There are times when, when taking a 'Business Transformation' project is much easier . Rest of the time , initiating a Business transformation project, which involve complete overhauling of the entire system , companies has to build a collective consensus . Convincing multiple stakeholders, for a business transformation project , is in itself a complicated process . However , recession in the market makes it more easier to take such an project , as the stakeholders of the organisation , finds no option other than that.
Infact , there are Organizational recession and there are Market Recession , both of them often, trigger business transformation project. In the times of recession ,the common sense advise comes from everybody is cutting cost, and keeping a constant eye on bottom-line . However you find less people going beyond that , and trying to explain , what it really takes to transform the bottom-line pressure, into an opportunity.
Infact to get an understanding on how to turn it into opportunity, we have to understand the cost control remedies much deeply. There are three ways of cutting cost in a standard recession situation
1) The Accounting way : This is the way , which is practiced conventionally and which works inside the layers of operation, and tries to control the buying and selling acts of items inside a process, to control the cost.
2) The Technology way : This is the way , which is practiced with the innovative companies in the process layer, which tries to apply technology on certain organizational process, in order to make it cheaper, faster and better.
3) The Transformational Way : This is the way , which is practiced in overall organization, involving strategic change , change of people , process and operation. Here the change doesn’t remain restricted to certain compartments . It gets extended as an integrated organizational change. In the transformational way , the technology , accounting , strategy changes and overall integration of those changes make people also change , who are the change agents.
The first two ways , there is less emphasis on people . But in the transformational way, people has an extensive focus as they are the real change agents . The change of strategy ,process and operation happen only when people changes .
(To be continued ….)