The scope of transition in future organizations

The scope of transition in future organizations

 

The scope of transition in future organizations to align business can be quite extensive. As businesses evolve and adapt to changing market conditions, they often need to undergo organizational transitions to ensure their operations, strategies, and processes are aligned with their business objectives. Here are some key areas where transitions may take place:

 

1. Strategic Alignment: Organizations may need to realign their overall strategic direction to respond to market trends, emerging technologies, or competitive pressures. This can involve redefining the mission and vision, identifying new target markets, or exploring different business models.

67% of companies fail in the execution of their strategic plan. Typically, this is attributed to a lack of involvement or even commitment from company members or a lack of leadership. However, in most cases, the reality is that it is due to a lack of alignment within the company: employees are not clear about their roles, they do not agree with what they do or the reason for what they do.

What is strategic alignment?

Strategic company alignment means, according to Harvard, that all elements of a business, including the go-to-market strategy and the way the company is structured, are organized in a way that best supports compliance with the business plan. long-term purpose of the company.

In this blog we will see how to avoid this obstacle for the company and how to achieve a successful strategic alignment.

The strategic alignment of the company as a whole is essential to ensure that all its members understand the final objectives, approaches and strategies used to achieve them. In addition, the management of human talent, the type of methodology used, the type of technology and the tools require a clear alignment. According to a study conducted by LSA Global, a consulting firm specializing in the area of ​​corporate alignment, companies that are highly aligned increase their revenue by 58% and are 72% more profitable, significantly outperforming their competitors.

How to detect the lack of strategic alignment?

In order to identify a lack of alignment in the company, we will analyze the value chain proposed by Harvard in the previous section to detect misalignment, if it exists.

A simple test can be performed to initiate an analysis of the company's strategy and organizational effectiveness. For this, the company must be considered as a whole or focus on some element of it that has special strategic relevance, such as an area with great growth potential on which the success of the company in general depends. The test consists of asking the following pair of questions:

• Does the business strategy of the company support the fulfillment of its purpose?
  The purpose of the company is one of the few areas that lasts unaltered over time and that marks the path of the actions to be taken. The corporate strategy will always be oriented towards the achievement of this purpose, and will determine what products and services to offer, what markets to serve and how the company must best differentiate itself from its rivals to obtain a competitive advantage. To answer the question posed, we will use a scale from 1 to 100. In the event that we do not know how to answer, either due to doubts about the corporate strategy or about the purpose of the company, this will indicate a negative answer.

• Does the organizational capacity of the company help the success of its commercial strategy?When we talk about organizational capacity, we refer to the management systems and profiles that exist within the company, that is, the quality of the staff. For example, if the company has innovation as a strategic priority, it is important that the organizational structure and management systems allow creative collaboration between sectors and risk taking. It is important that, for the organizational capacity of the company to help achieve the business strategy, the people, culture and processes of the company adapt to the strategic changes that take place over time. For this question we will also use a scale from 1 to 100. If the company is unable to carry out its strategy, it will indicate that the answer will be negative.

Harvard provides the following matrix to represent the answers to the two questions above. Depending on the quadrant in which the company is located, it will have to face different organizational challenges.

2. Structural Changes: Organizations may need to restructure their internal divisions, departments, or teams to enhance collaboration, streamline decision-making, and improve efficiency. This might involve changes in reporting lines, creating cross-functional teams, or adopting agile methodologies.

The great qualitative leap in progress is taking place exponentially, causing a drastic transformation in the world of politics and economics, in such a way that at the beginning of the century the globalization of markets, products, technology and fashion is unquestionable. The growth and evolution of a company must be accompanied by the necessary changes in its structure, which unfortunately is usually relegated to the background. There are many models or styles of organization that we can find.

It is evident that the primary push for this technological and structural change comes from the incorporation of information technology and telecommunication (Telematics), with which the instantaneous flow of information with open electronic networks (intranet, extranet, internet) is feasible. This enormous flow of information has increased communication at a global and business level, generating knowledge and, therefore, the creation and discovery of new technologies and their applications that produce the progress of humanity and the growth in the competitiveness of companies.

The business organization corresponds to the process of organizing the resources (human, financial and material) available to the company to achieve the desired objectives.

All the processes in the dynamics of the company have to operate in a coordinated and directed manner, but in an effective and efficient manner. The links in the chain must be coordinated to efficiently assume the processes in question. It must be borne in mind that the structure depends on the strategy. Starting from a strategic vision of the business organization, we can face a structuring of it, relying on the continuous improvement of processes, plus a reengineering of value flows and rapid development of telematics.

It is well known that a continuous cultural and strategic adaptation that is well harmonized and agreed upon in business organizations entails a structural change that ultimately leads to an increase in the continuity of competitiveness.

 

3. Cultural Transformation: Transitioning to align business often requires a cultural shift within the organization. This entails fostering a shared set of values, beliefs, and behaviors that support the desired business objectives. It may involve promoting innovation, embracing risk-taking, encouraging diversity and inclusion, or enhancing employee empowerment.

