There is a unique relationship between business transformation, change management, and how they foster business sustainability. Let us begin by defining these terms separately:
Business transformation: This is simply the fundamental changes made to operations, processes and methods of an organization’s business practices. Business transformation is all encompassing and it is a term that is usually explained to mean holistic, significant changes made to a business’ operations in response to shifts in the market, business environment, trends and times.
Thus, a smart business must be adaptable to change since it is inevitable. In the business sphere, survival is hinged on how quickly an organisation adapts to changing trends and demands
Change management: Is the calculated approach to dealing with the transformation or modification of an organization’s structure, systems or processes in order to guarantee successful transitions, adoptions and adaptation.
Change management is quite delicate as there are certain complexities that come with initiating changes, little or great, in the business space, since time which is the key factor in managing change is generally a limited asset. So, change management in business has to be quick, smart and effective.
Business sustainability: Is the integration of all business success factors such as economic, environmental, social influences into a business’ objectives, activities and strategies with the aim of creating long-term profit impact for the business and its stakeholders.
As HBS online business insights explains, sustainable business considers a wide array of environmental, economic and social factors when making business decisions. These organizations monitor the impact of their operations to ensure that short-term profits don’t turn into long-term liabilities.
Businesses are established for continuity, but as life is dynamic, so is the marketplace. Thus, a smart business must be adaptable to change since it is inevitable. In the business sphere, survival is hinged on how quickly an organization adapts to changing trends and demands.
And even more, how innovating the change strategy is. In the past, these business changes used to take longer, but it is quite obvious now that the business world is more fast-paced today than ever. The supply and demand for services undergo very rapid changes nowadays.
The core of business transformation is business longevity. But beyond that is sustained impact or business sustainability. It’s not enough for a business to be around for years, it extends to ensuring that such business remains increasingly relevant.
Every type of business transformation concentrates on growing business development, improving customer experience and boosting impact. However, business transformation is a change management strategy and the principles of change management must be applied for transformation success.
These principles are known as the 7 Rs: Who Raised the Change; Reason for the Change; Expected Return; Risks; Change Resources; Responsibilities of Personnel, and Change Relationships.
Applying these principles provide many rewards for businesses as they enable organizations set change measurement metrics. Another benefit is that they help to identify gaps in the business and how well the change management process fits into current demands.