Phase 0 sees company leaders estimate the size and value of the opportunity. They determine whether the change required is evolutionary or transformational, and, if an enterprise transformation is necessary, how committed their fellow top executives are to embarking on such a journey. Buy-in and support of company officers is critical.
Phase 1 is about designing the strategic value agenda, which should consist of the top cross-business initiatives the firm must pursue to reach its strategic goals. Phase 2 will be developing a detailed blueprint focusing on the business and operational decisions that make the strategic design developed in Phase 1 actionable through sales coverage, for example, profit center ownership, and customer segmentation.
Phase 3 is the execution stage, where companies identify and acquire the talent needed to run the transformed enterprise. They will implement the systems and processes required to support the new business, and identify, pursue and integrate the partners that can help deliver market outcomes and internal operating efficiencies.
With design and execution complete, the company now makes the transition to the last phase - operating the new enterprise. During this phase, the focus of leadership shifts to managing the transformed business through tracking and measuring progress and continually re-evaluating potential new opportunities across the business model, operating model and partnering strategy.
Business today is more challenging than ever, with leaders under intense pressure to deliver on long-term strategies while driving short-term results. Tracking benefits can also be difficult, especially in complex operating environments that have multi-functional and technical initiatives. A robust benefits tracking mechanism is therefore required to define the KPIs, translate performance improvements into a financial benefit and communicate progress to all the stakeholders.
Changing a business function by function still has its place but this approach is too disjointed, localised and slow to keep firms competitive. The big changes required today mandate a transformative and sustainable response- one that requires the kind of coordinated effort only an enterprise transformation can deliver.
Sign up for CIO Asia eNewsletters.