I just got off a call with an alumnus who recently took on a very senior role at a new company, and we’re hopeful to work with him. He’s chosen to lead a major transformation initiative, which brought to mind the fundamental challenges that arise in any transformation effort. These challenges remain consistent—predictable and inevitable—and we will be reminding this client of that.
Companies continue to make significant investments in initiatives related to the three classical areas: Process, People, and Technology, anticipating business results that often don’t materialize. Promises are made about improving competitive advantage and achieving superior business outcomes. We’ll see strategic approaches, best practices, cost reductions, improved processes, and extensive training—essential elements for a successful transformation. However, most efforts share common characteristics that limit their effectiveness:
One of the biggest challenges is the persistent focus on cost rather than shifting to a focus on value—a transition that isn’t easy to make. Our function has been cost-focused for so long that moving away from this mindset is challenging. Cost-focused practices are considered “Best Practices,” meaning they can be easily replicated by competitors. Instead, we should focus on value, a “Next Practice” that is, by definition, not easily replicated. To gain influence and power within our companies, our focus must be on value, as that is what stakeholders are truly seeking. We can prove it to you.
The second major challenge is that organizations tend to concentrate on foundational elements of transformation:
- Strategy
- Processes
- Tools
- Organizational Structure
- Talent
- Technology, and so on.
While these are critical, there’s another set of challenges that are often more significant and more difficult to address—yet they receive little attention:
- Visibility
- Metrics/Reporting
- Knowledge Management
- Decision Processes
- Alignment
- Change Management
- Learning Environment, and so on.
Some of you may recall that we call this second set of challenges AEIOU. The idea is that foundational elements are like consonants; they’re essential, but alone, they don’t make sense. You need vowels to form meaningful language.
Here’s what AEIOU stands for:
- Adoption
- Enablement/Execution
- Implementation
- Optimization
- Utilization
Each of these plays a critical role in the success of a transformation effort.
Let this blog serve as a reminder to look beyond the fundamental elements of your transformation (or whatever you call your initiative). The consonants may structure your approach, but without the vowels, a lot of value will be left unrealized.
