Business Process Management (BPM)
Business Process Management (BPM)

A system is powerful. Methodical, sustainable and consistent development is impossible without systemizing behavior. It is the same in modern business governance as well – a well-organized operational system and optimized business processes are two of the milestones of the effective work of an organization.

Regardless of the field of operation, in order to successfully operate, an organization needs regular renewal of working processes, adaptation to changes and adjusting to the individual business model of the company to minimize all the factors hindering the continuality of a business and existing or potential losses. One benefit of the said process is that optimized business processes are directly connected to the most crucial goals of each company – effectiveness and profit maximization.

Company managers often write down entire processes of operational systems and ask their employees to follow them thoroughly. But what happens when the picture described on paper is one and the actual reality is different? Standards are set envisaging every minor detail, but it’s just on paper and not transferred to actual operations. There are cases when top management requires employees to fulfill those processes and procedures and work properly as “described on paper”. But for reality, the daily needs of the company and listed processes do not match, which results in frustration and disappointment among employees.

To somehow meet the operational standards “listed on paper” they have to fulfill extra or completely unnecessary work. Processes and systems are indeed crucial instruments for enforcement and should serve the growth of a company’s effectiveness. Well-organized processes are necessary to create the best product/outcome, but when they are not properly realized and adjusted to actual work, on the contrary, they may appear to be harmful. When they are loaded with too much “trash”, the quality of operational effectiveness and final outcomes are affected. Companies often forget that an operational system is strong not only when it is oriented on the outcome, but when it presents unity of the company’s vision, business strategy and individuals, who are assigned to fulfill those operations.

Operation system require updated / improvement, if: 

  • Quality of product/service gets worse – the main priority of every business is to create a high quality product/service and offer it to the customer. Quality assurance starts with when the product is created: when the process works properly and correctly, every required resource is mobilized and every possible risks is envisaged

  • Operation costs increase – resources are incorrectly estimated and selected in the company. Processes are overloaded with extra, unnecessary details and performance time is also miscalculated.

  • Employee outflow – employees are exhausted and often have to do extra work, their responsibility and influence domains are not defined. On the contrary, their workload is insufficient, and the company incorrectly uses their skills and talent.

  • Operation risks increase – clients are often dissatisfied with the quality of the product and the company has to ask it back. Because of the low quality or fault, the process is often terminated.

Through tight cooperation with the management team of the client companies, we create, update and optimize operations oriented on effectiveness. For the transformation of processes, we incorporate agile approaches and methodologies as we believe that in the modern reality only those organization will develop and keep sustainability that have flexible and effective operation system. We work on a variety of topics incorporating the lean methodology: optimization of main processes that create production cycle, service, product.

Transformation of main operations arrow

We assist companies in the transformation of the main operations such as: production, sales and supply, supply chain, service operations and product development.

The process of transforming operations: 

Studying and documenting the processes a company has in place 

Studying the internal processes of an organization is a starting point in the optimization of business operations. In this process, we tightly cooperate with a client company to study the organization structure, and its main business domains. As a result of the interviews and meetings with employees, we collect information on the processes. We also observe operations in real time and space. After an in-depth study, we document the existing system of processes.

Analysis of the documented processes, identifying the goal of each of the processes 

This stage of analysis is crucial in the optimization chain. This is when we visualize the existing processes which enables us to identify useless steps, repeated actions or other types of problematic aspects which prolong the process, requiring excess resources and decreasing the effectiveness of a business activity. At the same time, our team identifies the goal of each process and estimates how the specific goal is correctly set. In addition, in the case of a mismatch between the process and goal, we study what goal this process should actually serve and why that goal cannot be reached through the given structure.

Re-thinking the processes and systemic optimization  

After the analysis stage identifies useless steps, in an inclusive work format with a client company, we develop updated procedures that are best tailored to the organization’s business model and goals of the business domain

Implementation of optimized processes

Establishment of optimized processes free of defects and other problematic details is one of the final stages in company’s everyday life. When implementing this process, our team actively supports each business partner. Our joint effort and work ensures quick integration of updated processes in compliance with developed recommendations.

