Guide to Business Transformation 1

Contents
Summary 3
What is Business Transformation? 4
Drivers of Business Transformation 6
Key steps to a Business Transformation 8
Getting Business Transformation right 10

BIE Executive builds leadership teams and enables change through a combination of executive search,
interim management and transformation expertise, across five broad market functions - HR, Finance, Value
Chain & Procurement, IT & Technology and Executive Leadership. To find out more about BIE, and how we
can support with your career or search, please get in touch.

020 3953 3250 | [email protected] | bie-executive.com

2 Guide to Business Transformation

Summary
This client guide to business
transformation covers
everything you need to know
about business transformation,
implementation and successful
delivery, from the different
business transformation
types and drivers through to
resourcing and the crucial
steps to take to guarantee a
successful transformation.

Guide to Business Transformation 3

 What is Business
Transformation?
There are many reasons a business might
Business transformation is a change consider a transformation, for instance, new
management strategy which can be technologies, shifts within the market, low profit
defined as any shift, realignment and turnover, or a merger and acquisition. It may
involve changes to the entire organisation, such
or fundamental change in as when integrating the two companies involved
business operations. The aim is to in a merger or acquisition. Or it may involve a
change to a specific function, such as IT, HR
make changes to processes, people or Finance. For example, a drive for greater
or systems (technology) to better efficiency may prompt the implementation of a
new Finance system.
align the company with its business
strategy and vision.

Business transformation types

There are three main types of
business transformation:

Operational
1 Making changes to the way you
do things to make operations
better, faster, or cheaper, for
example digital transformation

Core transformation
2 Moving to a fundamentally
different way of operating

Strategic
3 Changing the very essence of
the company to a new focus

4 Guide to Business Transformation

General Motors is a prime example of a company The nature of the business transformation will
that has successfully undergone an operational vary depending on the business’s goals and
business transformation. GM overhauled its strategies. For instance, it may be focused on
entire approach to IT, hiring more than 10,000 IT one of the following:
professionals to replace outsourcing contractors,
Post-Acquisition Integration
in a bid to free up time from IT support and
maintenance work, to new development and Cost Out
innovation.. The result was ten times more ERP and System Implementations
productivity and one thousand percent more data.
The transformation was also ongoing, as GM looked Shared Service Centres
at methods for unlocking the potential of its new (IT, Finance, HR, Procurement)
operation to boost the bottom line. Offshoring, Outsourcing, Insourcing
The Netflix story is a perfect illustration of a core Supply Chain Optimisation
transformation. Netflix shifted its entertainment
Global Standardisation of Processes
business model from DVD rental service by mail
to an online streaming service to become one of
the most successful entertainment companies and
have expanded into original content creation.
Apple exemplifies a strategic transformation when
on the brink of fizzling out in the early 1990’s, they
instituted a change of direction under Steve Jobs
to focus on creating beautiful consumer products.
We all know the success they’ve achieved since.

Guide to Business Transformation 5

 Drivers of Business
Transformation
There are a multitude of reasons an organisation
may choose to undergo a business transformation.
More often than not, it is in response to change.

Today, change is a constant. Highly competitive

market conditions and disruptive technologies are
changing the face of traditional business models
and revolutionising employee and consumer
expectations. The ability to adapt to change
is crucial for businesses wanting to ensure a
competitive advantage. Businesses are therefore
looking to become more agile so they can flex and
adapt in response to constant change.
Business leaders see agility as being a priority for
their organisation. Moreover, leading and delivering
step change is how the business is conducted to
their highest priority.

