As the market grows increasingly complex and customer expectations constantly evolve, businesses must navigate transformational changes, otherwise known as digital transformation. These efforts impact the entire organisation, introducing new technologies, altering existing business models, and necessitating cultural adjustments.
Guiding an organisation through such fundamental changes is a challenging task, and Chief Transformation Officers (CTOs) often find themselves at the helm, steering the ship through these turbulent waters. It’s not just about aligning financial strategies with the transformation plan or ensuring cost savings; it’s about reshaping old working methods into new, more efficient, agile systems.
Yet, successful transformations aren’t solely about processes, tools or metrics; they’re human. They require a focus on the workforce, the individuals who will be adopting new business processes and technologies, those who will be leading the transformation work, and the stakeholders who will be affected by these changes.
In the update of this blog for 2024, we had the privilege of interviewing Alan Guthrie, a veteran executive with over 30 years of global experience who currently holds the pivotal roles of Chief Transformation Officer and Chief Information Officer at Calderys. With a track record spanning 34 countries and diverse industries, Guthrie brings expertise in business transformations, from operational enhancements to technology implementations.
The starting point of any transformation journey is a vision – a compelling and precise representation of the future. A well-articulated vision is the north star, guiding the entire organisation towards its new state. It presents an overview of the new business practices, models and technologies, aligns employees with the transformation goals, and creates a sense of purpose and direction.
In our conversation, Guthrie shared his insight into crafting a vision that resonates with diverse stakeholders.
It begins by clearly understanding the ‘why’ behind the vision in three concise points, emphasising its importance for the organisation. The next crucial step is breaking down the high-level vision into practical implications for different functional leaders, regional leaders, and teams. This involves engaging in meaningful discussions and meetings with each stakeholder group to ascertain how the vision translates into their day-to-day responsibilities and objectives. It’s about ensuring alignment with the executive leadership view, this needs to go beyond a set of nice words on a slide and must be a truly meaningful guide that ties back seamlessly from individual contributions up to the top-level vision.
Alan Guthrie
A powerful vision is not just about organisational goals. It goes a step further to address individual journeys, explaining how each team and team member contributes to the change and how they stand to benefit from it. It provides a holistic picture of what the organisation will look like post-transformation and how the workforce fits into this new business landscape. This aspect is particularly significant in today’s evolving market environment, where companies like Netflix have drastically reshaped their business models and, in turn, their employees’ roles.
Communicating this vision effectively is an art in itself. CTOs must craft and share personal narratives, address individual concerns, and elucidate how the transformation aligns with employees’ career goals and personal growth. They need to be transparent about the challenges that lie ahead, the efforts required, and the support systems in place to help navigate the transformation process.
Another imperative for success, according to Guthrie, is to address the scarcity of proficient business change leaders, as they are crucial for effective communication throughout the transformation.
Business change management is a prominent skill challenge organisations face today. Many companies have HR and communications teams yet lack individuals experienced in business change to support leaders effectively through transformation processes. Finding skilled professionals who can collaborate with regional leaders, site managers, and other key stakeholders to communicate upcoming changes and empower leaders to convey these messages can be daunting. The scarcity of proficient business change leaders in the market makes it even more challenging for organisations to navigate through transformations successfully.
Alan Guthrie
Successful transformation programs must articulate a vision to stakeholders, such as investors, customers, workers, and partners. You must explain how the transformation aligns with business growth and profitability goals, prepares the organisation to meet future market demands and consumer behaviour trends, and addresses broader concerns like sustainability and ESG criteria.
So, establishing a relatable and clear vision underpinned by specialist business change management expertise creates an environment where every organisation member understands the purpose of the transformation, the benefits it brings, and their role in it.
Transformation is a journey, not a destination, and a well-articulated vision serves as a robust roadmap for this journey.
In any organisational transformation, effective leadership plays a pivotal role. However, the leadership required for such a scenario goes beyond traditional authoritarian models; it calls for a more inclusive and empathetic style. Leaders, especially CTOs, who play a crucial role in driving business transformations, should strive to understand their teams’ perspectives, concerns, and aspirations. This understanding enables them to align the transformation initiatives with the workforce’s needs and expectations, thereby enhancing their commitment and motivation towards the transformation efforts.