Testing, control, and monitoring

Finally, the optimization circle is closed by testing the updated process design and observing it closely. On the one side, it enables us to eliminate any defects of the new design, if any. On the other side, the monitoring phase enables us to see clear and vivid outcomes – how effective was the optimization of the process and specifically what amount of expenses were eliminated as a result of the optimization.

Transformation of Support Operations arrow

In today’s dynamic, modern world, the effectiveness of a company is not solely based on the strength of its main operations. Experience shows that to ensure customer satisfaction and to produce high quality product, it is not enough to optimize and normalize those operations that directly serve the production of the product. For example, if financial resources are miscalculated and costs are not effectively managed, while budgeting does not get enough attention, it will certainly reflect on the quality of the product. Incorrect HR processes and systems may also significantly damage the quality of the product or customer satisfaction. Unsuitable distribution of workload, unclear responsibilities or functions, absence of integration of new staff members or a dysfunctional system for employee promotion and incentives will most likely demotivate employees, decrease the effectiveness of their work and will affect the overall performance of the company.

Support functions (e.g., finances, marketing, HR, administration, etc.) are integral components of a full operation system and their effectiveness plays an important role in a company’s success.

Getting ready for the digital transformation arrow

The vision of the future and success nowadays is often associated with digital systems. Acceleration and simplification of a company’s digitalization processes is an important precondition for increasing effectiveness. Digitalization of operations is a long process involving every domain of the business. For effective digital transformation, systems need to be fundamentally flexible to easily adapt to new challenges and enable the re-design, update and optimization of systems easily.

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Changes in consumer needs and the business environment, as well as the rapid development of the digital environment, have revolutionized our economic and social activities in recent years. New forms of digital interaction and information exchange are challenging businesses and pushing them to embrace different digital solutions. The Covid-19 pandemic and associated economic uncertainty have brought this issue to the forefront, forcing many businesses to determine their current and future strategy on their own. To avoid value chain disruptions and meet ever-changing customer needs, companies are using digital technologies to create new digital services and business models, strengthening strategies and governance to support change. This complex combination of people, processes and technologies involved in constant change is what we can call digital transformation. Researchers agree that digital transformation is a holistic process of organizational change driven by digital technologies.

Over the decades, academics, managers and consultants have recognized that transforming organizations is difficult, and digital transformation is even more difficult, and have been trying to create different models for successful practice. They modeled the role of leaders who set a vision and unite employees around a shared vision, emphasized the importance of organizational culture in this process, demonstrated the negative impact of downward communication on digital transformation, and called on companies to listen to employees and involve them in change and create an environment conducive to the formation of new ideas. However, research shows that in most organizations, two out of three transformation initiatives fail. The more things change, the more things stay the same. ( “plus ça change, plus c'est la même chose” - Jean-baptiste alphonse karr)

In reality, most companies fail to follow established guidelines at some point in time. It is important for change managers to know how to manage change in a specific context. Understanding and analyzing different approaches to digital transformation is the best basis for managing the changes brought about by the digital context.


And yet, what is digital transformation?

The concept of digital transformation (DT) is formed by the merging of personal and corporate information technologies and includes the transformative effect of new digital technologies, such as social, mobile, analytical, cloud technologies and the Internet of things. Some researchers understand digital transformation as the integration of digital technologies and business processes into the digital economy [Liu et. al. 2011) in a relatively broad sense, DT is perceived as a driver of change in all contexts, especially in the business context, and influences the improvement of all aspects of business (Kraus et.al, 2021). More precisely, digital transformation involves three organizational aspects: improving the user experience and changing its life cycle; Optimization of business processes and changes in organizational structure, which ultimately leads to the creation of completely new business models (Benlian et al., 2016).

Digital transformation is seen as one of the most real challenges regardless of industry. Although organizations understand its fundamental importance, they still face a number of obstacles that make it difficult to initiate digital transformation, let alone reap the benefits of this transformation. (Schuchmann & Seufert, 2015)

The growing number of opportunities brought about by the development of information technology also forces companies to “systematically identify new business opportunities at an early stage” (Kiel et al., 2016, p. 675) and requires managers to adapt to one or more business models, or even creating a completely new business model. In a recent survey on digital transformation (McKinse, 2018), executives reported that their leaders are “more engaged in digital transformation than ever before,” but at the same time they said that “their companies must first solve a number of organizational problems before how digitalization can have a truly transformative impact on their business.” In this context, it can be assumed that digital transformation de facto affects all processes within the company, as it influences corporate strategies and leads to the revision and adaptation of existing business models (Linz et al., 2017). However, the extent to which digital technology adoption impacts corporate performance and can lead to innovative business models depends on the resources and capabilities available within the company, and it will take time for business models to become more context-sensitive than technology models. Therefore, it is interesting what stages a business goes through on the path to digital transformation and how these stages should be managed.

