7 Questions
We narrowed down the 7 key questions that leaders must answer before kicking off a transformation regardless of the industry. Answers to these questions will offer an easy self-assessment and clarity if the organization is truly ready.
1 Why transform and why now?
A good starting point is to clarify the business benefits and outcomes you are looking to achieve with a transformation. In other words a business case is the necessary first step unless the driver is a non-negotiable regulatory requirement. Typically impetus for a technology enabled transformation comes from the strategy the organization is pursuing such that the existing systems are not scalable or signifiant growth is on the horizon.
2 What is the scope?
As a leader, it is important to understand the broad sphere of impact of the envisioned transformation. Is it limited to a discrete business area or encompasses the entire organization? It is also important to test if there is consistent understanding of scope amongst the rest of the leadership team. The 3 or 5 year strategic plan should offer the broad strokes around the technology coverage needed to accomplish strategic objectives.
3 What is the cost?
This is a tricky question due to the potential number of possible scenarios to contend. This also depends on the money an organization has set aside to accomplish the strategic goals with some contingency. Before envisioning a transformation, it is crucial that realistic cost estimates are factored in the business case. A time bound and structured exercise with partners who have delivered similar programs can be helpful.
4 How and when do we implement?
This question speaks to the delivery timeline and approach. Depending on the business need and urgency, this can be a release based approach which needs time and patience or a big bang deployment which comes with its own set of considerations. In some instances such as Financial system changes, it is best to align launch with period end. The other initiatives running in parallel to the transformation must be considered to avoid overextension of resources.
5 Who will deliver?
This will require attention of the entire senior leadership team as it is rare that a large transformation affects only a subset of the organization. Every executive around the table should be prepared to put up resources for this effort as benefits typically accrue to all organizational areas. If the resources are limited, there should be a plan for temporary backfill of resources while tenured individuals are seconded to the program.
6 What is the level of our commitment?
A transformation effort demands showing up everyday as a leadership team to make tough choices. It also takes a steely resolve such that when distractions or road bumps are encountered, the first option isn’t to push off the transformation, it should be to keep it alive. The senior leadership team should be solidly behind the initiative and should keep their eye focused on the prize ahead.
7 What are the major risks if we proceed or delay?
A leader should have a sense of the top 3 or 4 strategic risks that could derail a transformation and the organizational response should any of the risks materialize. A periodic look at the evolving market conditions or regulatory environment is also necessary so changes to risk profile are understood. Similarly, risks around delaying a transformation should be understood as it is difficult to rebuild momentum once execution starts.
Summary
To bring it all together, a 360 degree understanding of what the organization is about to undertake is paramount. These questions make up a sound initial framework to guide the ideation around the transformation. To get all the pieces together for a robust decision, it is wise to invest in some initial discovery and preliminary business case development. There is nothing like marching forward with eyes wide open.
