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Previous Barriers to Transformation: Understandably, Transformation is a massive challenge for all organisations. If you think change is hard, try transformation.
The more difficult barriers are less obvious and therefore often get totally overlooked. KPIs are not considered and are unintentionally excluded from the transformation initiative. Essentially, this amounts to telling your people to march in a new direction into the unknown and the uncertain while rewarding them for marching in the old, known and certain direction.
This is mismanagement by design. These have become the go to KPIs. A more difficult and highly sensitive issue is how to remunerate salespeople for cloud sales. Sales commission plans that were based on high ticket value asset sales no longer make sense in the world of monthly recurring revenues generated by subscription services.
In addition, Digital Marketing and online customer education about Cloud services moves the work of sales to Marketing and to the Customer which compounds the problem of adequately and equitably rewarding salespeople for selling cloud-based services. Clearly if the compensation KPIs are not revised and aligned with the new business model of a subscription-based revenue Cloud services, sales resistance to selling cloud may stall the transformation effort.
In some cases, resulting in the company actually reversing its decision temporally to go Cloud and deciding to continue selling traditional on-prem. When management tells its people to adopt change and align their behaviour to the new transformed business but continues to reward and incent people for the old behaviours conforming to the past then dysfunctional behaviour will result, frustration will go through the roof, morale will go through the floor and performance will stall.
KPIs that reward the old behaviour anchor people to the past and suppress new behaviour which accelerating time to failure for any Transformation initiative.Methylene chloride is a chlorinated hydrocarbon that has been used as an inhalation anesthetic and acts as a narcotic in high concentrations.
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