What to Expect: Anticipating and Adapting to Dynamic Economic Trends
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critical success factors,
Managing for Stakeholders,
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By Peter Tarhanidis, Ph.D.
In the ever-evolving landscape of corporate strategic planning, organizations face the perpetual dilemma of choosing between capital spending for growth—and optimizing operations for efficiency. Striking the right balance amidst economic trends and leveraging organizational strengths becomes paramount when navigating through strategic projects. Meeting shareholder and stakeholder needs, while aligning with the organization's mission, presents a constant challenge.
To anticipate potential initiatives, project managers must consider global macroeconomic conditions and CEO outlooks. A preliminary assessment based on the United Nations World Economic Situation and Prospects and OECD Economic Outlook reports for 2024 reveals a projected global economic growth slowdown from 2.7% to 2.4%. This trend suggests a delicate balance between slow growth and regional divergences. Key considerations include:
Examining the corporate landscape, a survey of 167 CEOs in December 2023 indicated a confidence index of 6.3 out of 10 for the 2024 economy—the highest of the year. The CEO upsurge assumes inflation is under control, the Fed may not raise interest rates and instead reverse rates, setting up a new cycle of growth. Furthering the CEO agenda, McKinsey & Co. identified eight CEO 2024 priorities:
As project managers, navigating the uncertainty of economic shifts necessitates staying vigilant. The year may bring variables and predictions that impact the execution probability of strategic projects. Shifting between growth plans and efficiency drivers demands different preparation. To stay prepared, consider the following:
In an environment of perpetual change, proactive monitoring, adaptability and strategic collaboration will be key to successfully steering projects through the dynamic economic landscape.
How else can you stay prepared as the demands shift on you and your team?
Business Transformation in Disguise
By Jess Tayel
In the quest to uplift capabilities, better serve customers, improve the bottom line or acquire market share, organizations rely on a mix of projects and programs.
Some projects are scored as critical and complex. Some organizations have a clear and defined scoring system of what is critical and what is not, while others settle for a subjective measure.
But even after you’ve determined a project is critical, there’s more to consider.
Is it Change or Transformation?
When it comes to big, critical projects, ask yourself: Are you delivering a change initiative or a business transformation initiative?
Why is this distinction important? Because they both have different characteristics that dictate how they should be brought to life.
Change initiatives execute a defined set of projects or initiatives that may or may not impact how things work across the entire organization. Examples include introducing a new payroll system, moving into a centralized shared services model or executing an office move.
Business transformation, however, is a portfolio of initiatives that have a high level of interdependencies, leading to change across the organization. They’re focused not just on execution but also on reinventing and discovering a new or a revised business model. That model is based on a significant business outcome that will determine the future of the organization.
With that in mind, business transformation is more unpredictable and iterative, and it’s about a substantial change in mindset and ways of doing business. The “how” may not be as defined as it is in change initiatives, which means you need to try different methods and be more experimental.
Set Your Organization up for Success
Because of these distinctions, business transformation should never start with finding a solution, i.e., bring in this technology, hire this firm, change model X to Y. It should instead focus on the following:
You may say that these questions can be part of the initiation phase. But in my 20 years of experience around the globe, I have rarely seen the above steps executed diligently from a customer centricity point of view before teams start to dig for a solution.
That said, time spent clearly articulating those elements is well spent and directly contributes to the success of the transformation, while reducing rework and change fatigue. It’s like spending time to sharpen your saw before starting to cut the tree.
In my next post, I will talk more about what is required from the leadership and internal transformation teams to facilitate and create success.
Feel free to comment below and send feedback; I would love to hear about your experiences with business transformation
Make it or break it!
In the world of Business Transformation (BT), project management plays a critical part in the successful delivery of the business transformation programs to an extend where I can say it is a “Make it or Break it”
And why is that?
Imagine a school music play and the effort required to coordinate everything to get it done successfully. Of course, there is a lot of planning, coordination and execution that goes into it to produce a high quality school play
Now imagine an orchestra and the effort required to get this done successfully. In essence and to the inexperienced eye, the tasks may be similar but the effort and complexity are just a different ball game altogether
This is the same thing when it comes to managing a non-BT project and a BT project. The main tasks of initiation, planning, execution, monitoring and closing may look the same on the surface but underneath the skeleton, is a different level of complexity
Having said that, BT project management requires a different calibre of project managers to help get the beast out of the door while achieving business outcomes
To be on the same page, let’s define what business transformation is. Business transformation is a significant change that an organization goes through impacting its people, process and/or technology. The change is usually a complex one with long term business outcomes to be achieved
Project management becomes the core part of delivering the business transformation and ensure that business outcomes are achieved. The calibre of the BT project manager is therefore a lot more complex and at a higher level of maturity. Below are the key characteristics for a successful business transformation project manager
Exceptional Business Acumen
Visionary and can see beyond the short term goals
Can see different angles and prospective
Diversified skill set
Knows and understands failure
Knows the job and acts beyond it
When market environments or conditions shift, organizations must often make fundamental changes to how they operate in order to cope
Business transformations—which are initiated in reaction to current or foreseen pain points, such as cost reductions, capability builds or digital transformation—create a new capability or a new reality in a sustainable, consistent and collaborative way
The process should be like film making
In filmmaking, everything starts with an initial story or a vision of what the film will be about, the message it is going to send, the general purpose and so forth. I have no doubt that great film directors can actually see the film in their head before anything is spent or made.
Leaders of business transformation programs must also understand their purpose and visualize success at all levels—including the end game—before making a single change.
At the same time, leaders should have a thorough understanding of the people involved and the business processes being changed. Before executing on tactical projects, a successful transformation should first seek a clearly defined purpose and attain a solid understanding of people and processes. After all, people and processes are the binding fabric of all transformation efforts.
You must understand how the change you are bringing will affect how people behave, communicate, think and do business. To me, people are the single most important aspect of ensuring a successful and sustainable transformation.
So, start by understanding:
That should serve as a good basis to build quality engagement and communications. The goal is to create a collaborative and transparent platform to ensure that all requirements are captured.
People and process go hand in hand. You cannot understand one without the other.
A successful business transformation seeks to understand the current processes, variations, inconsistencies, pain points and interdependencies before venturing into changing systems, organizational structure or implementing a new way of doing business.
A business process to a transformation is like a compass to a ship. It ensures the business transformation team is:
Has your organization undergone a transformation recently? How did you ensure you were moving in the right direction?