strategic transformation
TRANSCRIPT
Strategy ?
A method or Plan chosen chosen to bring about a desired Future, such as achievement of
GOAL / SOLUTION PROBLEM
Transformational ?• High Improvement Potential. • Change the Business unit, Geographies & Functions
completely.• Change addresses all aspects like People, Processes,
Organisation, Technology, Finance.
Strategic Transformation
• It is the Link between the strategy Formulation and Implementation Phases.
• It Plays a major role in defining strategy effectiveness.
When it is used ?
• External Changes on the Market such Organisation Product / Services.• New Regulation Coming into Force.
In return It Helps in
• Increase Revenue and Market share.• Improve Customer Satisfaction.• Cutting Cost.
4 Steps To A Successful Transformation
Step One: Getting the right strategic vision is critical Step Two: Execution is the hardest part of
transformation. Step Three: The biggest challenge to transformation
may be a leader wedded to a past or current success Step Four: Take a broad view of customer demand when
embarking on business transformation.
Strategic Organizational Renewal
“SOMETIMES THE MOST DIFFICULT LEADERSHIP CHALLENGE IS NOT FIGHTING THE COMPETITION, BUT TELLING YOUR PEOPLE IT’S TIME TO CHANGE.”
According to Covin & Miles, “The phenomenon whereby the organization seeks to redefine its relationship with its markets or industry competitors by fundamentally altering how it competes.”
Strategic renewal is a firm’s transformation in terms of changing its scope of business or strategic approach on which it is built. Instances when SOR can be implemented:
1. Timing2. Division
Analysis3. Company Purpose4. Products
Process of Renewal
STEP-1 Understanding Exposure• Customer
Strategy• Operational
Effectiveness• Technology
Optimization• Human Capital
STEP-2 Analyze Scenario• Change in
Business Model• Employees
mindset• Beyond short-
term Cost Cutting
• Future requirements
STEP-3 Renew Organization• Roadmap• Prioritization of needs• Sequences of activities• Training & Org.
requirements
Reframing
The management of a business assesses its operation via multiple outlooks.
STRUCTURAL FRAME
POLITICAL FRAME
SYMBOLIC FRAME
HUMAN RESOURCE
FRAME Busine
ss Frame
Restructuring
Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs
Steps:
Ensure the company has enough liquidity to operate during implementation of a complete restructuring
Produce accurate working capital forecasts Provide open and clear lines of communication with
creditors who mostly control the company's ability to raise financing
Update detailed business plan and considerations
Restructuring strategies
Downsizing Starburst Verticalization De-layering Business Process Reengineering Virtualization Outsourcing
IBMLayoff 85k employees
Pfizer’s decision to spin off four non-pharmaceutical firms this
year.
HCL verticalized to meet the specific demands of five different industries:
retail, media and telecom, manufacturing, finance and life sciences.
General ElectricHewlett Packard,
Ford Motor
ATMs offered by banks are their virtual units.
Revitalization
Strategy Employed when brand has reached maturity and profits begin to decline.
It include approaches like market expansion, product modification or brand expansion.
References
http://www.forbes.com/sites/forbesinsights/2014/03/18/4-steps-to-a-successful-business-transformation/
https://www.pwc.ch/en/our_services/advisory/finance/strategy_transformation.html
http://www.brighthub.com/office/human-resources/articles/122397.aspx
Endeavormgmt.com
Yourbusiness.azcentral.com
Innovationexcellence.com
Sloanreview.mit.edu/article/the-art-of-strategic-renewal/
Strategies on Reframing Change in Your Organization by KJ Henderson, Demand Media