advertisement

Two Phases of Business Transformation

advertisement
Information about Two Phases of Business Transformation

Published on May 19, 2017

Author: flevydocs

Source: slideshare.net

advertisement
Content

1. This is an exclusive document to the FlevyPro community - http://flevy.com/pro Framework Primer Two Phases of Business Transformation Presentation created by PHASE 1 PHASE 2 Trigger Operational Turnaround New Strategy Adaptive Innovation TSR Time

2. 2This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Contents Overview Transformation Trajectories, Phases, and Stages Factors for Long-term Success Transformation Traps The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

3. 3This document is an exclusive document available to FlevyPro members - http://flevy.com/pro A Business Transformation undergoes 2 phases—characterized by Cost Reduction and Growth & Innovation Presentation Overview Transformation projects are common in organizations these days. However, based on a study conducted by the Boston Consulting Group, about 75% of such efforts fail. Based on this same study, BCG identified 2 phases that exist in all business transformation projects, which traverse through 4 stages: • Trigger • Operational Turnaround Triggered by a performance or industry shift, the first phase is focuses on Cost Reduction. The second phase focuses on Growth and Innovation. Other topics covered include the factors to long-term success (Turning the Page, Creating a New Vision, Foundational Innovation, Commitment, Imposed Distance, Adaptive Approach, Shots on Goal, Patients) and transformation traps (Early-Wins, Efficiency, Legacy, Proportionality, False Certainty, Persistency, Proximity). Transformation projects become more pervasive, as markets become more turbulent and likewise market leadership becomes less durable. 1 2 New Strategy, Vision, or Business Model Adaptive Innovation 3 4 The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

4. 4This document is an exclusive document available to FlevyPro members - http://flevy.com/pro 75% of business transformations ultimately fail Transformation Projects Study Ursula Burns, CEO of Xerox, said in 2012, “If you don’t transform your company, you’re stuck.” Source: BCG Analysis, 2013 • This data is based on the analysis of 48 companies that were publicly undergoing corporate transformation efforts. • Total Shareholder Return (TSR) is adjusted by S&P 500 growth, where 1 is the same growth rate as the index. Long-term growth refers to a period of 5 years of a period that is going—i.e., transformation initiatives that begun since July 2008. 1 2 6 7 1 0 2 3 4 Long-term relative TSR growth Year one relative TSR growth The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

5. 5This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Contents Overview Transformation Trajectories, Phases, and Stages Factors for Long-term Success Transformation Traps The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

6. 6This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Based on the study of organizations that have undergone transformation initiatives, we find there are 2 common transformation trajectories Transformation Trajectories The full business transformation process goes through 4 stages: Trigger; Operational Turnaround; New Strategy, Vision, or Business Model; and Adaptive Innovation. There are 2 common transformation trajectories: 1. Short-term recovery with a long-term slow decline 2. Short-term recovery with long-term restoration of growth and performance New Strategy, Vision, or Business Model PHASE 1 PHASE 2 Trigger Operational Turnaround Adaptive Innovation TSR Time 1 2 1 2 The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

7. 7This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Triggered by a decline in performance, the first phase is focused on cost reduction efforts Phase 1 – Operational Turnaround In theory, organizations can continuously transform themselves—however, in practice, this rarely occurs. New Strategy, Vision, or Business Model PHASE 1 PHASE 2 Trigger Operational Turnaround Adaptive Innovation TSR Time • Phase 1 is fully comprised of the Operational Turnaround stage. • Streaming business processes achieves several goals: ̶ Reduces operational inefficiencies ̶ Buys time by addressing short-term financial distresses ̶ Frees up resources to fund the journey towards future growth • Typical Phase 1 activities will lasts up to 18 months. By the end, Total Shareholder Returns (TSR) is returned to industry parity levels. • It is important to boldly cut costs at the outset, instead of holding back. If we don’t do this, we risk repeated rounds of cost cutting, thereby undermining employee morale, momentum, and leadership credibility. The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

