Transformation V Change

While most companies claim to be undergoing a transformation, the reality is that many are only implementing new technology and business change, which is very different to transformation. As George Westerman of MIT once said, when digital transformation is done right, it's like a caterpillar turning into a butterfly. But when done wrong, all you have is a really fast caterpillar. And now we see so many companies spending their time and money on making fast caterpillars with no butterflies in sight. My name is Rob Lewellyn and as you know, companies need people with the right capabilities to manage and lead transformation. As you know, orchestrating successful transformation isn't that easy. And I mean innovative transformation, which creates a new future without the constraints of the past. Which is why I hope that what I share in this episode will help you get better equipped to perform at your best as a manager, leader or consultant. If you want to learn more, go to studythrive.com so let's look at transformation versus change. You know, many initiatives labeled as transformation are simply good old fashioned change initiatives that are creating a better version of the past, while real transformation creates a new future without the constraints of the past. Change and transformation are both difficult, and the larger the organization generally the more difficult it becomes. But there are some important differences that leaders often don't realize between the two, between transformation, transformation and change. And sometimes they learn these differences too late. Change is what's required when a problem that needs solving is relatively simple and the current system needs some updating with perhaps some new technology and processes. Change requires you to become familiar with the current situation and to work to make things better, faster, cheaper, leaner. And success is often measured by efficiencies and economies that are realized at the end of the effort compared to where we started. So when our future is a better version of the past, we've undergone change. Transformation, on the other hand, requires a break with the past, and that's often difficult to accept, but it could offer incredible potential. In transforming, we design our future and invent ways to make it a reality. Transformation doesn't describe the future by referencing our past. Transformation creates an entirely new future without the constraints of the past. George Westerman of MIT once articulated the point really well when he said, when digital transformation is done right, it's like a caterpillar turning into a butterfly. But when done wrong, all you have is a really fast caterpillar. Now, while companies often need to make things faster, cheaper, etc. This is different from undergoing a transformation to create a new future. The outcome of change consists of efficiencies and economies I've just mentioned over what was there before the change. So change is good, but it's only a better version of the past. And a better version of the past is unlikely to be enough to defend against disruptive innovation, let alone bring about any form of disruption. So stop and think for a moment. Are your digital initiatives that you see around you genuinely enough to secure a competitive advantage in the digital economy? Too many companies are still caught up making fast caterpillars instead of creating butterflies. This often misunderstood reality is causing well intentioned leaders to unknowingly steer their companies into obsolescence. The delusion of transformation is when organizations think they're doing the right thing by implementing digital technologies and calling it transformation, when in fact they're often only undergoing change and improving what worked well in the pre digital economy. In one of my podcast episodes I talked about the delusion of digital transformation and in the podcast I described this delusion as the tendency to label any project or program involving digital technology as digital transformation. Now, those initiatives that will neither disrupt markets nor protect against disruption, they lull firms into a false sense of transformation security when executives are led to believe that they're transforming their business. But the reality for many firms is that they're using new technologies to create a slightly better version of the past because transformation creates a new future, while change creates a better version of the past. And that's not going to protect against disruption or disrupt and in the book Digital at Scale, the authors Jurgen Murphy and Anand Swaminatham from McKinsey, they describe the concept of of digital sugarcoating. They explained how digital sugarcoating is what companies are doing if they introduce social media campaigns or perhaps the collection of data that doesn't get used and believe that these activities mean that they're transforming their business. Believing this as transformation is delusional. And the time bomb continues to tick for some of the firms that gain a false sense of security by undergoing these kind of initiatives. Let's look at some of the well known companies that have suffered the outcomes of digital sugarcoating and the delusion of transformation. We've got Toys R Us, Britain's entire chain of Toys R Us stores, which collapsed into administration in early 2018, just a year after its leaders were announcing that they expect a positive impact on their marketing programs and an ability to connect with today's consumers. Your Toys R Us was another global brand founded in 1948. That digital sugar coated itself with cool sounding initiatives such as Experiential Elements and technology initiatives and digital ads, and its true transformation strategy was designed to address the known shift in shopper experience. It didn't work, but it made stakeholders in the workforce feel that they were part of something transformational, something digital. As the guy standing up in this cartoon says, our number one priority is to digitize marketing. And the fellow sitting down says, well, that's a great way to promote our antiquated business model. And that's exactly what so many companies are doing. They think that digital marketing is going to fix everything, but what's the point if your business model is antiquated and becoming obsolete? Debenhams this is the British retailer that went into administration in 2019 after 240 years of being founded in London's West End in 1778, selling expensive fabrics. Six months before going into administration, the company was announcing transformation is gaining traction in volatile markets, etc. And there are many more stories like this. You know, to succeed these days, leaders need the money, mindset and capabilities to invest in continuous transformation and change. And if you lack that, the odds are high in your favor to joining Toys R Us, Radio Shack, Payless Shoes, Borders, Kodak, and hundreds of others that have already been led to an early grave. If you want to take your transformation capabilities and credentials to the next level, go to studythrive.com.