Strategies of Transformation

Introduction Organizations today are faced increasingly with severe competition, demanding customers, economic pressures, and financial crises. To be effective, they must reduce costs, improve product and service quality, and respond quickly to new opportunities in the marketplace. The transformation involves complex and simultaneous interactions. In this process, a variety of possible forms can emerge. Each of these forms is a possible alternative future of the systemwhich may range from complete destruction and annihilation of the system to a complete transformation to a higher level of complexity. It refers to organization-wide changes, such as restructuring operations, introducing new technologies, processes, services or products, implementing new programs, re-engineering, etc.

Definition Organisational Transformation is a term referring collectively to such activities as reengineering, redesigning and redefining business systems. It should be a. A flexible, effective and efficient organization. b. A customer-centric approach to organizational activities c. Recognition of current strengths to create a more productive environment d. Understanding and reaping the benefits of competitions and business alignment e. Promotion of an integrated approach to IT and business

Three Types of Transformation

1. Improving Operation: To achieve a quantum improvement in the firm's efficiency, often by reducing costs, improving quality and services and reducing development time. 2. Strategic Transformation: The process of changing strategy seeks to regain a sustainable competitive advantage by redefining business objectives, creating new competences and harnessing these capabilities to meet market opportunities. 3. Corporate Self-Renewal: Self-Renewal creates the ability for a firm to anticipate and cope with change so that strategic and operational gap does not develop.

Transformation Strategies There are 7 strategies to transform organization. 1. Transformation through Values In the changing business environment, values are guiding force for the companies. Values are nothing but something we hold dear, something that reflects an ideal or an ethic. A value to individual is purpose & meaning of life. Values to an organisation are foundations of culture. Organisation should choose values i) compatible with society's core values, ii) Based on sublimation of basic human urges, iii) compatible with purpose & operating context iv) compatible with third world context.

2. Transformation through Organisation Development

Most people and organisations are unrest prepared for the vastly accelerated pace of change. OD appears to be one of the primarily methods for this. Organisation Development rests on three basic propositions 1. Organisations change forms through the age. The changes taking place in that age make it necessary to revitalize and rebuild organizations. 2. The only way to change organizations lies in changing the climate of the organization. 3. A new social awareness is required by people in organizations.

 Greiner identified what he considered to be the seven most commonly used approaches to change. a) The Decree Approach b) The Replacement Approach c) The Structural Approach d) The Group Decision Approach e) The Data Discussion Approach f) The Group Problem Solving Approach g) The T-Group Approach

3. Transformation through Reengineering Reengineering is revolutionary, challenging the operation and even existence of fundamental processes. It not only improves the old way of doing business, it seeks to create a new and better way.

4. Transformation through McKinsey's Plan A ten point blue print for an organization
a) Organise primarily around process, not task. b) Flatten the hierarchy by minimizing subdivision of processes. c) Give senior leaders charge of processes & process performance. d) Link performance objectives & evaluation of all activities to customer satisfaction. e) More teams, not individuals, the focus of organization performance and design.

f) Combine managerial and non-managerial activities as often as possible. g) Emphasise that each employee should develop several competencies. h) Inform & Train people on a just-in-time, need to perform basis. i) Maximise supplier and customer contact with every one in the organization. j) Reward individual skill development and team performance instead of individual performance alone.

5. Transformation through Competitive Benchmarking Benchmarking is the continuous process of measuring products, services and practices against the toughest competitions or those companies recognize as industry leaders. 6. Transformation through Six Sigma It is the statistical parameter used to describe variation. It can be described as going from appx 35,000 defects per million operation to not more than 3 defects per million. It focuses on achieving tangible results as well as speaks the language of business. It uses as an infrastructure of highly trained employees from various sectors of the company.

7. Transformation through Kaizen Principle a) Small Improvement b) Conventional Knowledge c) Personal Involvement d) Many people e) Improve the process f) Standardise- Do- Check- Act to Plan-Do-Check-Act

 How does organisational transformation work? Looking at the whole system - typically these can be broken down into people, technology and processes. Any change will impact on all three of these areas and each must respond. Involving stakeholders at all stages and at all levels. Having a clear and measurable vision of a future state. Having a comprehensive programme to manage the change.