The holistic change mentioned in the previous post is easier said than done: ordinary approaches to transformation usually generate equally ordinary and therefore sub-optimal results.
Extraordinary results require a comprehensive and highly disciplined methodology that includes both the what and the how. This implies the harmonious transition of many specific ideas and initiatives aimed at transformation through three phases: due diligence, planning and implementation. According to McKinsey, the approach to be used could therefore be schematised as follows:
However, executives tend to focus too much on individual initiatives instead of on how the organisation should change, and many leaders are aware of this to the point of being the first to express doubts about execution risks and sustainability knowing that initiatives will not succeed if the business does not change the way it operates.
So how does an organisation change the way it operates?
Let's break the 'how' into two parts: change management and performance infrastructure. During a transformation, it is the performance infrastructure that helps create effective executive alignment, efficient communication and productive coordination.
Performance infrastructure refers to the set of people, processes and tools that work together to ensure excellent execution and value transmission.
It therefore acts as the central nervous system during the transformation attempt and plays a crucial role in its success.