Is corporate change as continuum or conundrum: The corporate board as the advising role is responsible to steer the organization in the right direction and provides an “outside-in” view of the business via multidimensional lenses to oversee strategy, Strategy management and change management go hand in hand. Sometimes, even though you have a perfectly crafted strategy, if people are not ready to make change, the business would get stuck due to change inertia. In other cases, people suffer from change fatigue, without spending time on clarifying the logical scenario to change and prevent change pitfalls. Change is the journey, not just a destination. The spirit of change comes from the top. Senior leadership teams such as the corporate board play a critical role in assessing business changeability, ensuring corporate change is an iterative, progressive continuum, rather than waste time, confused conundrum – like keep spinning the wheel, without moving forward.
At a strategic level, change management shouldn’t be just about taking a few random business initiatives; but an ongoing, differentiated business capability with multi-stepped processes that include both change resolution and change management disciplines and practices. In today's work environment, change indeed is difficult to measure unless all parties involved in the change take ownership of the change and see why and what the change is about. To manage a smooth change continuum, the corporate board’s change management oversight helps to clarify some critical issues which include some soft business elements, need to be dealt with smoothly. Technically, change impact analysis and business readiness are two key processes that need to be conducted to give the management a glimpse of what to evaluate. The operation-centrism should be shifted to people-centricity; organizations have to be holistic and forethoughtful to deal with change with nimbleness and flexibility.
Can you identify crucial building blocks or roadblocks for the business move forward? Statistically, either strategy management or change management has a very low success rate. These are varying ingredients (process, people, culture) to build differentiated business capabilities for strategy management and long-term growth. Board leaders should have the desire to understand better in order to bridge gaps and capture business insight for managing a holistic and seamless digital transformation. In today’s business dynamic, business capabilities are a fundamental building block in strategy management with which companies can transform business models, operational processes, customer experiences, to reach high-level business agility and maturity. To dig deeper, information and technology as the building blocks of business capabilities can enable and shape business capabilities and capacities by linking all crucial strategic aspects (goals, objectives, actions, etc.) together to enforce business competencies.
Besides building blocks, what are roadblocks that stop the company from moving forward strategically? Change is usually a collaborative effort, negative perception of experience is the roadblock to changes, that further causes ineffective communication, miscommunication enlarges gaps and slows down the pace of changes. On one side, the resource is an important building block of dynamic capability; on the other side, ineffective resource or talent management is the roadblock to business moving forward. The matter of fact is that organizations have limited resources, many businesses that get stuck at the low level of organizational maturity take a big bite of resources to keep the lights on, only leaving very little for building differentiated capabilities. Effective governance ensures that the management stays focused on top prioritized business activities, assigns resources scientifically, put the right people in the right position to solve right problems, and manages a balanced portfolio/program to build a unique set of business capabilities for unlocking performance.
Does corporate strategy focus more on blue ocean exploration or red ocean exploitation: Fierce competitions or frequent disruptions make organizations fragile. Nowadays, competition is occurring not simply at the level of independent firms, but often at the level of the platform, and business ecosystem. The different departments in the companies often run at a different speed. Blue ocean provides a way to improve both the value and cost drivers by “rearranging” business attributes within the value proposition in under-analyzed market segments. Red ocean has more competitions; companies continue serving existing customers or marketing sectors by improving operational excellence or products/services qualities. Often, large firms capture the trends and think they have the resources to create their own blue oceans. Most of the time, their legacy systems working in exploitation mode do not allow them to do it. Thus, the corporate board’s level strategy assessment is crucial to build long term advantage of the company.
The strategy needs to be made not only based on the historical pattern, more importantly, but it also has to leverage the emergent thinking and make continuous adjustment. To explore the blue ocean smoothly, corporate boards should set good policies to encourage innovation, nurture a creative culture and build multi-faceted business value propositions. So the profitability logic becomes ingrained in its management processes and organizational culture. Value innovation is not immune to competition. Once a value innovation is successfully established, the innovator commits to scaling it up to create economic value for the company.
Corporate boards as one of the critical top leadership pillars should set the right tone and develop high-quality profiles for exemplifying digital leadership and steering the organization in the right direction. The interdisciplinary expertise with humble attitude is critical to be the guardian of the business, continue to inspire, innovate, improve, interact, interpret, influence, exemplify, and orchestrate change and digital transformation.
By: Pearl Zhuhttp://www.blogger.com/profile/[email protected]
Sourced From: futureofcio.blogspot.com/feeds/1833550824082344050/comments/default
Published Date: Thu, 03 Feb 2022 21:38:00 +0000
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