WHY IS THERE SUCH A HIGH FAILURE RATE IN BUSINESS TRANSFORMATION TODAY?

The true number of business transformation project failure is underreported. Depending on which research you follow, the figure is between 70% – 80% of business transformation projects end in failure. There is five (5) main causes in business transformation failure are – lack of stakeholder involvement, lack of senior stakeholder support, changing requirement, incomplete requirements and poor planning.

WHAT IS WRONG WITH EXISTING APPROACHES?

Nothing. They are good at the purpose they were designed for, except they are now used for a different purpose, and that is not the original purpose they were designed for. Look at TOGAF® (The Open Group Architecture Framework) for example – it’s a framework for managing ‘technology’ or ‘technology changes’. It is not surprising, it was written by a “technology standards company”. They know and understand technology. What is happening is, TOGAF® is being used in business transformation projects that the ‘framework’ to manage the ‘transformation’, but it only focuses one thing – technology. It doesn’t focus on anything else other than Technology (it almost completely ignores, the other two (2) important aspects of the organisation – People, and Process(es)). It also ignores how to transition the business from the current state, to its desired future state. It effectively put the Technology stakeholders in the drivers set, to dictate to the Business what they think they want and literally throw it over the fence to the Business for them to work out if first it is fit for purpose, and then how to use and implement it.

HOW DOES HOBA® SOLVE THE PROBLEM IN BUSINESS TRANSFORMATION TODAY?

HOBA® solves the 70% failure rate in business transformation problem by addressing the causes that problem in the first place – by putting the Business back into control, to take control back from Technology and into their own hands, using a structured process and framework that was developed WITH the Business, BY the Business, to be USED and OWNED by the Business, putting the control back into their own hands.

WHAT IS THE BIGGEST PROBLEM WITH BUSINESS TRANSFORMATION PROJECTS AND HOW DOES HOBA® HELP?

The biggest problem with business transformation projects is firstly the name. “Business Transformation” is incorrectly called or referred to as “Digital Transformation”. ‘Digital Transformation’ is a misnomer, it is not ‘digital’ per se that is ‘transforming’, it is the ‘Business’ that is transforming, and how it does or is doing that in this period of time is via ‘digital technologies’ (if ‘technology’ isn’t already digital, what were they before?). What this intentional confusion in the marketplace is causing, is it causes is an incorrect bias and focus on the ‘technology aspect’ only of the transformation, which by doing so completely ignores the Business aspects – that’s the Business Operations Stakeholders and their concerns, and the Processes those stakeholders carry out. HOBA® helps by putting the Business back in to control, to be very clear and structured with what is the Vision, Strategy, Objectives and Measures, what stakeholders are involved and need to be involved in the transformation and their decision making authority, the process to manage those decisions, scope and risks; what are the problems they want to address or opportunities they want to take advantage of; what benefits they want to realise from the transformation and when; what the future or Target Operating Model (TOM) needs to look like to achieve their Vision and Strategic Objectives and business benefits, and how and when will the changes be implemented. Everything and nothing more, only doing what needs to be done, to transform the business, not doing what is happening in the marketplace today and that is ‘creating reams and reams of colourful models and diagrams, that while beautiful, are in reality just “interesting but (sadly) useless”.

WHAT IS THE DESIGN PROCESS?

The Design Process is the 6-Step process used to implement HOBA® and manage the transformation from the very start, to the very end, implementation.

WHAT IS THE BIGGEST MISCONCEPTION IN THE MARKETPLACE?

The biggest misconception in the marketplace today with business transformation is that Clients are led to believe that they need ‘reams and reams’ of pretty colourful presentations to transform your business. This is a fallacy. This only creates expensive shelf-ware. What those ‘pretty presentations’ are designed for is to enable the transformation project to keep moving toward its end goal, transforming the Business. What the Clients are led to believe is those ‘pretty presentations are the actual goal of the project, and often celebrated and hang up on the project office wall with great bravado as if they were the goal of the transformation itself! What those ‘pretty presentations’ actually need to be is two (2) things – first, is they need to be understandable, and written in a language that the Business understands, so first they can understand what it and they mean, and then they can agree to it. Then second, then they need to be useful. A lot of Consultants and Consultancy’s wanting to impress their clients with great marketing, pretty presentations and long list of impressive acronyms and latest “it” words, but this just confuses the Client. What happens is the Consultants will present their ‘ideas’ (because that’s what they are, they have had one meeting with the Client, interpreted that into their own words and perspectives, and come back to them several weeks and months later, having not consulted with them through the process, thinking ‘they know their Clients business best (they don’t, the Client does!) and play back their 300+ page power-point presentation that looks impressive), they present it to the Client, the Client has no idea what it means or says (its written in a foreign language, literally), due to the time it’s taken, and the money it has cost at that point, the Client agrees to it in the room, then walks out the room, and completely ignores everything the Consultant(s) said. The transformation goes nowhere. HOBA® solves that problem, refer to the first question above.

