Organizational Transformation. 4 Key elements to success.

organisational transformation

Organizational transformation is a challenging process whereby some essential elements need to be considered before initiating the change on a large scale. In order to have a successful organizational transformation, we need to consider four distinct components to achieve a complete and significant result. The four ingredients revolve around leadership, human resources, organizational structure, and performance measures. Each element plays an essential role during the conversion process, focusing on value creation and adaptation to a constantly changing business world. Furthermore, the transformation process requires us to rethink the conception of the value proposition as well as operations in the future. 

Leadership role

Although leadership is a pillar that every organization counts on, making all stakeholders aware of the change and the new mission of the firm should be a priority before initiating any change.  

 Without adequate and perpetual communication between all the managers and the different stakeholders, the organization would inevitably run into a so-called resistance to change. Moreover, leadership communication should aim to bring the managers and their direct reports closer to the organization while giving them a sense of empowerment and purpose. According to Brauns (2013); organizational transformation in terms of performance management should keep the employees’ interest in focus while allowing them to be engaged during the whole transformation process. As an example, the rewards system the company has in place needs to display the firm’s values and address the right information from an organizational perspective. If an employee does not recognize the benefits the organization aims for, resistance to change may occur. Besides, performance management needs to be pleaded according to Braun’s three C’s: consistency, coordination, and control. If leadership manages communication the right way and succeeds in gaining the stakeholders’ trust, this will make large-scale transformation achievable the easy way. Furthermore, it is vital to remember that resistance from employees will impede any change initiative if the trust is absent.

Many times, leadership communication is vague or confusing, which can cause frustration and uncertainty among employees. Therefore, consistent and regular communication should be presented to the stakeholders, informing them about any happening during the process.

Human Resources position

Human resources are key players and can be seen as the bond that holds the organization unitedly. Human resources help strengthen and shape the policy. They also act as a front line when there are questions, or something goes wrong during an organizational change. Alongside this, they serve as change agents when an organizational transformation is taking place. Braun (2013) describes human resources more like a strategic partner than an old model of paper dealers. Besides, the human resources department got on a higher mission in which it supports various organizational functions, such as crafting strategies, developing long-term objectives, and developing plans to help grow competitive advantage in the marketplace.

Moreover, for a human resources partner, the goal is to understand the change, which is viewed as a dynamic process that can be evaluated in terms of magnitude and the method involved. Human resources, as well as the leaders, need to take into consideration the effect of the transformation on the policies already in place. Will the rewards system, be converted from a regular evaluation to a more sophisticated performance management system?. Many programs and benefits may need to undergo a cut as well in order to reduce the costs for the organization. However, the changes may affect employees’ commitment and should also be considered to avoid top talent defection. 

Organizational Structure

Understanding how the organization is structured is a crucial objective for any stakeholder serving the implementation of the organizational transformation. The responsible persons need to understand if the organization is transformational, transactional, top-down, corporate, global, or local, to name a few here. Transformational change as a form of corporate change can be portrayed as a developmental process and is a form of a revolutionary change that may include a complete re-engineering of the corporate structure. Transformational leadership eases the status quo as well as the organizational performance by empowering the employees to do more while leading them by example. To assist with the re-engineering of the organizational structure, leadership has to rethink the strategy and how to redefine it, starting with the mission statement and conceivably rebrand the organization, which will reset the organization and opens doors to a new era of growth and opportunities.

Performance Measure

Performance metrics and measures are needed to make sure the organization meets its goals and objectives. Many organizations use a performance management system named the Balances Scorecard (BSC). The latter enables businesses to transform their overall strategy and provides effective management and control. These four fields of prospect are financial, customer, employees, and learning. Maintaining a healthy balance between the four enables a smooth transformation and continuous growth. 

Maintaining a productive and focused workforce during the transformational change is vital. Leadership is required to keep the organization’s commitment high by providing outstanding useful communication. Without the right leadership and employees’ input, large-scale transformational change might fail. 

Takeaway

Organizations need to adopt change in order to stay competitive in the marketplace. How they learn and employ the knowledge gained will undoubtedly give them a competitive edge over the competition. By building a change on a large scale, organizations need to pay attention to the four elements indicated above. These are leadership, human resource management, organizational structure, and performance management systems. The four combined play an essential role in shaping a thriving and successful transformation.

Author:

Ben T. 

References

Brauns, M. (2013). Aligning strategic human resource management to human resources, performance and reward. The International Business & Economics Research Journal (Online)

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