There are two types of transformation. First, there is the kind that years of bad decisions, kicking the can down the road or strategy missteps forces you to make. Such ‘big bang’ transformation programmes have a limited track record of success. Some estimates put the failure rate at between 78-82%. Second, is the regular cadence of change programmes including sprint milestones and objectives linked to strategic choices. These kinds of change often feel like the eponymous film, Groundhog Day, repeating regularly and inescapable. With everything from robotics to AI, net zero to nuclear and ICE to EV changing the world, we discuss big bang transformation or regular change programmes.
Big bang transformation
A big bang transformation is a profound upheaval designed to substantially increase an organisation’s performance based on a shift in strategic direction, usually orchestrated from the board or senior leadership team. The focus is typically the creation of a new business model or the redesign of the target operating model to obtain major improvements to processes and/or systems and/or people.
Big bang transformations are often forced due to past oversights, declining fortunes or to respond to a major competitor or technological disruption. They are also highly disruptive to existing organisational function and sometimes to customers and/or suppliers. According to research, nearly 1 in 5 senior leaders would rather leave an organisation than embark on this kind of ‘root and branch’ initiative. With less than 20% of big bang approaches delivering the projected outcomes, it involves investment, risk and uncertain benefits.
Regular change programmes
Regular change programmes are like the sibling of a big bang transformation. They also seek to improve performance but on a smaller scale, often less impactful on the operating model. They focus on improvements to processes, systems and people just the same. Finally, they are also highly structured, focused on delivering sustained benefits and reducing disruption. Such changes may be delegated to divisions or departments rather than pan-organisation.
Business change programmes are often supported by project management skills or dedicated resource. Additionally, they are structured, scalable and repeatable with a larger focus on people and training. For now, let’s call it the little brother or sister of big bang transformation. Alternatively, think of it as a reusable space rocket rather than an enormous, single-use, super heavy lift vehicle. There may be several business change programmes running concurrently within an organisation but maybe only one big bang transformation.
Big bang transformation or regular change?
There are pros and cons to each approach. The big bang transformation admits that things need to radically change, whatever the strategic imperative behind it. It may disrupt the organisation, consume vast resources and come with significant risks, but it must succeed to thrive or survive. Big bang is also less recurring nightmare and more akin to breaking a leg. Sure, it will be painful and take a while to get back to normal, changing everything about how you go about life. But things will get better at the end because it has to happen. Ultimately, people may initially baulk at and resist the ‘shock and awe’ of what is needed but then they know they need to get through it. It’s a bit like building that first space rocket.
Regular business change is like the reusable rocket. It takes a lot of planning and preparation, hard work and resources to get it to the launch pad (i.e. the start), but it can be used again and again. This means that successive projects, or in this case launches, should get easier and easier. Knowledge and expertise can be reused and refined. There is however the chance that it won’t make it into orbit (fail fast) or it won’t make it back (overrun, overbudget, strategic change, cancellation). Furthermore, back-to-back or overlapping change programmes take their toll. A constant, rolling schedule of change programmes diverts people from the day job. It also causes regular changes to processes operated, technologies used and team culture.
Is there another way to make transformation and change?
If we think of change as making things better and the types of change as the size and complexity, there are large, medium and small changes. Broadly, we would categorise a big bang transformation as large. It will take many months (or even years) and is highly complex. Regular change programmes are medium. These may take months to deliver and remain relatively complex. Then there are smaller change projects or continuous improvement initiatives. These may take weeks or days and can be quite simple.
Large organisations may do all three types at any one time or at the same time. However, there is a growing school of thought that society is experiencing ‘transformation burnout’. This is broadly defined as being sick and tired of constant upheaval, distraction, anxiety and additional work. This is manifesting itself in worse mental health and disengagement (a paltry 18% engagement at the last measure for the UK). Since 2020, this is happening across a broad array of sectors and nations. As we grapple with geopolitical, macroeconomic, political and technological shifts, change and transformation has become commonplace. In some respects, sitting still is no longer an option. There has never been more exposure to competition, disruption and innovation. The question is how you manage the changes.
A partner for change programmes and small change
We support organisations with project management skills and the identification of business opportunities that require change. We also support management teams with ongoing changes that improve performance across multiple areas. Additionally, we can add resource to an already overburdened project team or to troubleshoot a project that is failing. We are not pretending to be specialists but we have seen a wide array of attempts at change and the detrimental impact that it can have. We also won the digital transformation award at last year’s family business awards.
If you would like to discuss your change and improvement, why not reach out to our team. Alternatively, check out the benefits that we offer and our business improvement services.
Finally, why not read a related blog about the age of constant change.