4Ps of Organization Transformation

Transformation is a buzz word and always had been. Every Organization transforms some or the other time with the changes in the business environment.

The drive for transformation originates from the leader as Leadership is also about sensing the changes in the environment or more likely to anticipate the changes.

In recent times I have come across a few exemplary leaders who are keen on transforming their organizations even though their businesses are successful. Few of these organizations have grown quickly and are planning for the next level of growth.

The keenness in transformation comes from the realization that there will be innovators who will disrupt the market, there will be eminent changes in the overall business environment.  Disruptions happen due to the development and/or application of Technology leading to the emergence of a new market segment. Interestingly, what starts as a segment initially turns into a market itself much before the incumbent realizes the change. At times, what customers start as an experiment turns out a real need in itself, replacing the old requirement and that becomes a disruption in the market.

At times, the reason for transformation can also be internal to the organization. The driver for the growth of many midsize organizations in the early stages is the “individual brilliance” of a few individuals in the organization. As the organization starts growing, the “individual brilliance” becomes the constraining point of the growth or the bottleneck. This means one needs to Transform the organization.

The purpose of this article is to provide a simplistic model of organization transformation and describe “What are the elements of Transformation”.

4 Ps of Business Transformation

In my 30 plus years of experience, I could evolve a simple model for transformation, which lays a strong foundation for success and can overcome external as well as internal challenges.

Results = f {People + Processes + Product + Partnership}

I call this the foundation of organizational transformation. Focussing on these 4Ps of transformation helps the leadership team to identify key actions for transformation. Each of these 4Ps is discussed in detail below.

People

In the context of Transformation, People aspect covers Leadership, Sharing the Vision and Alignment of key stakeholders for the cause of transformation.

People, this is where the business transformation starts, in the minds and the hearts. The conviction for the need for transformation is the beginning point. This conviction and the strong belief need to be felt by the critical mass of the organization. Getting to this step is in itself a process. Alignment needs to address the Intellectual as well as Emotional aspect. Everyone loves a good story and hence converting the need for transformation into a storytelling aspect is found to be a successful formula. The story can influence both, the mind and heart. It always has the start and the end which covers “From Where" & "To Where" aspects of the transformation.

Identification of right people for the right place, recruitment to fill in the gaps, embarking on the learning and development process, which should necessarily cover the Unlearning aspect to build a competent organization are the key aspects

An organization during the process of transformation started with the creation of Vision and Values for itself. As part of the process, the organization identified the key “Values” which were responsible for its success so far and then identified the values which are essential for its success in the future. The organization wanted to create a combination of values which will be its guiding principles. Surprisingly, there existed few conflicts in the old and the new values due to the practices being followed currently. The organization as part of the transformation then identified the steps to "Undo" and "Unlearn" these practices. The change had to start from the "Mind" and the "Heart" of the people.

Building Passion, Commitment and Sense of Urgency amongst the people and to create disruptors in the organization is what People aspect of transformation all about.

Process

The purpose of “Process” is to build the “Internal Strength” of the organization for sustainable results and to reduce the dependence on “Individual Brilliance”.

Haven’t we seen successful organizations turning into failure after the change in leadership? We call the “New Leader” as “Ineffective”, which may be the case, but most of the times, it’s also due to the over-dependence on the aura or the style of the earlier leader that was charting the success of the organization .. nothing wrong.. but that’s precisely what an “Individual Brilliance” is. It happens at all levels at all times. Had the organization built strong processes at that time, it would have been still successful and that's what is sustainability.  

Building end to end strong processes in the organization is no one's job and that's the reason why it gets neglected. We always hire people for Results and we reward and punish them for Results. How interesting?

As part of my consulting, when I ask a question to the leaders, who are responsible for building processes, I do get Blank looks or a simple answer " the respective manager", which may be the right answer, but very few of these organizations have “Process building” as one of the KPI or Goal in the Performance appraisal of these managers. Few organizations which have identified and established Process Development as a KPI or a process have certainly established sustainable results.

When one can "see" and "sense" a connection between two logical steps, the handover of ownership from preceding to the succeeding owners is seamless and has well-defined interlocks, one can be confident that the organization has processes in place. On the contrary, when one witnesses "Events" at various "milestones" and constant personal intervention to push the process towards results, one can confidently feel the need to develop processes. An apt example is when an organization “manages” or “controls” the quality of its product at the end of the process through “stringent” inspection.

