Business Transformation Is Not Just a Buzzword

By Eman Al-Hillawi is the chief executive officer of Birmingham-based change consultancy, Entec Si.

It has been a challenging few years for the banking and financial sectors, as continuous economic obstacles combined with the ongoing evolution of consumer demands have meant that many financial institutions have had to adjust their customer practises and transform the way they deliver a digital service. Naturally, this has meant that the idea of business transformation has become a common subject for many decision-makers across sectors, almost to the tune of becoming little more than an overly used phrase or buzzword.

While many businesses struggle with change, it’s important to note that when implemented effectively, profound and incredibly positive improvements can be made for the business, its people, and its profits. Business change and transformation are more than just buzzwords, and for a sector that is not tied to factory operations, making fundamental changes to the way in which a business operates is readily achievable with remote working at its fingertips. Whether improving processes, undertaking digital transformation projects or data modelling, changes of this nature can feel incredibly personal for both employers and their teams, particularly for those who may be naturally a little more reluctant to change.

Business change journeys

Businesses can facilitate change for good through one of two ways. Either stepped change, which will inevitably encourage continuous improvement through tackling multiple small projects, or through taking a ‘wholesale’ transformation approach. It is the latter, which is the most holistic, that many businesses in the sector find more effective in the longer term. The wholesale approach works through recognising that a change in one part of a business will impact another somewhere else and needs to consider people, process, technology, and assets, depending on the company structure and departmental interdependencies.

An often looked-over part of many change and transformation journeys are the important first steps. Decision-makers should begin with a clear end goal with agreed outcomes and benefits that are hoped to be achieved. Maintaining a clear focus on what is to be achieved, helps to identify decision-making markers that are going to generate the desired results.

For finance and banking businesses that are often answerable to senior stakeholder groups or investors, developing a robust business case at the start of a business transformation processes can help to gain the approval need to bring the change programme to fruition as well as promote stakeholder understanding and support from the outset.

Understanding business transformation

When kickstarting a successful business transformation, it’s important for decision makers to understand that it’s not always realistic to embark on a holistic business change journey due to time and people constraints, or other external factors, but by carrying out this deep dive at the very start of a change journey will give the full picture of the impacts and benefits.

Business transformation effects the company wholly through a single period of great change, rather than small projects or phases. Therefore, transformation needs to be accomplished through a series of contained programmes or projects with a specific end goal. It’s also essential for businesses to recognise when transformation is and is not necessary. Businesses cannot continuously go through periods of transformation. If they did then employee, customer or service user fatigue could be caused, ultimately resulting in a business losing focus of its core operation and purpose.

Typically, larger organisations, especially those within the banking and financial sectors, are more complex to navigate and require more critical thinking regarding where skill and personnel gaps may be prevalent. Determining the best way to plug these gaps is an important aspect of the change journey. There are a variety of ways to efficiently compensate for skill or knowledge gaps in order to promote a successful change journey or business transformation, such as through engaging business change advisors or hiring new talent for specific roles.

Business change support

Choosing the right support is crucial to largescale success – this might come in the form of specialist recruitment, external experts or internal provision. Often when planning significant change programmes, having external input can accelerate the process and iron out internal resistance more easily. Consultancies can act as critical friends to businesses looking to step up their change programme by helping to facilitate the initial scoping, sizing and shaping of the transformation. Through providing the skills and experience, as well as usually helping with mapping out the change programme, business leaders can give meaningful focus to the critical early stages of the journey.

Overall, understanding the power of business transformation and change processes, rather than chalking them up as buzzwords, is the first step towards ensuring largescale success. Whether deciding to make a series of smaller steps along a change journey, or launching a wholesale business transformation project, decision-makers must be educated in understanding the best approach for the needs of the business and the importance of flexibility when incorporating a change or transformation strategy.