Organisational Change vs Transformation

Organisational Change vs Transformation

Organisational Change vs Transformation

The Challenge

Digital disruption is a major factor that is contributing to the recent increase in transformation across industries and geographies, but it is not the only driving force. Other contributing factors include, tougher competition, globalisation and shifting market demands. A recent LHH survey found that amongst 432 individuals, 85% expected increased transformation activities in the near future.

Balancing the Pain and Gain for Successful Transformation

In today’s complex business environment, the key to sustainable change in an organisation is finding the perfect balance between PAIN and GAIN. To find this perfect harmony, clear decisions need to be made on how to reach future goals (GAIN), whilst also considering and working on the turnaround (PAIN). Focusing on growth markets and working towards a renewed simplified organisation, gives the GAIN, whilst the PAIN comes from the tough decisions involved in the likes of performance improvement, efficiency, and cost reduction.

An inability to efficiently integrate the necessary initiatives at both an organisational and individual level, often results in poor transformation outcomes. Business challenges cannot be tackled with short-term restructuring projects; this will not effect long-lasting organisational change. There needs to be an investment in the individuals that will be the driving force behind the transformation into a newly reinvigorated company.

Companies who want to be successful in their transformation, need to shift the focus away from restructuring, re-engineering, and reorganising, and put their efforts into reinventing and re-imagining their businesses. Transformation is impossible in constant change.

In order to achieve the desired transformation, GAIN and PAIN initiatives are integrated to deliver a shared vision and new organisation. A balance between your PAIN and GAIN initiatives puts your business right “in the Box”, leading to transformation success.

Seven Transformation Principles

  1. Find the right direction. Without it, you will never reach your destination.
  2. The individual matters as much as the organisation.
  3. Behaviours need to change and adapt for transformation success.
  4. Transformation requires effort – for anything to grow, energy is needed.
  5. Leave the ‘business as usual’ mentality behind.
  6. Expect to make difficult decisions, not every individual may fit into the transformed business.
  7. Success is dependent on a transformation of mindset.

Contact us at LHH Gulf if you would like more information on our change management programs and how we partner with organizations in UAE to help manage the change process.

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