The accelerating pace of change in the global business environment means that organisations that stand still will inevitably fall behind.
And while transformation has long been central to business strategy, the speed and complexity of business evolution means that the way organisations deliver transformation is also changing.
Driven by cost pressures and a demand for greater efficiency and innovation, boards are increasingly being asked to achieve more with less: accelerating transformation programmes while at the same time demonstrating return on investment at every stage, for instance.
In practice, this means transformations are often shorter in scope and more frequent, with firms moving away from long, costly, multi-year programmes to modular ones. However, research by McKinsey shows that 70% of transformation programmes ultimately fail. So how can businesses succeed using the new rules of business transformation?
Modern business transformation demands agility, expertise and a focus on people as much as processes
“Covid-19 was a wake-up call to businesses that they need to be prepared for major disruptions. The landscape is so disruptive now, with changes in tariffs, escalations with wars and other challenging events happening every month. Companies are now looking at how they can be more resilient and agile, while still addressing cost bases,” says Dave Phillips, a transformation partner to Eton Bridge Consulting.
“This is making organisations think that they can’t embark on a transformation that takes two to three years, because too much will happen in that time. So they’re looking at shorter and more focused projects,” he explains.
One way to achieve this is to engage smaller teams of interim experts or consultants to execute more manageable projects. Ben Cowan is partner and head of business transformation at Eton Bridge Partners. He believes that organisations are searching for a better return on investment in shorter transformation cycles.
“Businesses are definitely looking at transformation projects being more bite-sized and controllable. That might mean a smaller, interim team of experts where business can hire in the expertise they need with specific skills to deliver a project. Big and complex is not flavour of the month, so the interim model appeals,” Cowan says.
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ToggleThe benefits of interim-led consulting
Using an interim model enables businesses to benefit from tailored transformation expertise at a predictable price. While interim appointments can also help with strategic analysis and programme building, their on-the-ground experience means they are more focused on delivering transformation.
“In the past, clients were happy with a traditional consulting firm bringing in a team of people who were fairly inexperienced but could follow a playbook over a longer period of time. Now, with shorter, more focused programmes, they want experts who have been there and done it multiple times,” says Phillips.
Working with a more agile model enables businesses to deal with fluctuations in demand, switching transformation needs on or off as required. Utilising an interim team of delivery experts can also provide a capability uplift to existing internal teams, as skills are transferred through the transformation programme.
“If a business is going to hire outside expertise, those professionals need to transfer their knowledge and expertise to internal teams to allow them to fly on their own in the future. As trusted partners, the interim consulting model is much more aligned for capability uplift,” says Cowan.
One key aspect of creating successful transformation programmes is ensuring effective change-management structures are in place to enable the right behaviours and create a positive culture. Without these, the longevity of transformations can be short-lived.
“People talk about transformation being people, process and technology. But at the end of the day all the technology does is allow processes to be automated. It’s the people that must change to be able to adopt new processes – it’s all about people,” says Cowan.
“Clients increasingly recognise the need for cultural behaviour change as part of transformation,” agrees Phillips.
“In the past, organisations would have implemented cost-transformation programmes but not changed any behaviours – and the cost comes back. We see clients wanting to get the right behaviours in place as an integral part of the transformation programme, which suits a delivery model of individuals who have expertise and can coach and guide,” he adds.
Successful transformations
If modern transformation is about short, sharp change, driven by experts, then what must business leaders consider before embarking on a transformation programme?
Culture and behavioural change is one aspect, but another is managing competing aims and changing circumstances during the transformation. Effective transformation isn’t just about improving each function; it’s also about how each function works concurrently across the organisation. Flexibility and adaptability are key.
“There is a danger that organisations try to do everything at the same time in a long, inflexible programme. The problem with that is the market changes. Some of the things that need to be done will evolve,” says Phillips.
“When you have a big transformation, you have lots of functions competing for the same resources. It’s a skill to programme manage this, rather than project manage. A lot of people feel they need to stick to a rigid plan, but the real world isn’t like that. You need to manage day by day, adapting the organisation as the market evolves,” he adds.
Above all, it’s about ensuring that transformation programmes aren’t just theorised, but actually delivered, embedded and acted upon.
“A lot of organisations are comfortable merely receiving a report telling them what’s possible. But often, they have no idea how to turn theory and ideas into a programme of work they can deliver. It’s one thing to know where you want to get to, but another to mobilise and deliver on that. That’s where an interim model can really provide expertise,” Cowan says.
Modern business transformation demands agility, expertise and a focus on people as much as processes. By embracing shorter, targeted programmes, leveraging interim specialists and embedding cultural change, organisations can navigate uncertainty and deliver tangible results. Transformation is no longer a long-term aspiration – it’s a continuous, adaptable practice.
For more information please visit etonbridgepartners.com
The accelerating pace of change in the global business environment means that organisations that stand still will inevitably fall behind.
And while transformation has long been central to business strategy, the speed and complexity of business evolution means that the way organisations deliver transformation is also changing.
Driven by cost pressures and a demand for greater efficiency and innovation, boards are increasingly being asked to achieve more with less: accelerating transformation programmes while at the same time demonstrating return on investment at every stage, for instance.
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