The stages of digital transformation provide companies with different opportunities at each stage. The first two stages - digitalization (also called modernization) and general business transformation - involve changing the existing business and forming it anew. And the final stage focuses on creating new business and creating more value by opening up new opportunities. (E. G. Popkova, Y. V. Ragulina, A. V. Bogoviz, 2019)

Based on various literature and research works, it can be said that organizations face difficulties in all three stages and if the company moves to the next stage without completing any of the stages, the failure rate will be even higher. 

The first step (digitalization) involves simplifying and digitizing existing business processes using so-called ERP systems. This could be a customer relationship management (CRM) application, supplier relationship management (SRM) software, or other applications to optimize supply chain processes; In terms of employee experience, this could be automating HR processes or providing employees with a self-service portal, etc.

Is implementing these digital programs enough to transform an organization? - of course not. But this step is a critical foundation for organizational strength and rapid return on investment. This allows businesses to make more complex investments in their digital transformation journey.

The second stage (transformation of the entire business) is an attempt to change the complex cross-functional value chain. Steps taken at this stage for employees can be flexible transformation, creating a culture of continuous learning and development, improving the quality of customer service, this can be done by moving the product to digital channels, creating an application with integrated payment methods, delivery systems etc.

Can we call this an attempt at transformation? - Yes. Adapting the traditional organizational structure to changes, introducing appropriate management models, and taking care of talent development are the most important elements for the success of digital transformation.

Business-wide transformations typically focus on improving existing operations. But when successful, they often open up new opportunities to create value, for example by opening new markets or finding efficient new ways of doing business. That's why business-wide transformation is functional and complex, and the experience and knowledge gained at this stage is critical for companies on the path to digital transformation.

The third step (creating a new business) involves taking advantage of new opportunities to create value and create additional revenue streams. In terms of user experience, this could be the creation of a new business model, such as from selling a product or service to a subscription-based business model. On the operations side, this could be the use of data and analytics to accurately predict the operational performance of products or systems.

“To improve is to change; to be perfect is to change often.” -Winston Churchill

If we rely on neuroscientists, it is important to consider how habits are formed and how our brains respond to changing habits. To do this, companies often use the 7C model (Fig. 1), which assumes:


During the transformation process, everything must be certain. To reduce risks, the roles of managers and leaders must be clearly defined. The goals of digital transformation must also be clear. Unclear goals can add to existing anxiety because employees won't know whether they've achieved the goal or how to measure their progress toward it. This means that goals must be specific and measurable. For example, a task given to employees to improve productivity could be formulated as follows: “Write four reports in the next quarter.” This way, they will know exactly what they want to achieve and identify strategies to achieve that goal.


For effective digital transformation, this process must be continuous. This means that the conversion does not stop once it has started. Companies should plan for the next changes and get feedback on previous changes.

Employees often need time to process new information because most of the information received is quickly forgotten by the human brain. If the information is reviewed after a few days, it is much easier to retain. Therefore, when introducing digital products into an organization, training must be conducted and continually evaluated to ensure it is effective and maximizes its benefits.


Leaders need to convey the message that digital transformation is inevitable and that the company will continue to thrive. This feeling of security and confidence will reduce threat anxiety in the brain. Communication and a sense of security will keep employees engaged in the change process, increasing the chances of success.


There are theories that say that forming a new habit takes time. Change happens more easily when done consistently and in small doses. Leaders may want to make big changes to the company, but if they are focused only on achieving the end goal from the beginning and do not begin to implement these changes in small steps, the change process can be very difficult and painful.


Because the brain is a social organ, people can find comfort in interacting with others. Leaders can empower employees to create more work-oriented teams. In addition, it is necessary to involve them in the digital transformation process. Employees are more adaptable if they feel like they are the decision makers.


