Transformation is a journey, not a destination – so how to transform at scale? GigaOm Field CTOs Darrel Kent and Whit Walters explore the nuances of business and digital transformation, sharing their thoughts on scaling businesses, value-driven growth, and leadership in a rapidly evolving world.
Whit: Darrel, transformation is such a well-used word these days—digital transformation, business transformation. It’s tough enough at a project level, but for enterprises looking to grow, where should they begin?
Darrel: You’re right. Transformation has become one of those overused buzzwords, but at its core, it’s about fundamental change. What is digital transformation? What is business transformation? It’s about translating those big concepts into value-based disciplines—disciplines that drive real impact.
Whit: That sounds compelling. Can you give us an example of what that looks like in practice – how does transformation relate to company growth?
Darrel: Sure. Think of a company aiming to grow from 1 billion, to 2 billion, to 5 billion in revenue. That’s not just a numbers game; it’s a journey of transformation. To get to 1 billion, you can get there by focusing on product excellence. But you won’t get to 2 billion based on product alone – you need more. You need to rethink your approach to scaling—whether it’s through innovation, operations, or culture. Finance needs to invest strategically, sales needs to evolve, and leadership must align every decision with long-term goals.
Whit: It’s a fascinating shift. So, scaling isn’t just about selling more products?
Darrel: Exactly. Scaling requires a transformation in how you deliver value. For example, moving beyond transactional sales to consultative relationships. It’s about operational efficiency, customer experience, and innovation working together to create value at scale. I call these value-based disciplines.
Whit: Let’s break that down a bit more. You’ve mentioned product excellence, operational excellence, and customer excellence. How do these concepts build on each other?
Darrel: Great question. Product excellence is the foundation. When building a company, your product needs to solve a real problem and do it exceptionally well. That’s how you reach your first milestone—say, that 1-billion-dollar mark. But to scale beyond that, you can’t rely on product alone. This is where operational excellence comes in. It’s about streamlining your processes, reducing inefficiencies, and ensuring that every part of the organization is working in harmony.
Whit: And customer excellence? Where does that fit in?
Darrel: Customer excellence takes it to the next level beyond operational excellence. Once again, what gets you to 2 billion does not take you beyond that. You have to change again. It’s not just about creating a great product or running a smooth operation. It’s about truly understanding and anticipating your customers’ needs. Companies that master customer excellence create loyalty and advocacy. They don’t just react to customer feedback; they proactively shape the customer experience. This is where long-term growth happens, and it’s a hallmark of companies that scale successfully.
Whit: That makes so much sense. So, it’s a progression—starting with product, moving to operations, and finally centering everything around the customer?
Darrel: Exactly. Think of it as a ladder. Each step builds on the previous one. You need product excellence to get off the ground, operational excellence to scale efficiently, and customer excellence to ensure longevity and market leadership. And these aren’t isolated phases—they’re interconnected. A failure in one area can disrupt the whole system.
Whit: That’s a powerful perspective. What role does leadership play in this transformation?
Darrel: Leadership is everything. It starts with understanding that transformation isn’t optional—it’s survival. Leaders must champion change, align the organization’s culture with its strategy, and invest in the right areas. For example, what does the CFO prioritize? What technologies or processes does the COO implement? It all needs to work together.
Whit: That’s a powerful perspective. What would you say to leaders who are hesitant to embark on such a daunting journey?
Darrel: I’d tell them this: Transformation isn’t just about surviving the present; it’s about thriving in the future. It’s what Simon Sinek refers to as ‘the long game’. Companies that embrace these principles—aligning value creation with their business strategy—will not only grow but will set the pace in their industries.
Whit: Do you have any final thoughts for organizations navigating their own transformations?
Darrel: Focus on value. Whether it’s your customers, employees, or stakeholders, every transformation effort should return to delivering value. And remember, it’s a journey. You don’t have to get it perfect overnight, but you do have to start.
Whit: Thank you, Darrel. Your insights are invaluable.
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