In digital transformation, the term “transition state” is a common reference point for describing interim solutions. This concept often leads to challenges that compromise long-term organizational success. Instead, an approach based on ‘rolling horizons’ enables continuous evolution of how you manage information in your organisation over time.
Understanding States in Digital Transformation Planning
In digital transformation, we often talk about “states” to describe where an organization is in its journey. These states provide a framework for planning and decision-making but can sometimes create confusion. To clarify, let’s break down the key types of states and why they matter:
- Past State: The past state represents where your organization was before any changes were introduced. It’s yesterday’s current state—a snapshot of systems, processes, and outcomes that no longer fully serve your goals.
- Current State: The current state is where your organization stands today. It includes the technology, workflows, and cultural dynamics that shape your operations right now. This is the foundation for planning any changes.
- Future State: The future state represents the vision you are working toward. It’s tomorrow’s current state—the next evolution of your organization. Once achieved, it becomes the baseline for further progress.
The concept of a “transition state” implies a temporary in-between stage on the way to a final destination. However, this perspective is flawed because it assumes that digital transformation has an endpoint. In reality, today’s future state will inevitably become tomorrow’s current state, and the cycle continues. Transformation is not about reaching a fixed destination but about continuous evolution.
The Pitfalls of Transition States
By planning around static transition states, organizations risk locking themselves into incomplete or suboptimal solutions. Transition states often become the status quo, leading to inefficiencies and preventing the momentum needed for ongoing improvement.
Transition states are typically envisioned as temporary setups—a “bridge” between an organization’s current state and its desired future state. In practice, these “temporary” solutions often become permanent. Constrained budgets, shifting priorities, and resource limitations can deprioritize the planned enhancements, leaving organizations operating within systems known to be incomplete. This stagnation leads to inefficiencies like manual data processes, fractured workflows, and lingering technical debt.
Moreover, the transition-state mindset fosters the illusion of an endpoint in digital transformation. It creates an expectation that, once a specific milestone is achieved, the transformation effort is “complete.” This flawed thinking stalls momentum and discourages continuous improvement, a cornerstone of effective digital transformation.
Transition states are a barrier to change
Transition-state thinking often introduces friction into transformation efforts. Teams may resist ongoing change because they’ve been conditioned to view the current state as “good enough.” This mindset undercuts the agility needed to respond to shifting technology, employee, and customer needs, leaving organizations vulnerable in our rapidly changing world. By contrast, the rolling horizon approach to planning positions change as an everyday way of working, encouraging improvement and collaboration over time.
Rolling Horizons: A Future-Oriented Alternative
Rolling Horizons: A Future-Oriented Alternative
Instead of anchoring transformation plans on fixed transition states, consider adopting a rolling horizon approach. This method acknowledges the dynamic nature of digital transformation, recognizing that technology, market demands, and organizational goals evolve continuously. A rolling horizon reframes transformation as an ongoing journey with three interconnected planning phases:
- Delivery Horizon (0–1 year)
Focus on immediate initiatives that deliver quick wins or foundational improvements. This is where tactical projects are executed, resources are allocated, and short-term objectives are achieved. - Initiative Horizon (1–3 years)
Define the medium-term roadmap that aligns with broader organizational goals. These initiatives often involve multi-year projects requiring significant stakeholder coordination and investment. - Strategic Horizon (3+ years)
Establish the organization’s vision and long-term direction, informed by emerging trends and potential disruptions. This phase provides the strategic context to guide near- and mid-term activities.
Each horizon is continuously revisited and adjusted based on real-world outcomes and changes in the external environment. This iterative planning cycle avoids the stagnation that transition states can bring.
Why Rolling Horizons Work
In a world where change is constant and disruption is inevitable, organizations need a planning approach that is as dynamic as the environment they operate in. Rolling horizons in planning provide a powerful alternative to static, milestone-driven methods, ensuring that your digital transformation efforts remain aligned with evolving priorities and market demands. This approach not only addresses the pitfalls of transition-state thinking but also establishes a foundation for sustained agility, resource optimization, and cultural resilience.
A rolling horizons approach in digital transformation planning:
- Promotes Agility: By avoiding rigid milestones, rolling horizons allow organizations to adapt their strategies and investments based on current progress and circumstances, and in real time.
- Enhances Alignment: Rolling planning creates a structured cadence for revisiting priorities, ensuring alignment across initiatives and teams.
- Encourages Resource Optimization: With continuous review, resources can be redirected to areas with the greatest impact, preventing resource underutilisation.
- Fosters a Culture of Evolution: Rolling horizons shift the organizational mindset from “completion” to “continuous improvement,” embedding adaptability and resilience into everyday ways of working.
How to Shift from Transition States to Rolling Horizons
Making the leap from transition-state thinking to a rolling horizon approach requires more than just a change in language—it demands a fundamental shift in mindset, governance, and operational practices. By embedding rolling horizons into your planning processes, you can create a culture of continuous evolution, where adaptability and long-term alignment become second nature.
Here are the key steps to successfully transition your organization to this forward-looking framework:
- Reframe Language and Mindset: Eliminate “transition state” from your transformation vocabulary. Instead, discuss current, near-term, and future horizons to instill a culture of perpetual growth.
- Embed Horizons in Governance: Incorporate rolling horizons into your project governance structures. For example, set quarterly reviews for delivery horizons and biannual assessments for strategic horizons.
- Invest in Agile Practices: Agile methodologies align naturally with rolling horizons, enabling iterative development, frequent reassessment, and flexibility.
- Champion Continuous Funding Models: Move away from one-off project budgets and adopt funding models that allocate resources on a rolling basis, ensuring sustained investment in improvement.
Transformation Has No Final Destination
Digital transformation is not a project; it’s an enduring journey. The rolling horizon framework ensures organizations remain dynamic and resilient in a world of constant change. As leaders, we must embrace this perspective, recognizing that our success depends not on reaching a fixed destination but on navigating an ever-evolving landscape.
Let’s stop planning for “later” and start planning for “what’s next.”
