Over the last one year, several global giants in their respective fields such as Coca-Cola and China Petroleum have changed their CEOs. These companies and several others have made the change due to their reasoning that the older style of management is no longer conducive to the expected disruption across industries. Organizational transformation could be on the business model, operations, work culture, corporate strategy or hierarchy. It is not comprised of a series of incremental changes, but a complete reboot that needs to be sustainable while altering the future course. The Boston Consulting Group (BCG) has been through more than seven hundred such business transformations in recent years, so certain insights have emerged on why some of them have been successful. One tactic followed across the board is that CEOs must strike a balance between near-term and future objectives. Transformative CEOs must also be able to reset investor expectations to be on the bolder side. A clear purpose must be in place for why the efforts must go towards the change. Digitization and agility should be part of the process. The talent recruitment by the CEO must aim at diversity especially towards the top end of the hierarchy. The leadership style must be inclusive of all and be hands-on towards the execution. The study also suggests that almost all entities require a rejig of some sort or the other. Winners may be separated from the others through a set of predictable factors. Usually external hires tend to do better at transformation than internal promotes. During this transformative journey, a sideways glance must be cast continuously on the revenue growth as well. Finally, the CEO must adopt a four-part strategy. These parts will include the preparation for the journey, arranging for its funds, constant improvisation for the future and organizing a sustainable route for long-term performance.

Source:https://www.bcg.com/en-in/publications/2017/transformations-people-organization-that-work-why.aspx

Uploaded Date:23 November 2017