Managing Business Transformation
BUSINESS CHALLENGE AND TRANSFORMATION
THE JAKARTA CONSULTING GROUP (JCG) has developed a detailed, comprehensive and integrated model of business transformation to assist the company to face business challenges.
Business transformation is a process of change that requires cooperation in order to gain a better position to answer and face business challenges and changing business environment accurately, as well as fulfilling new internal demands. Change is conducted holistically and continually across paradigms, perspectives, companys policy, business strategy, corporate cultures, as well as organizations attitude and capability.
JCG FRAMEWORK OF BUSINESS TRANSFORMATION
Served as the paradigm and the outline in an integrated business transformation, The JCG has developed the Framework of Business Transformation that consists of 2 elements; the JCG Value Chain of Business Transformation that comprises the change phases in creating values, and the JCG Implementation Process of Business Transformation that comprises the steps in executing a well-planned business.
JCG VALUE CHAIN OF BUSINESS TRANSFORMATION COMPRISES OF FIVE STEPS
First: visioning, strategic positioning, and corporate strategy development. The aim and the purpose of the company are established, as well as to positioned the company into a more competitive position. During this phase, the basis of corporate strategy is established as a reference for business plan development.
Second: improvement of organizational capability to develop competent and optimal organization.
Third: development of human resources to perform basic changes in human resource system and management.
Fourth: stability in the corporate cultures is required so that the whole strength of the corporate can be gathered, bounded to be one and directed toward the intended target.
Fifth: achieving companys target and creating values. This is aimed to apply the best business practice in executing business strategy and operational activity to create high values.
FRAMEWORK OF BUSINESS TRANSFORMATION
In implementing business transformation, every phase must be completed in orderly fashion. The JCG Implementation Process of Business Transformation can be used during the implementation just as depicted as follows:
It starts from the visioning and the positioning with a scenario planning method. The purpose is to identify every possible future instance, thus business and operational policies can be well-established early.
The next step is to improve the organizational capability, which consists of designing corporate strategy and business program that are more focused and integrated; the business program with a clear and challenging performance assessment, and the ability to implement the strategy into reality.
In effort to develop the human resources, an integrated concept of human resource management must be established and it must always refer to Vision, Mission, Values and the corporate business strategy. Review of the human resource system is integrated; starting from human resource planning, recruitment, training and career planning, performance appraisal, compensation, and redeployment planning.
Furthermore, establishing the corporate cultures is a vital factor because the cultures become the intrinsic self of the corporate behavior, and its members are the promoters in facing business challenges and one of the crucial elements in creating image and reputation of the company.
The last step is to achieve the companys target and create values. This step requires an operational implementation that follows cost-control management, accountability and the Standard Operating Procedures (SOP) that is applied consistently. As a reference point for assessing the organizations success, the JCG Transformational Scorecard may be used, which consists of 5 groups: the financial performance score, the level of customers satisfaction, the HR performance and learning ability, the performance in the organizational system, and the operational performance.
All steps above can be done efficiently and effectively with help from information technology (IT) as a part of the process and the business enablers. The two elements of IT, which are information and technology, are packed properly to give more positive values throughout the working process. Information can be managed better, and human error can be reduced.
BUSINESS TRANSFORMATION AS A RESPONSE TO CHALLENGES
A company that undergoes a fundamental, holistic and continuous business transformation gains many benefits, such as: able to focus in a more promising business field (business repositioning), to create a stronger antibody and competitive ability, to improve organizational capability and obtain bigger support, to make higher values and financial outcomes as well as to obtain a better opportunity to become a world class company.
Only those companies who are able to transform themselves when theyre facing future business challenges will survive. It is much better that you initiate the change now before the external competition changes your company (by force). The JCG as the expert in corporate management who positions itself as the PARTNER IN CHANGE is the right and trusted partner during the transformation program in the organization.