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Successful transformation: ambition and objectives

Neil McClumpha

Large-scale organisational transformation can deliver enormous benefits – but the journey is often complex and challenging, both for the team leading the transformation and the organisation being transformed.

A clear ambition, with well-defined objectives, is a key ingredient for success. This central vision acts as a ‘North Star’ to anchor both transformation and the team. Ideally, transformation ambition should be established from the outset, and communicated clearly and concisely to all relevant stakeholders.

Vague ambition and objectives cause confusion

 

Failure to set clear ambition and objectives will lead to confusion. People won’t understand what the transformation is trying to change and why, and they won’t recognise how to define success or when they’ve reached it.

 

In such a scenario, it is very likely that organisations will see significant wasted effort, such as people working at cross-purposes, or overlapping and/or duplicated initiatives. This becomes difficult for the transformation team and exhausting for leaders.

These effects will spread to wider stakeholders too. If the value of the transformation cannot be articulated to all relevant stakeholders, which potentially include shareholders and customers, it becomes difficult to prioritise initiatives and activities.

Therefore, organisations need to refer to and continue measuring progress against the ‘North Star’ vision. This is crucial for fundamental decision-making around what the transformation needs to be, and for whom. 

Good strategy

Whether business-wide or function-specific, your transformation strategy should be…

1.

Ambitious

2.

Outcomes-focused

3.

Measurable

4.

Timebound

5.

People-focused by building stakeholder enthusiasm and buy-in

Transformation should focus on business outcomes

Most leaders recognise that a good strategy should stretch and challenge their organisation to position it for the future. However, many organisations often struggle to translate lofty ambitions into a set of more pragmatic, tangible interventions.

Bridging that gap needs a balance of ambition and realism to create plans that are achievable, but which still deliver impressive outcomes – ultimately changing the organisation for the better.

One of the most significant indicators of success for a transformation programme is the extent to which the team focuses on delivering a set of clearly-articulated, well-understood business-led benefits. A successful strategy should always be deeply rooted in business outcomes.

However, this does not mean an organisation needs to pursue every single business benefit simultaneously. To progress at pace and demonstrate success as the transformation journey progresses, leaders need to prioritise ruthlessly based on concrete evidence of what will deliver real value.


It helps to start with tangible benefits, perhaps something lower risk or easier to execute, to get some 'points on the scoreboard' and help the team to gain confidence. Showcasing transformation capability and demonstrating meaningful change will prove to the organisation that you are serious.

 

Making mistakes early in the transformation journey, and learning lessons from those mistakes, also encourages the team to reach for more ambitious targets.


Take a people-focused approach to transformation

Delivering any sort of change is a social process. If a broad range of stakeholders is enthused about the ambition from the outset, they will be more prepared to go on the journey and act as evangelists.

The best way to bring people on board is to show them the value that underpins the ambition. If people can see evidence of positive change, they are more likely to get excited and enthusiastic.


Establishing a timeframe for ambition and objectives

An effective transformation strategy requires thinking through the full journey. While not every decision can be made upfront, transformation leaders must identify the true target end-state, or they risk losing their way. Then, critical milestones and transition points can be set out as interim targets to validate the strategy as the transformation progresses.

To keep objectives practical, it is always important to establish a timeframe for delivering transformation ambitions. Capital intensive industries usually take a longer-term view, while more dynamic sectors are likely to set a three-year strategy at most. This allows the latter to monitor and react to market developments to ensure objectives remain relevant over time.

Checklist

How do you ensure you strategy stays relevant?

Step 1

Build an infrastructure of leading and lagging indicators of strategic performance.

Step 2

Create clarity around accountability for delivery of your metrics.

Step 3

Develop and implement aligned incentive structures.

Gaining confidence over transformation

When an organisation has large ambitions, the challenges ahead may be even bigger. To maximise the likelihood of success, ensure there is a clearly articulated and well-evidenced case for change, a pragmatic plan in place, and the right resources for execution. By taking these steps, both the transformation team and the wider business can remain confident that the ambition remains deliverable.

The author

Neil McClumpha

Neil McClumpha, Partner