All transformational businesses start with a purpose that must be represented in their vision. The transformational business vision is not a dream. It is more like imagining a field of play that has permanently shifting boundaries. The transformational business vision is not about winning today's game, but about creating the rules by which tomorrow's game will be played. The transformational business vision succeeds because it is stated in clear and concise language. The strategy is anchored in the vision.
Transformational businesses have created a ‘shared future’. This will be a compelling vision and strategic intent (with super ordinated goals). It will also include core values and fundamental principles which have been co-created by executives and stakeholders at every level and function of the organisation. These will be clearly articulated, widely owned and accepted by all. The development of the strategy is based on ‘back from the future thinking’ where the business clearly defines ideality and stretches back from that point using a numbers of tools, trends, thinking styles, ‘pattern scenario applications’, having developed an unconscious competence to shape PESTLE. There is also a clear trend analysis that provides rich data through Environment and World scanning which are constantly examining opportunities to exploit current or aligned markets, create new markets, shape events and prepare for black swan happenings.
A ‘clear and fuzzy’ strategy allows for options where the question becomes less: "What alternative will we use for this scenario?” The question becomes more: "What options can we develop to keep the alternative open in case this scenario does develop?” The business uses these strategy options to present a more realistic view of an uncertain world beset by constant shifts in technology, society, politics and economics. The dynamics of the development of the strategy and vision are open, dynamic, non-linear systems, far from equilibrium. The interactions are explicitly modelled and macro patterns are an emergent result of micro level behaviours and interactions. The evolutionary process of differentiation, selection and amplification provides the system with novelty and is responsible for its growth in order and complexity. Issues such as Framing Biases are addressed through perfect rationality. Representativeness conclusions are factored out to ensure that connections are appropriately aggregated. Availability Biases on data are objectively examined. There is a perpetual drive for innovation built into the development models used, coupled with an awareness that at any moment in time the requisite level and focus of innovation activities may shift. Achievement is measured by breakthroughs and turnarounds where the stuck becomes unstuck and unprecedented and unexpected results appear throughout the system and a new level of sustainably high performance emerges. There is a degree of energy and engagement in the organisation which is alive with healthy and robust tension.
Employees grow and develop because they know their roles within the strategy and can clearly link their outputs to the strategy requirements. They openly express their passion, commitment and creativity. They have a real sense of accomplishment and accountability is natural and prevalent. The transformational business also incorporates two further elements into its strategic workflow. Incorporated are barriers to entry as clearly indicated in Porter’s ‘Barriers to Entry Model’ and the risk equation. The transformational business will have clearly identified all risks pertaining to their strategy across a number of parameters. The business model should have clear links between strategy, structure, style, skill, staff and systems whilst always being interconnected to the core.
There are multiple key elements of the transformational culture of the organisation:
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A clear and fuzzy strategy where everyone adheres rigidly to the core and looks to add real value through maximising the edges
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A workforce with a high degree of trust in each other, in sales and strategy. This is actively managed.
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There is a ‘cult like’ culture with strong values
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The business can adapt rapidly through autonomy and entrepreneurship
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The driving innovation behaviour within a clear and fuzzy strategy is to the forefront of competency models
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A clear aligning strategy between people, process and innovation
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Very high value driven customer experience
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The business operates through self regulation in a very disciplined manner with very effective execution
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Business leadership and teams have a bias for action
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The business looks to balance everything through perfect alignment
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People are key enablers and the resource management focus is on first who, then what
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Strategising is inclusive or applying AND thinking at the expense of either or thinking
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There is a very commitment for diversity and embracing change
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Better, faster, smarter strategies
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The business are technology accelerators
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The business manages the downside proactively and the leaders manage their dark sides.
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The business embraces complexity; and the KISS principle is replaced with an ‘It’s The Whole Thing, Stupid’ approach.
This is the first of 5 parts that make up a transformational organisation. These components are aligned with our software tool for holistic organisational measurement that is TransformationDNA®
