Managing Resources in Business Building and Transformation

Business building and transformation projects can gobble up a lot of your resources. A good way to manage this process is to strategically prioritize your efforts based on your team, your culture, and your appetite for risk. Finding the correct balance will help you drive meaningful change without disrupting your business.

The process of business building or transforming an existing operation often involves investing in new technology, training, and potentially, restructuring teams. It can also require a shift in strategy, which might drive new marketing campaigns, product development, or entering new markets. Each of these can create demands on time, money, and human capital.

However, not all businesses have the same level of resources at their disposal. A large multi-plant corporation may have the financial and bench strength to manage multiple transformation initiatives simultaneously. In contrast, a small to medium-sized business may need to be more selective, focusing on a few key areas where it can make the most impact. Think about the low effort – maximum impact matrix.

One of the most critical factors in determining how to prioritize transformation efforts is your team. Consider the strengths, weaknesses, and capacity of your workforce. For example, if your team excels in customer service but lacks technical expertise, it might make sense to prioritize initiatives that enhance customer experience rather than those requiring advanced technological skills — at least initially. Go with your strengths.

Moreover, involving your team in the prioritization process can foster a sense of ownership and engagement. When employees are part of the decision-making process, they are more likely to be committed to the transformation’s success. They can also provide valuable insights into what areas need the most attention and what initiatives are likely to face resistance. Without some level of buy-in, your efforts may face severe headwinds.

Company culture plays a significant role in how well business transformation efforts are received and implemented. A company with a culture that values innovation and continuous improvement may be more receptive to radical changes. In contrast, a company with a more conservative or risk-averse culture may struggle with rapid or extensive transformation.

When prioritizing transformation efforts, it’s important to consider how these changes will align with your existing culture. Introducing too many changes too quickly can create resistance and lead to burnout. Instead, you might consider a phased approach that allows your culture to evolve naturally over time. This can involve starting with small, manageable projects that demonstrate the benefits of transformation, gradually building support for more significant changes. You can build off of the ‘wins’ you experience.

Every business has a different tolerance for risk. Some companies thrive on taking bold risks, while others prefer a more cautious approach. Understanding your, and your organization’s risk appetite is crucial in prioritizing business transformation efforts.

For companies with a high-risk tolerance, it may be appropriate to pursue aggressive strategies such as entering new markets or launching disruptive products. However, for more risk-averse organizations, it might be better to focus on optimizing existing processes, enhancing customer relationships, or incremental innovation. These strategies still contribute to growth and transformation but with a lower risk profile, and at a different pace.

Another important consideration is the balance between short-term and long-term objectives. Transformation efforts often require a long-term vision, but they also need to deliver short-term wins to maintain momentum and support.

For example, if a company is looking to overhaul its entire IT infrastructure, it could break down the project into smaller phases. The first phase could focus on updating critical systems that will immediately improve efficiency, followed by subsequent phases that tackle more complex or less urgent areas. This approach allows the company to see the benefits of transformation early on, which can justify further investments and encourage broader adoption across the organization. Again, think about building off of your ‘wins.’

Finally, prioritizing business transformation efforts is not a one-time task. It requires continuous evaluation and adaptation and really becomes part of the fabric of your business. As projects progress, new challenges and opportunities will arise, requiring adjustments to your priorities. Regularly reviewing the impact of your initiatives, soliciting feedback from your team, and staying attuned to changes in the market or industry will help ensure that your transformation efforts remain aligned with your business goals and resource capabilities.

Successfully operating a business in a fast-paced industry forces you to continuously evolve and adapt to new challenges and opportunities. And remember, your potential is not a fixed destination but a dynamic path of growth and development – take on these initiatives with that in mind. Enjoy the ride!

Mike Philie can help validate what’s working and what may need to change in your business. Changing the trajectory of a business is difficult to do while simultaneously operating the core competencies. Mike provides strategy and insight to ambitious owners and CEOs in the Graphic Communications Industry by providing direct and realistic advice and insight, not being afraid to voice the unpopular opinion and helping leaders navigate change through a common sense and practical approach. Learn more at www.philiegroup.com, LinkedIn or email at mphilie@philiegroup.com.