8. 8This document is an exclusive document available to FlevyPro members - http://flevy.com/pro New Strategy, Vision, or Business Model PHASE 1 PHASE 2 Trigger Operational Turnaround Adaptive Innovation TSR Time In the second phase, we switch our focus from cost reduction to top-line revenue growth Phase 2 – New Strategy/Vision/Business Model and Adaptive Innovation Innovation is the key to long-term, sustained growth. • Phase 1 was focused on cost cutting efforts—on the other hand, phase 2 is focused on growth and adaptive innovation. • Typically, an organization would deploy a new strategy, vision, or business model that was refined over a multi-year period. The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

9. 9This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Contents Overview Transformation Trajectories, Phases, and Stages Factors for Long-term Success Transformation Traps The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

10. 10This document is an exclusive document available to FlevyPro members - http://flevy.com/pro To ensure the success of phase 2, here are 8 factors to long-term success that we should follow as guiding principles Factors for Long-term Success (1 of 2) There are 8 factors that drive long-term success in transformation projects. Turning the page1 Companies make a conscious decision to go beyond the efficiency moves of phase one and refocus on growth and innovation Creating a new vision2 Companies articulate a clear shift in strategic direction, coupled with room for experimentation Foundational Innovation3 Companies innovate across multiple dimensions of the business model, not just in products and processes. Commitment4 There is persistence from leaders in the face of inevitable setbacks and internal opposition to unproven shifts in strategy. The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

11. 11This document is an exclusive document available to FlevyPro members - http://flevy.com/pro To ensure the success of phase 2, here are 8 factors to long-term success that we should follow as guiding principles Factors for Long-term Success (2 of 2) Although these factors are commonalities in transformation efforts, each transformation has its own unique set of challenges. Imposed Distance There is a willingness to shift from the historical core business model and its underlying assumptions, often by creating a deliberate degree of separation between the new business model and legacy operations. Adaptive Approach Transformation unfolds through trial and error, with ongoing refinement of a flexible plan Shots on Goal Companies do not pin growth hopes on a single move but rather on deploying a portfolio of moves to drive growth Commitment There is adherence to vision over a multiyear period 5 6 7 8 The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

12. 12This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Contents Overview Transformation Trajectories, Phases, and Stages Factors for Long-term Success Transformation Traps The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

13. 13This document is an exclusive document available to FlevyPro members - http://flevy.com/pro As mentioned, the majority of transformations fail—here are several traps organizations fall into that lead to their transformation failures Transformation Traps (1 of 2) Early-Wins Trap Companies declare premature victory after phase one and fail to declare or develop a second phase. Efficiency Trap Companies continue with multiple rounds of cost cutting and efficiency improvement measures Legacy Trap Companies fail to shed core assumptions and practices even when they are self-limiting or no longer relevant.. Proportio- nality Trap Companies make promising moves—such as a series of new business pilots—that are not proportionate to the scale of the challenge. 1 2 3 4 The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

14. 14This document is an exclusive document available to FlevyPro members - http://flevy.com/pro As mentioned, the majority of transformations fail—here are several traps organizations fall into that lead to their transformation failures Transformation Traps (2 of 2) Although on the surface, these transformation traps may seem self-evident, they are often difficult to avoid. False Certainty Trap Companies believe that the course of action can be rigorously planned in advance, and they overemphasize disciplined implementation of a fixed plan instead of continually iterating in response to new knowledge Persistency Trap Companies underestimate the time needed to see results (often up to a decade), and, consequently, they let up too soon. Proximity Trap Companies undermine the new business by keeping it too close to the core business, even when that closeness triggers competition for resources or conflicting assumptions. 5 6 7 The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

15. 15This document is an exclusive document available to FlevyPro members - http://flevy.com/pro This presentation was created by PPT Lab. PPT Lab is a PowerPoint design firm specializing in consulting-quality presentations. View our available presentations on Flevy here: https://flevy.com/seller/PPTLab The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

16. 16This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries [email protected] • Media/PR [email protected] • Billing [email protected] The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/two-phases-of-business-transformation-2744