The essence of inclusive leadership lies in empathising with the workforce’s experiences and offering a supportive environment where every voice is heard, valued, and factored into the decision-making process. This inclusive approach fosters a sense of belonging and improves the overall morale and productivity of the team, making it an indispensable aspect of successful transformations.
Transitions are rarely smooth sailing. The process often involves significant emotional turbulence as the workforce grapples with new ways of working, altered roles, and changing expectations.
Guthrie uses a vivid analogy of the transformation team he operates.
When you use the term “turbulence,” it’s like we’re the guiding force amid it all. Our role is comparable to air traffic controllers, who ensure that planes are set for take-off. Essentially, the pilots put in the groundwork, delving into the business case and aligning it with the broader transformation context. Our first task is to review the meticulous pre-flight checklist and ensure the pilots are all set for take-off.
Once the planes are airborne, our job becomes twofold. We again step into the shoes of air traffic control, diligently managing the planes in the sky to prevent any mid-air collisions. Our gaze extends forward, assessing the weather and steering clear of turbulence. It’s a continuous collaboration with each pilot – in our case, the business leaders and project managers. It’s not a passive role, much like air traffic control, which doesn’t merely report; we’re proactive, hands-on, ensuring a smooth journey.
Finally, as the planes need to land, we enter the critical sequencing phase. Just like we can’t have all planes landing simultaneously, we consider the impacts – people, function, and customers. Landing preparation is crucial. Once they’ve touched down, it’s about ensuring they reach their destination safely – akin to evaluating if they’ve accomplished their goals, realised benefits, and provided a positive customer experience. That’s the essence of our role – envisioning the future, akin to an air traffic controller, guiding the planes proactively to their intended destination.”
It’s crucial for CTOs to be transparent and acknowledge the challenges and uncertainties associated with transformations. They should also be prepared to handle scepticism and resistance, which are common reactions to change. By providing reassurances, addressing fears, and constantly engaging with the team, CTOs can guide the organisation through the turbulent phase of transformation and instil confidence in the new vision.
Alan Guthrie
The task is on the CTO to anticipate this turbulence and devise strategies to manage it effectively.
CTOs must be transparent and acknowledge the challenges and uncertainties associated with transformations. They should also be prepared to handle scepticism and resistance, as these are common reactions to change. By providing reassurances, addressing fears, and constantly engaging with the team, CTOs can guide the organisation through the turbulent transformation phase and instil confidence in the new vision.
A supportive work environment is crucial for the successful implementation of business transformations. One key component of creating such an environment is active listening. CTOs must ensure they are open to all team members’ feedback, concerns, and suggestions. They should encourage open conversations about the transformation process, empathise with the workforce’s challenges, and adopt a solution-oriented approach to address these concerns.
By fostering an environment where employees feel safe to voice their opinions and concerns, CTOs empower them to contrib
Trust plays a pivotal role in any transformation. The workforce must trust the leadership’s vision and ability to guide the organisation towards successful transformation. This trust stems from transparency, honesty, and consistency in actions.
CTOs must be transparent about the changes and their implications on the organisation and its people. They need to communicate how the transformation aligns with the long-term business goals, how it will impact individual roles, and how the organisation plans to support the workforce through this change. By maintaining a consistent and open line of communication, CTOs can foster trust, enhancing team commitment and drive towards the transformation objectives.
As part of the transformation journey, organisations must embrace a culture of innovation. CTOs should encourage their teams to think outside the box, challenge the status quo, and experiment with new ideas and working methods. Equally essential is to provide a safe space for these experiments. A ‘fail fast’ approach can be adopted, where teams are encouraged to experiment, learn from failures, iterate, and improve. This not only promotes innovation but also enhances agility and resilience.
