{"id":159,"date":"2020-08-09T22:07:54","date_gmt":"2020-08-10T01:07:54","guid":{"rendered":"http:\/\/dsipartnersconsulting.com\/blog\/?p=159"},"modified":"2020-08-12T13:29:42","modified_gmt":"2020-08-12T16:29:42","slug":"main-pitfalls-of-transformational-strategies","status":"publish","type":"post","link":"https:\/\/dsipartnersconsulting.com\/blog\/main-pitfalls-of-transformational-strategies\/","title":{"rendered":"What are the main pitfalls of transformational strategies and how to overcome them?"},"content":{"rendered":"<p>We already saw that transformational strategy helps companies to rethink the very concepts that support their organizations, concepts that represent some of their deepest beliefs. It creates the right conditions to develop new strategies and rethink core business models, providing organizational resources and capabilities that can better understand and represent the world today and the one yet to come.<\/p>\n<p>In the previous article, I explained why the change in mindset is fundamental for a successful transformation and what are the first steps in the search for a strategic transformation. In this article, I intend to help you understand what the main pitfalls of transformational strategies are and how to overcome them.<\/p>\n<p>The common pitfalls of strategic transformation initiatives are related to setting very low or very high ambitions, focusing strictly on personnel reduction measures, failing to measure and monitor progress, declaring victory too early, focusing on efficiency before other measures and maintaining linear thinking. Despite these pitfalls, there are others that you need to know and consider when conducting an effective and strategic transformation process:<\/p>\n<ul>\n<li><strong>An overwhelming plan:<\/strong> when the goals and actions generated in the strategic planning session are very numerous and employees do not know where to start. This is because the team failed to make the difficult choices to eliminate those actions considered non-critical.<\/li>\n<li><strong>A meaningless plan:<\/strong> when the vision, mission and value statements are seen as nonsense and are not supported by actions, or are not supported by employees.<\/li>\n<li><strong>Out of the ordinary plan:<\/strong> when the plan is treated as something separate, and removed from the management process.<\/li>\n<li><strong>Annual strategy:<\/strong> when the strategy is discussed only at annual weekend conventions.<\/li>\n<li><strong>Lack of communication:<\/strong> when the plan is not communicated to employees and they do not understand how to contribute.<\/li>\n<li><strong>Failing to develop the necessary resources:<\/strong> companies should not only focus on the finish line, but on how to get there. Capabilities are the muscles of transformation.<\/li>\n<li><strong>Not considering implementation:<\/strong> when the implementation process is not discussed during strategic planning. This is because the strategic plan is seen as an end in itself.<\/li>\n<li><strong>Without responsibility:<\/strong> when the lack of responsibility and visibility does not help to drive change. This means that each measure, objective, data source and initiative must have an owner.<br \/>\n<strong>Lack of autonomy:<\/strong> while responsibility can provide a strong motivation to improve performance, employees must also have the authority, responsibility and tools necessary to impact relevant measures. Otherwise, they can resist involvement and ownership.<\/li>\n<li><strong>Lack of ownership:<\/strong> when people have no participation and responsibility in the plan, everything will continue as usual for everyone.<\/li>\n<li><strong>Being stuck in day-to-day life:<\/strong> when owners and managers, consumed by daily operational problems, lose sight of long-term goals.<\/li>\n<\/ul>\n<p>For all these reasons, the support of a consultancy specializing in transformational strategy is required. While they cannot plan for this new normal, companies will be able to understand the problems they are facing under the new light and will be able to project the transformational strategic changes necessary to evolve. They will be able to plan the process and mechanisms, which will guide and allow them to emerge from this new normal. This is possible done by overcoming a triple challenge:<\/p>\n<ol>\n<li><strong>Rethink the present and the future:<\/strong> appreciate what is happening in the competitive environment and develop the tools to understand and manage the emerging opportunity in a way that is beyond current thinking models.<\/li>\n<li><strong>Allow the future they want:<\/strong> create the conditions in which that future can emerge and flourish.<\/li>\n<li><strong>Bridge the journey:<\/strong> manage the transition and, somehow keep your current businesses operating in the face of the necessary transformational changes and long enough until reaching the new level of expected competitiveness.<\/li>\n<\/ol>\n<p>In other words, for the creation of strong and sustainable value, companies will have to bet on the day&#8217;s financing, winning in the medium term and organizing a sustained performance. A transformational strategy consultancy must be able to drive the transformation process of your company, ensuring the evolution in the following aspects:<\/p>\n<ul>\n<li><strong>Recognize the threats that the pandemic poses around you.<\/strong> There is no turning back, nor going back to &#8216;normal&#8217;. Companies are at a breaking point and the old rules no longer apply. Actions taken in a stable scenario can have the opposite effect when the scenario is unbalanced.<\/li>\n<li><strong>Be prepared for regular shocks throughout the 2020s.<\/strong> Pay attention to the cascading impacts of disruptions in your industry. All major sectors of the economy will be disrupted during the 2020s.<\/li>\n<li><strong>Recognize that other technological advances will come.<\/strong> Digitization will provide predictable and exponential improvements in costs and resources over time.<\/li>\n<li><strong>Create a vision and a clear plan to mitigate adverse results<\/strong>, instability and uncertainty. This can be done through rethinking the main business model, exploring first-line growth options, repositioning the corporate portfolio, reformulating market entry processes, expanding geographically, launching the digital initiatives, reviewing the target-operating model through the lean approach.<\/li>\n<li><strong>Realize that this is a race to the top:<\/strong> those who fall behind will be on the verge of collapse; it will enter a deadly spiral of declining demand and investment and rising costs. Those who lead will be in a position to define the new rules of engagement.<\/li>\n<li><strong>Rethink old concepts<\/strong>, such as efficiency and economies of scale, which cost resources and create unique vulnerabilities.<\/li>\n<li><strong>Value robustness and resilience.<\/strong> They must be evaluated when investing in new resources and infrastructure.<\/li>\n<\/ul>\n<p>DSI Partners does all this and more: as strategic transformation is our only business, we combine practical experience with in-depth knowledge and a unique approach through our exclusive Mutatis methodology, in addition to assertiveness, agility, technology, co-creation and sustainability, to ensure that your strategic transformation can happen. We have mastered the art of transformational strategy combined with the art of digital transformation, creating the right conditions to promote exponential changes and growth for your company.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We already saw that transformational strategy helps companies to rethink the very concepts that support their organizations, concepts that represent some of their deepest beliefs. It creates the right conditions to develop new strategies and rethink core business models, providing organizational resources and capabilities that can better understand and represent the world today and the &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/dsipartnersconsulting.com\/blog\/main-pitfalls-of-transformational-strategies\/\"> <span class=\"screen-reader-text\">What are the main pitfalls of transformational strategies and how to overcome them?<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":4,"featured_media":170,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v16.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What are the main pitfalls of transformational strategies and how to overcome them?<\/title>\n<meta name=\"description\" content=\"The common pitfalls of strategic 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Recognized transformational senior leader with more than 20 years of business experience. He started his career as a trainee at the Votorantim Group and, finally, he was director of polyurethane business for Huntsman Corporation for Central and South America. Previously, he was director of polyurethane business for Brazil. Luis has extensive international business experience, with professional exposure in more than 30 countries in the Americas, Europe, Africa and Asia. 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