Once a business undergoes a transformation, it is set on a path for growth. The ability to measure that growth improves an organization’s probability of success. CEO Edwin Bosso shares four important measurements to help leaders keep their pulse on transformational growth
When you reach a goal, it’s a satisfying experience. Achieving it takes commitment, sacrifice, time and, most often, some growing pains.
However, just reaching the goal is not the bottom line. How do you grow from the work and preparation you put into trying to reach that goal? And it even goes a step further than that. How do you measure the growth that reaching that goal brought about?
Once a business undergoes a transformation, it is set on a path for growth. The ability to measure that growth improves an organization’s probability of success.
Is transformational growth measured by the Return on Investment (ROI) that the transformation produces? While ROI is obviously important, it only reflects the financial costs and gains of the transformation program. There are much more than financials to track in order to measure transformational growth.
The ability to measure and see continued progress from a transformation is even more important. It shows that an organization has “learned to fish” rather than simply been given a fish and is set up for growth.
Here are four ways to measure the growth of a business transformation:
Keep an eye on Financials for Up to Three Years
The first way to gauge the growth of a business transformation is through the financial gains. Tracking financial benefits is vital in any transformation. The financial results of the transformation program should be monitored for at least 18 months and should continue for up to three years following a transformation. Financial trends during this period will provide evidence of growth.
Track Your New Management Systems
A good tool for measuring management system adoption is the System Implementation Schedule (SIS). SIS focuses on the adoption of the management system elements. Each report, meeting and document involving management is periodically audited and is rated on a scale from zero to five.
Here are the scale ratings and their meaning:
- Zero: A need for the design of the system has been identified but has not been agreed upon with the client
- One: The system has been designed and developed and is ready to be installed
- Two: The system/process has been installed and the users have been trained in its usage
- Three: There is passive compliance as a result of continual follow-up and the system elements will not be used
- Four: Early adopters see the benefits of the system/process elements and they are being used, resulting in desired quality output. Key Points of Interest (KPIs) are also showing improvement and key users see the reasons and benefits and their roles in the process
- Five: The “new” systems have been implemented and the client has full ownership of the process elements.
Find Growth Through Work Processes
Growth should also be measured through a Process Implementation Schedule (PIS). This framework measures the adoption of new work processes put in place during a transformation. As a part of this, an effective post-transformation growth audit should include at least the following:
- A financial results tracker that lets a company know that it can deliver on the financials
- A process implementation schedule that reveals the success of an organization’s processes and whether they are on a path for continued improvement
- A system implementation status that shows whether the business is being managed properly.
Additionally, an organization can develop an assessment framework for new technology adoption if it was part of the transformation scope. Organizations will have different tools to measure the performance of processes and systems. The SIS and PRIS are just several ways to do this.
The key point is to develop a 360-degree view of growth that keeps you focused on more than just the sustainability of financial results. The path to transformational growth is through the sustained improvement of an organization’s effectiveness pillars.
Look at Maturity to Measure Your Growth
A maturity model score reveals an organization’s progress being made on its strategic journey. This helps to assess the current state of an organization against the strategic journey that can extend past the goals of the current transformation.
A maturity model score at the end of a transformation establishes a baseline. It is also useful to compare divisions or to benchmark against competitors. A detailed periodic audit places an organization at a maturity level.
These four important measurements help leaders keep their pulse on transformational growth, which ensures that the success of a transformation can be sustained.