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The New Standard for Success: Evolving Enterprise Transformation Management

Category: Enterprise Transformation

Written By: Ilka Jordan

Date: January 17, 2023

Over the past five years, it has become necessary for U.S. fashion retail organizations in both the private and public sectors to require rapid revolutionary and transformational change to keep up with the global marketplace, evolving workplace, and emerging technological trends.

 

Global digitalization and the increasingly competitive business environment have accelerated the need for companies to change rapidly and rethink their current business practices. Influencers can be macroeconomic events, societal changes, pandemics, market changes, or opportunistic changes.

 

These organizations strive to sustain their presence in the global marketplace, and competitive advantage due to globalization, stiff competition, and technological improvements are crucial. Any organization that doesn't change will be forced to do so quickly, but most transformations fail.

A recent study by McKinsey shows that 70% of transformations fail. Contributing factors include insufficiently high aspirations, a lack of engagement within the organization, and insufficient investment in building capabilities across the organization to sustain the change, among others. According to Forbes, 84% of digital transformation projects fail due to a unidirectional approach to driving such projects and not focusing on digital transformation.

 

In this blog post, we'll explore how ETM has evolved and can be used to drive and sustain your organizational transformation successfully.

What is Enterprise Transformation Management?

Enterprise Transformation Management (ETM) is the practice of managing an organization's transformation journey. It is a field of management that helps organizations move towards an innovative and agile business model by managing the transformation of their business processes, systems, and organizational structures.

 

The History of Enterprise Transformation Management

The origins of ETM can be traced back to the early 1990s when companies were struggling to adapt to the changes brought on by the introduction of the internet. At that time, there was a need for companies to find ways to reorganize, automate, and integrate their operations. The first commercially available ETM tool was the Microsoft Dynamics NAV transformation tool, which was released in 1994.

Today's Enterprise Transformation Management Has Evolved

In today's business world, enterprise transformation is the New Norm. Organizations must constantly adapt and change to remain competitive. Enterprise Transformation Management has evolved into a more comprehensive and holistic approach to managing transformation initiatives across the organization's functional business areas.

 

"When it comes to ETM, a strategic approach is required. It is not optional; it's a must-have for successfully managing organizational change regardless of the company's size."

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Real ETM only happens when leadership embraces changes in how the business operates and makes improvements that create value for an organization, including the top and bottom line, capital expenditures, and working capital.

 

A comprehensive ETM approach allows organizations to become more agile, innovative, and responsive to their customers, suppliers, and employees. It is an essential component of an organization's overall strategy for growth and improvement. ETM should integrate across the organization, spanning business, technology, and operational layers. It should also include a cross-functional team approach, focusing on stakeholder engagement and alignment.

"The approach that leads to sustainable operational & operational excellence"

To facilitate the accelerated need for companies to change rapidly and rethink their current business practices, enabling transparency, accountability, and governance, the Jordan Alliance Group (JAG) team developed the TAG Forward® ETM Model.

 

TAG Forward® is Revolutionary! It is an ETM model that integrates best-in-class methodologies and modern digital toolkits into a robust, easy-to-follow, guided blueprint to help organizations align their business goals with their organizational capabilities.

 

The TAG Forward® Blueprint is a collection of principles, procedures, and disciplines that are used to step companies through the key aspects of the transformation phases. An effective ETM strategy is critical for any organization seeking to improve its projects, programs, and performance. It encompasses the planning, execution, and monitoring of all phases of a transformation initiative, from strategy development to execution and post-implementation reviews.

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ETM strategies involve various disciplines, including change management, project management, information technology, business analysis, process improvement, and system integration. It requires a well-coordinated effort from across the organization and must be constantly updated as the business changes.

 

TAG Forward® ETM is used for a variety of different transformations, including the following:

  1. Enterprise Change Management

  2. Leadership Transformation

  3. Business Transformation

  4. Information Technology Transformation

  5. Process Transformation

 

 

1. Enterprise Change Management

"Change is taking place in your organization every day with new projects and initiatives to improve performance, increase profits, and enhance your competitive advantage. You could be implementing technology to enable a more mobile workforce, re-engineering a process to ensure regulatory compliance, or pursuing an enterprise-wide transformation around customer experience. In all of these changes, people are the common denominator for achieving intended outcomes—which is why you need change management." Prosci.

 

Enterprise Change Management (ECM) ensures that changes to an organization's processes, systems, and procedures are controlled, organized, and timely. ECM is also the process of managing the emotions and reactions of people affected by the changes happening across the organization.

 

Organizations need to have a strategic ECM plan to implement changes effectively. The ECM plan should include the following:

  • A description of the change process and the roles and responsibilities of all stakeholders

  • A description of the resources that will be needed to execute the change

  • A timeline for the change

  • A description of the process for communicating changes

  • A description of the process for resolving conflicts that may occur during the change

 

Communication is one of an organization's most prominent challenges when attempting to undergo a business transformation. To effectively manage a transformation, it is essential that all stakeholders are included and that they understand the goals and objectives of the transformation.

 

Organizations should also have a strategic change management policy. The ECM policy should include the following:

  • The procedures for making changes

  • The procedures for documenting changes

  • The procedures for communicating changes

  • The procedures for resolving conflicts that may occur during the change

 

 

2. Leadership Transformation

Leadership Transformation is a process that starts with the leader and moves outward to the organization. The leader must be willing to change, and the organization must be willing to change. The leader must also have a vision for the future and be able to communicate that vision to the organization. The organization must be willing to change to meet the vision.

 

One of the key factors in leadership transformation is communication. Leaders must be able to communicate their vision and strategy to the organization in a way that is clear and concise. They must also be able to communicate the changes they make to the organization. Leaders must also be able to communicate with all levels of the organization, from the front line to the top.

