Transformational change

From CEOpedia | Management online

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.

Advantages of Transformational change

  • Transformational change can bring about increased efficiency, improved productivity, and higher profits for an organization. It can also create an environment of innovation and collaboration, leading to better decision-making and an improved customer experience.
  • Transformational change can also lead to greater workforce engagement and morale, as employees are given the opportunity to contribute to and take ownership of the change process. This in turn can result in higher levels of employee retention, and a reduction in recruitment and training costs.
  • Transformational change can also provide an opportunity to re-evaluate the organization’s core purpose and values, and can help to ensure that the organization remains competitive in the face of changing market conditions.
  • Lastly, it can provide an opportunity to review and update the organization’s operational processes and technology, resulting in improved operational performance and increased customer satisfaction.

Limitations of Transformational change

The Transformational change can bring many benefits to the organization, however, it is not without its limitations. These include:

  • Time and resources required for implementation: The implementation of a transformational change can require a significant amount of time and resources. This could include the need for additional staff, equipment, and training. It can also require disruption of existing processes and operations.
  • Stakeholder resistance: Change can be difficult for stakeholders within an organization. It can cause friction between different departments, and can be difficult for employees to adjust to. Stakeholders may also resist change due to fear of the unknown, or due to a lack of understanding of the benefits the change will bring.
  • Lack of clear objectives: Transformational change requires a clear set of objectives to be successful. Without these objectives, it can be difficult to measure progress and ensure the change is having its desired effect.
  • Lack of support: Transformational change requires support from all levels of an organization. Without this support, it can be difficult to drive the change forward and ensure it is successful.
  • Risk of failure: Transformational change carries with it a risk of failure. Without the right approach and planning, the change can fail to deliver the desired results or cause more harm than good.

Other approaches related to Transformational change

One of the approaches related to Transformational Change is:

  • Strategic Change - It is a process of implementing new strategies and goals within an organization. It involves an analysis of the current state of the business, the development of a new strategy and the implementation of new processes and practices to achieve that goal. Strategic change is often driven by external factors such as changes in the market, technology or new competition.
  • Cultural Change - It is a process of changing the attitudes, behaviors and norms of an organization. It involves understanding the existing culture and developing a new culture that supports the organization's goals and objectives. This includes developing new leadership styles, organizational structures, communication approaches and reward systems.
  • Organizational Change - It is a process of transforming an organization from its current state to a desired future state. This involves creating a new vision, developing a plan to achieve that vision, and implementing changes in processes, technology, and people to achieve that goal.
  • Process Change - It is a process of changing the way an organization operates. This includes analyzing existing processes, identifying inefficiencies, and making changes to the processes to improve performance. Process change can involve introducing new technology, changing the way tasks are completed and changing how information is communicated.

In summary, Transformational Change is a process of making significant changes in an organization to achieve a desired outcome. It involves strategic, cultural, organizational and process changes. Each of these components must be addressed in order to successfully implement the change.

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Author: Klaudia Pawlik