Rethinking business as usual to evolve and thrive in a sustainable world
At a glance
If you aren’t already thinking about what your business will look like in ten years from now, you might need to play catch up. Many organisations are at a turning point where transformational change has become a non-negotiable imperative that will define the collective future. Organisations cannot remain static. Conditions will continue to vary, and trends will shift, which means that the ability to pivot, when necessary, will determine organisational resilience and success in the long haul.
A stress test but also an opportunity?
The growing number of pressures, such as the post-pandemic recovery, e-commerce revolution, economic uncertainty, inflation and net zero ambition, are testing the viability of traditional models of companies. A combination of these disruptions is prompting organisations to embark on transformation projects, which can take many forms. It can involve entering new markets, offering new products, introducing advanced technologies or revamping assets. Regardless of the direction it takes, striving to keep up with several priorities is cumbersome; it underscores the need for foresight and clarity of vision.
What goes understated is that challenges also serve as catalysts to unlock strategies that may not have been considered before. This begs the question: How do we embark on a transformation journey? And are we starting in the right place? The answers vary depending on your unique operating environment and organisational structure. Major changes look different for every company, but robust and consistent pillars should be in place.
Sustainable transformation is a strategic imperative.
Organisations that prioritise long-term success and resilience recognise the need for fundamental and sustainable change. However, there’s a common pitfall: the allure of quick wins and isolated efforts that fail to consider the broader impact on the entire business ecosystem. Disruptions and even excitement about the next big thing, can compel organisations to focus on immediate gains instead of understanding the big picture from the start. Tunnel vision leads to missed opportunities, inefficiencies, and incompatibilities. Underdeveloped strategies adversely affect people, processes, and technologies. A holistic approach, on the other hand, recognises the interdependence of these factors and supports cohesion.
Synergies, not silos: The importance of a holistic approach
Imagine a global tech company, let’s call it: InnoTech. InnoTech is eager to revolutionise its operations. They invest heavily in upgrading their data centres, optimising systems, and streamlining processes. The immediate gains are evident: faster data processing, improved efficiency, and cost savings. But here’s where the tunnel vision sets in:
1. Infrastructure overload: InnoTech infrastructure overhaul inadvertently disrupts employee workflows. The IT team, focused on technical upgrades, fails to assess how these changes affect the daily lives of their workforce. Employees struggle with new tools, experience downtime, and morale dips.
2. Supply chain blind spots: InnoTech supply chain—critical for sourcing components and delivering products—remains largely untouched. The company’s tunnel vision prevents them from evaluating how their suppliers’ sustainability practices align with their own goals. As a result, they unknowingly support suppliers with questionable environmental practices.
3. Short-term tactics: InnoTech’s marketing team launches aggressive short-term campaigns to boost sales. While profits soar momentarily, they inadvertently compromise long-term brand reputation. Customers perceive the company as profit-driven rather than purpose-driven, eroding trust.
4. Environmental oversight: InnoTech’s environmental targets focus on energy efficiency within their facilities. Yet, they overlook the carbon footprint of their product lifecycle—the manufacturing, transportation, and disposal stages. Tunnel vision blinds them to the interconnectedness of environmental impact.
5. People and processes: InnoTech’s HR department struggles to retain talent. Employees feel disconnected, caught in the crossfire of rapid changes. The lack of a holistic people strategy leads to burnout, turnover, and loss of institutional knowledge.
6. Technological compatibility: InnoTech’s new software systems clash with legacy applications. The lack of a comprehensive integration plan results in inefficiencies, data silos, and missed opportunities.
Now, consider InnoTech’s competitor, SustainCorp. They take a different path with leadership embracing a more integrated, holistic approach to sustainable transformation:
1. Stakeholder alignment: SustainCorp engages employees, suppliers, and customers early in the transformation journey. They co-create solutions, ensuring alignment with shared values.
2. Triple bottom line: SustainCorp evaluates decisions through the lens of people, planet, and profit. Their infrastructure upgrades consider employee experience, supply chain ethics, and environmental impact.
3. Long-term vision: SustainCorp’s marketing campaigns emphasise purpose over profit. They build trust by demonstrating commitment to sustainability, even if it means slower short-term gains.
4. Systems thinking: SustainCorp views their organisation as an intricate web. People, processes, and technologies are interdependent. Their strategies support cohesion, fostering resilience.
In the end, InnoTech’s tunnel vision led to missed opportunities, while SustainCorp’s holistic approach ensured long-term success. Sustainable transformation isn’t just about isolated efforts; it’s about weaving a resilient fabric that withstands disruptions and embraces the bigger picture.
Enablers of sustainable transformation
Transformation is a journey and not a one-time, one-off activity. Certainly, innovations are rarely achieved through an everything, all-at-once-approach. It is crucial to have a unified framework that serves as a compass for organisations as they pursue each strategy in the transformation portfolio. Below are some key considerations and enablers for businesses to boldly forge ahead:
Define the vision: Set the desired outcome of the transformation, which will provide clarity in the roadmap. During this stage, identify barriers to progress and any potential trade-off to gain clarity of priority areas for improvement and tools to invest in.
Harmonise strategy and execution: Actions must align with the company’s overall goals. This enables informed decision-making and meaningful innovations.
Engage people and nurture partnerships: Whether organisations are sharing their vision, training employees or obtaining feedback, they must bring people along the journey. Transformation heavily rests on collaboration, hence, stakeholders need to be involved in order to develop an integrated approach and achieve optimal outcomes.
Check your compass: Monitor and evaluate your progress against the defined goals. Feedback can inform the next set of strategies to ensure that companies are heading in the right direction and keeping the goal in sight.
Update the transformation toolkit: As disruptions and advancements emerge, organisations should continually build on efficiencies and adopt best practices to stay agile. Learning goes hand-in-hand with transformation — they’re both an ongoing process.
Be future-ready: Creating a strategy is not a one-person job, especially when it is aimed towards a sustainable transformation that encompasses different business functions and diverse stakeholders. Often, it requires organisations to take an outsider’s look and depart from a limited focus.
GHD Advisory helps drive transformation through the lens of people, processes and systems. Leveraging a global network with regional expertise — and decades of experience leading organisations through disruption and change — our team can partner with you to unlock opportunities across your value chains, from capital deployment to business resilience and optimisation.
Visit our expertise page to learn more about our services and projects.