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David L
- 3. Types of business transformation
- 5. The three categories of transformations OPERATIONAL CORE STRATEGIC B F A S T E R C H E A P E R E T T E R
- 7. The transformation office Executive Transformation Office Lead Finance Lead Operations Lead Project Lead
- 9. Transformation office essentials A B C DDISCIPLINE turning up each week, deliver on promises COMMITMENT to see it through BE CLEAR on what your are working on … the specifics! PRIORITISE what you ARE and ARE NOT working on
- 11. Where do ideas come from?
- 13. … so what do you think this is?
- 14. Two truck sizes, two logistics systems—why?
- 15. Think big and be bold
- 17. How will we ever climb this mountain?
- 18. And this is what it felt like
- 19. The critics It’s confronting, because the existence of a transformation office might suggest you weren’t doing your job effectively in the first place. We would have done this anyway It wastes more time and resources than it’s worth It’s only a way for the consultant to make a dollar
- 20. Ways to engage critics Consider reward for results although beware the impact on measurement of delivery • Involve staff in setting up the office • Involve staff in choosing the initiatives • Deliver
- 21. … so the odds are against you …
- 23. Do • Involve staff in setting up • Involve staff in choosing initiatives • Big, bold initiatives • ABCD • Align it with a redundancy exercise • Ignore the critics • Set it up if already functioning highly effectively • Use it as a creativity generating function Don’t
- 24. Transformation office, great for … • Getting difficult stuff done • Driving accountability, build a can-do attitude • Engaging and empowering staff to work on (and implement) ideas • Identify talent in the business • Linking directly to the business plan/strategy • Delivering cross functional initiatives/cross functional planning
- 27. David Lesmond • david.lesmond@kiah.com • 0402 891 027 • www.kiah.com
Editor's Notes
- My presentation today is about successful transformation
- A caterpillar changing to a perfectly formed butterfly is a great example of transformation in nature In the business world, increasingly companies are looking ways to transform to meet changing customer needs and the need to be more efficient and competitive The big question is, how do you transform, overcome internal resistance to change, keep it all on track and not ruin your organisation in the process? Although it is not the only way to transform an organisation, I believe a transformation office a low risk, reliable and effective way to change a company from caterpillar to fully functioning butterfly Today, I hope to pass on some key learnings and insights from running a transformation office for two years. In Summary What a transformation office is and why they are great for strategy execution and innovation through business improvement How to set up and operate a transformation office for success And lastly Some do’s and don’ts
- There appears to be many types of business transformation … Customer focused, quality, organisation, technology, plus many others … in my research for my talk I even found a “do nothing” transformation strategy.
- I think my preferred model for thinking about business transformation is based on the Harvard Business Review 2016 article. What do you Really Mean by Business “Transformation”?
- Transformations are catergorised into three broad categories. Operational – better, faster, cheaper – e.g. digital changes, other operational changes – e.g. serving customers faster through a better supply chain Core Transformation – doing what you are doing in a fundamentally different way – e.g. Netflix … moving from DVDs through mail to streaming online Strategic Transformation – changing the very essence of the company … e.g. Amazon from retailing and cloud computing (AWS).
- Now, I’d like you to think about a problem or opportunity you have been putting off for weeks or months, maybe even years. I’ll give you 45 seconds to write it down and put some details around what it means to finish it … for e.g. if it’s saving for a new car, write … save $20,000 for a new car and buy the car with the features of x, y, z by date of?? Now, imagine someone like myself meets up with you once a week for 30 minutes to run through how you are progressing with your goal. First up, you would probably find me quite annoying. Secondly, I reckon there is a good chance you would go well towards achieving your goal. What I have just described here is how a transformation office works. Now, you may be thinking what does a transformation office look like?
- The transformation office looks like this.
- After a few months of running the transformation office, it surprised me that what you put in one end reliably came out the other – every time! It’s a little bit like a machine – miraculously what goes in one end comes out the other! There are some key ingredients or rules for making this happen, they are …
- So, as I said, if you form the project right in the first place, they will come out perfectly formed at the end … but you must apply your ABCD!
- You might be thinking, where do all the ideas come from? Well, most already exist in the business, or have been developed in a strategic review – this was the source of most of the ideas for our transformation office. There was also workshops, however, these require a lot of preparation and need to facilitated carefully.
- One idea had been around for about five years, credit card payment ability for Small to Medium Enterprises. Our competitors had this but we didn’t – and it didn’t seem to be a priority for our IT team! Blah, blah
- What do you think this is? It’s a sample of premium unleaded petrol – and please note, it has a slight yellowy tinge. Well, many decades ago, fuel was required to be dyed to ensure petrol, diesel and jet fuel didn’t get mixed up. These days, we have systems in place which means fuels don’t get mixed up.
- For as long as I could remember at Caltex, there had been talk about combining the two logistics areas which existed within Caltex. Essentially, one area controlled big tankers, the other area, smaller tankers. A number of strategic reviews had identified this but there never seemed be the willpower to make it happen. Thankfully another strategic review occurred just prior to the TO starting, it was put in one end, and miraculously, 18 months later, came out as one logistics operation at the other.
- One thing I was constantly and consistently surprised by if the project team was bold and thought big, they often delivered. I think it has something to do with the fact that a bigger target is more exciting. So, in practice, this means if a project lead came to the TO with a project of x size by y time, the Executive would always ask what can we do to make it 2x and by y/2?
- The transformation office was a bit like the People’s Court – although I’m no Judge Judy. Although it wasn’t always spoken, eventually the truth was heard. Once the facts were on the table, you could make a logical and objective decision on whether to kill, progress or enlarge.
- End of each year and planning for next year and budgeting We would combine all of the different workstreams proposed projects for the upcoming year – that would form a combined benefit of this high. We would present that to the executive and they would say, “That’s great, now add another 30%.” I would think, how are we ever going to climb this mountain? I truly remember thinking it impossible – but we try anyway. But, applying the ABCD, week in, week out, we would achieve our goal and like magic reach …
- The summit … and this is what it felt like
- There’s a very insightful McKinsey April 2015 article on how to beat the transformation odds Looks at 24 transformation actions and their likely impact on success. We turned this into a survey and received some valuable feedback on how to improve the TO … and we acted on it too.
- And this is what it felt like
- And this is what it felt like
- Good to Great experience on two occasions. Great way to engage with staff and build momentum around change. On both occasions left positive lasting change long after the initial engagement.
- Today I talked about successful transformation using a transformation office It is all about how your company can survive and thrive in moving from caterpillar to butterfly I talked about what a transformation office is, why you might need one and how it set up and how it operates Lastly, I talked about some dos and don’ts of transformation and how you might avoid these problems Thank you for your attention.