How are industry leaders cracking the transformation code?

When undergoing significant transformation, companies face the challenge of moving beyond the comfort zone and the limitations of current business models. To truly innovate, it's not enough to make incremental changes; transformative thinking requires a "future-back" approach. Leaders should envision the business landscape of five to seven years ahead and create a roadmap from that future to the present, aligning decisions with long-term goals rather than short-term fixes.

Another obstacle is ensuring transformation happens swiftly and can be scaled effectively. Lengthy programs are costly and late-stage redesigns can be expensive. To mitigate this, organizations should validate designs for scalability early on by involving a broad range of stakeholders in the testing process. Rapid prototyping and piloting help gather immediate feedback, enabling adjustments before wide-scale implementation.

A select group of diverse stakeholders should also review pilot projects, offering insights on potential scaling challenges. This inclusive strategy aids in fine-tuning the transformation for broader application.

In essence, achieving innovation at scale is about fostering an environment conducive to rapid ideation and practical implementation, allowing organizations to integrate fresh, ambitious ideas into their core strategies with agility and sustainability.

Human-centric change management is a specific approach to handling changes within a business, which places a strong emphasis on the human element. Rather than just focusing on processes, timelines or objectives, it puts individuals and their needs at the center of any changes. It is about creating a work culture that harmonizes with business objectives. By assigning roles for end-to-end accountability and establishing clear decision-making rights, firms can foster a more fluid, responsive organization that is better prepared for a changing environment. 

Successful change management involves a roadmap that guides employees through the transition. Organizations need to offer the right training, tools and support for employees to navigate the new landscape. Also, businesses must encourage open and constructive dialogue where employees’ opinions are heard and addressed, fostering a sense of ownership and commitment to the new direction.

A recent study by EY teams, in collaboration with the University of Oxford, revealed the crucial role of a human-centric approach in the success of a company's transformation efforts. Specifically, prioritizing human factors can increase the likelihood of success by over 70%. The research surveyed 900 executives across 23 countries, indicating that companies putting humans at the core of their transformation are 2.6 times more likely to succeed. 

In the process of transformation, humans are more than just individual contributors; they form the core, the essential drivers propelling and shaping the entire transformation. This means considering aspects like emotional support, strong leadership, clear vision, role clarity and open culture — some of the key drivers of successful transformation. 

We have often seen in Finland that the importance of human centricity has been underinvested or even overlooked in different types of transformations. However, this is slowly changing in the wake of more human-centric leader generations entering the business and after countless failed transformations where the number one lessons learned was that we should have put more focus on humanitarian values and change management.

Embracing technological transformation is crucial for businesses aiming to stay competitive in today's digital era. 

Pinpointing technological opportunities: The first step in technological transformation involves identifying areas within businesses that could yield significant benefits through technology. Whether it's customer service, data analysis, internal operations, or automated tasks, businesses need to scrutinize their functions to understand where technology could potentially revolutionize outcomes and efficiencies.

1. Seamless tech migration: Switching to new technologies should involve skillful transition management. Poorly executed tech migrations can cause disruptions and inefficiencies instead of improvement. Global businesses must ensure that thorough planning, risk anticipation and employee training accompany the change. Continued support throughout the adaptation phase is also essential to ensure a smooth transition.
2. Choosing agile over waterfall: For businesses, adopting agile over the traditional waterfall approach can speed up tech transformations. Agile's test-and-learn model helps validate benefits faster, saves costs and reduces unexpected outcomes. It is a modern method for a competitive edge in the digital landscape. With waterfall, businesses risk discovering late in development that the outcome isn't as expected, potentially wasting significant time and resources. Thus, agile's flexibility and real-time feedback offer a more effective approach in today's swiftly evolving digital environment.
3. Leveraging efficiency: Technological efficiency holds the power to redefine processes and results. Organizations should capitalize on technology to streamline their operations. Use of advanced analytical tools, cloud computing and AI could lead to ground-breaking improvements in productivity and cost management.
4. Data and generative AI: Generative AI (GenAI) is quickly becoming a key area for investment, with businesses exploring its potential for incremental improvements rather than complete overhauls. Companies are evaluating GenAI applications across various functions, from enhancing customer interactions to streamlining internal training processes. Despite the excitement around GenAI, the primary concern for companies lies in strengthening data governance. This highlights the importance of ethical management and protection of sensitive information, especially as AI regulations continue to develop.

Orchestrating a successful transformation

Navigating the transformation journey for businesses requires a well-orchestrated and multifaceted approach. It's not just about implementing new technologies or streamlining processes, but also embedding a mindset of continuous innovation and resilience within the organization.

Business transformation is a complex process, filled with both opportunities and challenges. However, by fostering a culture of constant innovation, reaching out globally for talent and insights and smartly selecting partners who understand Finland's unique cultural and business landscape, businesses can build a promising future. A future that successfully navigates the ebbs and flows of their transformation journey, firmly placing them at the forefront of the digital age.