Business Transformation And Managing The Pace Of Change
Laura Merling, transformation and operations executive and industry advisor.
getty
There is no doubt that we continue to see an unprecedented pace of change across every industry. The rapid adoption of generative AI and its role in every organization is important as we face an increasingly challenging business environment where historical means of operations are being disrupted.
The business environment faces challenges due to the shifting dynamics of the workforce, characterized by a growing number of independent workers and changing skill requirements. The ever-increasing regulatory environment demands the richness of data but has a long way to go in providing guidelines for technology and innovation. All of this has put stress on organizations.
Three Fundamental Pillars For Organizational Success
In light of this, I’ve found three fundamental pillars that can help provide the foundation for an organization to not only thrive but survive: leadership, alignment and trust.
1. Leadership
This might seem obvious, but employees have a strong desire for visible leadership. There is value in having an individual represent a company’s vision and strategy; someone who can and is telling the story of the company and the goals of artificial intelligence in the business.
Employees are looking to know someone is at the helm navigating through change and challenging times—a leader who provides encouragement along with energy and passion. It is important for both employees and customers to know there is a leader guiding the company’s direction. They are seeking both reassurance of a thoughtful approach as well as relatability. This relatability includes a level of engagement, conversations, town halls and other forms of outreach from the executive team members that are honest and transparent. Outreach across organizational silos is invaluable in creating more cross-functional partnerships and collaboration.
2. Alignment
The first step in tackling issues effectively is to pinpoint the core business problems you are trying to solve. This lays the groundwork for ensuring that every branch of the business is on the same page. When a company undergoes changes, the investments required and the expected outcomes must be closely aligned with the long-term strategy. The strategy needs to be supported by market data and targets.
Typically, budgeting and forecasting are handled independently by different business units or markets. While this approach may foster growth within individual lines of business or market, it’s essential to link the investments and priorities of each line of business to overall growth targets or other overarching objectives. This connection is vital for sustaining growth and ensuring the financial well-being of the organization as a whole. To achieve complete alignment, every executive must take ownership of the company’s strategy and consistently communicate it throughout the organization. Aligning programs across all areas of operation will empower teams and distribute pressure evenly across the organization, from finance and HR to technology, operations and the frontline.
Alongside alignment, accountability is paramount. In today’s business landscape, data should be readily available at every stage, from initial contact to transaction and beyond, both historically and over time. Using multiple data points to gain insights enables evaluation and course correction—a challenging but essential endeavor. Even if certain metrics haven’t been measured before, it’s crucial to reassess the data needed, how to acquire it and how to utilize it effectively. Adaptation to a more data-driven decision-making process, goal setting and measurement is imperative for a company’s survival. Shifting from anecdotal evidence to leveraging data and insights marks a fundamental change in mindset and approach.
3. Trust
Trust comes with transparency, and that transparency shows itself through the company executive team through the mid-level managers. We as leaders need to build confidence that we are aligned.
Alignment on goals and outcomes is crucial, as is consistently measuring progress and being willing to pivot when necessary. Leaders must show vulnerability and transparency among themselves to foster trust and cohesion. We need to encourage our teams to learn from the past while letting go of the failures, otherwise, we risk failing again.
Employees seek role models and relatability from the executive team. This desire extends beyond individual teams; employees want to see representation across all levels and lines of business. They crave engagement, honest conversations and personable interactions, not just occasional appearances at employee resource group sessions. Such outreach breaks down organizational barriers and encourages cross-functional collaboration. Leadership should exemplify the collaboration they wish to see, reaching out across departments in novel ways to facilitate partnerships and teamwork.
Conclusion
Change management is top of mind for all executives, and leading through change requires intentionality. Creating a solid foundation of trust, alignment and candid communication can help create the conditions required to achieve your business objectives.
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