HOBA® is trusted by the UK Government, FTSE-100 companies and start-ups to both set up, and also turnaround their failing transformations. HOBA® is used by thousands around to transform their business, and was made public for the first time in late 2018, after over 10+ years in use with private clients, published in The Business Transformation Playbook – How to Implement Your Organisations Target Operating Model (TOM) and Achieve a Zero-Percent Failure Rate Using the 6-Step Agile Framework’, reaching bestseller on Amazon in 6-categories including Project Management and Consulting, and made it onto the Best Business Strategy eBook List of All Time by BookAuthority, at no.30 (March 2021). See News for details.

CAN I READ A PREVIEW OF THE BUSINESS TRANSFORMATION PLAYBOOK?

Yes, you can download a FREE preview to The Business Transformation Playbook here.

The Real Secret to Successful Business Transformation: It’s All About Culture and Strategy

By Heath Gascoigne
July 22, 2024
Business Transformation, Enterprise Architecture
Post Views: 482

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Business transformation is a hot topic, but with a 70% failure rate, it’s clear that many organisations are missing the mark.

The secret to successful transformation lies not just in adopting new technologies, but in fundamentally changing how a business operates, aligning strategy with culture, and engaging every layer of the organisation.

In this blog post, we delve into the reasons behind the high failure rates and offer a comprehensive guide using the HOBA (House of Business Architecture) framework.

We’ll explore how to navigate the complexities of transformation by addressing cultural elements, employing the 3L’s – layers, language, and levels – and implementing a structured approach.

Let’s uncover the keys to joining the top 30% of successful transformations.

Heres what we’ll cover (click the links to skip to the section below):

NB – Click to expand images 📸

Business transformation: a buzzword that has taken the corporate world by storm.

Yet, amidst the hype, a staggering 70% of these initiatives fail. Why?

The answer lies not just in technology, but in the very culture and strategy that underpin your organisation.

In this blog post, we’ll unravel the complexities of successful business transformation, using the HOBA (House of Business Architecture) framework, and reveal why understanding culture, and employing the 3L’s – layers, language, and levels – is crucial for success.

Read on to discover how you can be among the 30% that make it.

The Problem with Traditional Approaches

In the digital age, technology is often touted as the ultimate solution to business woes.

However, many organisations fall into the trap of equating digital transformation with business transformation.

This misconception leads to an overemphasis on technology while neglecting the crucial elements of people and processes.

According to the HOBA framework, successful business transformation is not just about implementing new technologies but fundamentally changing how the business operates.

This involves strategic planning, aligning objectives, and addressing the needs and concerns of all stakeholders.

Announcing the Value Proposition

So, what’s the secret sauce for a successful transformation?

It’s about understanding and implementing the HOBA framework, which focuses on the strategic alignment of business goals with operational execution.

It’s about involving everyone in the organisation – from the C-suite to the frontline employees – and speaking their language.

It’s about being bold and challenging the status quo, not just following popular but flawed methods.

DOWNLOAD THE BUSINESS TRANSFORMATION TOOLKIT E-BOOK!

Download the e-book and gain the skills to lead your transformation using the HOBA® Business Transformation Toolkit 👉

👀 "70% of business transformations fail, yet companies keep blindly following outdated methods designed for IT systems. It’s time to wake up, challenge the status quo, and lead with a proven framework. 📈 #TransformationTruth #HOBA #Leadership

Heath Gascoigne Tweet

Culture: The Invisible Hand Guiding Transformation

Culture plays an unseen but pivotal role in the success of business transformation.

Often, it’s what you don’t see that kills your transformation efforts. According to the culture pyramid concept, the visible aspects of culture (behaviours, rituals) are just the tip of the iceberg.