17. 1 Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries [email protected] • Media/PR [email protected] • Billing [email protected]

Related presentations


Other presentations created by flevydocs

Product Roadmap Template
10. 02. 2014
0 views

Product Roadmap Template

Marketing Channel Ranking Tool
10. 02. 2014
0 views

Marketing Channel Ranking Tool

Lead Scoring Template
10. 02. 2014
0 views

Lead Scoring Template

Strategy Toolkit PPT
10. 02. 2014
0 views

Strategy Toolkit PPT

Consulting Proposal
10. 02. 2014
0 views

Consulting Proposal

Google AdWords Campaign Planning
10. 02. 2014
0 views

Google AdWords Campaign Planning

Strategy ToolKit
10. 02. 2014
0 views

Strategy ToolKit

Lead Acquisition Model
09. 02. 2014
0 views

Lead Acquisition Model

Brand Assessment Tool
09. 02. 2014
0 views

Brand Assessment Tool

Risk Management Overview
09. 02. 2014
0 views

Risk Management Overview

Project Managment WorkBook
09. 02. 2014
0 views

Project Managment WorkBook

Cost Reduction Primer
24. 07. 2014
0 views

Cost Reduction Primer

Flevy PowerPoint Toolkit
24. 07. 2014
0 views

Flevy PowerPoint Toolkit

Duty of Care - Safety Talk
25. 07. 2014
0 views

Duty of Care - Safety Talk

Driver Fatigue - Safety Talk
25. 07. 2014
0 views

Driver Fatigue - Safety Talk

Diet & Fitness - Safety Talk
25. 07. 2014
0 views

Diet & Fitness - Safety Talk

Back Injury - Safety Talk
25. 07. 2014
0 views

Back Injury - Safety Talk

Angle Grinders - Safety Talk
25. 07. 2014
0 views

Angle Grinders - Safety Talk

Manual Handling - Safety Talk
26. 07. 2014
0 views

Manual Handling - Safety Talk

Effects of Cloud Computing
26. 07. 2014
0 views

Effects of Cloud Computing

Business Model for Online NGO
26. 07. 2014
0 views

Business Model for Online NGO

Publishing Industry Analysis
26. 07. 2014
0 views

Publishing Industry Analysis

Learning Analytics en espanol
26. 07. 2014
0 views

Learning Analytics en espanol

Fiaccabrino Selection Process
26. 07. 2014
0 views

Fiaccabrino Selection Process

Economic Analysis of Mexico
26. 07. 2014
0 views

Economic Analysis of Mexico

Smart Banking
27. 07. 2014
0 views

Smart Banking

Digital Health
27. 07. 2014
0 views

Digital Health

Valuation of Oil & Gas Firm
27. 07. 2014
0 views

Valuation of Oil & Gas Firm

Fundamentals of Proposal Writing
27. 07. 2014
0 views

Fundamentals of Proposal Writing

Financing High Growth Companies
27. 07. 2014
0 views

Financing High Growth Companies

Consulting Proposal Playbook
27. 07. 2014
0 views

Consulting Proposal Playbook

Building Effective Presentations
27. 07. 2014
0 views

Building Effective Presentations

Visual Management
27. 07. 2014
0 views

Visual Management

Consumer Behavior 101
27. 07. 2014
0 views

Consumer Behavior 101

Clarity Handbook
27. 07. 2014
0 views

Clarity Handbook

Inventory Targets Model
27. 07. 2014
0 views

Inventory Targets Model

Communications Toolkit Templates
27. 07. 2014
0 views

Communications Toolkit Templates

Sample Business Plan
27. 07. 2014
0 views

Sample Business Plan

Strategy Framework Pocket Guide
27. 07. 2014
0 views

Strategy Framework Pocket Guide

Rapid Process Improvement
27. 07. 2014
0 views

Rapid Process Improvement

Consulting Report Template II
28. 07. 2014
0 views

Consulting Report Template II

