In a world where customer expectations are rising and resources are shrinking, many organizations are finding ways to do more with less by consolidating and integrating departments, functions, business processes, IT infrastructure, and entire organizations. But 75 years of research on organizations has shown that more than 85% of all organizational performance problems are found in the structures, systems and culture in which people work; If you put good people in bad systems, you will underperform. Therefore, trying to address changes in the business environment by reorganizing, changing leadership, consolidating and integrating IT infrastructure and business processes, downsizing, or implementing new cost reduction and management programs. create changeBut when done without an understanding of the overall “system” within which managers and staff members work, this strategy tends to solve one problem and inadvertently create others. What today’s top managers need to address the frenetic pace of change in the business environment is a well-defined approach to organizational transformation.

As defined in the business literature, organizational transformation refers to deep, fundamental, often radical changes in an organization’s mission, strategy, structures, systems, and culture, rather than incremental changes and improvements. Organizational transformation initiatives are often used to respond to the forces and demands of the business environment that require a company to change the way it does business in order to survive in its industry. For the past 25 years, organizational transformation has been referred to by several different names; for example, business process reengineering, downsizing, restructuring and, more recently, organizational culture change. But the general purpose and fundamental objectives of all these approaches have been similar; for example, to make profound fundamental changes in the way an organization structures, organizes, and uses its human, material, and financial resources to act (and react to) changing forces and demands in the business environment.

Organizational transformation has both a change and a transition element. Tea exchange Required to align an organization’s structures, systems, and resources around a new mission and strategy that increases the value delivered to customers is situational and tends to happen quickly. In other words, the functional “silos” are consolidated with new leadership, reconfigured organizational charts and directed to achieve larger objectives with fewer human, financial and material resources. Tea transition The organizational transformation element is a protracted cultural and psychological process that managers and staff members go through to let go of the old organizational reality and identity they had before change occurred and learn new ways of working. Managers and staff members must learn to own (and accept) their new role in the reconfigured organization. The most important lesson to be learned from hundreds of documented transformation initiatives is the need to manage both of them change and transition throughout the entire organizational transformation process.

So what criteria should leaders and managers use to decide whether or not to start an organizational transformation process? Deep organizational change almost always requires a fiery platform and there are two types: reactive and proactive. Tea reagent Friendly is when managers wait until the situation has become critical and then respond reactively by reorganizing, changing leadership, downsizing, consolidating functions and systems, or implementing aggressive cost-cutting programs without understanding the “bottom line” of these decisions. Most managers do not directly experience the long term Consequences of your decisions because they have an effect on the entire system that spans multiple departments and can affect the day-to-day operations of an organization (positively or negatively) for years to come. The inability of most people to directly experience the long-term systemic consequences of their decisions is the main reason why most people do not learn from experience, especially when the consequences of a decision are far from the cause. for more than 1-2 years. . Reactive change no lead to organizational transformation.

Tea proactive A kind of fiery platform is when managers realize that while the forces and demands of the business environment may not be critical at the moment, they will become critical if a sense of urgency is not developed about transforming the way they work. that the organization does business. Proactive managers define a new direction, set the platform on fire, and reconfigure the organization through: a) exchange that realigns structures, systems and resources around a new mission and strategy that increases the value delivered to customers, and by managing b) the transition associated with the cultural and psychological process that people go through to learn new ways of working, leave behind the old reality and organizational identity and take charge of their new role in the reconfigured organization.

Bottom line: Leaders and managers must develop a compelling, credible, and easy-to-understand business case that outlines what the transformation would actually accomplish, what would be gained, and what the transformation would actually accomplish in terms of return on investment of time and resources required . to see the process through. The business case and vision for transformation must inspired managers and key personnel to actively enlist and support the transformation initiative with their hearts and minds. The business case and vision should also answer questions like “Why are we doing is instead of maintaining the status quo or other alternatives? What will I gain for myself and the organization in the long run and will it be worth the time, energy, disruption and organizational ‘pain’ that we will have to endure to get there? What new challenges are we facing and why is it important to face them now? “In the absence of a convincing, credible, and easy-to-understand answer to these types of questions, an organization should not undertake a transformation process.