 

Another key factor in leadership transformation is trust. Leaders must be able to trust their team to follow their vision and execute the strategy. They must also be able to trust their team to be honest with them. Leaders must also be able to trust their team to handle change.

3. Business Transformation

Business transformation is the process of managing a company through a series of changes that aim to improve its performance. Business transformation seeks to help a company become more efficient, competitive, and sustainable.

 

Business transformation can be divided into four stages: planning, implementation, monitoring, and governance. In the planning stage, companies identify the goals they want to achieve and the strategies they need to use. In the implementation stage, companies put the strategy into action. They may need to hire new employees, change how they do business, or buy new technology. The monitoring stage is important because it allows companies to measure their progress and make changes as needed. The governance stage is when companies achieve their goals and seek opportunities to improve based on new business needs.

 

There are many different techniques businesses can use to achieve business transformation. Some popular techniques include Lean methodology, Six Sigma, and Total Quality Management (TQM). Each technique has its benefits and drawbacks, so companies must consider what is best for them.

 

 

4. Information Technology Transformation

Information technology transformation (ITT) is a process by which an organization moves from one information technology (IT) environment to another. ITT is a strategic initiative addressing organizations' need to modernize their IT infrastructures while delivering value to their customers.

Differences Between Digital Transformation & IT Transformation

Digital transformation and IT transformation are often used interchangeably, but they actually have different meanings. They both involve making significant changes to an organization's technology systems and processes to improve efficiency and alignment with business goals.

 

IT transformation involves fundamentally rethinking and redesigning an organization's information technology systems and processes to enable it to achieve its business objectives in new and innovative ways. It often involves adopting new technologies and approaches, such as cloud computing, agile development, and digital transformation. It may involve significant changes to the organization's culture, processes, and business model.

 

Digital transformation often consists of adopting new technologies, such as cloud computing, big data analytics, and the Internet of Things (IoT), and the revision of business processes and models to take advantage of these technologies. Digital transformation, however, uses digital technologies to change how an organization operates and delivers value to its customers. It involves integrating digital technology into all business areas, fundamentally changing how the company operates and provides value to its customers.

 

While IT transformation often includes adopting digital technologies as part of redesigning the organization's approach to technology, it is not limited to digital transformation. IT transformation can involve various activities and technologies beyond adopting digital technologies, such as revising IT infrastructure, updating hardware and software, and revising processes and policies.

 

 

There are four essential aspects to successful ITT:

  1. Plan: The first step is to develop a comprehensive plan that addresses the organization's needs. This plan should include a review of the current IT environment, a determination of the target environment, and a description of the steps required to move to the target environment.

  2. Design: The design phase begins once the plan is complete. This phase involves the development of the necessary infrastructure and the application design.

  3. Implement: The implementation phase is where the actual work is done to move the organization to the target environment. This phase includes the installation of the new infrastructure, the implementation of the latest applications, and the training of employees.

  4. Govern: The governance phase requires a clear governance framework that enables decision-makers to make informed decisions. This framework should include an appropriate level of authority, accountability, and ability to adapt quickly to changing conditions.

 

5. Process Transformation

Process transformation is vital to any organization's strategy to stay competitive and agile in an era of constantly changing and evolving technology.

 

An organization's traditional process is typically composed of a series of steps that are performed in sequential order. Each step in the process is generally carried out by a different group of employees or individuals, and the process is typically executed in a linear fashion.

 

Process transformation is a holistic multi-functional process improvement technique that helps organizations move from a traditional process to a more efficient, effective, and customer-centric one. Process transformation aims to improve an organization's activities' speed, accuracy, and consistency.

 

Many process transformation models and approaches can be used in an organization. Still, the Business Process Management (BPM) model is the most popular way to improve and standardize processes in an organization and help to eliminate human error and process gaps while improving efficiency and compliance.

 

The BPM model has five main steps:

  1. Define the business process

  2. Model the process

  3. Implement the process

  4. Monitor the process improvements

  5. Optimize the process

 

A well-executed BPM program:

  1. Eliminate waste and inefficiencies

  2. Incorporate new agile processes and tools

  3. Support digital transformation

  4. Measure and track the transformation progress

  5. Improve customer service

 

To successfully implement the BPM model in an organization, it is important to understand the organization's and its customers' specific needs. In addition, it is also important to have a clear business mandate and vision for the business. Contact our dedicated team to learn more.

 

 

Summary

Maintaining a competitive advantage involves managing the intersection between the growing need to focus on innovation-based products, technology-based capabilities, and strategy-making for a sustainable future.

ETM is a multi-phase process that starts with assessing an organization's current state and ends with implementing a transformation vision and roadmap. Throughout the process, organizations must balance the need for speed with the need for accuracy and sustainability to better meets the needs of their customers, employees, and shareholders.

 

A successful ETM strategy begins with a clear business goal. The strategy identifies the key processes and systems that need to be transformed, and it defines the goals and objectives for each. Next, develop a plan to achieve the desired outcomes. Finally, implement the ETM strategy and monitor to ensure the transformation is proceeding as planned.

Enterprise Change Management
Leardership Transformation
ITT
Business Transformation
Process Transformation
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Author: Ilka Jordan
 

Ilka is a thought leader and executive advisor in the ETM consulting space. She has helped hundreds of high-profile enterprises with their business strategy, culture, business processes, and technology initiatives, including Eileen Fisher, J.Crew, Chico's, White House Black Market, Soma, Talbots, Lane Bryant, Anne Taylor, and Maurices, to name a few. She has helped manage end-to-end transformation implementations across the retail value and supply chains.

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