Market Research Method
28. 07. 2014
0 views

Market Research Method

Issue Based Problem Solving
28. 07. 2014
0 views

Issue Based Problem Solving

How to Be a Great Manager
28. 07. 2014
0 views

How to Be a Great Manager

Plan for Performance Methodology
28. 07. 2014
0 views

Plan for Performance Methodology

SCRUM backlog
29. 07. 2014
0 views

SCRUM backlog

Used Riskmatrix model
29. 07. 2014
0 views

Used Riskmatrix model

SAP Basis 101 Guide and Training
29. 07. 2014
0 views

SAP Basis 101 Guide and Training

Affiliate Marketing PPT Template
29. 07. 2014
0 views

Affiliate Marketing PPT Template

Aeroplane PPT Template
29. 07. 2014
0 views

Aeroplane PPT Template

Android PPT Template
29. 07. 2014
0 views

Android PPT Template

Anatomy of the Ear PPT Template
29. 07. 2014
0 views

Anatomy of the Ear PPT Template

Alcoholic PPT Template
29. 07. 2014
0 views

Alcoholic PPT Template

Advertising PPT Template
29. 07. 2014
0 views

Advertising PPT Template

From Data to Charts
29. 07. 2014
0 views

From Data to Charts

Interactive Excel Map: Africa
29. 07. 2014
0 views

Interactive Excel Map: Africa

Baby PPT Template
08. 10. 2014
0 views

Baby PPT Template

Your Brand Discovery
08. 10. 2014
0 views

Your Brand Discovery

Competitive Analysis Tool
08. 10. 2014
0 views

Competitive Analysis Tool

Organizational Architecture
08. 10. 2014
0 views

Organizational Architecture

Strategic Roadmap Plan
08. 10. 2014
0 views

Strategic Roadmap Plan

Forecast Analysis Tool
08. 10. 2014
0 views

Forecast Analysis Tool

Business Excellence Frameworks
08. 10. 2014
0 views

Business Excellence Frameworks

Reinventing Senior Executives
08. 10. 2014
0 views

Reinventing Senior Executives

Better Sponsor Engagement
08. 07. 2015
0 views

Better Sponsor Engagement

Leadership Theories & Models
11. 07. 2015
0 views

Leadership Theories & Models

The Process Specialist
12. 07. 2015
0 views

The Process Specialist

Customer Service Plan
12. 07. 2015
0 views

Customer Service Plan

Value Based Management Tools
12. 07. 2015
0 views

Value Based Management Tools

Marketing Campaign Budget ROI
14. 07. 2015
0 views

Marketing Campaign Budget ROI

PMP Integration Management
14. 07. 2015
0 views

PMP Integration Management

PMP Stakeholder Management
14. 07. 2015
0 views

PMP Stakeholder Management

PMP Risk Management
14. 07. 2015
0 views

PMP Risk Management

Introduction to CMMI - Service
16. 12. 2015
0 views

Introduction to CMMI - Service

Configuration Management Program
16. 12. 2015
0 views

Configuration Management Program

Introduction to CMMI - Dev L3
16. 12. 2015
0 views

Introduction to CMMI - Dev L3

Certified Software Team Lead
16. 12. 2015
0 views

Certified Software Team Lead

ISMS Internal Auditor program
16. 12. 2015
0 views

ISMS Internal Auditor program

QMS Internal Auditors Program
16. 12. 2015
0 views

QMS Internal Auditors Program

ISO 9001 Implementer Program
16. 12. 2015
0 views

ISO 9001 Implementer Program

Startup Investor Database
16. 12. 2015
0 views

Startup Investor Database

Overview of Program Management
16. 12. 2015
0 views

Overview of Program Management

70 Tips on Moving Office
17. 12. 2015
0 views

70 Tips on Moving Office

PSL - JIT Heijunka Presentation
17. 12. 2015
0 views

PSL - JIT Heijunka Presentation

