Thinking Big With Business - Deloitte

2y ago
20 Views
2 Downloads
1.97 MB
10 Pages
Last View : 4m ago
Last Download : 2m ago
Upload by : Asher Boatman
Transcription

Thinking big with businesstransformationSix keys to unlockingbreakthrough value

The word “transformation” gets thrown around a lotthese days, but it can have different meanings fordifferent individuals and companies. In a world ofunprecedented disruption and market turbulence,transformation today revolves around the need togenerate new value—to unlock new opportunities,to drive new growth, to deliver new efficiencies.All transformations require you to rethink how yourenterprise creates value today and in the future.In other words, all transformations require you tothink big. Why? Because incremental improvementis not enough to win in today’s exponentiallydisrupted business environment. Your organizationrequires sustained growth in the face of nearconstant disruption, and sustained growth requiresagile reinvention. It’s not enough to win today. Youhave to be able to continue to evolve in the future.2

The big transformation pitfallAn effective business transformationmeans your organization can surviveand thrive as you pursue newinnovation-driven opportunities thatemerge, as you respond to shiftingmarket demands, and as you navigateevolving regulatory complexities.You’ll want to proceed with caution,however. Transformation today takesplace at dizzying speeds, requiring alevel of integration and alignment thatmany enterprises are not prepared tohandle.Because many initiatives that oncetook five or six years to completeare now being implemented in ayear or less, many organizationsnow need to manage mountains ofinformation, compressed timeframes,and countless decisions that affectnearly all aspects of strategy andoperations. The risk of failure isgreat, but companies that can pull thedisparate elements into alignmentcan achieve bold objectives, now andinto the future.3Understanding the strategic keysto achieving breakthrough valueIn light of the potential risks, aligningall of the elements to get businesstransformation “right” requires morethan an A-to-B roadmap. It requiresan integrated approach linkingbusiness strategy to transformationambition to executional discipline inorder to unlock breakthrough value.Big questions lie ahead. The goodnews is that we know some of theanswers already. They’re helpful keysyou may choose to use to make yourbusiness transformation one thatcan deliver the value you are seeking.We’ve identified these six keysbased on hundreds of engagementswith some of the world’s leadingcompanies, and we’ve seen first-handhow these keys can help unlockvalue that’s both revolutionary andevolutionary.What is businesstransformation?It is the opportunity todefine a bold ambition thatgoes beyond incrementalchange—the opportunityto rethink your businessand operating models todeliver breakthrough value.It involves strategic decisionsthat affect where you’llgrow, how your organizationoperates, and what kinds ofperformance improvementsyou can expect.

1. Begin with a strategy-informedambitionLeaders in business transformationtypically have a clearly articulated, wellunderstood business strategy. Oftenan organization’s strategic choices—although understood tacitly by seniorleadership—are poorly translated intodownstream implementation choices.The result? The dilution of value.A sound strategy serves as thefoundation for a broad range ofenterprise-wide investment decisions,4resource allocations, and performanceexpectations. It helps shape anexecutable transformation ambition—that is, the value that should come fromthe transformation.Organizations that have investedin articulating their strategy cantranslate strategic goals into abold yet realistic transformationambition that can be executed by theorganization. These companies havea deep understanding of how theirorganizations will create, deliver, andcapture value. That knowledge shouldlie at the core of your transformationambition. Working toward strategicclarity and consensus on the ambitionhelps executives align their goals andactivities. It helps them more clearlyarticulate desired transformationoutcomes, from a financial perspectiveor from an operational perspective.And it helps them adjust elements oftransformation strategy based on theability of the organization to achievethose outcomes.The BIG question:How do we ensure that thetransformation goals andobjectives support ourbusiness strategy?