Below the surface lie the deeper values, beliefs, and assumptions that truly drive behaviour.

For a transformation to succeed, these underlying elements must be addressed.

When embarking on a transformation journey, consider the following:

1. Understand the Existing Culture: Conduct a thorough assessment of your current cultural landscape. Identify the values and beliefs that are driving behaviors within your organization.
2. Align Culture with Strategy: Ensure that your transformation strategy is in harmony with your cultural values. This alignment will facilitate smoother transitions and greater acceptance among employees.
3. Communicate and Engage: Use the language of each layer within your organization to communicate the transformation goals. Engage employees at all levels, addressing their specific concerns and WIIFM (What’s In It For Me).

The HOBA Framework: A Structured Approach to Transformation

The HOBA framework offers a structured, step-by-step approach to business transformation. Here’s how it works:

1. Focus: Define the direction of the organization and the transformation. Establish a clear vision and objectives.
2. Control: Implement governance structures to manage design, decisions, scope, and risks.
3. Analyse: Understand the current state of the organisation. Identify problems and opportunities.
4. Evaluate: Identify and prioritise business benefits and required changes.
5. Design: Develop the Target Operating Model (TOM) that aligns with business strategy.
6. Implement: Execute the design and oversee the implementation of the physical business architecture.

The 3L’s: Layers, Language, and Levels

Understanding the 3L’s is crucial for effective communication and implementation of transformation initiatives:

Layers: Recognise the different layers within your organization – strategic, operational, and implementation. Each layer has distinct roles and perspectives.
Language: Each layer speaks a different language. For example, the C-suite focuses on ROI and market share, while operational teams are concerned with customer service metrics. Tailor your communication to resonate with each layer.
Levels: Different layers require different levels of detail. High-level strategic goals for the C-suite, detailed process metrics for operational teams, and specific implementation tasks for project teams.

🚨 "Relying solely on digital technology for business transformation is a recipe for disaster. Real change happens when we focus on people and processes. Don't be part of the 70% that fail. 🚀 #PeopleFirst #ProcessMatters #HOBA

Heath Gascoigne Tweet

Conclusion and Wrap-Up

Successfully navigating a business transformation is no small feat, especially when 70% of these initiatives fail.

However, by leveraging the HOBA (House of Business Architecture) framework, focusing on culture, and understanding the 3L’s – layers, language, and levels – your organisation can significantly increase its chances of success.

Remember, true transformation goes beyond technology; it involves a comprehensive change in how your business operates, aligning strategy with culture, and engaging every layer of the organisation.

By addressing these elements, you can steer clear of the common pitfalls that lead to failure and join the top 30% of organisations that achieve successful business transformation.

Be bold, challenge the status quo, and lead your organisation towards a brighter, more agile future.

Looking for the Upskill and Join the Top 30%? Everything you just read in this post is covered in here plus so much more! 👉

💡 "The invisible culture pyramid is killing your transformation efforts. What you don’t see can hurt you. Align culture with strategy, or watch your transformation fail. 💥 #CultureShock #BusinessTransformation #HOBA"

Heath Gascoigne Tweet

Call to Action

Ready to transform your business and join the top 30% of successful organisations? Contact us for a discovery call to see how we can help.

Whether you want to develop your internal capabilities, collaborate with our experts, or have us lead your transformation, we are here to ensure your success.

Don’t let your organisation become another statistic – take the first step towards a successful transformation today.

To learn more about HOBA Tech and how we can assist you in your transformation journey, visit Learn More about HOBA Tech. If you’re ready to take the next step and discuss how we can help, contact us for a discovery call.

Stay ahead of the curve and embrace the future of business technology with HOBA Tech!

Thank you for reading this!

Sincerely,

Heath Gascoigne

P.S. If you want to join our Business Transformator community of 2,000+ like-minded Business Transformators, join the community on the Business Transformator Facebook Group here.

P.P.S. If you want to learn more about business transformation, check out The Business Transformation Playbook here.

For more information, visit https://www.hoba.tech

Heath Gascoigne

Hi, I'm Heath, the founder of HOBA TECH and host of The Business Transformation Podcast. I help Business Transformation Consultants, Business Designers and Business Architects transform their and their clients' business and join the 30% club that succeed. Join me on this journey.

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