How to succeed in complex business transformations? Learnings and key enablers

The ability to transform and renew your business is a critical factor to being successful in the future. Customer, market, business environment, and technological changes are constant and require action. During the last twenty years, I have had the privilege of working closely with many organisations in these transformations. Every organisation and transformation journey is different, but there are many learnings and enablers that can help you reach your targets and capture business value from your next transformation.

Transformation initiatives are never just a technical endeavour; it is a profound human journey. The cornerstone of success lies in establishing clarity of purpose from the outset. Why are we transforming? What long-term value do we seek to create? What is the role of each team member in the big picture? Companies that crystallise their 'why' and engage employees around a shared vision tend to achieve better results. 

Key success enablers 

From what we at Midagon have seen based on hundreds of business and IT transformations in Nordic companies over the last two decades, I propose six critical enablers for success:  

1. Vision and engagement: It is crucial to emphasise that the entire organisation, especially your project team, understands why the project is needed, what the purpose is and what the plan is for carrying it out. 

2. Leadership commitment: Strong top management support and sponsorship are vital for a project to succeed. This is not only our personal experience – research supports this as well. This is especially important in the beginning, but needs to be reinforced throughout the journey. 

3. Change management and communication: Continuous change management and communication are needed to ensure the project vision is clear and understood, the team keeps working towards the same direction, and team members are heard. This is crucial to strengthening collaboration and reducing uncertainty and change resistance. 

4. Capability building: Invest in skills development to equip teams for the new operational landscape. Show that they’re not alone, it’s a learning journey for the whole team. Strengthen your team with external help to add expertise which can’t typically be found within the organisation, such as professional program and change management. 

5. Agility and adaptability: Build mechanisms for continuous feedback and course correction. Large transformations may take years, and you need to be equipped for changes that happen along the way. Keep your eyes open for changes in the external landscape, and make sure decision-making structures are clear. When possible, big changes should be split into smaller, more manageable pieces. 

6. Sustainable impact: Measure not just business and financial benefits but also ESG aspects. These must be clearly defined from the beginning and led throughout the transformation. The good thing is that they often go hand in hand. Bringing ESG aspects into consideration ensures you don't miss important opportunities to take your organisation towards its ESG targets. 

Nordic companies often have a cultural advantage in complex transformations due to flat hierarchies, high trust, highly skilled employees, and a collaborative mindset. Leveraging these cultural strengths can further accelerate successful transformation efforts.  

Conclusion 

Complex business transformations are challenging yet immensely rewarding when approached with clarity, empathy, and people-first approaches. By focusing on vision, communication, and capability-building, organisations can realise tangible value that will allow them to answer future challenges. 

We at Midagon are committed to helping organisations realise value from transformations with independent insight and thousands of years of collective experience. We’re happy to discuss how we can support you in your future transformations.