‘You have reached your destination’ - how to map the transformation journey ahead
"I wisely started with a map" - J.R.R. Tolkien
One of the most important things to get right for those leading an organisation in the undertaking of a transformation journey - right at the very start - is the creation of a Target Operating Model (or ToM for short).
Why?
Because, quite simply, it brings clarity and alignment. It's very likely that the need for transformation has been highlighted and requested, most probably either collectively from the top team or an executive request to transform an area of the business. Ensuring the proposed transformation provides what is being asked for by these key stakeholders is at this very moment fraught with danger as 'the transformation' is likely to be quite a vague concept at this stage. We need to fix X asap! But what does X look like and feel? What does X 'taste' like? How will we know if X has been achieved? The list goes on.
If you don't hold the mirror up right at the start and ask 'is this what you want by X?' then you seriously risk undertaking a massive programme of work which could result in a 'thats not what I had in mind at all' outcome. Which nobody wants.
But where to begin?
A ToM. That's where.
Created well, a ToM will show the transformation journey for everyone who needs to see it what the present and future should look like and the connecting bridge (aka the transformation) between the two. But that’s not all. It can be incredibly powerful to engage people early and bring a real feeling of ownership of the transformation ahead, by adopting a ‘work with’ not ‘do to’ mindset.
A ToM should show where there are issues, problems and opportunities today, why they are so and what we are going to do about them, either by fixing them or exploiting them. It's a bit like using Google Maps that shows the best and most efficient way to reach your transformation destination that avoids traffic, road issues and the like rather than blindly setting off hoping to get from A to B, by sheer luck and intuition.
A ToM is a transformation map.
It is also the building block for creating a 'case for change' that can be used to sell and communicate the need for transformation. It should clearly show why transformation is needed and how everything is connected by being a 'golden thread' that brings things together.
There is no one best way of creating a ToM. Over the years I've seen many different approaches; PowerPoints, Excels, Infographics, Canvases, Videos, and even once (brilliantly) a pageant where all of the members of staff created a play in a field with hundreds of staff performing mini vignettes depicting the past, present and what the future to-be could look like of the company - a very innovative way to co-create the future together (the pic below was taken during the day).
Engaging hearts and minds on the transformation journey is vital. Here is a picture of the staff pageant that brought an organisation together to co-create the future.
I wanted to share what has worked best for me over the years. This is just my take running major, enterprise wide, complex transformation and strategic change programmes. This may not work for you. But I hope provides ideas in case you ever need to.
Undertaking research for a ToM will result in a lot of information being recorded. It's imperative you have a system that allows you to collect and analyse information simply.
I create a simple excel spreadsheet. I have 5 X vertical columns with these as the column headings:
The current 'as-is' situation - a high level summary of what is happening today, outlining good and not so good things. Challenges, issues and risks.
Current performance - volumetrics to support what is currently happening that underpins column 1.
The future desired 'to be' situation - this is detail outlining how the world will look after the current situation is transformed. How does this align with strategic imperatives and ambitions of the business? What will the world look like when this is implemented? Etc.
Future desired 'to be' performance - what will the desired future performance will look like? What is the delta from the as is?
The transformation for how we will bridge the gap between the as is and to be - is this dominantly a people, process or technology change? What is the high level transformation. Is it a process improvement. How will this ‘change the game’?
By having all the base data in the Excel you can always create engaging slides and infographics later. You can then start to gather insights. The Excel is likely to be many rows, it all depends on what is entailed in the ask of the transformation.
I think the main thing is to remember is to keep things as simple as possible.
Keep things as simple as possible!
To gather insights, I initially interview key stakeholders - this starts with 121 interviews (often members of the top team and senior stakeholders) and then move to workshops bringing in people in listening sessions together to contribute. I'll talk to as many people as I can to become as opinionated and informed as I can about the required transformation journey. I want a mix of views vertically and horizontally across the business. Sometimes there is a risk of an echo chamber of a small group, this should be avoided. It's all about having a balanced view. And in these meetings you are leading people on the start of the transformation journey as they are telling you where we need to go and how to get there.
All the while I'm collecting data and after the meetings filling in my spreadsheet row by row with new elements and it all starts to look like a patchwork quilt. I look for synergies to bring topics together. Gaps highlight areas that need more info. Some topics trigger other topics.
This will take some time and refinement.
Encouraging people to think transformationally and not tactically takes trust and avoid a ‘this is how we’ve always done it’ mindset. Getting people to think enterprise wide and not have a silo'd mindset is key. Constantly checking and challenging assumptions. Validating and rechecking data. Getting the sign off. There is a lot going on here. It will take time.
Once it's complete the ToM can be used to clarify and align and to check and validate with key stakeholders (1) that this transformation reflects what they had in mind and make adjustments where needed, (2) sign off the case for change (3) prioritise most pressing areas to focus on and (4) start the process of engaging people in the transformation journey (hearts and minds).
A ToM should be version controlled. There will be changes to it, it’s very unlikely to be set in stone. Just make sure you apply some simple change control to highlight and communicate changes and ensure everyone is clear on what is changing. This will ensure everyone continues to be engaged in building the same vision for the future and people stay on the transformation journey together.
A ToM takes time. It needs to. It's got to!
Transforming a business isn't easy. We all know that infamous transformation failure rate right? It should never be skipped. It's so important and will pay dividends. Once you've created a ToM and it's signed off, you can then move on to setting up a transformation programme - which I'll cover in a post next time.
Here is Tolkien's 'map' of Modor that he used to map out the Lord of the Rings.