The perceived differences and/or even similarities between business change and transformation are sometimes the subject of heated discussion, but it can occasionally be helpful to pause and consider the change from a different angle. Specifically, to see change as a continuum whose size and impact are both influenced by the change. The Galbraith Star Model, which frames thinking in terms of the extent of change to achieve the desired future state and the demonstrable enhanced ways of working, can be used to best describe this. The Galbraith Star Model consists of five business sectors that must always be connected and in sync in order to properly influence financial choices and organizational behavior.
Business transformation, according to the Galbraith Star Model, is the possible change of strategy, structure, procedures, incentives, and/or personnel. The business model is purposefully positioned in the center of the star in this image to act as a “center of gravity” connecting the five business categories together. The star only symbolizes the organization and its layout, where each department or component has undergone some degree of alteration. Business change and transformational change can coexist, with the former evolving into the latter when it affects the entire organization, according to the continuum theory of change. The business change will affect only a part of the business model, however, transformational change analyzes the entire organization’s operations and strategy implementation. It’s vital to understand that although transformational change involves redefining the organization, the business model, and its value proposition to better explain the “why” to customers, business change focuses on improving one or more components of the Galbraith Star Model.
‘Benefits’ are defined as “the measurable performance improvement resulting from change seen as favorable by one or more stakeholders that contributes to the achievement of organizational objectives (including strategic investment objectives)”. Given that change is important to benefits management and realization, both corporate change and transformational change should result in quantifiable and improved ways of working. As a result, it’s crucial to pause, evaluate, and pivot during the change journey, especially if the change isn’t producing quantifiable gains in ways of working that promote higher productivity and/or operational efficiencies.
The measures that an organization takes to progress towards a new intended future state are therefore referred to as business change. As follows:
The two types of change—business and transformational—should be seen as complimentary activities that fall along a continuum determined by scope and impact. Organizations and their executives can start thinking about their business model in terms of strategy, structure, processes, rewards, and/or people, as well as how change produces the center of gravity when applied to the Galbraith Star Model. As the saying goes, “Change is a journey, not an event.” In other words, how business change and transformational change are used is important to the implementation of a successful strategy.
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