Transformation: buzzword between aspiration and reality

Digitalisation, globalisation, the climate crisis and increasingly dynamic markets pose major challenges for companies. If you want to survive, you have to master them. In other words, adapt and change. No wonder the term "transformation" is on everyone's lips, be it journalists, managers or communicators. But is it a suitable term for describing what is necessary or does it raise (more) questions?

Not another article about transformation. Was that your first thought when you clicked on this post? Understandable. After all, there are more articles on this topic than a single person can read. But the fact is: the ability to adapt processes and structures to new circumstances has become a decisive competitive factor for companies.

As a communications agency for future topics, we also experience this in our daily work. At the same time, however, we also see that "transformation" is often used as a meaningless buzzword. Everyone talks about it; it can mean anything or nothing. Some people associate the buzzword with dreams of quantum computing and AI, while others don't even have the latest technology for a smooth working day.

Last year, Federal Chancellor Olaf Scholz declared at the "Alliance for Transformation", an exchange between the German government, business, trade unions, academia and civil society, that transformation is the word on everyone's lips. "And rightly so, because it's about change," he added. Scholz is right about that. In a volatile world, change is on the agenda.

But what the term "transformation" actually means often remains unclear. Just like many executives, Chancellor Scholz does not necessarily contribute to a deeper understanding in his speech: People are looking for a "common understanding of transformation", he explained.

The increasing popularity of the term and its inflationary and indistinct use is causing it to lose meaning and degenerate into a cliché. The result: instead of giving people security and stability, it creates uncertainty and anxiety. For example, the fear of "being left behind" or "losing your job". However, in a time characterised by uncertainty and major change, more and more people want exactly that - security and stability.

So what exactly is behind the term "transformation"? The problem with the term lies in its semantics: it lacks direction and purpose. The substantivised form of the verb "transform" (Latin transformare, from: trans = across and formare = to form) merely describes an act of fundamental change or remodelling. From which starting point to which end point this transformation takes place remains open. However, these must be clearly named in each individual case in order to clarify the aim and nature of the transformation.

Cognitively, the term cannot provide us with a mental image that helps our understanding. However, linguistic images can help us to visualise the term:

We can compare the process of transformation in a company with the image of a bus journey, for example. The "transformation bus" has been announced and most employees are standing at the bus stop with mixed feelings, ready to travel. The majority get on straight away and hope for positive change. Not everyone is on board yet, the second wave follows: the bus doors open again, more people get on. It's time to leave, the bus honks and some people take their seats. Then the doors close and the bus drives off. In the rear-view mirror, the bus driver sees more latecomers waving, for whom he stops again. Then he drives off for good. After all, the customers are already waiting at the destination and other vehicles are jostling behind him or overtaking: The competition is already on its way. Despite the long wait and the many offers, not everyone has got on the bus yet, so they haven't taken part in the transformation and cultural change. 

This picture illustrates that a company transformation is a gradual process in which some employees are involved immediately, others join in later and some may never become part of the change.

In relation to companies, the term transformation describes a comprehensive process of far-reaching change. This involves organisations adapting their structures, processes, culture or technologies in order to respond to new requirements, changing market conditions or technological developments. 

Companies can undergo internal and external transformations. The two types are often interlinked and can influence each other. In order to adapt to a changing environment, companies need to consider both internal and external changes:

• Internal transformations concern the changes that take place within a company or organisation. They include processes, strategies, structures and cultures that are revised in order to improve the company's efficiency, agility, innovative capacity or competitiveness. An internal transformation can include, for example, the introduction of new technologies, the reorganisation of work flows, the implementation of a new corporate culture or the restructuring of departments.

• External transformations refer to the adaptation to changes that take place outside a company or organisation and to which the company must react. These changes can be caused by the market, customers, technology development, regulatory requirements or other external factors. An external transformation requires adjustments in terms of product offerings, sales channels, customer relationships or market positioning in order to meet changing requirements and remain competitive.
   

The transformation of a company can pursue various goals, for example:

• increase competitiveness
• improve innovative strength
• adapt to changing customer needs
• build up a sustainable corporate structure

A successful transformation requires a holistic approach. To achieve this, managers and change management must work closely together to provide sufficient resources for the process and take the needs of employees into account as comprehensively as possible.

Some companies, including Engelbert Strauss and Jägermeister, have already succeeded in such a transformation. With various measures, they have managed to fundamentally change their reputation and establish themselves in completely new target groups.

Originally, Engelbert Strauss was a traditional manufacturer of workwear, known for its functional but faceless products. In order to change this image and tap into new target groups, the company has taken some decisive steps:

1. Brand image: Engelbert Strauss has revamped its brand image and developed from a traditional supplier of workwear into a modern and high-quality brand for work & outdoor clothing. The company places particular emphasis on appealing designs and high-quality materials.
2. Marketing strategy: The company invested in a new marketing strategy to make its products accessible to a broader target group. This included a stronger presence on social media, targeted influencer marketing and innovative advertising campaigns.
3. Product diversification: Engelbert Strauss expanded its product range to meet the changing needs and demands of its customers. In addition to workwear, the company also offered fashionable outdoor clothing that was both functional and aesthetically pleasing.
4. Customer loyalty: Good service and innovative offers have resulted in strong customer loyalty.

Engelbert Strauss is a prime example of how B2B brands can use the potential of digitalisation to further develop their business models and reach both business and private customers. As the company invested in a digitalisation strategy at an early stage, it is not reliant on sales partners and can therefore also target the private customer business. "Stretch your limits" could not be a better motto in this case.

For a long time, Jägermeister was known more as a classic drink for the older generation, often consumed in pubs or at kiosks. In order to create a new image and appeal to younger target groups, the company took the following steps:

1. Event marketing: Jägermeister became increasingly involved in sponsorship and event marketing. As a result, the brand became a permanent fixture at events such as festivals, where it cemented its image as a cult party drink.
2. Lifestyle association: Through skilful marketing campaigns and partnerships, Jägermeister became associated with a youthful, fun-loving and trendy attitude to life. The brand became a symbol of coolness and fun.
3. Presence in social media: The company utilised the power of social media to establish its brand among younger target groups. Building a strong online presence helped to establish the cult brand.

The transformation of these two companies shows how skilful marketing strategies, innovation and adaptation to changing trends and consumer needs can successfully reposition the company and tap into new target groups.

Of course, it is much easier to criticise the term transformation and its use than to find an adequate replacement. Nevertheless, it seems to be a widespread misunderstanding that a transformation is a single activity. In reality, a transformation consists of diverse, sometimes fragmented processes. It takes time, must involve people and give them security. Regardless of the type of transformation, it is not a one-off task, but a continuous process of development and rethinking.

So instead of throwing the term around without reflection, we should scrutinise it. How can we translate comprehensive, lasting change into positive images in our use of language? Only if we place people at the centre of a transformation and take their fears seriously can we awaken the courage to change.

Image source: Unsplash | Chris Lawton