The 3 Biggest Transformation Challenges Facing Companies

1. “Transformation and Change are the same”

In order to clarify this, we need to start with the simple definitions.  We’d normally head straight to the dictionary to solve this task, but this is arguably another case where the modern dictionaries do not supply adequate detail to the definition being sought.

• If you don’t believe me, look up the word ‘innovation’, and see if you agree with the results

In today’s business terms, Change is what you do to protect history.  Transformation is what you do to protect the future.

2. “We have other fires we need to extinguish first”

What ‘other fires’ are more important than trying to understand the changing behaviour of your customers, and even your employees?  The speed at which your customers are able to change service providers, and the speed at which technology continues to advance, makes it a risky strategy to spend all your time and effort on the items that made you successful yesterday.

Admittedly, the real challenge is being able to put yourself in a position to carefully select the items that will generate the required returns.  In the words of Oren Harari, Educator and Author of Strategic Change and Transformation since the 80s, “The electric light did not come from the continuous improvement of candles.”

• If you don’t believe me, go ask Kodak and Nokia. Kodak, a camera company, lost its market share to mobile telephone manufacturers.  Nokia, a mobile telephone manufacturer, lost its market share to software developers.

3. “I already have an end-to-end strategy”

..the only problem is that these strategies are built on a foundation of introspection (i.e. inside-out).  Today’s business is being judged from the outside-in.  Consumers are placing more emphasis on what other people say about you, than the promises you make to the market.

• If you don’t believe me, take a close look at how you select your next AirBnB, and the emphasis you place on good reviews (which you trust, even though they are from total strangers)

Your successful Transformation strategy will be built on Insight from the outside, and not Data from the inside.

The common denominator is solving for these 3 items is effective Customer Communication, because without it, you’re merely guessing what your Customers are saying about you.  There are a myriad of tools available for you get going!

“The best time to plant a tree was 20 years ago.  The second best time is today” – Chinese proverb