Every business aims to succeed and grow aggressively. The innate goal of most businesses is to gain an edge over their competitors and be agile enough to cope with the changing market trends and preferences.
However, after identifying the need to bring about significant changes in order to stay relevant, most businesses often rush through the entire process without much planning. They tend to skip the initial steps and hastily move from one phase to another, ultimately leading to futile results.
Here are reasons why organizations fail while trying to stay relevant and how you can overcome them:
- Leadership: The leadership of a business is responsible for its growth. Ensuring proper planning and management to follow through with the execution plans, facilitating a conducive work culture, ensuring that the goals are being met all of which is the responsibility of the leadership . In order to lead a successful change, you must work towards building competencies such as learning, decision making, communication, trust-building, and strategic direction, which are the characteristics of transformational leaders. Leaders who are unwilling to enhance these competencies will find it difficult to envision a transformation for their businesses, adapt to changing environments, effectively communicate the need for change, or successfully enroll stakeholders in the process which ultimately leads to failure.
- Planning: Poor planning and undefined goals will hamper the transformation of your business with unfulfilled targets and weak performance. The absence of a strong vision statement or an unclear definition of the future state of your organization, and confusion about the big moves creates chaos and uncertainty in the organization. To succeed, you must set a clear long-term roadmap that separates your initiatives into quick wins, big moves and breakthrough projects, allocate budget for human, financial, and infrastructural resources required for change, and define governance measures to track and manage progress. Roles and responsibilities must be assigned appropriately, and everyone should be on the same page with respect to the transformation process.
- Agility: Businesses that are rigid and more closed in their approach often fail to adapt and evolve, thereby facing multiple challenges while transforming. Your business must be flexible and open to change while re-innovating itself. When you begin to tread the path towards change, you will encounter different situations and obstacles that will compel you to pause, reflect, and then correct your current practices and trends. In situations like these, you are likely to benefit if you are more agile and receptive to changing the status quo. Regular reviews and feedback from stakeholders will help your business to determine its flexibility as you mediate through challenges. This flexibility will help you, as a leader, to adapt yourself and your business during emergencies enabling better business continuity during uncertainty.
- Communication: Lack of communication or poor communication creates chaos and confusion, hampers enrollment and productivity, and finally leads to failure in achieving transformation goals. Effective communication also becomes important to resolve conflicts and make decisions while addressing change. You must establish an effective communication channel within your organization where every member of the organization is on the same page. The goal is to ensure that every stakeholder understands and recognizes the need for change so that everyone is enrolled and can contribute to the process of a successful transformation.
- Change Management: The inability to enroll your stakeholders and hasty decision-making are the biggest impediments of change necessary for business growth. If you don’t identify the exact pain points of your business and make decisions without adequate deliberation, your business is bound to be impacted negatively. Effective change management involves assessing the present situation of your company and assessing the need for change. In situations like these, you must step up, exhibit faith in your company and develop a future roadmap for the same. An important aspect of the same is the sense of ownership displayed by the leadership, stakeholders, and employees together. Businesses that don’t take the onus often fail to transform their businesses.
- Capability Building: Transformation is not a one person job. Without building an effective team and the required capabilities, all efforts are bound to fail. You must ensure that you build a competent team to undertake different change initiatives that you have planned as a part of your transformation process. This involves identifying if your existing workforce can be equipped and trained or whether you would need to hire an additional member or a consultant. Factors such as your domain knowledge, skills required to lead change, and industry experience will determine your capacity to change. Additionally, your determination to stay relevant and grow will determine your readiness to lead high impact changes within your organization.