Transformational change

From CEOpedia | Management online
Transformational change
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Transformation change – it is a process in practical, strategic and philosophical fields which involves to revolutionary change in company, for example culture transformation (J. Rotmans, D. Loorbach 2009). This kind of changes are response to crucial moves in technology, in organization's environment, management or as companies adapt to adjust to take advantage of new business models. They are related with significant adaptation of the company's business strategy. It is closely connects with modifying processes, internal structure or corporate culture (T. Cummings, C. Worley 2009). The transformational change is movement inside the organization that enables proprietors to increase their proceeds and enhance their customer retention.

Transformation change - examples

Below there are presenting few examples of transformational change:

  • new technology – some companies have submitted to transformational change by changing their key products or focus on new technology comes up. The great example of this changing are publisher because of starting desktop publishing which has allowed minor publishes to expand and has led to selling content online – books, magazines or newspapers.
  • product restricting – is an example of solution how companies can transform. The Apple company is an instance of product restricting. Through restricting the product line and concentrating on style as well as the usage of proprietary operating systems this company has become one of the most popular brand in the world.
  • transformational leadership – for this process is responsible a person which calls a transformational leader. To his/her responsibilities belong to challenging a company's existing structure moreover encouraging employees to taking part in company's development and to working harder and more efficiency. The drive and leader's vision are the factors of transformational change doing by these leaders. One of instantiation this changing is CEO of IBM ( the International Business Machines). He altered too rigid image of the company and implemented new culture rely on creativity, team working and innovation. The IBM CEO supported cooperation amid employees and started customer-focused in this organization.
  • market repositioning - it is next example of transformational change which rests on reposition themselves in the market or to re-brand themselves. This adjustment has took place in MacDonald's company. As a result of first quarterly loss and a commentary of anti-junk-food and anti-obesity activists this brand has been started transforming its culture. Macdonald's launched healthier items to the menu and coffee drinks as well as concentrated on the look of its stores. The result of this is focused on customer that brought it back into proceeds.

To capsule the transformation changes are adjustments in whole systems in the organization. This kind of changes are not problem-solving, because they are an act of building or crating something, not fixing the system. This changes focus on: rethinking the whole-system, focused on strategy, revolutionary and big system change. Moreover, the transformation changes are linked with changes in both – work and social systems, are involved all stakeholders including the customer and are designed with changing landscape in mind. The last but not least the transformational change must begin and end with the customer view.

References

Author: Klaudia Pawlik