Managing uncertainty and transforming the company
Prioritization is important, but to sustainably transform an organization’s trajectory, leaders must effectively implement improvements throughout the organization. That is why management teams have to find the best way in managing uncertainty and transforming the company.
Research has shown that bold programs focused on a set of small initiatives can be implemented with much less effort, and that the most significant transformations focus on triggering gradual change, not by uprooting the entire organization at once.
Plotting the direction of change
Roadmap helps organizations achieve incremental change, maintaining performance and value creation through a structured approach based on agile methodology. This approach involves organizing initiatives into thematic “sprints” for time-based planning and implementation.
Sprints focus on the timing and complexity of impact, type of impact and area in the company as follows:
- Timing and complexity of impact – Sprint 1 focuses on short-term initiatives, while subsequent sprints focus on long-term initiatives.
- Type of impact – Sprint 1 focuses on the major impact types, while later sprints address the remaining impact types.
- Area in the company – Sprint 1 focuses on a specific part of the business (such as a department or division), and subsequent sprints focus on other parts.
Organizations establish the themes and sequence of sprints to address urgent issues in sprint 1, while planning for sprint 2 follows a defined path to address both important and complex issues.
Pathways are focused on opportunities that can be capitalized on quickly and generate immediate positive impact, reducing the risk of blocking more complex and higher-stakes change initiatives.
By addressing complex and high-stakes initiatives in later sprints, companies give themselves time and space to get their plans right and increase confidence that they can leverage the full potential of the situation.
Indicators on the way to transformation
To validate that you are in the right place on the path of company transformation, it is good to pay attention to two key indicators:
1) CEO involvement
A sprint-based approach takes more time, not because sprints take time, but because it takes time to adapt people to this approach. That’s why it’s important for the CEO and managers to give people support, celebrating successes and imposing consequences when milestones are missed.
2) An improved infrastructure
Infrastructure is critical to accelerating a company’s full potential. A dedicated management team to coordinate the transformation of the organization, helps to remove obstacles, to systematically monitor the progress and impact of initiatives.
In conclusion
Being clear about the way and process of transformation can help organizations adopt a positive transformation mindset, but it comes at a cost.
Success requires a strong commitment from the CEO and an infrastructure with improved performance for the transformation to be successful and to have a lasting impact.
Alina Făniță este CEO și Partener al PKF Finconta. A lucrat cu companii multinaționale sau firme antreprenoriale din domenii diverse de activitate, pentru a le oferi servicii de audit financiar, due diligence, restructurări de grupuri, audit intern și alte servicii conexe activității de control intern. Este membră a celor mai prestigioase asociații profesionale din domeniu: ACCA (Association of Chartered Certified Accountants), CECCAR (Corpul Experților Contabili și Contabililior Autorizați din România), CAFR (Camera Auditorilor Financiari) și IIA (Institute of Internal Auditors). A absolvit EMBA Asebuss la Kennesaw State University, a fost trainer pentru cursuri IFRS și este invitată ca expert la numeroase conferințe de business. alina.fanita@pkffinconta.ro
