Stückmann podcast episode 20:
Transformation processes in the SME sector
In the latest podcast episode, Dietmar Engel and Dr. Henry Meyer zu Schwabedissen, a coach and advisor for corporate transformation, talk about the challenges and opportunities of transformation in small and medium-sized enterprises. They discuss the necessity of adjustments in an ever faster moving world, social demands on companies and the concrete implementation of transformation processes.
Important topics:
Why transformation is inevitable
Many German companies are still hesitant about transformation. A recent study revealed that 40% of companies do not consider necessary changes to be relevant to them. However, Dr. Meyer zu Schwabedissen warns that relying on the tried and tested puts them at risk of being left behind. In a VUCA world (volatility, uncertainty, complexity, ambiguity), a high and swift ability to adapt is essential.
Social change as the driving force of transformation
Companies are increasingly influenced not only by market changes but also by social trends. The ‘licence to operate’ is more strongly determined by sustainability, working conditions and social responsibility. Topics such as the four-day week or fair supply chains are no longer marginal topics, but essential factors that companies have to deal with.
Seeing transformation as an opportunity – not a bureaucratic obligation
The Corporate Sustainability Reporting Directive (CSRD) obliges companies to address environmental and social issues. However, instead of seeing this as pure bureaucracy, companies should use the opportunity to position themselves as sustainable and responsible organisations. A clearly defined corporate purpose is becoming increasingly important for staff, investors and customers.
Successful implementation of transformation processes
Transformation cannot be achieved by new technologies or strategic concepts alone – it is the attitude of the management that counts. A lack of determination to engage in further development will cause many initiatives to fail. Instead of relying on large-scale, multi-year transformation projects, experts such as Dr. Meyer zu Schwabedissen advocate a policy of taking small steps:
- Daring to experiment: Try out new methods, learn from mistakes and adapt continuously (‘fail fast, fail early’).
- Promoting an open corporate culture: A culture of failure and psychological safety promotes innovation and a willingness to change.
- Actively involving staff: Those who are involved in transformation processes show a higher level of acceptance and motivation to help shape them.
- Focusing on speed: Shorten decision-making processes, create clear responsibilities and design transformation processes flexibly.
Digital transformation as challenge and opportunity
Alongside social and structural change, digital transformation is one of the greatest challenges for companies.
From AI-supported analyses to modern communication tools, companies have to constantly deal with new technologies. This requires a clear strategy:
- Reducing complexity: Instead of constantly introducing new tools, clear rules are needed about which systems are used and how they are used.
- Defining responsibilities: Companies should appoint champions or experts to drive digital processes and systems forward in a targeted manner.
- Expanding digital expertise: Further training and coaching for staff are essential to make digital transformation sustainable.
Conclusion
Companies are facing far-reaching changes, yet transformation is not a one-off project but an ongoing process. A clear position taken by the management, the willingness to make small, swift adjustments and a corporate culture that views transformation as an opportunity rather than a threat are the key factors.
Outlook
The next episode of this podcast will focus on the concrete implementation of transformation measures in companies. Which first steps make sense? Which role does leadership play in transformation processes? And which role do staff play in the transformation?
