7 Tips for Succeeding in Company Transformation

A company transformation is no small feat. From strategy to execution, every step requires thoughtfulness, precision, and the ability to persuade everyone involved.

I have transformed businesses for more than 20 years. Some things I learned on the fly. I succeeded and failed. However, after years of experimentation, I realised what differentiates successful transformations. Here are my seven tried-and-tested tips for navigating the complexities of a business change.

1. Start with the customer. Always.
No matter how “internal” the transformation may seem, its ripple effects will inevitably reach your customers.

When I was young and restless, I looked at the problem at hand. Cost cutting? Consider it done! Faster cycle time? We`ll skip some non-value-adding steps, add a little automation and voila! Here you have it.

Sometimes, after cost-cutting, companies hire again to keep the same level of customer experience. Or worse, they neglect it altogether. Business declines, and the company cuts costs more, caught in a destructive spiral.

There are situations when one needs to make tough decisions and remove “layers of fat”. However, sometimes the “layers of fat” are frontline employees, as the number of FTEs cut is more impressive to investors than eliminating some top managers. Remember the famous quote, “How many people could we save if we fire the CEO?”

Joke aside, every decision should centre on how it will impact your customers. Happy customers drive business success, so ask yourself: How will this change make their experience better?

2. Understand your as-is before a transformation
Before diving headfirst into solutions, take a step back and evaluate where you stand. I know, I know, it is boring. You have put together a great team, energy fills the room, and you ask them to map the “as-is”? There is no time for that!

Make time. I have seen dozens of projects where top leaders were promised “we go live in a month”. And they did not. They created high expectations. Heads were rolling, teams suffered under pressure and projects lasted a bit more. As in 12 months more.

You cannot manage what you don`t know. Do your homework diligently. Make sure every team member understands the problem. You know the saying, “Fall in love with the problem, not the solution.”

Rushing into fixes without a deep understanding of your current state is like treating symptoms without diagnosing the disease.

3. Define the root causes – why do you need the transformation?
Surface-level issues often have deeper roots. Don’t settle for quick fixes—dig deeper to identify the true causes of problems.

We once had a project for digitising payments. We quickly concluded that all our customers should receive invoices at their home address (don`t judge; it was a long, long time ago, in a faraway galaxy).

We created an algorithm to synchronise all payments to one due date per month, implemented it and prepared to send them. Well, not so fast! After a quick look at our customer’s details, we realised that a maximum of 5% of them had reliable addresses.

Let`s call them, send an SMS, and do something! Easier said than done. The phone number situation was even worse. Why?

We went back to the drawing board and put the first project on hold. We interviewed admin staff, sales force, and customer care. Why would the agents be so defensive when, in fact, we tried to automate one of the processes that took time from actual sales?

Turns out, sales agents were not keen on doing the admin work we tried to automate. But they were “defending their customers”. Naturally, you would say. But why? We continued asking why.

After a few weeks, we realised they feared a change in the renewal commission. There were rumours that we would cut them all together, so they were protecting their portfolios.

Long story short, we had to solve the root cause before moving on. We had a new communication plan and intensified discussions with the sales area. Clear targets and timelines were assigned for updating customer contact data.

Go deeper and ensure that what you address is the root cause of the problem. This is how you build a lasting solution rather than a temporary patch.

4. Choose objectives and measure progress
It is easy to jump on the latest tech trend when everyone speaks about ML and GenAI. And it is true, sometimes technology does miracles for a company. But transformation isn’t about being trendy; it’s about making meaningful improvements.

Have a system in place that measures impact. Everyone wants accelerated growth and an exponential increase in the number of customers. However, make sure you understand the costs and operational capabilities required. Can you maintain the same level of customer experience? What is the impact on profitability?

I know people who will argue that “Amazon was not profitable”. You are not Amazon, and your investors might not be pleased hearing about your global domination plans on shaky foundations. If you can sustain an aggressive growth strategy, go for it! But if your processes collapse and your customers` satisfaction declines, you might move high-speed against the wall.

5. Engage people early in the transformation

It is amazing to see that most leaders do not understand a simple fact: people are not there for your vision. They are there for their own interests, dreams and aspirations. Besides, as humans, we are hard-wired to like stability, not change. It is a fact.

Peter M. Senge is a Senior Lecturer in Leadership and Sustainability at MIT and has written extensively about the concept of a shared vision. Involve employees, leaders, and partners from the beginning. Share ideas, test and refine them based on feedback. Transparency and communication are your allies. And remember, no one likes surprises—keep everyone in the loop as the journey unfolds.

After steady growth for more than 15 years, one company needed a major turnaround program. They had to reposition themselves in the market, create new products, and develop a fresh technology stack. No one knew how long the transformation would take.

The team has met regularly and informed all stakeholders of the progress made. Sometimes, they moved fast, some other times, they got stuck. The pressure was high, but with continuous communication, they managed expectations.

Significant changes in a company`s direction mean big personnel changes. Always think two steps ahead in terms of the skills you need. Some of the people who are likely to be affected can be retrained, but the process takes time.

There is no better recognition of your employees’ value than trying to retrain and requalify them. It shows that the company cares, a “rara avis” in today`s world.

6. Work in the right order
Implementing a new platform is not a strategy. Nor is it a transformation. I have seen many failed projects that started with “We need platform A”. What for? Why A and not B? Why a new platform?

When a new technology appears, I am like a kid in a candy shop. It is sweet; it shines, and it creates addiction. But I would never start a transformation from a technology.

The truth is, the customer will always care about the value you bring to them. So, focus on value first. Will you decrease costs with automation, thereby offering better value to the customer? Or do you want to have an AI/ML/proprietary/intergalactic/quantum/Earth-Shattering seal to impress?

When designing a new customer experience, don’t forget to optimise the processes that support it. Technology should come last—choose tools that fit your processes and needs, not the other way around. A shiny new system won’t fix broken workflows. An AI-powered chatbot will not impress your customers when they wait for their order to be fulfilled. Try to talk to the PayPal chatbot when you try to take some money back. A delight, I can assure you.

7. Prepare to be flexible.
Even the best-laid plans have their limits. Be ready to pivot when something doesn’t work as expected. Flexibility isn’t a sign of failure – it`s reality. Refine your solutions as you go and keep moving forward.

Transformations are never easy, but with a customer-first mindset, a thorough understanding of your current state, and a commitment to measurable impact, they can be incredibly rewarding.

Remember, it’s not just about changing systems or processes—it’s about creating lasting value for your business, your employees, and, most importantly, your customers.

So, how will you approach your next transformation?

Mirela Dimofte

Read also: InsurShift: Why does a civil engineer become a transformation consultant in the insurance industry?