2. Lead with capabilitiesLeaders in business transformationquickly focus and define the specificenterprise capabilities that will helpachieve competitive advantage. Inreality, only a small number of anorganization’s total capabilities play acritical role in helping the organizationfind new ways to differentiate andcompete. Focusing on those criticalcapabilities can help deliver greatervalue, help leaders drive competitiveadvantage, and help the organizationrealize its business transformationambition.Knowing where to start is critical forunlocking value through a businesstransformation. Prioritization allowsorganizations to quickly evolve5to address immediate marketopportunities. It also allows them tobuild discipline they’ll need to evolvecontinuously, and it can help themestablish the new trajectory that they’llneed to keep pace with disruption.Ultimately, leaders should movequickly past a “people, process, andtechnology” definition of capability—toone that represents a more holistic andcomplete picture. For any capability,it’s a definition that provides focusedsupport for the organization’s strategicchoices and touches on six dimensions:mission, insights, integration,processes, technology, and talent.Here’s an example. A food andbeverage company wanted betterrelationships with distributors andretailers to drive growth. The companydetermined that it needed to transformthree integrated capabilities.Rethinking its customer engagementcapability provided a set of products,insights, and services for distributorsand retail customers, tailored todifferent segments. The company’smarket insights capability wasrevamped to achieve a single sourceof truth for driving information toaction. And the company’s portfolioand brand management capabilitywas upgraded to create a tighterlink between customer pricing andinnovation decisions. By investing inthese specific new capabilities, theorganization was able to separateitself from competitors and establisha platform for future growth.The BIG question:What do we need to improveand how do we improve itto achieve transformationobjectives?

The Deloitte Capability HexagonTM provides a comprehensiveapproach to defining and designing enterprise capabilitiesacross six dimensions:MISSIONIOATGRTEINS6HTThis broader viewpoint allows organizations to frame and linkexecution to the value defined in the transformation ambition.SESOCPRNT Talent. The competencies, skills, talent infrastructure, and workforceplanning that enable an optimal talent base to execute the capability.LE Technology. The software, hardware, and tools required to enablethe capability.CAPABILITYTA Processes. An integrated and efficient set of processes designed toachieve the desired outcomes.SIG Integration. Clear roles, decision rights, and policies that facilitateintegration within and across other capabilities, functions, andpartnerships.IN Insights. The decision flow, information, and analytics that driveinformed and timely decision-making.N Mission. The purpose of a capability, how it will operate, andwhat value it will deliver. The mission is derived directly from—andsupports—the company’s strategy.TECHNOLOGY

3. Drive to valueLeaders in business transformationarticulate upfront the value they expectto achieve through transformation,and they zealously monitor, measure,and track value throughout theirtransformation. Value should be thethread that links your business strategyand your transformation together.Take time to be explicit about exactlyhow you intend to create value. Thenestablish strong, clear connections toyour execution plans.A thoughtful value case becomes thelinchpin that links the transformationambition to capability design andexecution. It does so by defining andbreaking down the transformationprogram into manageable initiatives,each with specific target values mappedto capabilities. A results managementoffice then drives all aspects of valuedelivery by understanding (1) the valueof the program and (2) how to managetrade-offs and dependencies to achievethe targeted transformation value.Failure to define the value expectedcan create problems downstream.That failure, in turn, can result inbacktracking to address issues thatshould have been identified upfront.For example, a manufacturingcompany might overlook a specializeddistribution capability neededto support a new, multichannelbusiness model. Similarly, a globalfinancial institution could miss valueopportunities available throughstrategic tax planning. These aren’tminor considerations. They can makeor break the effectiveness of yourtransformation.4. Build in sustainabilityLeaders in business transformationknow that real value emerges overtime, through sustainable changethat endures. To put the rightcapabilities, competencies, andchange-adaptive culture in place forsustaining and growing the value ofthe transformation, data is essential.Leaders should use data-driven changemanagement solutions. Such solutionsshould support a quantifiable,analytical approach to managingattitudes, behaviors, and engagement.And they should be more than genericsolutions that fail to address theunique challenges of the organization.By fostering an adaptive organizationthat embraces new ways of deliveringvalue, leaders can provide a foundationto sustain value post-transformation.They can engage and empower otherleaders within the enterprise to modeland reward new behaviors and equipthe workforce to make more effective,analytics-based decisions aligned withthe business transformation ambition.Leaders should work to embed thechange into the organization and buildthe strength to continue to evolve asnew market opportunities arise.For example, a consumer productscompany created a new role to ownthe transformed capabilities withinthe organization. Individuals in therole were responsible for moving acapability from its current state to itstargeted future state, for deliveringthe value cited in the business case,for the supporting the on-going healthand continuous improvement of thecapability. This new role embedded thechange into the organization and builta mechanism to sustain and grow valueovertime.7The BIG question:How do we reinforce arelentless focus on valuethroughout thetransformation journey?The BIG question:Why is it important toextend value beyond thetransformation—and howcan we do it?

