When does a business transformation programme become necessary?

Going ahead with a business transformation programme isn’t always a matter choice, arrived at coolly as a result of calm reflection. More often than not, organisations are jolted into action by the pressure from altering circumstances. These

Business Transformation

Business Transformation

 

may be happy ones, typical examples being the company’s launch of a significant innovation, such as Amazon’s Kindle Fire; or it may be that an upturn in price performance leads to a surge in sales volumes as happened with budget airline Easyjet.

Alternatively, a business sector, whether it be the residential property market or car manufacturing by long-established car corporations such as Ford and General Motors, undergoing a downturn can be faced with no choice. To address the collapse in business volume, they simply have to implement a full-scale business transformation.

The issue comes down to survival, that terrifying-sounding but utterly fundamental necessity.

It isn’t easy to foresee when the time to put change in train will occur.  The arrival on the scene of new competition, a big drop in market share, a shift in the public’s buying habits, among other factors, can provoke a re-think.  Another way of gauging when to institute a business transformation is when you have two thirds or more of the company’s senior managers backing change. Resistance at that point may be life threatening.
Even household names risk extinction if they remain in the old groove. A case in point is McDonalds. Its sector of the market has seen a significant collapse of late, yet the company has succeeded in reversing what seemed a terminal decline. With a newly revamped customer proposition both in terms of menu and the interior fittings of their premises, the monolithic chain is managing to generate growth against the trend. A large-scale business transformation, unwieldy as it may seem, is sometimes vital.