Many people may feel uncomfortable in a turbulent environment when a company changes. They may doubt their competence, their abilities, etc. This can lead to increased anxiety and depression. In contrast to these feelings, leaders must ensure that their employees' self-esteem increases. They need to show that employees themselves control the processes, make choices about what tactics to use to achieve the goal, etc.


Communication is key when it comes to transformation. Employees want to feel like they have a voice and that their voice is understood. When making changes, it is necessary to create platforms where employees will have the opportunity to share their opinions and be part of the changes as much as possible. Leaders must show empathy during stressful times and connect with employees on an emotional level. This communication can take the form of surveys, feedback sessions, or one-on-one conversations.


How should companies make the technological changes that differentiate successful digital transformation from the rest?

True transformation requires new ways of working, in which leadership plays a critical role as it involves moving from an existing operating model to a new one. Therefore, it is extremely important to have leaders who are well-versed in modern technology.

It is recognized that the top management of a company is responsible for the major strategic decisions of the organization. Senior management involvement in driving digital transformation and innovation management is an important part of corporate commitment to a company's strategic efforts and is positively correlated with the successful implementation of digital initiatives. Involving executives in transformation is critical because their specialized knowledge, skills, and experience are typically the greatest and most important organizational resources. Existing experience reveals the role of the executive, especially in conditions of high uncertainty.

One of the most important roles of chief executive officers (CEOs) is to mobilize employees to contribute to the company's strategic goals. In recent years, the concept of transformational leadership has become relevant, which promotes intellectual stimulation, creates idealized influence, inspires motivation and stimulates innovative growth. Transformational leaders manage to initiate reforms in the organization at a strategic level, inspire and guide people towards these changes. These leaders create organizational culture by placing greater emphasis on a shared vision, which leads to shared values between the company and its employees. In an organizational culture with such shared values, achieving a common goal is achieved much more effectively than in companies where there is no agreed-upon vision. Organizational development researchers argue that transformational leaders play a key role and have a significant impact on organizational culture and values. The role of leaders in bringing about change in their companies is essential, which means that without leadership there can be no change. They play a decisive role in accelerating or slowing down organizational change, so their tasks during a change management strategy can be formulated as follows:

Develop an organizational culture that encourages innovation at all levels. Creating an organizational climate that supports innovation and change is an important step forward for companies. Human capital, which is unique to every organization, needs to be encouraged. Management must address two broad issues. First, leaders need to understand the impact of their role behavior on digital transformation stakeholders. The second factor is the ability of leaders to cope with high levels of uncertainty while simultaneously stimulating innovation.

Digital transformation is impossible without thinking outside the box. Attention to creativity and divergent thinking has been especially focused in the 21st century, when the development of information technology has revolutionized our lives, work processes, communication, behavior, etc. Today, pragmatic and straightforward decisions are no longer valued as highly as they were during the development of manufacturing. According to research, as people reach adulthood, divergent thinking decreases, so people begin to think routinely and repeat what they have learned. Therefore, in the workplace, it is the responsibility of leaders to encourage the generation of original ideas and creative thinking. Since employees are given the freedom to innovate their tasks, it leads to both motivation and enthusiasm to work consistently and achieve innovative goals. The only serious problem with this process occurs when it is not supported by a strong value system in the organization that can guide activities in accordance with the overall goals of the organization.

Set short-term goals and celebrate small victories. Successful and sustainable digital transformation takes time, which means the distant prospect of an end goal may not motivate employees. Therefore, leaders must create an environment conducive to early success and visible improvement. Small achievements like these make many people feel enthusiastic and motivate them to do better.

Making transformation a personal goal. People are generally more enthusiastic about something when they think it was their idea than when they are assigned to do it. Therefore, if managers care more about a particular initiative, employees perceive it as their own. However, when employees understand how digital transformation improves their work processes, it becomes clear that their contribution to achieving the transformation goal increases.

Monitoring progress is not only beneficial for all stakeholders involved in a digital transformation project, but is also critical to strategy development. Key performance indicators and transformation management indicators highlight strategy weaknesses. By understanding what works and what doesn't, leaders can adjust the plan.

Too often, senior management forgets that they are not the only role models influencing employees; Informal leaders in organizations may have less influence on the energy levels of their colleagues if they are excited about the change agenda. Regardless of their official title and status, attracting such people increases the likelihood of change success by 3.8 times.

