Transforming your business is not just about growth improvement strategies, it also involves reinventing your business to operate more efficiently. More often than not, technological advancements, market trends, and new regulations call for business owners to transform their businesses. Unfortunately, employee resistance accounts for the failure of 70% of the change efforts. While there are different ways to attain success, here are three techniques to help you get started on your business transformation journey:
1. Embrace Digital Transformation
Digital transformation is the adoption of smart digital technologies to manage different aspects of the business. DT also helps business owners add value to their services, launch new products, innovate, and adapt to changing situations. Although DT’s concept is predominantly popular among the business ecosystem, it also impacts non-profit organizations such as government agencies that face social challenges. DT is set to revolutionize every facet of human lives and not only businesses.
Today, the invention of business technologies revolves around leveraging new opportunities to transform the status quo. For example, big data and the Internet of Things (IoT) are changing the faces of businesses. Business owners can adopt automated systems to transform their customer service departments, sales funnels, IT infrastructure, and management processes.
2. Use a Framework
If you are an entrepreneur who does not consider the long-term effects when making decisions, then you may need a business framework such as the Three Horizons model. This framework supports business owners to build their companies while balancing their investments for the future and the present. A Horizon 1 framework enables you to defend and extend your core businesses.
Here, you can work on generating your profits and boosting your cash flow. When your Horizon 1 expenses account for 85% of your budget, you can easily unlock more future investments. On the other hand, Horizons 2 and 3 models can improve the business for the medium term and the future as well.
3. Understand Your Customers’ Demands
Customers do not buy products; they purchase effective solutions. So, maybe it is a bad idea for a business owner to embark on a transformational shift without taking a broad view of their customers’ landscape. In other words, you need to align your transformation ideas with the needs of your loyal customers. That means researching your customers’ demands and understanding the triggers that can affect them in the future.
4. Pay Attention to the Execution
Another step worth noting is the execution stage. Some business owners get their transformation visions right, but moving from plans into actions can be challenging. In fact, according to Stephen Hasty of KPMG, over 50% of companies who embark on business transformation end up with no desired results. In this fast-evolving business world, entrepreneurs usually underestimate the essence of practical model refinements. As a result, they find it hard to execute transformation across their demographics, technologies, and risk management domains.
The bottom line is that change leads to growth, and you can use these strategies to facilitate the process. Starting with a clean slate is also a step in the right direction, so enrolling in schemes such as the Debt to Success System might help you to better manage existing debt.