Success factors of a transformation

Success factors of a transformation

A committed team - the success factor for a bold change project!

estimated reading time 7 min
Best practice in corporate transformation

In this blog post, we use a case study to show why putting people at the centre of a change project is a key factor in the success of a corporate transformation.

    The case study

    The case study

    Our case study highlights the transformation process of a German food manufacturer that is taking a completely new strategic direction with vegetarian and vegan products. The biggest hurdle is convincing its own employees, who are initially exposed to feelings of fear and a lack of understanding. This uncertainty leads to internal resistance, which hinders and slows down the change process. In order to overcome this, three key success factors can be identified based on the case study, which we will outline below.

    The company

    The medium-sized family business, which has been in existence for over 180 years, is undergoing complex change processes both inside and outside the organisation as a result of a ground-breaking innovation. Until 2014, the company produced nothing other than the sausage that ends up on most Germans' bread. What makes the company so special in this respect is its entrepreneurial foresight, the ability to critically question its previous actions and the great courage to face up to far-reaching changes in its organisation. In the case of the family business, this means taking the meat out of sausages at a time when the population's meat consumption is declining, but the trend towards vegetarian or even vegan diets is still a very small niche market. The conscious decision to cannibalise the traditional business from the inside shows great courage and determination.

    Transformation is not possible without convinced employees, regardless of how ready the market and the customer are for the new product!
    Customer discussion round of the company, 2019

    The change project

    The biggest hurdle in the company's transformation process is convincing its own employees. After the first announcement of the company's strategic reorientation, management met with great internal resistance in the form of a lack of understanding, uncertainty and a closed mind. Some fear for their jobs, while others doubt the resilience of the brand. Vegetarians became a target group for the new products, although they had previously been seen as the natural enemy. An impossibility in the eyes of many employees. In order to motivate and convince employees to get on board, three key success factors crystallise from the transformation history:

    • Icon - realistic goals

      Success factor 1

      A transformation process needs a long-term vision as well as concrete, tangible goals in the first three years!

      The management of the food manufacturer agrees: this transformation process needs a vision, a basic idea that builds on the idea and includes a clear definition of goals. Without this vision, the right steps in the change process cannot be taken. When introducing vegetarian and vegan products, those driving the idea rely on a long-term vision that is always kept in mind in day-to-day business so as not to fall back into old patterns of behaviour. For employees and consumers, however, it makes sense to define concrete, tangible goals with a timeframe of around three years in addition to the long-term vision. This way, those involved with the greatest concerns can better understand the project and perceive it as a realistic goal to be achieved.

    • Icon - role of the management team

      Success factor 2

      Management takes the lead in a transformation!

      The management is aware from the outset that a change project of this kind involves an intensive period for the company, during which a great deal of stamina is required. They are prepared for fear, resistance and headwinds within the company as well as from competitors, opponents of meat consumption and society. It is crucial that the entire management team are convinced supporters and drivers of the change project.

      ‘Change requires patience and therefore consistent communication, as well as a strong character, a face of change’ (company customer discussion group, 2019).

      The management sees itself as responsible for demonstrating the need for change to employees and creating a shared understanding and motivation. Repeated speeches to the assembled team, in which the problems of the company and the industry are openly addressed and backed up with facts and figures, are part of the daily routine. They go into detail about what can happen if this step in a completely new direction is not taken. Another important point in the argumentation with employees is to communicate the continued importance of the traditional area. The clear stance of not being ashamed of meat products is communicated.

    • Icon - integration employees

      Success factor 3

      Turn those affected into participants!

      Integrating employees into the actual implementation of the change project is another lever for ensuring the success of a transformation. Management consciously involves employees in the product development process across all departments. The developers are inspired by the challenge of getting as close as possible to the consistency and flavour of the meat products. The expertise of the butchers is the decisive factor in achieving the actual meat flavour. Purchasing, production and sales work together to discuss prices, costs and potential difficulties. In addition, care is taken in production to rotate shifts between the two segments - vegetarian and traditional - so that there is no distance between employees.

      In the end, the success of the new products and the feeling of being part of the whole convinced the last sceptics. Little by little, initial worries are thrown overboard and a general acceptance and even enthusiasm can be felt among the employees. Today, the company sells more vegetarian and vegan products than sausages and has thus secured its place in the market for the future.

    Our case study clearly shows that a convinced team is a decisive success factor for a courageous change project!

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    Sonja Neubauer - LEITWERK Consulting
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    References:

    • agrarheute. 2019. 40 per cent of Rügenwalder Mühle's turnover comes from its veggie division. https://www.agrarheute.com/management/agribusiness/ruegenwalder-muehle-macht-40-prozent-umsatz-veggie-sparte-557666, retrieved August, 2021.
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