How can you architect a transformation for both business and people?

A majority (82%) of leaders see frequent market disruptions¹, yet 67% faced underperforming transformations² — what is the secret to success?

In today's era of constant change, achieving sustainable growth depends on the ability to adapt and meet evolving consumer demands and behaviors, which are changing at an exceptional pace. That's why we need to rethink how we transform our organizations. Instead of solely trying to survive turbulent times, is it possible to thrive while simultaneously delivering value to both customers and employees?

By embracing innovative solutions and new ways of transforming business that prioritize customer and employee satisfaction, businesses can unlock new pathways to success and stay agile despite ever-evolving market demands. It's time for a paradigm shift — a transformation that revolves around Humans@Center, Technology@Speed and Innovation@Scale.

In this article, we explore the components that increase the transformative power of technology in the retail industry, uncovering insights and best practices that pave the way for successful technology and business transformations.

1. Unlocking the power of people with Humans@Center
2. Prioritizing Technology@Speed while handling unpredictability
3. Shaping a transformation journey that allows for Innovation@Scale
4. Unlocking transformational success
5. How EY teams can help you increase transformation success

Unlocking the power of people with Humans@Center

A successful transformation relies on people as catalysts for change. Too often, organizations overlook this critical human component, missing out on opportunities to unlock significant value. To achieve desired outcomes, organizations must prioritize people empowerment and actively cultivate a positive change experience.

Emotions play a significant role in any transformation, and their mismanagement can leave a lasting impact, shaping how individuals perceive themselves within their organizations. Emotions can either make or break a transformation, underscoring the need to prioritize managing the emotional journey to ensure success. By understanding the heritage and emotions of previous transformations, influential individuals can be identified and engaged early in the process, amplifying their impact.

Research reveals that inadequate sponsorship, lack of leadership alignment and a poorly articulated vision are among the leading causes of transformation failure. Misalignment in vision can lead to confusion, making it difficult for leaders to steer the transformation course. Investing in leadership development, purposeful vision and people empowerment becomes key to driving engagement and transformation. Moreover, the human aspects of motivation, incentives and skills stand as critical drivers for transformation success.

Prioritizing Technology@Speed while handling unpredictability

In today’s digital age, transformations almost always involve the adaption and delivery of new technologies. Technology will play a critical role in enabling and accelerating transformations by automating processes, enhancing communication, streamlining operations and even improving collaboration. For the retail industry, the need for speed is especially pronounced as they handle a number of changing consumer demands.

In the midst of a rapidly changing business environment, speed is a critical component for successful transformations. Organizations that venture beyond their comfort zones while focusing on smaller initiatives can explore new possibilities and deliver fast results. Acknowledging potential setbacks is important and adopting a problem-solving mindset that prioritizes learning from mistakes can help steer the transformation process forward.

To achieve successful transformation outcomes, organizations should work iteratively to minimize resource inefficiencies. Delivering incremental value that is measurable and focusing on quick wins and early proof points that de-risk the process can fuel transformational progress. Shifting focus from growth metrics to bottom-line metrics over time is crucial, avoiding "phase-gate" milestones that may give a false sense of progress but do not drive progress. By incorporating these strategies, organizations can ride any challenge to success.

Shaping a transformation journey that allows for Innovation@Scale

In the pursuit of transformation, it is essential to recognize that the journey is just as important, if not more important, than the ultimate outcome. A successful transformation is not a short sprint, but rather a series of marathons that require an enduring, sustainable effort fueled by an organized and motivated team and a dynamic approach that allows for recovery and innovation.

Reflection plays a vital role throughout this transformative journey. At each step, maintaining a clear solution intent while exploring various problem-solving methods is crucial. Rather than being fixated on a predetermined solution, organizations must remain flexible and adapt, gradually improving and refining the most suitable solution during the transformation.

Scaling up can be challenging and time-consuming, which is why focusing on smaller, more manageable components that work can be a viable alternative. Starting small and iterating allows organizations to quickly test and refine their approaches, creating a solid foundation for future growth. By prioritizing incremental, sustainable growth, organizations can foster a culture of innovation and pave the way for successful transformations.

How EY teams can help you increase transformation success

EY professionals take a customized approach to technology transformations in the retail industry, adapting to the evolving business landscape and delivering maximum value to clients. With years of experience, EY teams bring the governance, tools and delivery setup necessary to work faster and smarter, handling the unknown and building momentum for the long term.

EY professionals prioritize understanding clients' business context and becoming a true partner, working hand-in-hand to flexibly adapt to challenges and embrace the unknown. We challenge our clients to help ensure they're moving forward in the most effective way possible, every step of the way.