6 Guide to Business Transformation

The factors making transformation a priority today include:
Technology change Merger or acquisition
As technology advances, businesses are When organisations with different approaches
looking for ways to leverage new opportunities and cultures come together, it’s complex.
to improve their business and challenge Assets and activities need to be merged,
themselves to think differently. Whether it’s a for example, IT systems, finance functions,
move to a cloud-based system, or automating premises, sales and marketing.
certain processes, it’s about asking the
New business leadership
question: “What can we be doing differently
A new leadership team might want to make
that will both make our customers lives better,
changes to the current organisation, to match
and differentiate us from the competition?’
their preferred ways of working or implement
Efficiency drive a new strategy or goal they want the business
If an organisation’s goals and objectives are to focus on.
not being met, they may be triggered to find
Low customer satisfaction
more efficient ways of working. This may
If current customers are not happy and
involve assessing processes and removing
retention rates are low, an organisation may
duplicate activities, a change to organisational
seek to identify ways to adapt their business,
structure or teams, or a digital transformation
so they are better able to meet customer
with the integration of new technology.
needs.
Cost reduction
Rising customer expectations
High costs or a need for cost-savings may
The need for business transformation may be
trigger a change within an organisation to
driven by a need to meet increasing customer
reduce outgoings, whether in certain areas or
expectations; for responsiveness, speed or
across the business.
customisation, for instance.
Lack of business growth
Political climate
Current operations may not be allowing a
A change in political climate, for example,
company the time and resource to focus on
Brexit, or a new policy or regulation that
innovation and growing the business, as was
impacts the business, may trigger a need for
the case for General Motors.
change within an organisation.

Largely, the driving force for organisations going through change is the need for greater efficiency and
organisational effectiveness.

Guide to Business Transformation 7

 Key steps to a Business
Transformation
No business transformation is ever the same. However, there are vital
steps that are crucial for any change management plan. A business
transformation framework should include the following:

Transformation Officer (CTrO). This role, stationed

1 Strategy
at C-Suite level, and with influence across all
An organisation wanting to implement change will other business functions, gives organisations
have a vision of what they want their improved understanding, vision, influence and focus for
business to look like. The vision should be aligned change. From their position, a CTrO has the ability
with the strategic goals and business case, with all to guide every part of the business in what it needs
stakeholders on the same page. to do to make successful change happen.
Developing a strategy starts with defining where It’s important to have buy-in from the senior
the business wants to be, where it is today, and leadership team, and the sponsor of the
understanding how you can bridge the gap. transformation should be the CEO, CFO, or
To understand the current state of your business, another member of the board. The CEO is the
map out the people, processes and systems that most likely programme sponsor, followed by
support the delivery of your product or service to the CFO being the next likely candidate. This is
customers. Use this to help you identify your vision not surprising given cost reduction is one of the
for the future. key drivers of transformation. And it is the CFO,
alongside the Transformation Director, who tends
to be most involved when it comes to setting up
2 Establish leadership
the actual transformation programme.
Appointing leaders to provide oversight and
support for the transformation programme is key. 3 Planning and scoping
A Programme or Transformation Director is A clear strategy will inform the development of
appointed to take overall responsibility for ensuring a detailed transformation roadmap to help you
the transformation is delivered smoothly, on-time, achieve your vision for the company.
and within budget. They will need to have the right
experience and capability to deliver a successful The implementation plan determines the changes
transformation. that need to be made and when and outlines all
the sub-projects that make up the transformation
With change now a constant for many programme. Each sub-project should have
organisations today, rather than bringing in clear objectives, milestones, scope, timeframes,
change leads for focused transformation projects, and budget. It is also important to identify all the
businesses are increasingly hiring permanent workstreams, functional areas, people, processes
leadership talent to link change with strategy, and systems that will be affected or involved in
then support and co-ordinate the work required. the transformation.
This has led to the emergence of the Chief

