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A majority (82%) of leaders see frequent market disruptions¹, yet 67% faced underperforming transformations² — what is the secret to success?
In brief
- During times of significant disruption, technology transformation becomes a critical imperative for the retail industry.
- By embracing the transformation journey with speed, retailers can effectively meet evolving customer expectations while building a resilient foundation for long-term success.
- A crucial focus must be placed on the people and emotional aspects, as they play a pivotal role in driving the success of any transformation today.
In today's era of constant change, achieving sustainable growth depends on the ability to adapt and meet evolving consumer demands and behaviors, which are changing at an exceptional pace. That's why we need to rethink how we transform our organizations. Instead of solely trying to survive turbulent times, is it possible to thrive while simultaneously delivering value to both customers and employees?
By embracing innovative solutions and new ways of transforming business that prioritize customer and employee satisfaction, businesses can unlock new pathways to success and stay agile despite ever-evolving market demands. It's time for a paradigm shift — a transformation that revolves around Humans@Center, Technology@Speed and Innovation@Scale.
In this article, we explore the components that increase the transformative power of technology in the retail industry, uncovering insights and best practices that pave the way for successful technology and business transformations.
- Unlocking the power of people with Humans@Center
- Prioritizing Technology@Speed while handling unpredictability
- Shaping a transformation journey that allows for Innovation@Scale
- Unlocking transformational success
- How EY teams can help you increase transformation success
Unlocking the power of people with Humans@Center
A successful transformation relies on people as catalysts for change. Too often, organizations overlook this critical human component, missing out on opportunities to unlock significant value. To achieve desired outcomes, organizations must prioritize people empowerment and actively cultivate a positive change experience.
Empathy, creativity, collaboration and adaptability are the power skills that drive transformation success.
Emotions play a significant role in any transformation, and their mismanagement can leave a lasting impact, shaping how individuals perceive themselves within their organizations. Emotions can either make or break a transformation, underscoring the need to prioritize managing the emotional journey to ensure success. By understanding the heritage and emotions of previous transformations, influential individuals can be identified and engaged early in the process, amplifying their impact.
Research reveals that inadequate sponsorship, lack of leadership alignment and a poorly articulated vision are among the leading causes of transformation failure. Misalignment in vision can lead to confusion, making it difficult for leaders to steer the transformation course. Investing in leadership development, purposeful vision and people empowerment becomes key to driving engagement and transformation. Moreover, the human aspects of motivation, incentives and skills stand as critical drivers for transformation success.
Innovation
Organizations that put Humans@Center of their transformations are 2.6x more likely to be successful than those who do not.
Prioritizing Technology@Speed while handling unpredictability
In today’s digital age, transformations almost always involve the adaption and delivery of new technologies. Technology will play a critical role in enabling and accelerating transformations by automating processes, enhancing communication, streamlining operations and even improving collaboration. For the retail industry, the need for speed is especially pronounced as they handle a number of changing consumer demands.
In the midst of a rapidly changing business environment, speed is a critical component for successful transformations. Organizations that venture beyond their comfort zones while focusing on smaller initiatives can explore new possibilities and deliver fast results. Acknowledging potential setbacks is important and adopting a problem-solving mindset that prioritizes learning from mistakes can help steer the transformation process forward.
To achieve successful transformation outcomes, organizations should work iteratively to minimize resource inefficiencies. Delivering incremental value that is measurable and focusing on quick wins and early proof points that de-risk the process can fuel transformational progress. Shifting focus from growth metrics to bottom-line metrics over time is crucial, avoiding "phase-gate" milestones that may give a false sense of progress but do not drive progress. By incorporating these strategies, organizations can ride any challenge to success.
Transformation design
the respondents in high-performing transformations said the process was designed so that failed experimentation would not negatively impact career or compensation.
