Business transformation entails assessing people, processes and technologies of the organization in terms of current state (where the organization is right now) and future state (where the organization wants to be). In these assessments people, processes and technologies are not standalone areas but are part of an integrated and holistic organization. If any of these areas are ignored or not given enough attention then true business transformation is just a pipe dream.
In order to have a holistic understanding of an organization and its broader role in society, there are 5 factors that need to be considered. These factors should have an inward focus and an outward focus. If the organization only has an inward focus then sooner or later it will be taken over by competitors and if the organization only has an outward focus then it will crumble under the weight of its own (mis)management. So, both are necessary. The 5 factors that will determine an organization’s success and longevity are Strategies, Politics, Innovation, Culture and Execution or simply called The SPICE Factors. It is critical to remember that:
- Strategies are to be used as blueprints. They are not shelf-ware.
- Politics is a reality and needs to be understood.
- Innovation is the lifeline and not only the responsibility of the R&D department.
- Culture is the soul. Lip service is not culture but your actions are.
- Execution is evolution. Without it you become stagnant.
All of the above need to be measured constantly, managed consistently and reviewed periodically.
Below is a poll on what people think are the most important areas and factors for Business Transformation: