Kristen Groh is a senior partner of prophetspecialized in digital transformation strategies and has also worked at Publicis Sapient, leading a portfolio of consumer products.
As global markets move into recession, it’s easy for companies to slow or stop transformation or change initiatives. However, history has repeatedly shown that challenging economies often spur innovation. It’s true for startups: Airbnb, Venmo and Instagram came to life during the Great Recession. And it can be even more true for legacy companies, able to invade new markets backed by brand recognition and years of trust. In recessions, companies can seize new opportunities as competitors withdraw.
Leaders must be confident enough to be curious accelerate the transformation in uncertain markets. They have to ask the correct questions and accept the previous year questions The roadmap may need recalibration.
Organizations should consider themselves a macrocosm of the individual, with a collective DNA, body, mind and soul. This human-centered approach—recognizing that an organization’s culture must be understood as a holistic ecosystem—offers exceptionally useful guardrails for faltering transformations.
7 Questions to Audit Transformation Efforts in Times of Change
Here’s a seven-question diagnostic to help determine whether current transformation efforts still offer the best opportunity for exceptional growth, and what’s at risk if the company doesn’t transform.
1. How are customer behaviors, spending habits, lifestyles and priorities changing?
It starts with the the essence of what your company does. It exists to serve customers. And their needs and behaviors, which are already very different from pre-pandemic times, are being reshaped by inflation and rising interest rates. Increasingly, permanent hybrid workplaces are also evolving. These fundamental changes require a reassessment of plans. Which segments of your customer base are most affected financially? How can you enrich the value of products and services to better serve them? What kind of innovation experience would help them the most?
2. How are competitors changing?
As other companies navigate the uncertainty, they will change direction. Are they retiring and this could create new growth opportunities that fall under your company’s north star? Do their shifts make it the right time to divest non-core companies? Are acquisition targets more attractive (and perhaps at a better price) than in the past? What can you learn from the adjustments they are making?
3. Is there still a compelling business case, measurement and governance model for the transformation strategy?
Because many executives may need to focus on where and when to cut costs and how to update their strategy, transformation leaders must be able to justify the financial impact of the plan. How will it help boost growth after a recession? What are the competing risks of not transforming? What adjustments do you need to make in your approach to achieve results that impact the company’s updated goals and objectives?
4. What skills do you need to get where you want to go?
Empower your workforce new skill sets and personal growth opportunities directly related to transformation, making your role more relevant and connected. Focus on cross-training with technology, such as teaching search engine optimization to marketing teams or data analysis to claims adjusters. These investments not only help the company, they inspire people. An IBM study finds that employees are 42% more likely to stay (pdf) with a company when they receive training.
5. How can we collaborate more, fostering innovation between organizations?
Collaboration between organizations it is essential to fuel the creative and quick solutions that uncertain markets require. It enables leaders and teams to break down silos and build new value propositions.
Effective collaboration is a challenge for most businesses in normal times. However The investigation of the prophet finds that the more organizations collaborate, the more successful they are. Employees look more productive. They value the ways in which collaboration helps them grow, personally and professionally. Even the most isolated companies can begin this effort, piloting small cross-functional teams with clear goals and publicly celebrating their efforts.
6. How are you encouraging risk?
Some companies visibly reward risk-takers, such as P&G with its “heroic failure awards,” HubSpot with “failure forums,” or Tata with her “dare to try” Awards. Achieving model risks. For those who have grown up in results-oriented organizations, it feels unfamiliar. But a human-centered approach requires a focus on processes and behaviors, not just outcomes.
7. How are you managing morale?
Clear and consistent communication it is the best tool for managing emotions and building morale. Report honestly and transparently on the progress of the transformation. Acknowledge the people affected by the change to help them feel part of it all. Together, this builds a culture of resilience.
Answering these seven questions will require digging deep into the mind, body and soul of your business. And it will also ensure that the transformations are relevant, guiding your organization towards successful change and unusual growth.
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