Here are steps companies can take during transformation to increase their chances of success:

  1. Rethinking the workplace. Successful digital transformation requires both digitally savvy leaders and the human capital to drive digital transformation change. Of course, companies will have to invest to develop radically different skills and abilities among employees or to hire new talent, but without this, change is impossible. One of the most important steps for organizations is to develop clear working capital strategies that will help identify the digital skills and capabilities they currently have and will need to achieve their future goals.
  2. Renewing the organization's culture. As digital transformation requires new ways of working, as well as changes to the overall culture of an organization, employees must be able to work differently and keep up with the faster pace of business. The introduction of digital tools and renewal processes, as well as the development of a flexible operating model, will facilitate these changes.
  3. Changing old ways of communication. Good communication has always been a key success factor in traditional change efforts, and it is no less important in digital transformation. In a digital context, companies must use more creative channels to enable new, faster ways of working and faster changes in thinking and behavior that digital transformation requires. One shift is a shift from traditional channels that support only one-way communication (such as company-wide email) to more interactive platforms (such as internal social media) that open the door to open dialogue within the organization.


Liu, D.Y., Chen, S.W., Chou, T.C. (2011) Resource fit in digital transformation: lessons learned

from the CBC Bank global e-banking project. Manag. Decis. 49(10), 1728–1742

Kraus S., Jones P., Kailer R. , Weinmann A., Chaparro-Banegas N., and Roig-Tierno N. (2021) Digital Transformation: An Overview of the Current State of the Art of Research

Benlian T. H., A., Matt, C., Wiesböck, F. (2016) Options for formulating a digital transformation strategy. MIS Q. Exec. 15(2), 123–139

Schuchmann, D., Seufert, S. (2015) Corporate learning in times of digital transformation: a conceptual framework and service portfolio for the learning function in banking organizations. Int. J. Adv. Corp. Learn. (iJAC) 8(1), 31–39

Kiel, Daniel & Arnold, Christian & Collisi, Matthias & Voigt, Kai-Ingo. (2016). The Impact of the Industrial Internet of Things on Established Business Models.

Dr. Linz, Carsten & Müller-Stewens, Günter & Zimmermann, Alexander. (2017). Radical Business Model Transformation: Gaining the Competitive Edge in a Disruptive World.




Manage the cause, not the result – this phrase belongs to the founder of Total Quality Management, William Edwards Deming. Total Quality Management is a concept, designed to create such an environment for the entire organizational staff, where the employees are given the floor to continuously develop and build their capacity and skills in order to born valuable products and services for their customers. Even though this phrase sounds short and simple, it dramatically transforms the behavior paradigm dominating nowadays.

Literary, in almost every organization we find a manager who does not like to hear about problems, and the employee bringing that issue to the agenda is usually doomed to be placed off. The way how a Manager behaves, in this case, serves as a sign to others meaning that talking over the issues is supposedly far not appreciated. Accordingly, all the employees use to try to represent any point in a positive context and whenever an issue arises due to mistakes made or due to an unaccomplished project, the Manager rebukes the employee, in another case, detains part of his salary or even dismisses him altogether. All the said above serves as a good example of Managing the Result and the way how to combat it. In some organizations, such behavior is so much appreciated, that rebuking the employee and/or posing sanctions on him is considered a “good management” example so far. Such behavior, as a rule, restrains from identifying a real cause, meaning that the issue cannot be solved and it will inevitably show up again.

Transformation of the existing paradigm actually starts when a process becomes the main target, instead of assessing the employee’s fault. The processes taking place within the organization are the very place where the causes keep generating while leaving the space for the employees to make mistakes and perform their work inefficiently. Any process within the organization should serve to the creation of values for the customers and/or to the reduction of the risks of making mistakes at least. Thus, any process or any part of the process which does not serve to achieve either of these two goals mentioned above can be qualified as a loss. This kind of loss being accumulated through the flow of the processes usually causes a decline in the efficiency of the company and hampers the accomplishment of major goals.