Shaping a transformation journey that allows for Innovation@Scale
In the pursuit of transformation, it is essential to recognize that the journey is just as important, if not more important, than the ultimate outcome. A successful transformation is not a short sprint, but rather a series of marathons that require an enduring, sustainable effort fueled by an organized and motivated team and a dynamic approach that allows for recovery and innovation.
Reflection plays a vital role throughout this transformative journey. At each step, maintaining a clear solution intent while exploring various problem-solving methods is crucial. Rather than being fixated on a predetermined solution, organizations must remain flexible and adapt, gradually improving and refining the most suitable solution during the transformation.
Scaling up can be challenging and time-consuming, which is why focusing on smaller, more manageable components that work can be a viable alternative. Starting small and iterating allows organizations to quickly test and refine their approaches, creating a solid foundation for future growth. By prioritizing incremental, sustainable growth, organizations can foster a culture of innovation and pave the way for successful transformations.
Gain deeper insights from the whitepaper by the EY organization and the University of Oxford on the future of transformation.
Unlocking transformational success
Transformations are driven by humans. To perform at their best, humans need to feel motivated, focused and energized. This can be achieved by providing a clear understanding of their role, goals and expectations, along with a sense of purpose and meaning. A distraction-free environment, necessary resources, tools, opportunities for physical activity and relaxation, and a supportive, appreciative culture can also help humans feel their best in the workplace.
Maintaining this sustainable environment for the duration of the full transformation can be a challenge. Often, transformation fatigue kicks-in and motivation sinks. Here's a sneak peek of some of the key components we focus on in large-scale transformations to increase success:
Build on what already exists: When planning for a transformation, it's crucial to understand the existing transformation setup and identify areas for improvement. By complementing missing components and leveraging existing assets, organizations can maximize the value of their transformation efforts.
Establish a routine "way of working:" Complex transformations require focused problem-solving and efficient execution. Establishing a consistent routine that includes a common cadence and rhythm can improve team coordination and increase success rates.
Make time for recovery, innovation and celebration: Teams need time to recover from the demands of day-to-day work and reflect on learnings. By prioritizing recovery and creating dedicated time for innovation and celebration together, organizations can foster a culture and a community built on togetherness and centred around continuous learning and improvement.
Dedicate resources to the project: Successful transformations require dedicated resources to deliver quality, timely results. Task switching can increase risks, lower quality and become a bottleneck for team members, so ensuring that each team member has a clear focus and dedicated responsibilities can drive progress.
Plan for resource changes: Transformations often take a long time, and changes in team members are inevitable. A robust transformation plan that can account for resource changes and avoids knowledge silos can maintain momentum towards achieving organizational goals.
Integrate learnings: Perfection is not the goal during a transformation. By prioritizing the fundamentals and using an iterative learning approach, organizations can build toward transformation excellence. By learning from mistakes, successes can be amplified and greater sustainable value delivered.
In value creation transformation, happy customers go hand in hand with happy people. Although the future is uncertain, the path does not have to be.
How EY teams can help you increase transformation success
EY professionals take a customized approach to technology transformations in the retail industry, adapting to the evolving business landscape and delivering maximum value to clients. With years of experience, EY teams bring the governance, tools and delivery setup necessary to work faster and smarter, handling the unknown and building momentum for the long term.
EY professionals prioritize understanding clients' business context and becoming a true partner, working hand-in-hand to flexibly adapt to challenges and embrace the unknown. We challenge our clients to help ensure they're moving forward in the most effective way possible, every step of the way.
Ready to embark on a transformative journey centred around people, speed and innovation? Get in touch with us to learn more.
Summary
In times of change, businesses must change and more importantly, change the way they change. But it's not just about change for the sake of change. Whether it's customers, co-workers or leaders, prioritizing their satisfaction and experience is paramount. What benefits them also benefits the business.
To navigate the uncertainties ahead, resilience must be built into your transformation strategies. Businesses must embrace change with agility and an unwavering commitment to creating a brighter future for business, people and customers.
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