Identifying processes critical to the success of the organization is the first step. Scanning Business Environment assumes much more significance today. The actions emerging from Scanning and then building Scenarios start strategic thinking. Be a challenger to identify key processes. Don’t define too constraining boundaries. E.g. Processes at vendors’ end are as critical as the ones inside of the organization. Define it in terms of Strategic Supply Chain. At the same time, ask if we have processes to stay ahead, are we promoting innovation. Establishing processes requires one to be highly observant, pay attention to finer details, record every step, challenging every practice and improving on the same from time to time.

Defining processes at each step not only helps to define the STANDARD working environment but sets the stage for Continuous Improvement, which is so essential for the organizations to evolve all the time.

Product

The product aspect of Transformation focusses on the "Purpose" of the organization, the reason that it exists, to meet Customers' Needs and Wants. It is primarily through Product/Service through which Customers see the organization. It is an extremely important Brand Building block.

Product or Service is one aspect, which is under constant attack. Disruptions are here and here to stay and will be much faster. Technology and its applications have played an important role in creating disruptive innovations in the service sector but are far behind in the Product segment. Disruptive Innovations like Low power consuming Ceiling fans from Atomberg are few, but the start has happened.

Product or Service is what one delivers to the customer and the question that requires to be asked constantly is, is it addressing the “Needs and Wants” of customers? Interestingly, “the needs and wants” of the customer are influenced by everyone involved in the “Value Chain”. Customers, suppliers, and competition are the most common influencers for change, but with the advent of Technology one also needs to watch for Disruptors, Complementors & New Entrants.

India’s vast young population means it has more Early Adapters. This also explains the success of Start-ups in the FMCG & FMCD segments. Interestingly, today’s generation is not hesitant to discard a product much sooner in favor of another one.

This has resulted in a very different Product Life Cycle. A short one with a steep rate of growth and /or decline is what makes the Product aspect of transformation a tricky one. The organization's mechanism to capture the needed changes from customers is as much important as the mechanism to respond to it through the evolution of product or service. A "Start-up” mentality in the organization is essential to be nurtured where Early failures and early success are welcome equally.

A short product development process that doesn't compromise on the reliability of the product/service, extensive usage of technology for product development and usage of simulators/infrastructure to test the product at every stage of development is evolving as a Mantra for success. All 4 Ps are intertwined and hence a Product Development Process is addressed in the Product section.

Partnership (1+1>11)

A partnership is all about enhancing the "Capability" of the organization through the Value of Synergy.

For a complete transformation of an organization, it is essential that its ecosystem also changes. An ecosystem is defined by its ability to strike the partnership with the Right Alliances, its ability to onboard the needed Talent/Skillset/Technology in its circle of influence. The Partnership encompasses all the stakeholders, right from customers, suppliers, investors, technology partners, Learning enablers like universities and R&D organizations, concept and Product Testing institutes, government policymakers and society too.  The strength of the partnership has far more influence on its transformation.

The partnership aspect of Transformation can be termed as "Enabler" to build its Capabilities. Successful partnership depends on the ability of partners to achieve congruency of each other’s needs to meet a common objective. When one studies the speed at which Amazon, Microsoft, and Apple are adding multiple partners to their ecosystem, it becomes abundantly clear on the path of capability enhancement. This synergetic impact is also THE important reason for Android to become hugely successful though it wasn't the early starter. It built its entire eco-system through partners, in terms of app developers and mobile manufacturers. Aravind Eye Care hospital, in Madurai, is a successful business model that has intertwined the goals of diverse stakeholders to meet its business objectives. For Aravind Eye Care hospital the partnership was with the community and society to bring positive results for the society itself. Its vision is To Eliminate Needless Blindness…

Promoting the values of Collaboration and Openness helps organizations to identify, create and build successful partnerships and enhancing the Capabilities of the organization. It’s an ongoing process that demands patience and the ability to work with Win-Win attitude and starts from the Leadership. The process of Partnership starts with the Strategic Mindset and can touch the Emotional aspect as well.

CRM inherently believes in the supplier winning business by influencing its customers but I am imagining that Partnership Relationship Model will bring diverse partners under one roof to create winning formula for each of them as well as for the Society. The question to ask will be “What is Your Partnership Index”

If the above-mentioned 4Ps describe the pillars of transformation, a diagnostic tool is necessary to evaluate practices being followed by the organization in each of these pillars. Identifying practices critical and relevant to the organization and then institutionalizing the same is an important aspect of execution.

I dedicate this article to my mother who overcame adverse conditions, connected visible and invisible dots to build and nurture a large loving family. She was a teacher by profession but was a lifelong learner. She embodied transformation, innovation, and building institutions in a very practical way.

Salute to you mother, I will always miss you.