To identify and manage the losses found in the processes it is necessary to learn the opinions of the employees actually involved in those processes, as they are carriers of the valuable information required for finding the actual causes. The fact is that whenever an employee is scared by the “follow-up punishment”, he tries to share possibly less information in consideration that each extra word uttered can eventually lead to more severe “punishment”. Therefore, the first priority of the company is to give the employees a sense of security. To achieve the above, we need to openly announce that mentioning the deficiencies and losses existing in the process will in no way lead to the punishment and setting off the employees concerned. It is most important to each employee to know that his voice is heard and he can express his opinion freely without any restrictions. It is significant that this process should not be shaped into the talks about winning the mark and endless complaints, though each deficiency or deviation discussed should be grounded and based on actual facts.

While having the said discussions it is important to depersonalize the processes and the steps undertaken. This approach can easy the way the employees talk over any action or when a certain employee refers to a specific action or a part of the process as a loss. It never causes a sense of discomfort or does not lead to conflict situations in most cases. It is important that everyone agrees on that if any action undertaken in the process is acknowledged as a failure, it does not inevitably mean that the employee who made it, is of no good.

As a rule, discussing the processes and the conversations around the topic take place in the meeting room or at the Manager’s Office. This is where the employees often dispute over the ways of the flow of the processes. To avoid such meaningless and ineffective disputes would not it be better if simply everyone just starts observing the process and agrees that the process is like the one that everybody sees. This behavior may even help the Manager sitting in his office to see and feel what are the challenges his employees have to deal with. While “overseeing” the processes the questions put by the Manager should in no way imply the threat within but indicate the readiness to show support and compassion. The openhearted and sincere gratitude expressed by the Manager to his employees for their answers and their time will significantly grow the confidence of the employees towards the process.

As soon as the agreement on the process and the losses identified within is achieved, there comes the necessity of making changes. It is important to ensure the involvement of the employees in planning for the changes as this will make them feel more responsible for the process is a part of it and when the process is successful they even may feel proud of it. Fear of changes is common to all humans and you can often hear the accompanying words like “it is of no good,” “it will not work” etc. To avoid such an approach, it is important that the employees involved in the process understand that everybody is “on board” (“in the same boat”) and they all share the responsibility for its success or failure. Make efforts to promote the way of thinking, where the questions like “how it could be done?”, “What is needed to make this possible?”, “What is the cost of this getting accomplished?” or “let us try and then discuss will it work or not” dominate.

The next powerful enemy to the possible changes to be made to the process and a spot generating causes for losses definitely - is the inheritance of the actions within the process. We often come across the mechanical actions performed by the employees unconsciously. This is peculiar to the kind of organizations where putting of the question “Why?” is not much appreciated. The organization’s aim is to ensure that each employee is motivated and encouraged to put a constructive question “Why?” To put this question in a due manner and to appreciate it means that everyone in the organization is constantly watching and finding the losses and brainstorming on how to correct the issue.

General Diagram of the constant process of identifying the losses and making improvements looks like the one below:

On the long way of constant changes to the process we should always remember the following:

Acknowledgment of the problem means getting it solved by 70%

99% of the problems are caused by the poorly organized process and not by the employees

Wisdom and experience of the many weigh way too much rather than that of one man

Make a try first and only then say whether “it does work or not”

There are no limits, improvement of the process can be endless

According to Heraclitus: “The only constant in life is change.” Today these words make more sense than ever. The changes can be painful but they are inevitable.

Relying on the support of the executive branch, a united effort of the employees on the way towards the improvement of the process is actually the key to a successful accomplishment of the company’s goals. Research and Consulting Company ACT tested this concept first within its own organization and only after shaping it into the unique transformational and management model PWR3, which is widely offered now to the company’s clients. Back in 2021, the company launched a great transformational process, where the main three forces – Managers and their philosophy, employees and the organizational culture, and well-administered processes collaborated to make the common mechanism work. It is obvious, that rearrangements to move to the said mode of thinking and starting transformational processes will not be that easy, though everybody agrees that changes are needed for moving forward and achieving greater goals.

If you get the same results as last year and you guess you need improvements, we are here to remind you, please, could you appraise: how actual is the point of view of Heraclitus today, regarded as The New Norm.


Problems cannot be solved by the same level of thinking that created them.


