PANDION GROUP
A few Success Factors
Sustainable Business Transformation
A few success factors
by Markus Warlitz, Founder of Pandion Group
The business world is turning faster; product life cycles are getting shorter and shorter, more and more start-ups are pushing into the markets, the digital wave is causing all sorts of disruption, there is globalization, and, not to forget, there is an increased need for sustainability. These, among many other factors, prove that we live in a faster-than-ever changing environment – everywhere in the world.
Whether you are a start-up or an established company, transforming your business to take advantage of the opportunities in the market and to address the changing environment has become critically important. At the same time you need to make any transformation sustainable - as in the classic business sense but also from the pursuit of environmental sustainability.
Most business leaders have transformation plans in mind or are already well under way. The unfortunate part of it is – many transformations do not live up to their expectations. Why is this? We found a plethora of contributing factors, most of them are rather basic, but if you are not paying close attention – the effects can be a significant road block in the success of your transformation journey.
Based on our experience, following some critically important areas:
- Human capital – your employees are the most important success factor. Period. If you don’t have the buy-in and support from most of the organization for the upcoming transformation, do not start at this point. Go back and think how you can inspire the organization. The same goes with the leadership team - it needs to be fully aligned, and everyone has to speak with one voice. If the leadership team is not all-in, it will be a nearly impossible journey.
- Communication - you need to communicate openly, genuinely, and often about your transformation plans. Don't be afraid to share as much as possible, don't hold back. Things come out anyway at some point, so you don't want to fall victim to the rumor mill. Take feedback and respond. If you do this, you will have a much higher chance of getting the organization inspired and ultimately following your plans.
- Complexity – a transformation process can be very complex. However, with the right approach, even the most complex topics can be tackled. But, it is also largely dependent on what you and your organization are used to. It needs to reflect you, your company’s DNA and culture; otherwise you most likely run into issues at some point. You can change your culture through the process, but start from what you have at the beginning. Take a look at today’s mergers and acquisitions; the real successful ones took all of this into consideration.
- Alignment – what business transformation do you have in mind? Operational or also fundamental? If you are not aligned here, the outcome will be most likely very disappointing. You need to climb the same mountain. In other words, a transformation is also very much tied to the overall strategy of the business. You need to focus on this for the transformation process - start here, and you have a sound foundation.
- Resources – depending on which type of transformation you are planning, it will take (lots) of additional time and resources while regular business goes on - starting with the employees in the organization, in particular, the ones who will be driving the transformation process. Make it part of their job descriptions and ensure that they have enough free capacity for it. That is during normal business hours, please don’t ask them to operate on 150% as part of this. Also, recognize and reward the teams, you need to keep them engaged and motivated during the entire process. Then there are financial resources required – the more all-encompassing the transformation is, the more money you have to upfront before you actually get a return. Make sure you can finance it accordingly, plan for it, build a reserve and monitor it diligently.
- Execution and Monitoring – setting the right expectations and holding everyone accountable is quintessential. Make sure you do this right from the beginning and according to your DNA, culture and environment. Make it you and be genuine about it. And finally, it is important to remember, accountability applies to everyone, with no exceptions.
- Sustainability – you are running your business in a changing world. We also believe in the pursuit of global (environmental) sustainability as a prerequisite in today’s economy. In 2015, the United Nations has adopted, unanimously by all 193 member states, 17 Sustainable Development Goals (SDGs). SDG #8 pertains directly to the economy – “Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all”. Do you want to transform fundamentally? Make the SDGs part of your own transformation blueprint and let the organization know.
Are you thinking of transformation? Discuss it, inspire others, and get ready for it. We’d be delighted to hear from you. Contact us at info@pandiongroup.com or +1 (860) 501-2546