5. Be agile and flexibleLeaders today should be preparedto continuously evolve throughtransformation—because the businessand technology landscapes in whichthey operate are continuously evolving.Leaders should work hard to embedagility, innovation, and a disruptivemindset into every transformationinitiative.Such an agile approach also canhelp deliver quick wins and iterativeprogress that align with the desiredtransformation value. And an agile6. Invest in program talentLeaders in business transformationrecognize that the right leader andright talent will make or break thesuccess of the transformation. A strongprogram leader should have influenceand credibility within the organizationto make major shifts and shape howwork gets done. Assigning a respectedand capable business leader is criticalto establishing the credibility andimportance of the transformation tothe organization’s strategic goals.Many organizations make the mistakeof not freeing up top talent to supportthe transformation, since that talentis focused on meeting near-term8approach plus agile solutions canprovide early bottom-line benefitsthat can help fund transformationexecution. Another benefit of agilityversus a “big bang” delivery approach:greater transparency and visibility intoprogress—your actual “value capture.”An agile approach also can supportyour ability to manage complexity andunpredictability, through developmentprocesses that are iterative andincremental.It’s important for leaders to design theirbusiness for a shifting end-state, takinginto consideration alternate marketcorporate objectives. But businesstransformation programs typicallyrequire significant investment inbusiness resources to achieve thetransformation ambition, and thereturn on this investment is oftendirectly proportional to the caliber anddedication of the talent aligned to thetransformation.This requires a dedicatedtransformation leader—not someonewho has to pile transformationleadership responsibilities on topof his or her regular job. Why?Because splitting duties can dilutethe effectiveness of the individualin the regular role and in the newscenarios and evolving technologies.Throughout any transformation, theywill connect with peers, partners,and thought leaders to challengetheir own thinking and anticipatefuture disruptions that they turn to acompetitive advantage. As an example,a retailer created an independentinnovation team to analyze disruptivetechnology and understand theinfluence of external market forceson a multiyear transformation. Thisapproach helped the organizationbuild a sustainable solution designedto remain relevant in an evolvingenvironment.transformation leadership role. Youshould keep leaders connectedstrongly to focused roles. Thatapproach also can help you retain toptalent during the transformation soyou can redeploy that talent into thebusiness after the transformation—andhelp continue the growth of value.Be aware that “business transformationleader” is not necessarily a careerdestination, but rather an integral partof a career development path. Theskills and experience that your toptransformation leader gains throughthe transformation can be applieddirectly to the transformed businessand help sustain the value of thetransformation over timeThe BIG question:Why are agility and flexibilityso critical to an effectivebusiness transformation?The BIG question:What does effectivetransformation leadershiplook like?

Transformation at work:Efficient execution was vital to the success ofa newspaper conglomerate that needed torethink its traditional print publishing businessin a market evolving to digital media. Thecompany’s leaders needed to find ways togrow the new business and shrink the legacybusiness, while managing the transitioneffectively. We helped the client reinvent itsbusiness model and reframe its operatingmodel to support a digital strategy and to takeadvantage of growing consumer demand. Thathelp involved transforming all aspects of thenews value chain and building new capabilitiesin digital sales and content, production,circulation, HR, IT, and finance. On a paralleltrack, we also helped transform capabilitiesthat weren’t central to the new operatingmodel, such as reducing print home deliveryto three days a week and engineering a lowercost printing operation. Through this gamechanging transformation, the organizationwas able to take advantage of disruption toaccelerate digital revenue growth.Own the disruptionIt’s not enough to respond to disruption anymore. Leaders have to anticipate and owndisruption—with the agility and discipline that will help them differentiate and stay ahead.Without clear vision and strategy to shape the execution, business transformation initiativescan falter at even the most high-performing companies. These six keys to unlockingtransformation value, however, can help keep that from happening. The big idea is a simpleone: maintain clear links among business strategy, transformation ambition, and executionaldiscipline. Those links are essential for delivering the value you are targeting throughtransformation. They can help you execute your design.Let’s talkWant to learn more about these keys to unlocking value and explore some of the bigtransformation questions that should be on your mind? We should talk. Our global networkof professionals helps some of the world’s leading businesses successfully navigate bigtransformation challenges each day—taking a customized approach to help positionour clients for ongoing evolution. We have a strong track record of results on businesstransformation, and we can help you start unlocking value that matters for your organization.Contact us to get the conversation started.Christine AndersonPrincipalDeloitte Consulting LLPchristinebanderson@deloitte.comTodd KovacevichPrincipalDeloitte Consulting LLPtkovacevich@deloitte.comKaren BowmanPrincipalDeloitte Consulting LLPkarbowman@deloitte.comMark PocharskiPrincipalDeloitte Consulting LLPmpocharski@deloitte.comDan KinzlerPrincipalDeloitte Consulting LLPdkinzler@deloitte.comContributorsPriya Ehrbar, Nathaniel Paynter, Tanya Raterman9

