This article is a natural extension of a prior post, Leadership by Omission: The Hidden Barrier to Digital Transformation. Here, I’ve focused on four businesses where leadership played a key role in alignment, people, and developing agility.
Business transformation is not merely a buzzword—it’s a vital evolution for organizations striving to stay competitive in rapidly changing markets. Over the years, companies like Emirates NBD, Goldman Sachs, and Petrosea have embraced transformative changes that propelled them forward. Through examining these transformations, we uncover three key lessons that shaped their success. These lessons go beyond operational tweaks and encompass deeper strategic realignments that create lasting impact.
Lesson 1: Align Transformation with a Clear Strategic Objective
What They Did: Successful transformations began with a clear understanding of “why.” Emirates NBD embarked on its transformation journey to enhance customer experience through advanced analytics and AI. Similarly, Goldman Sachs launched Marcus to meet emerging consumer needs by delivering a streamlined, digital-first experience. Both organizations started with specific, measurable goals and designed their transformation around these objectives.
The Impact: When transformation initiatives are directly tied to strategic goals, they become more than just technology upgrades or internal process improvements. In the case of Goldman Sachs, the Marcus initiative led to rapid growth, capturing $92 billion in deposits within a short span of four years. This clearly illustrates how aligning transformation with a strategic objective provides sharp focus, energizes teams, and ensures that every action is purposeful, leading to real, measurable growth.
A strategic anchor helps organizations stay committed even when challenges arise. By ensuring that everyone understands why transformation is necessary, companies can foster greater buy-in and make it easier for employees to adapt to change.
Lesson 2: Empower Employees and Build Capabilities
What They Did: Petrosea, a mining company based in Indonesia, found that empowering employees through digital tools was critical to its success. The company introduced AI-driven predictive maintenance and reskilled its workers to adapt to a changing landscape. At RXR Realty, investing in a digital lab allowed the company to swiftly pivot its operations during the pandemic, leveraging technology to create a more responsive and resilient workforce.
The Impact: By equipping employees with new skills and technologies, these organizations managed to not only navigate challenges but also unlock greater potential. Petrosea’s emphasis on worker reskilling was crucial to making the most of its digital tools, transforming a struggling operation into one of its most profitable units in less than a year. RXR Realty’s app-based solution for building occupancy and health monitoring helped tenants feel safer, accelerating their return to office spaces.
It is “an existential threat” for the company. “We’re not the biggest player in the industry, so that left us quite vulnerable,” he says. “If we were to survive, the status quo was not an option.”
President Director Hanifa Indradjaya, Petrosea
Successful transformation is, therefore, as much about people as it is about technology. Employee empowerment through proper training, access to relevant information, and clear communication can drive transformative outcomes and make new initiatives stick.
Lesson 3: Foster Agility to Adapt Quickly to Market Changes
What They Did: Flexibility and adaptability have become non-negotiable in today’s world. Organizations like Petrosea and Levi Strauss thrived by responding to changing market conditions with agility. Levi Strauss, for instance, quickly shifted its supply chain during the pandemic to fulfill online orders from physical stores. Petrosea restructured its business from focusing solely on coal to a diversified mix that included metals crucial to future electrification efforts.
The Impact: The result of embracing agility is both resilience and opportunity. Levi Strauss was able to meet sudden surges in demand and keep customers happy during an unpredictable time. Petrosea’s ability to pivot from coal towards future-focused minerals has ensured its place as a relevant player in the mining industry, giving it a sustainable growth trajectory.
Adaptability allows organizations to thrive amid disruption—companies that can change direction rapidly are better equipped to seize new opportunities and mitigate risks. This lesson underscores the importance of having agile leadership and flexible processes in place.
Key Takeaways for Your Transformation Journey
- Anchor Every Action to Strategic Objectives: Start with clear, well-defined goals. Transformation must always be about more than “keeping up”; it should be designed to deliver against critical strategic objectives that drive value.
- Invest in People: Transformations don’t happen in a vacuum—they require the collective effort of everyone in the organization. Investing in training and digital tools ensures employees are empowered to drive and sustain change.
- Cultivate Agility: In an era where market dynamics shift overnight, the ability to be flexible and adaptive is crucial. Agility is what allows companies to turn disruption into opportunity.
In summary, business transformation requires a holistic approach that not only addresses technology but also people and processes. By anchoring transformation to strategic goals, investing in employee capabilities, and fostering an agile mindset, companies can make strides in today’s fast-paced business environment. These lessons offer a practical guide for organizations looking to navigate the complexities of change, drawing inspiration from successful cases around the world.
Transformation is hard, but the rewards—sustainable growth, resilience, and improved operational performance—make it well worth the journey.