Four common business transformation challenges and what to do about them

Whether we embrace it or not, business transformation—especially digital transformation—continues to be a major focus in 2024. Key drivers include the impact of AI, evolving technologies, changing business models, and an increasing emphasis on customer experience, among others.

While organisations have always had to adapt to some degree, the concept of strategic, large-scale business transformation as we understand it today is a more recent development, largely emerging in the latter part of the 20th century and becoming increasingly important in the digital age. But despite transformation being everywhere – there are too many businesses out there that haven’t quite cracked it.

We could list far more than four transformation challenges, of course, but numbers are catchy, and we’d lose you with more than five. So, here are the four most common challenges we see when it comes to business transformation (including our thoughts on what to do about them):

Maintaining momentum

Don’t do the initial work and then walk away – change is a continuous journey that needs constant reinvestment, reinvigoration and momentum. To keep the transformation energy high, set clear, achievable milestones and celebrate small wins along the way. This approach helps maintain enthusiasm and motivation.

Additionally:

• Regularly communicate progress and success stories

• Implement a reward and recognition programme connected to the transformation

• Conduct periodic review sessions to assess progress and pivot when needed.

2. Weak engagement(whether it’s resistance to change, low adoption, both (or more))

Developing a comprehensive change management strategy is crucial, and that would be our first piece of advice. To further boost engagement:

• Provide thorough training and support for new systems and processes

• Address concerns and fears openly and honestly

• Involve employees early in the process to create a sense of ownership.

Demonstrating the benefits of change at both organisational and individual levels can significantly increase buy-in. Use influential team members as change ambassadors and create feedback mechanisms to gather and act on employee input, ensuring that voices are heard throughout the process. Doing this ensures you bring more people along with you, thus increasing engagement.

3. Unclear communication

Clear communication is the backbone of successful transformation. Develop a consistent communication plan that uses multiple channels to reach all stakeholders. Building on point two, it’s important to tailor messages to different audience segments within the organisation to ensure relevance and understanding.

• Encourage two-way communication and provide platforms for questions and feedback

• Use simple, jargon-free language to explain complex concepts and technology.

Regularly update on progress, challenges, and next steps. It’s essential that the leadership team is visible and actively communicating throughout the process, reinforcing the importance of the transformation.

4. Inaccurate effort estimations

Accurate estimation begins with thorough initial assessments and feasibility studies. Use historical data from similar projects to inform estimates and employ expert judgment by consulting with experienced professionals. A blended team of both internal and external experts is perfect for this sort of challenge. To improve estimation accuracy:

• Utilise tried and tested project management tools and techniques

• Build in contingency time and resources for unexpected challenges.

Regularly reassess and adjust estimates as the project progresses. Breaking down large tasks into smaller, more manageable components allows for better estimation. Consider implementing agile methodologies to allow for flexibility and continuous adjustment throughout the transformation process.

Many of our client partners have a wealth of experience working with businesses to implement change across different sectors within different teams. We care about people and processes, and we as a business always strive to be catalysts for change (it’s one of our core values, after all). Our Client Partner Alex Buchanansays: It’s worth remembering that it’s people that will be delivering change, if they’re not aligned with the mission and appropriately empowered to deliver it, then the transformation will struggle.

We appreciate that transformation is a complex mix of technology, processes, human behaviour and more. Successfully navigating these challenges needs a whole approach that addresses all the above as well as a strong leadership commitment, and the ability to learn and adapt throughout the transformation journey is one we have honed over the years. We’re always happy to share our knowledge and advice, so if you need support, please reach out and contact us.