The following are the detailed steps for a successful transformation:

• Define the cultural change: The first step is to define the desired cultural change. Identify the current culture and the desired culture, and document the changes needed to achieve the desired culture.
• Create a sense of urgency: Communicate the need for change throughout the organization and create a sense of urgency around the transformation. Explain why the change is necessary and how it will benefit the organization.
• Develop a vision and strategy: Develop a clear and compelling vision for the future culture and create a strategy to achieve the transformation. Ensure that the strategy is aligned with the goals and objectives of the organization.
• Involve the organization: Involve employees at all levels of the organization in the transformation process. Create a cross-functional team to lead the transformation and involve employees in planning and executing the transformation.
• Communicate the change: Communicate the vision and strategy for the transformation to all employees and be transparent about the process. Provide regular updates on the progress of the transformation.
• Align the organization: Ensure that all aspects of the organization, including policies, procedures, and systems, are aligned with the desired culture. Review and modify organizational structures, roles and responsibilities to support transformation.
• Develop new behaviors and skills: Identify the behaviors and skills needed to support the desired culture and provide training and development opportunities to help employees develop these skills.
• Reinforce change: Reinforce the new culture by recognizing and rewarding behaviors that support transformation. Develop new metrics and performance indicators to measure progress toward the new culture.
• Monitor and Adjust: Monitor the progress of the transformation and adjust the strategy and implementation as needed. Continually assess the effectiveness of the transformation and make any necessary adjustments.
• Embed the new culture: Embed the new culture into the organization by ensuring that it becomes part of the organization's DNA. Reinforce the new culture through permanent communication, training, and recognition of behaviors that support transformation.

 

4. Process Optimization: Organizations frequently need to optimize their operational processes to improve productivity, reduce costs, and enhance customer experience. This can involve implementing new technologies, reengineering workflows, or adopting best practices such as Lean or Six Sigma.

Process optimization is the discipline that continually adapts processes in order to improve them. For that, an analysis must be carried out and, thus, identify the deficient points and find solutions to improve them.

The efficiency of a company depends on its processes, and that is why its optimization is essential to achieve the expected competitiveness and become a reference in the market. Do you want to know in detail what process optimization refers to? So, continue reading that in this article we explain everything to you.

Process optimization is the discipline that is responsible for adapting processes to optimize their parameters, but without violating their limits. Generally, its objectives are to minimize costs and maximize performance, productivity and efficiency. 

What is business process optimization?

The optimization of business processes is the practice that aims to increase the efficiency of a company through the perfection of its processes making better use of its resources. This practice is part of BPM, also known as business process management.  In this way, business process optimization can, for example, create strategies to streamline workflows, optimize communication, anticipate changes, and eliminate redundancies.  
In general terms, the management and optimization of processes is a very important pillar for the digital transformation of all companies.

What are the benefits of business process optimization?

Undoubtedly, the optimization of business processes allows a company to remain competitive over time. Below, you can see some of its benefits.

 

5. Digital Transformation: With the rapid advancement of technology, digital transformation has become a crucial aspect of organizational alignment. This includes leveraging digital tools and technologies to transform business processes, enhance data analytics capabilities, automate repetitive tasks, and improve customer engagement.

key technologies

Technology drives the need for digital transformation and supports the digitization of an organization. In addition, there is no single application or technology that enables digital transformation, but there are multiple key processes that an organization generally must have in order to face the transformation:

• Cloud computing, for example, gives an organization faster access to the software it needs, new features and updates, as well as data storage, and allows it to be agile enough to transform.
• Information technology enables an organization to focus its talent investment and research and development money on customized solutions that support its requirements and processes that differentiate it in the marketplace.
• Mobile platforms allow work to be done wherever and whenever. 
• Machine learning and artificial intelligence technologies provide organizations with insights to make more accurate decisions in sales, marketing, product development, and other strategic areas. 

6. Skill Development: Organizations may need to invest in upskilling or reskilling their workforce to align with the changing demands of the business. This can involve training employees on new technologies, providing professional development opportunities, or fostering a learning culture within the organization.

Developing organizational skills in the workplace eliminates unnecessary inefficiency and enables people to effectively perform the essential tasks of the job. These skills are especially important for workers who multitask in their workplace. For example, those who perform different tasks with different deadlines and levels of importance must organize their work projects effectively.

Knowing the importance of these types of skills, we have compiled a list of 9 ways to easily improve your organizational skills.

• Be pro-active.
• Make a to-do list.
• Make a schedule.
• Be an early bird.
• Establish a filing system.
• Make the most of your prime time.
• Minimize interruptions.
• Learn to delegate.
• Organize your workplace.

Establishing organizational skills helps individuals perform their jobs in accordance with their job duties and responsibilities. Thus, maintaining organization in the workplace not only helps individuals work efficiently, but also helps further the overall goals of an individual's job or profession. Organizational maintenance allows individuals to be productive while performing their job tasks.

It's important to note that the scope and nature of the transition will vary depending on the specific organization, its industry, and the magnitude of change required. Organizations should carefully assess their current state, set clear objectives, and develop a comprehensive transition plan to ensure a successful alignment with the evolving business landscape.