3 Practical steps to implement transformation in business

Data has shown time and time again that diversity and transformation in the business sector are good for business. Companies with greater gender and racial diversity are 36% and 25% more likely to outperform businesses with average levels of diversity in their industry respectively. 

Practically transforming your company to be more inclusive might be easier said than done, but Prithivan Pillay, Head of Client Value Propositions at Nedbank Commercial Banking, has answered questions on transformation implementation.

"Business transformation is a complex and often challenging process that involves significant changes to an organization's strategies, processes, technologies, culture, and structure albeit if embraced the opportunities that arise from transformation could easily outweigh an organisation's stagnation," he says.

The implementation

Pillay acknowledges that a lack of resources, both financial and human, can hinder the successful execution of transformation initiatives, leading to resistance. But as long as you have a clear strategy, transformation can be implemented. 

"Implementing successful transformation initiatives in businesses often requires a multifaceted approach that takes into account the specific needs and circumstances of the organization," explains Pillay. 

Here is a list of the approaches that have proven effective in the past:

• Clear Vision and Strategy: Start with a well-defined and communicated vision for the transformation. Ensure that all stakeholders understand the goals and objectives of the initiative. Having a clear strategy in place helps align efforts and resources towards a common purpose                               

• Strong Leadership and Commitment: Leadership plays a critical role in driving transformation. Leaders should be fully committed to the initiative, set an example, and actively support the change. Their involvement and enthusiasm can inspire others to get on board.

• Agile and Iterative Approach: Embrace an agile approach to transformation, where you continuously assess, adjust, and improve your strategies based on feedback and evolving circumstances. This flexibility can be crucial in a rapidly changing business environment.

Financing and collaboration

In 2020 companies are reported to have spent $7.5 billion on diversity, equity and inclusion (DEI) efforts. With that comes the question of how to finance transformation in your business and the answer is finding a strategic banking partner. 

"Partnering with a bank to assist with transformation initiatives can be a strategic move for businesses, but there are several key considerations to keep in mind like ensuring that the bank's objectives align with your transformation goals. The bank should have a clear understanding of your business and the specific challenges and opportunities you are addressing through the transformation," says Pillay. 

Other considerations when looking for a banking partner include:

• Expertise in Financial Services: Choose a bank that has a track record of working with businesses on transformation initiatives. They should understand the financial and operational aspects of your business and be able to provide tailored solutions.

• Access to Capital: One of the primary benefits of partnering with a bank is access to capital. Determine the bank's willingness and capacity to provide financing or credit lines to support your transformation efforts. Understand the terms, interest rates, and repayment options.

• Financial Products and Services: Consider the range of financial products and services the bank offers. This might include loans, lines of credit, working capital solutions, and trade finance. Choose a bank that can provide the specific financial tools your transformation project requires.

• Risk Assessment: The bank should conduct a thorough risk assessment to understand the potential risks associated with your transformation initiative. This assessment can help both parties make informed decisions about financing and risk management.

• Scalability and Flexibility: Your banking partner should be able to scale their services to meet your changing needs as the transformation progresses. Flexibility in terms of credit limits and financial products is important.

• Timeliness and Responsiveness: Assess the bank's ability to respond promptly to your financial needs. In a transformation initiative, timing can be critical, so you'll want a bank that can move quickly when necessary.

"Remember that the success of your transformation initiative depends not only on the financial support provided by the bank but also on how well the partnership is managed and how effectively the bank can adapt to your evolving needs," says Pillay.

The PetroCONNECT success story

Nedbank has been at the forefront of financing transformation with the work they have done with PetroCONNECT, a prominent local consultancy company in the fuel sector. Through this collaboration the bank funds qualifying PetroCONNECT transformation candidates through a differentiated funding model that is aimed at empowering fuel retailers with sustainable solutions.

"PetroCONNECT assesses individuals who are looking to buy service stations. They assess potential new entrants and determine whether they have the necessary skills and competencies to run a service station. They pre-screen candidates for pre-ownership and also offer post-ownership interventions. These interventions mitigate associated risks for the bank," says Pillay. 

"Nedbank has had to consider alternative funding models and changes to lending policies. We offer differentiated funding structures where the barriers of entry are lower albeit finance assessment is still underpinned by a comprehensive risk assessment model," he concludes.

Read more about Nedbank’s Transformation story, efforts and funding opportunities HERE.