8 Guide to Business Transformation

Managing and prioritising the programme help. Often business leaders recognise that they
scope of work to demonstrate early success do not have the internal capability to deliver
will be important for generating change business transformation successfully, so it’s usual
momentum. Planning appropriately for the ‘people for a proportion of a transformation team to be
side’ of the transformation is also key. Unless you’re sourced from external talent. They need people
an organisation that undertakes a lot of change with specialist skillsets to come in and help them
projects this can be challenging, as you need to implement it successfully. The right experts can
bring people on the journey with you by explaining equip organisations with the right tools, templates,
the ‘why’ and communicating effectively. frameworks, guidelines and governance structures
to deliver step change successfully.
There’s also external communication to consider.
How and when will you communicate changes As a result, business leaders often choose to look
to customers and suppliers? All this needs to be for outside help. Executives in demand have strong
planned for carefully. sector knowledge, enabling them to understand the
market, accurately assess business performance,
4 Set up programme management and build a high performing leadership team that
will drive the transformation forward. Therefore,
It’s best practice to treat your programme as a
the best approach is to create blended teams of
changeable entity that should be adapted as you
internal and external talent to manage each sub-
face new challenges along your transformation
project of the transformation to to get you to the
journey. By setting up a Programme Management
end vision, or Target Operating Model.
Office (PMO), the Programme Director can
establish programme governance, manage all
6 Execution
parties involved in delivery, and adapt and flex
the transformation roadmap where necessary to Business transformation is a journey that can last
keep the programme on track. The PMO monitors months or even years – it’s only once you take
progress, providing regular updates to the the first step that the journey really begins. Staff
transformation sponsor and the board. engagement will be key, as will the ability to flex
and adapt as you encounter new challenges along
Leaders should also be appointed in each
the journey.
individual workstream, for example in IT, HR,
and Finance, to manage the transformation. The Programme Management Office (PMO)
It’s important that they are aligned with will need to reassess and re-evaluate the
the transformation’s goals, and have the implementation plan regularly to ensure it’s still
capacity, data, and the right skills to inspire teams appropriate and adapt it as necessary.
and make change happen.
7 Integration
5 Build resource
The business transformation programme doesn’t
To achieve changes successfully, you need the end once the change has been implemented.
appropriate executive capability at each stage of your Embedding and integrating new ways of working
business transformation project. It’s about having the or new systems into the business takes time and
right people, in the right roles, at the right time. can be complex. If you’ve moved to a new HR
system, for example, it will need to be integrated
However, in a disruptive environment, expecting
with other systems in your business, such as
that these requirements will be met by your current
payroll, data analysis and financial control systems.
executive team alone is generally unrealistic. Even
In this example, the new system affects everyone
the most accomplished business leaders do not
in the business too, so your workforce will need
necessarily have the experience and knowledge
training on how to use it.
to handle every eventuality without some outside

Guide to Business Transformation 9

 Getting Business
Transformation right
Successfully delivering a business transformation is not easy.
Here are 10 top tips for navigating business transformation challenges:

1 Know when to take action Develop an integrated approach to

3
people, processes and systems
Recognising the need for change and knowing
when to take action is key. Often the symptoms A business transformation involves many parts.
show themselves long after the sickness has taken The complexities of your business processes
hold – meaning by the time you realise you’re in mean a change in one area of the organisation
trouble, you’re probably already in it deeper than will have an impact on other areas. For instance,
you think. changing the organisational design of your Finance
team may impact your HR team. Changes to
When this happens, you need to make
technology might influence how finance data is
transformation a priority. Actually figuring out what
generated, how this links with HR, and how you
you need to do and where you need to be can be
go about creating reports. To succeed, you need a
one of the most difficult elements of transformation
truly integrated approach that looks at all parts as
because it requires genuine creative commercial
a whole.
thinking, which can be a scarce resource.

4 Structure and resource effectively

2 Appoint transformational leadership
Structure and resource underpin success, so it is
Having a leader who is prepared to take
vital to appoint a sponsor and programme team
responsibility for implementing transformation is
who will be responsible for the transformation.
valuable, but it is equally essential to recognise a
Transformations that include a ‘people’ and an
leader who understands the necessary qualities
‘organisation’ workstream have a better chance of
for effective leadership. While most technical
implementation success. These workstreams will
aspects of a transformation, such as governance
be responsible for the management of change.
and stakeholder engagement, can be to some
extent learned, genuine leadership qualities that
empower, motivate, and inspire are paramount for 5 Focus on the bandwidth
any business going through a significant change or
Capacity to deliver transformation whilst
transition period. This makes up a transformational
simultaneously running the business as usual
leadership style.
(BAU) is fundamental. You need people in general
Transformational leadership is pivotal in driving any management to have the time and focus if you’re
change or transition within companies. By engaging asking them to help you deliver change, which is
employees to truly believe in the vision, creating an where bringing in interim executives – either as
adaptable environment, taking a human approach backfill or as specialist additional capacity – can be
to people and recognising where they need so useful.
support, transformational leaders are equipped to
Interims also bring with them high energy, broad
deliver business transformation successfully.
expertise, and the right language to empower

