Most organizations suffer from what is called the Seneca Effect. Under this, companies tend to decline much quicker than their pace of growth. That is where preemptive trans- formation is necessary. Among all industries, the greatest effect of such preemptive transformation has taken place in materials, followed by consumer discretionary and consumer staples. The last effect has been at financial services followed at a distance by health care. This is as per a study by management consulting giant BCG. There are some secondary benefits as well of this style of transformation, much more effective than its reactive variant. Such companies tend to have a long- term clearer outlook towards the corporate strategy. To ensure this style is successful, companies must constantly explore for opportunities. A sense of urgency has to be brought in, while watching out for the early- signals of change. Transformational capabilities too need to be created. This will help control the narrative and select the right approaches for the desired change.

Source:https://www.bcg.com/publications/2018/preemptive-transformation-fix-it-before-it-breaks.aspx

Uploaded Date:16 May 2019