Gartner, Forrester and Ovum provide ample research into technology and business led transformation; with valuable insights on critical success factors, trends and market leaders available for all to tailor to the unique needs of their organisation.

Yet in many businesses ‘transformation’ is a poorly understood catchall for any change in an organisation, leading to misguided strategies and an organisation ill-equipped to deliver on strategic targets.

Transformation is a step change of existing structures, a rapid and significant change in how an organisation conducts its business, as distinct from  evolutionary changes or BAU. Common examples include transition to a target operating model, shifting to cloud native or outsourcing.

Innovation is the managed introduction of new methods of delivering value. These ideas may be new products or channels to create increased business value, examples include bundled insurance products or diversification of a property developer into the Commercial area.

Finally, Digital Strategy. The reality is that any organisation with a Digital Strategy is already playing catchup, via a concerted effort to bring their organisation up to speed with their business or individual customers. The world is already digital, most digital strategies seek to make up lost ground and connect with stakeholder groups already in danger of moving on. Consequently the most progressive organisations do not have a digital strategy – they have a strategy in a digital world. They don’t “do digital, they “are digital”.

While the above three terms have unique descriptions, in practice the lines between them are often blurred. An innovation framework may generate quantified ideas for a new product or service to enhance business value. This is then the catalyst for a transformation program with a strong digital component. Thus the broad term Transformation may in practice play out as a blend of all three, which has three notable impacts:

• The PMO must be equipped and ready to support these changes – see The PMO Puzzle for more information on this
• Many disciplines are often involved, such as: Project and Program Management, Change Management, Business Process Management, Lean Six Sigma and others. The dependent relationship between the deliverables from these disciplines is often complex and dynamic
• There is often a degree of uncertainty surrounding precisely what the Future State will be, with progressive validation, planning and resetting direction occurring over the life of the transformation. A sustained focus on the intended benefits and customer value keeps the transformation on track to ensure a successful program – not just a completed one

Any major change to an organisation (be it transformation, innovation, implementation of a digital strategy or all three in one) is a complex and challenging task. Success lies in the design and continual calibration of the change, to minimise risk and ensure the business outcomes are both intended and sustainable.

Read more on how this can be managed on The PMO Puzzle page, Change Adoption & Management Controls or contact Jim.