Transform or die.

Enterprise transformation. A fight for survival?

Having studied both the start-up and corporate worlds, I’ve gleaned from a number of authoritative sources, that 70% of enterprise transformations fail and 90% of start-ups fail. It’s also been predicted that 40% of Fortune 500 Companies will be extinct in the next 10 years. According to Statista, in 2020, the average lifespan of a company on Standard and Poor's 500 Index was just over 21 years, compared with 32 years in 1965. There is a clear long-term trend of declining corporate longevity, which is expected to fall even further throughout the coming decade.

The good news is that we learn more from failure than from success. Every transformation is unique and some level of failure throughout the journey is inevitable. Fail fast, course correct and build resilience as you go.

We spent the pandemic longing for life to return to the way it used to be, not fully realizing that things would never be the same again. The shifts that happened were so rapid, so life-changing and long-lasting that we came out on the other side and into a new and different world.

Here are just 9 macro trends that were top of mind with me.

• Technology will shape the next decade in challenging and exciting ways.

• Mental health has become a global, Trillion Dollar problem

• Education is democratized and learning is the new earning

• The pace of digitization is accelerating

• Customer data and privacy regulation attempts to hold big tech accountable

• Sustainable business is a customer expectation

• Traditional financial systems are being disrupted

• Political and social unrest is on the rise

• A new generation of entrepreneurs emerges

Trend #1 - Technology will shape the next decade in challenging and exciting ways.

According to Forbes Technology Council, everything from AI and machine learning to IoT and 5G, quantum computing and cloud computing to virtual reality, augmented reality and mixed reality, many industries will be disrupted and either transform or die. Automation of tasks through language, voice and facial recognition, robots and cobots, drones and autonomous vehicles are creating far-reaching changes across the board.

Trend #2 - Mental health has become a global, Trillion Dollar problem

According to WHO, in 2020 more than 13% of the global population and 1 in 5 children were known to have a mental health disorder and these numbers are on the rise.

Trend #3 - Education is democratized and learning is the new earning

Government and private investment in education in general, ed-tech and one-to-many platforms is set to reach $7Trillion by 2025 according to research conducted by HonlonIQ.

Trend #4 - The pace of digitization is accelerating

Enterprise digital transformation has become an act of survival with the rate of acceleration increasing by 7x during the pandemic according to a survey conducted by McKinsey during the pandemic.

Trend #5 - Customer data and privacy regulation attempts to hold big tech accountable

A recent study by Gartner predicts that over 75% of consumer data will fall under some form of data protection by 2024.

Trend #6 - Sustainable business is a customer expectation

The climate crisis and sustainable development have become a priority with many developed countries committing to Net Zero carbon footprints by 2050 at COP26 and businesses adopting sustainable practices to ensure customer loyalty.

Trend #7 - Traditional financial systems are being disrupted

Process automation, blockchain, chatbots and biometrics are disrupting the financial sector. Online banks are challenging the old financial institutions and new financial currencies in the form of NFTs, Cryptocurrency and Decentralized finance are the new kids on the block with billions of dollars being poured into FinTech according to 2022 predictions by KPMG.

Trend #8 - Political and social unrest is on the rise

Increasing in civil unrest and political instability globally is causing mass migrations, refugee crises in many parts of the world and putting the global economy at risk according to the IMF.

Trend #9 - A new generation of entrepreneurs emerges

This gives rise to the gig economy, the creators economy, influencers, solopreneurs and start-up with a global market size of 1.5 Trillion, 50% of which are based in North America. This number is steadily growing, and the future of work now looks very different.

Transform or die - checklist

So with all manner of transformation at play and having lived through a few myself, I’d like to share my 8-point checklist for planning successful enterprise transformations based on my recent learnings and my experience over the years.

• Leadership alignment

• Holistic approach

• Cross functional collaboration

• Consistent communication

• Project management

• Enterprise capabilities

• Wellbeing

• Employee engagement

#1 Leadership Alignment

The leadership team must be aligned on the vision, mission and time frame, objectives and key results – don’t bother proceeding with anything else until this box has been ticked – it is the single most critical factor that will determine success, or failure.

#2 Holistic approach

Transformations require a holistic approach: growth mindset, future proofed skillset and a cutting-edge toolset. Build a healthy environment that nurtures a high-performance culture and balances experience with innovation. It will encompass product/service, people, process and technology.

#3 Cross functional collaboration

Carefully coordinated and cadenced cascades have a much higher chance of success. There is a time and place for Holacratic and bottom-up approaches, which can be strategically deployed and mostly in the implementation phase. All stakeholders across the organization need to be engaged and invested. Leaders should be visible, and employees must be fully supported throughout the process.

#4 Consistent communication

Clear, transparent, agile internal communications will ensure commitment, trust and acceleration along the journey. Make sure the program has an inspiring internal working title that does not include language like ‘Organizational Change Management’ or ‘Digital Transformation’ or ‘Organizational Restructure’. Language, positioning and definitions matter. Communication is the glue that holds the entire effort together and enables forward movement.

#5 Project management

Appoint an experienced PMO and ensure that the people, process and policies are organized to facilitate forward movement rather than hinder it. Simplify, prioritize and focus on the end goal. The program will need rigorous administration, reporting, workflow management and coordination.

#6 Enterprise Capabilities

Prioritize and invest in upskilling and strengthening the enterprise capability through planned and time released L&D programs rather than reactively recruiting new skills as band aids. This is a powerful retention tool while the cost of recruiting and onboarding new talent is much higher.

#7 Wellbeing

Leadership should commit to personal and company-wide wellbeing protocols so they can harness and channel the power of stress for positive outcomes. This will fuel progress and reduce drag.

#8 Employee experience

And last but not least, focus on employee experience. Don’t waste effort trying to bring the entire workforce back into the office – that ship has sailed. Take the office to them in relevant and meaningful ways to increase productivity and loyalty. The war for talent continues so you don't want to lose your best players.

Check out my free high-level sample framework here and note this is just an example. Every transformation requires a bespoke approach depending on a number of different variables such as, but not limited to, the industry, nature and size of the business, external factors and future considerations.

If you found this post useful please leave your questions and comments, share insights from your own experience, or perhaps contrarian views. I’d love to have your feedback. Also let me know if you are interested in more in-depth content regarding any of the topics mentioned in the framework and share with your network - knowledge shared is power multiplied.

If you need help with creating a strategic framework for your business transformation journey DM me, visit brandcrib.com or email me on georgette.kolkman@brandcrib.com. I’d be happy to help. And all the best for 2023 – I hope this year brings you success, prosperity and positive change.