business transformation takes place in an effective and sustainable manner.
It is estimated that 15% of transformation processes are successful. According to Kristina Martic, failure occurs due to a failure in communication with the different stakeholders, commitment and alignment of employees with the new objectives.
It seems simple and it is not, but doing nothing is the worst decision.
“At any moment of decision it is best to do the right thing, then the wrong thing, and the worst is to do nothing” – Theodore Roosevelt (1858-1919).
HRC Consulting Partner
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