Backsliding occurs when there is no progress. Stability does not equal the absence of change, it is only the result of sustainable development. In the digital age, the world is changing at an astonishing rate, and businesses are left with two choices: to either glide on the waves of change like surfers or to disappear under them.

The pandemic has accelerated the cascade of change even more – it changed people, their emotions, social life, and priorities. As a result, the business ecosystem and the rules of the game have also changed, including different industry perspectives, demand for products and services, consumer behavior and preferences, product/service selection criteria, supply channels, brand communication content and style: to put it concisely, everything has changed.

As a result, it is hard to come across a business that does not require a business model or organizational transformation in order to survive or, conversely, to seize new opportunities. The success of a business today is directly related to how timely it acknowledges the need for transformation and how well it manages this very process.

There are multiple signs that indicate the need for transformation in a company's business model or organizational setting. 6 unmistakable symptoms are as follows:

  • Failure to seize the potential of the market and unsatisfactory growth rate;
  • Slowing down of the growth rate/tendency of downsizing;
  • Declining of the dynamics of efficiency and profitability;
  • The outflow of valuable staff or an unhealthy organizational climate;
  • Lack of creativity and innovation;
  • Feeling of stagnation, “walking in circles” or backsliding;

Let us be more specific: if you have not enjoyed the results of your business or the situation in the company for a long time, but despite various attempts, you are unable to change the unwanted status quo, know that the company is in a desperate need of transformation.

Recognizing and acknowledging the need for transformation is a necessary but insufficient condition for the success of a business. It is important for the company’s management team to understand that transformation is so much more than a change of individual parts; rather, the transformation has to be complete.

Analyzing several cases of failure reveals that most companies make a fatal mistake at this very point: they are trying to localize the problem, solve it effectively with minimal costs, or seize the opportunity with minimal resources and outdated approaches. Behind this, of course, are rational motives such as saving time, cost-effectiveness, following a path that has been taken before, the ambition to find the quickest solutions, and more.

However, this approach is ultimately very costly for the company due to it being impossible to achieve large transformational outcomes with small changes. As a result, the company will have wasted its resources or even worse: with the unsuccessful attempts, the company’s management team becomes frustrated, ultimately leading to the shaking of trust and sowing nihilism among the employees when it comes to the company’s management and its future in general.

We have been observing the process of business transformation in ACT for 19 years both in and outside of Georgia. We have accumulated experience and have created a unique model of organizational transformation and management, which we call “the Power of Three”. According to the philosophy of PWR3, the success of any kind of transformation depends on the unity, balance and permanence of these three forces: the power of creativity, the power of order and the power of change.

In the organizational context, we consider three main driving forces of company development and success: (1) vision – (creativity), (2) culture – (order) and (3) execution – (change).

According to our approach, the transformation of a company begins with the renewal of its vision. The second stage of change is the formation of an organizational culture relevant to this new vision, while the third stage of change regards the transformation of organizational systems, processes, and the mobilization of resources needed to achieve new vision and goals.

Our model offers the organization leadership to think and make decisions consistent with regards to these three dimensions: vision, culture, execution. We believe that the decisions bringing the best results are the ones that: 1) serve the company’s vision and main goals, whilst 2) aligning with the company’s values and taking into account the interests of its employees, and 3) the company has to have tangible resources needed for the execution. In other words, PWR3 is not only a model for the transformation of the organization, but also for its effective management, helping the management of the company make consistent and effective decisions, which, in turn, contributes to the sustainable development of the company.

THE POWER OF THREE®’s unique philosophy, model and working principles enables ACT to play a special role in transforming its customers. As a result of PWR3®, the signs of transformation in the organization are clear and visible:

  • Employees ignited by the sense of mission.
  • Common vision and priorities, effective managerial solutions.
  • Organizational values and norms of behaviour are respected and shared by all employees.
  • Increased creativity and innovation.
  • Processes for people and results, not process for the process itself.
  • Focus on customers and creating maximum value for them.
  • Achieving goals, growing and developing.
  • Establishing self-confidence, development and awareness of success in leadership.
  • Improving financial performance.

PWR3 is the power of change that, on the one hand, helps organizations become more resilient in the face of new challenges and, on the other hand, boosts their creativity and openness towards opportunities. We believe that along with a sense of the uniqueness of the mission, it is these qualities that make good companies into extraordinary ones.

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