Manage to Lead System Workshop
17. 12. 2015
0 views

Manage to Lead System Workshop

Basic Statistics - Introductory
17. 12. 2015
0 views

Basic Statistics - Introductory

Pareto Chart - Learn to Draw
17. 12. 2015
0 views

Pareto Chart - Learn to Draw

Office Kaizen
17. 12. 2015
0 views

Office Kaizen

Sample Licensing Agreement
17. 12. 2015
0 views

Sample Licensing Agreement

How to Use the Change Framework
18. 12. 2015
0 views

How to Use the Change Framework

Test Strategy Template
18. 12. 2015
0 views

Test Strategy Template

Sales & Operations
18. 12. 2015
0 views

Sales & Operations

Value Creating Strategy
18. 12. 2015
0 views

Value Creating Strategy

RACI Method
18. 12. 2015
0 views

RACI Method

Cyber Security Awareness Program
18. 12. 2015
0 views

Cyber Security Awareness Program

Pro Company PowerPoint Template
18. 12. 2015
0 views

Pro Company PowerPoint Template

Change: Measuring Outcomes
22. 12. 2015
0 views

Change: Measuring Outcomes

An in-depth Q&A on Social Media
29. 12. 2015
0 views

An in-depth Q&A on Social Media

The 2015 Outlook for Big Data
29. 12. 2015
0 views

The 2015 Outlook for Big Data

IT Cost Reduction Sales Deck
08. 01. 2016
0 views

IT Cost Reduction Sales Deck

Strategic Sourcing Sales Deck
08. 01. 2016
0 views

Strategic Sourcing Sales Deck

Process Optimization Sales Deck
08. 01. 2016
0 views

Process Optimization Sales Deck

The 5S Number Game
08. 01. 2016
0 views

The 5S Number Game

Kanban Calculations (Activity)
08. 01. 2016
0 views

Kanban Calculations (Activity)

14 Points to Ponder (Deming)
08. 01. 2016
0 views

14 Points to Ponder (Deming)

Benchmarking Primer
25. 04. 2016
0 views

Benchmarking Primer

Brand Asset Valuator (BAV)
26. 04. 2016
0 views

Brand Asset Valuator (BAV)

ARAP Savings Calculator
26. 04. 2016
0 views

ARAP Savings Calculator

Business Structure Selector
25. 04. 2016
0 views

Business Structure Selector

Targeted Budgeting Tool
25. 04. 2016
0 views

Targeted Budgeting Tool

Partner Marketing Funds Analysis
25. 04. 2016
0 views

Partner Marketing Funds Analysis

Marketing Tactical Plan
25. 04. 2016
0 views

Marketing Tactical Plan

Marketing Budget Plan
25. 04. 2016
0 views

Marketing Budget Plan

Marketing Budget Annual Plan
25. 04. 2016
0 views

Marketing Budget Annual Plan

Market Analysis Worksheet
25. 04. 2016
0 views

Market Analysis Worksheet

Event Budget Plan
25. 04. 2016
0 views

Event Budget Plan

Revenue Plan
25. 04. 2016
0 views

Revenue Plan

e-Learning - Business Analysis
25. 04. 2016
0 views

e-Learning - Business Analysis

Request for Proposal (RFP)
25. 04. 2016
0 views

Request for Proposal (RFP)

Six Sigma Maturity Model
19. 11. 2016
0 views

Six Sigma Maturity Model

Project Risk Assessment Report
19. 11. 2016
0 views

Project Risk Assessment Report

Project Process Agreement (PPA)
19. 11. 2016
0 views

Project Process Agreement (PPA)

PMO - IT Procurement Checklist
19. 11. 2016
0 views

PMO - IT Procurement Checklist

Lean IT Services
19. 11. 2016
0 views

Lean IT Services

Lean Government
19. 11. 2016
0 views

Lean Government

BABoK V3 Knowledge Areas
22. 03. 2017
0 views

BABoK V3 Knowledge Areas

BABoK V3 Themes
22. 03. 2017
0 views

BABoK V3 Themes

CBAP V3 Introduction
22. 03. 2017
0 views

CBAP V3 Introduction