10 Guide to Business Transformation

internal teams. All whilst building internal talent It’s important to build this pace expectation
and embedding a positive legacy for achieving into the transformation process. The other
continuous growth and success. challenge is related to the size and the length of a
transformation. Often organisations are so focused
6 Create a clear vision on getting to a certain point but fail to realise
that embedding the change will take a long time,
Agreeing with all stakeholders a clear vision
probably years.
of what your evolved business will look like is
crucial. After that, the challenge is maintaining
9 Engage internal staff
coherence and alignment around all elements of
it – i.e. technology, organisation, people, process, Managing change in the workplace in terms of
performance management, and interaction with the impact it has on people should be a key
customers, partners, suppliers and regulators. consideration when undergoing any business
transformation. The success of a business
Change is driven by people, and without their
transformation will be reliant on engaging
engagement, the change programme simply won’t
employees to move to new ways of working.
deliver. Transformational leaders have the ability
to motivate, inspire and convince everyone in the So, what is the best way to prevent employees
business to join them in their pursuit of the vision. from becoming disengaged with change and
While it is key to communicate a sense of purpose incentivising them to stay motivated when the
so people know where the business is going; it’s results may be years away? Our research showed
the employees accept and adopt the messages, that most organisations rely on regular and open
that leads to lasting change adoption. communication to keep employees engaged,
followed by financial reward upon project
7 Understand internal capability for completion.
transformation The best way to engage people with change is
Running a business on a day-to-day basis is what with quick wins. Demonstrating immediate benefits
most managers are good at, so it should come as and improvements in the workplace fosters buy-
no surprise that designing transformation is not in and enthusiasm. If the process of embedding
a common skill amongst them. Transformation change becomes laborious and time-consuming
skills are not commonly on the hiring agenda, so this will lead to disengagement and resistance.
the chances are that you’re unlikely to have all the For change to be embedded properly, a company
skills you need for a transformation, no matter how needs to drive their own transformation,
capable your people are. gaining support from all levels of employees.
Really understanding how things could be done Appointing internal advocates or sponsors who
differently usually requires an external fresh pair of are real change promoters will also encourage
eyes. Only when you really understand the ‘from’, engagement across the business for the
the ‘to’ and the ‘how’ can you begin to have transformation.
honest conversations internally.
10 Reassess and re-evaluate
Tension between tactical needs and strategic
needs is common. Transformation often involves A challenge which is frequently misunderstood is how
taking steps in a direction that is counter-intuitive to sustain transformation coherence in a dynamic
to the tactical need – so you have to be prepared market environment with changing customer needs,
to be courageous as well as focused. possibly an evolving, immature supply chain or the
emergence of new disruptive technologies.
8 Understand the importance of pace It’s easy to be caught out if you don’t reassess and
Change is normally slow and organic. re-evaluate as you journey through the business
Transformation, however, often involves getting transformation. Things are changing all the time
five years of change done in six months, and you need to have that constant eye on whether
often leapfrogging a lot of the organic stuff. your transformation roadmap is still appropriate.

Guide to Business Transformation 11

BIE identifies and attracts transformation talent across all sectors,
geographies and ownership structures. With an integrated search and
interim offering, our Business Transformation Practice enables leading
brands to build the right leadership capability to meet evolving needs,
confront operational challenges head-on and retain their competitive edge.
If we can help with your career or programme of work,
please contact our Transformation team.

Simon Cordrey
Managing Director,
Transformation Practice

+44 7917 786 794

[email protected]
llinkedin.com/in/simoncordreybie

James Wilson
Managing Director,
Transformation Practice

+44 7817 145 344

[email protected]
linkedin.com/in/jameswilsonbie

BIE Executive builds leadership teams and enables change through a

combination of executive search, interim management and transformation
expertise, across five broad market functions - HR, Finance, Value Chain &
Procurement, IT & Technology and Executive Leadership. To find out more about
BIE, and how we can support with your career or search, please get in touch.

020 3953 3250 | [email protected] | www.bie-executive.com