Target transformation in uncertain economic times

Greek mythology gave us the story of the legendary King Midas, the leader whose very touch could transform items into gold. His lesson was, of course, be careful what you wish for, because his food, water, and even his daughter were gilded before his very eyes.

The pandemic has wreaked havoc on many shops, and the main wish of most manufacturers is new business. To win this new work, though, shops might have to change their day-to-day operations to meet new business conditions and to develop new clients. This means transforming your company into a better version of itself. A version 2.0.

As many metalworking shops start looking for these opportunities, one expert says that launching a transformation process begins with setting the right scope.

“The scope is the description of the transformation’s area of focus, and in most cases the scope is defined as a combination of categories. Examples are functional -- sales, logistics, production, operations and organizational -- leadership, technology, processes, management systems. It’s most important that the scope is defined to address the challenges at hand and avoid distractions or wasted resources,” said Edwin Bosso, author of 6,000 Dreams: The Leader’s Guide to a Successful Business Transformation Journey.

Bosso has five tips for companies to set the right scope for their transformation:

1. Articulate the problem. Defining the problem begins with a well-crafted and understood statement of the problem that the organization is trying to solve.

2. List the ways. Listing all possible resolutions is a great way to test the definition of the problem. It requires well-thought-out questions and a thorough analysis of the options.

3. Identify the means. This step tests an organization’s capabilities and is made up of all internal means of problem-solving, including all staff and technical assets.

4. Capture the enablers. Once enablers are defined, it is important to capture the various ways in which each enabler supports the transformation program.

5. Explore synergies and interdependencies. This step focuses on understanding the overlaps, synergy opportunities, and constraints caused by ongoing initiatives. Meetings should be held with each team, and it’s important to understand that each may be protective of its objective, ways, and means.

Transforming your business to enable it to reach new clients is one of the best ways to survive in a difficult economy. As usual, waste is the enemy, so setting transformation targets using the least amount of time and resources is important.

New industry segments and geographic regions should be targeted. Transforming your business with a goal of being able to capitalize on these new business opportunities is a good first step.