Guthrie articulates the role of innovation in transformation, stating,
Innovation is about implementing new ways of working and challenging the status quo. It prompts us to look beyond traditional methods, fostering progress and growth. Just like considering the earth’s curvature can reveal faster routes in air traffic control, innovation prompts us to look beyond traditional methods and embrace change for improved outcomes. By embracing innovation and challenging conventional practices, we pave the way for progress and growth in our lives.
Alan Guthrie
While fostering a culture of innovation, managing expectations is essential. CTOs must balance the drive for innovation with the need to maintain operational excellence and meet macro performance targets. Clear boundaries around the scope of experimentation should be established, and the idea that innovation isn’t open-ended should be communicated effectively. CTOs must clearly understand how innovative efforts contribute to the organisation’s strategic goals.
Guthrie emphasises understanding the strategic importance of initiatives.
To ensure the correct budget and resource support within an organisation, it all boils down to understanding the strategic importance of the “why.” If a particular initiative cannot be justified as one of the top three priorities for the organisation, it should ring “alarm bells’. On the other hand, if it is clear that this initiative is among the top three priorities, then the focus shifts to what activities can be deprioritised to allocate resources effectively. Making tough decisions about what to stop doing becomes crucial. This process ensures that resources are allocated efficiently and effectively towards achieving strategic objectives.
Alan Guthrie
Technology plays a pivotal role in driving business transformations. However, the successful deployment of new technologies relies heavily on their acceptance and effective use by the workforce.
When strategically integrating technology throughout an organisation, Guthrie stresses the importance of internal business change capability.
Embedding experts early in the process ensures a comprehensive understanding of the impact on individuals within the company. Involving business change professionals from the outset mitigates challenges and ensures successful integration. Guthrie continues,
“Sometimes, projects can fall into the trap of oversimplifying the importance of communication and training plans by assuming that merely informing people of changes and providing training will suffice. However, this approach often results in rework and resistance, ultimately impeding the realisation of benefits. Recognising this, investing upfront in experienced business change professionals seamlessly integrated into programs becomes crucial. These professionals play a pivotal role in comprehending the complex impacts on individuals, customers, roles, user experience, policy adjustments, organisational transitions, and process modifications. Projects are better equipped to navigate change effectively and mitigate potential challenges by involving these experts from the outset.
Alan Guthrie
Alongside technology integration, CTOs must also focus on building the digital literacy of their teams. This involves identifying skill gaps, promoting up-skilling and re-skilling initiatives, and facilitating continuous learning. By equipping the workforce with the necessary digital skills, CTOs can help them adapt to the new technologies and leverage these tools to drive operational efficiency and effectiveness.
Finally, we asked Guthrie about data and its importance in any transformation project:
Ensuring 100% data quality is fundamental. It’s akin to building a house on a rock-solid foundation, In a data-driven world, reliable and accurate data is essential for informed decision-making. Unfortunately, many organisations struggle with maintaining high-quality data due to various factors, such as a lack of proper processes or challenges arising from acquisitions. Address these issues and prioritise data integrity before considering any automation, AI, or advanced analytics efforts. In today’s data-driven world, the importance of reliable and accurate data cannot be overstated.
Alan Guthrie
The road to transformation is rarely straightforward, but with a strategic and human-centred approach, CTOs can navigate this journey successfully. They can foster a culture of innovation, integrate technologies that drive efficiency, promote a supportive work environment, and lead with an inclusive and empathetic leadership style. As organisations brave this path of transformation, the collective efforts of all stakeholders, led by an effective CTO, can make this journey successful and rewarding.
At The Consultancy Group, we understand that successful transformations rely on having the right talent on board. Our transformation recruitment services are designed to help organisations find leaders who can steer change, thrive in a dynamic environment, and drive long-term success. We provide the best candidates with the technical expertise, vision and soft skills required to lead your organisation through fundamental changes.
If you are a CTO looking to drive a successful transformation or an organisation seeking the right talent to help you on your transformation journey, we would love to hear from you.
Get in touch with us today to learn more about how our transformation recruitment services can assist you in achieving your transformation goals.