This publication contains general information only and is based on theexperiences and research of Deloitte practitioners. Deloitte is not, bymeans of this publication, rendering business, financial, investment, orother professional advice or services. This publication is not a substitutefor such professional advice or services, nor should it be used as a basisfor any decision or action that may affect your business. Before makingany decision or taking any action that may affect your business, youshould consult a qualified professional advisor. Deloitte, its affiliates, andrelated entities shall not be responsible for any loss sustained by anyperson who relies on this publication.As used in this document, “Deloitte” means Deloitte Consulting LLP,a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/aboutfor a detailed description of the legal structure of Deloitte LLP and itssubsidiaries.Copyright 2016 Deloitte Development LLC. All rights reserved.

disparate elements into alignment can achieve bold objectives, now and into the future. Understanding the strategic keys to achieving breakthrough value In light of the potential risks, aligning all of the elements to get business transformation “right” requires more than an A-to-B roadmap. It requires an integrated approach linking

Related Documents:

XaaS Models: Our Offerings @DeloitteTMT As used in this document, "Deloitte" means Deloitte & Touche LLP, Deloitte Tax LLP, Deloitte Consulting LLP, and Deloitte Financial Advisory Services LLP. These entities are separate subsidiaries of Deloitte LLP. Deloitte & Touche LLP will be responsible for the services and the other subsidiaries

Deloitte & Touche South Africa is referred to throughout this report as Deloitte South Africa, and Deloitte Pan African Trust is referred to throughout this report as Deloitte Africa. Deloitte Africa holds practice rights to provide professional services using the Deloitte name which it extends to Deloitte entities within its territory,

May 02, 2011 · Deloitte & Touche LLP Cleveland, Ohio 1 216 589 5717 tgriffiths@deloitte.com Theresa Cui . Engagement Consultant . Deloitte & Touche LLP . Cleveland, Ohio Cleveland, Ohio 1 216 589 5018 1 216 . tcui@deloitte.com . Kathie Schwerdtfeger Advisory Principal Deloitte & Touche LLP . Austin, Texas 1 512 691 2333 . kschwerdtfeger@deloitte.com .File Size: 720KB

Knabe, Andrea Consulting Deloitte Consulting LLP Chicago Kwan, Anne Consulting Deloitte Consulting LLP San Francisco . Miller, Christian L. Tax Deloitte Tax LLP Washington DC . Smith, Sandra Consulting Deloitte Consulting LLP Chicago Spangrud, Chad Audit & Assurance Deloitte & Touche LLP Costa Mesa Springs, Christanna R. Tax Deloitte Tax .

** Deloitte Risk Advisory, Löffelstrasse 42, D-70597 Stuttgart, Germany, anlanger@deloitte.de *** Deloitte Legal, Schwannstraße 6, 40476 Düsseldorf, Germany, fwesche@deloitte.de **** Deloitte Risk Advisory, Löffelstrasse 42, D-7059

Deloitte MCS Limited is a subsidiary of Deloitte LLP, the United Kingdom member firm of DTTL. . Jason Geller jgeller@deloitte.com. Deloitte Consulting LLP. Asia Pacific & China. Jungle Wong junglewong@deloitt

Nov 21, 2013 · Deloitte Deloitte & Touche LLP Ten Westport Road P.O. Box 820 Wilton, CT 06897-0820 Tel: 2013 761 3000 Fax: 1 203 834 2200 www.deloitte.com October 29, 2013 Elizabeth M. Murphy

As used in this document, "Deloitte" means Deloitte & Touche LLP, which provides audit, assurance and risk management related services, Deloitte Consulting LLP, which provides strategy, operations, technology, systems, outsourcing and human capital consulting services, Deloitte Tax LLP, which provides tax services, and .