5 ways to measure business change and transformation
Tried and tested strategies for tracking business change and transformation
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Emerging and evolving technology grabs many of the business change headlines, but change management is the unsung hero of business transformation. All too often, change initiatives fail because of several factors including resistance to change, poor communication and insufficient planning.
A key element of managing change is measuring it – using tried and tested strategies to illuminate and track change and transformation progress. This not only helps to gauge how well change initiatives are performing, but also provides opportunities to address and correct issues to prevent them from derailing endeavors.
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“Business change initiatives must be delivered in two axes,” Tina Lyngdoh, COO and co-founder of StreamAlive, tells PEX Network. “One axis is that they are delivered on time, on budget and within the scope of the projects. The other axis is that they lead to happier employees, satisfied customers and better processes.” Each of these objectives requires fine-tuned methods of measurement, continuous iteration and a balancing act, Lyngdoh says. “We must clearly define the benefits and objectives of each change initiative and work towards achieving them.”
Here are five strategies for measuring business change and transformation initiatives.
1. Assess operational efficiency
Michael Schmied, senior financial analyst at Kredite Schweiz, emphasizes the importance of assessing operational efficiency improvements to measure change and transformation success. “In my experience, a successful business change often leads to enhanced operational efficiency.”
This can be measured by tracking key performance indicators (KPIs) such as process cycle time, cost per transaction or productivity rates, he adds. By comparing these metrics before and after the change, businesses can quantify the impact of the change on operational efficiency.
If the goal is to increase revenue, tracking metrics like sales growth, customer acquisition and retention rates become vital, says Jon Morgan, CEO of Venture Smarter. “By setting specific targets, businesses can assess their performance and make data-driven decisions to refine their strategies.”
READ: Change management – the unsung hero of business transformation
2. Gauge employee engagement and behaviors
Engaged employees are the heartbeat of effective change. The more engaged and aligned workers are, the more responsible, flexible and collaborative they will be. This leads to more successful change and transformation efforts. Gauging how engaged workers are during and after any change initiative is key.
“We recently augmented many of our features with generative AI, which encompassed user onboarding, user experience and user conversions,” says Lyngdoh. The firm aligned every employee with the goals and objectives from a very early stage and continually engaged them with the process. “After we launched the feature, we measured onboarding data, product usage data and conversions data and shared them regularly with the team. Every member of the team took pride in the success of the initiative and invested in iterating for better processes.”
Using surveys and feedback mechanisms to gauge sentiments to ensure alignment and mitigate resistance is key, adds Kim-Adele Randall, CEO of Authentic Achievements. “Behavioral changes also offer valuable insights. Witnessing employees embrace new processes and technologies signifies deeper integration. Participation in training and development initiatives reflects commitment and adaptability.”
READ: Understanding the psychological dynamics in change management
3. Track your current location and desired destination
“Thinking about change management reminds me of navigating with a GPS,” says Ashok Reddy, CEO of KX. Knowing your current location and desired destination is essential, but so is the ability to adapt to unexpected changes along the route. “This adaptability is critical and illustrates why maintaining a feedback loop is vital for continuous learning and ensuring everyone is aligned during the journey.”
Effective change management is fundamentally about bridging the gap between the current state and the desired future state of an organization, he adds. “To navigate this journey, it’s crucial that both the business and development sides of a company work seamlessly together, akin to the synergy observed in successful DevOps activities. Change cannot occur in isolation; hence, collaboration and ongoing communication are paramount.”
READ: 15 elements of effective change management
4. Evaluate customer feedback and satisfaction
Along with tracking employee engagement, evaluate customer feedback and satisfaction when embarking on business change and transformation. “After all, the ultimate goal of any business change is to better serve the customers,” says Morgan. By analyzing customer satisfaction scores, net promoter scores or even social media sentiment, businesses can assess how well the change has been received by the customers, he adds.
READ: 9 free change management training courses for business leaders
5. Use AI to predict change initiative outcomes
Thanks to the evolving sophistication of AI technology, it has become possible to measure the outcome of business change endeavors before they even start. “In today’s digital age, AI acts as a predictive technology that can significantly enhance the outcomes of change initiatives,” says Reddy. “By serving as a co-pilot in these initiatives, AI can analyze vast amounts of data to forecast trends and potential roadblocks, providing leaders with actionable insights to make informed decisions.”
This predictive capacity of AI can be crucial for measuring the effectiveness of change initiatives, as it allows businesses to not only see the direct impacts on revenue and growth but also to evaluate improvements in efficiency, productivity and risk management. “Each of these areas can be meticulously tracked and measured to assess the true value brought about by the change, ensuring that every step taken is a calculated one with clear, anticipated benefits,” Reddy adds.
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