Change ≠ Transformation

There are numerous fascinating examples of change and transformation in creation. We all know the most famous one: butterflies undergoing a metamorphosis, transforming from a nondescript caterpillar into a beautiful butterfly. This phenomenon offers us valuable insights into the difference between transformation & change.

Organisations, just like the caterpillar, can go through changes in order to adapt to new circumstances. Change is a natural process that occurs in all aspects of life. The caterpillar goes through different stages of growth in which it adapts to its environment. Similarly, organisations continuously adapt to external influences, be it technological advancements, market trends or customer needs.

Change is usually gradual & incremental. It is small adjustments or improvements to existing processes or strategies to keep pace with developments. Like the caterpillar, an organisation can remain in a certain stage of change and expand its capabilities to be successful. Nevertheless, the basic structure & identity of the organisation remains the same.

While change is a continuous process, transformation goes beyond mere adaptation. Just like the butterfly that emerges from the caterpillar, transformation is about a profound change. It is about rethinking the foundation and achieving a completely new form. Transformation means radically changing existing structures, processes and ways of thinking in order to achieve a new state. The enormous challenge here is to say goodbye to old habits.

This is particularly difficult for organisations that have been living a certain tradition for decades or even centuries. However, organisations today need to be open to innovation and creativity in order to secure their future success. Organisations that want to transform themselves must therefore be prepared to take risks and embark on unconventional paths.

The transformation of a company ensures that it can meet the challenges of today's dynamic & disruptive business world. By expanding mindsets, redesigning processes and thoroughly rethinking strategies and business models, companies gain a competitive advantage.

Let's take the example of a traditional retail business. It may change by expanding its product range, renovating the shop or introducing different opening hours. But none of this is a transformation and the change measures will probably only attract a few new customers. The change comes when the shop decides to completely reorient itself and open an online shop. However, this means that the strategy is completely different, the business model has to be adapted, there are completely new processes, etc.

However, transformation does not mean that the organisation has to completely throw its identity or values overboard. The "butterfly principle" applies here: even if the caterpillar and butterfly hardly resemble each other and have different abilities, they still have exactly the same DNA. During the pupation phase, numerous epigenetic mechanisms are at work in the cell nuclei of the insects, which assign new tasks to almost every cell and completely reorganise the body.

Let's go back to our retailer, who now sells online. He is transforming his business, can now "fly" like a butterfly and reach new customers, has the opportunity to offer more because not everything has to fit into a small shop and is open around the clock. It has thus transformed itself without giving up its values or identity as a company.

While change is more evolutionary and aims to adapt to new circumstances, transformation goes beyond this and requires a revolutionary approach to redesigning (recreating) organisations.

Like butterflies, organisations can unleash their full potential and soar to new heights through transformation. However, it is important that organisations develop the ability to recognise both change and transformation and act accordingly in order to succeed in a dynamic & disruptive world.