Strategizing Transformation enduring Business Growth in disruptive world

Strategizing Transformation enduring Business Growth in disruptive world

Organisations need new strategies in a world of disruption. Companies are adopting different elements of the revolution in diverse ways, some gingerly, some in a sure-footed manner. Many have launched pilot projects, while many others have totally migrated some of their business functions to AI-led processes. And many companies are still waiting and watching. Some have been stunned into inactivity. They don’t know where to begin, or how to start deploying the technology around them, but simultaneously it has to productive enough to counter rising cost.
Setting up ambitous visions and coming up with concrete action plan is a great challenge. The new C-Suite mantra: "What's your play?"
Leading CEOs are already actively exploring alternative metrics for measuring the longterm health of their companies and the communities they serve, beyond just earnings or stock price, and boards are facilitating that shift by asking more qualitative questions: 

  • What are we doing on talent? 
  • What is our pipeline of innovation? 
  • How do our actions align with our mission statement? 
  • Are our customers satisfied? 
  • Are we contributing to our community and society as a whole?
Artificial intelligence expands technology’s potential for both good and ill. There is the clear risks that it may displace more and more of the human workforce and contribute further to social isolation and the disruption of communities. But this need not be the whole truth. Emerging technologies can also help meet human needs in new and profound ways.
Digital technology is radically changing and transforming the behavior of individuals,corporations and entire society, and, disruptions seems to be the new normal.Five years from now, society won't remain what it was in the past and what is now.CEOs are faced with dual challenge of protecting their backyards from upstarts and incumbents while simultaneously devising strategies that will guide them through growth for at least next five years.
When challenged by host of disruptors who are exploiting traditional business practice and market dynamics, finding growth oppurtunities in increasingly onerous regulatory and competitive conditions is hard these days. Harnessing power of constantly evolving digital disruption to break down well-established barriers to entry and devise new business models is a complex endevour. Because, digital disruption with more and more advancement will be a regular phenomena. Business can no more be governed by Linear and IPO Model. 
Emprical analysis reveals, conventional wisdom about big, risky change initiative is often wrong. Organizational transformation, big or small, sits atop the strategic agenda for many CEOs. While transformation is ideally taken pre-emptively,in practice it is much more commonly a reaction to changing - and- challenging- circumstances.
Transformation has to represent a fundamental and risk laden reboot of a company with the goal of achieving a dramatic improvement in performance and altering its future trajectory. It can nor more be limited to conventional norms of selective improvement.

                                                                  Empirical patterns of transformation

Considering increasing pace of technological change and volatility in many industries, the pattern suggest the need for transformation is rising, while, the chance of succesfully achieiving is falling.Understanding the deviations from expected economic trajectories will enable growth through appropriate transformation.
  • Short term success Many CEOs consider cost cutting is an option to meet investors and stakeholders expectation, but all such measures by way of not reflecting in Balance-Sheet, clocks-of, leaving CEOs wonder where all the money gone!! This is a short term approach and is subject to global economic dynamics.
  • R&D as long term strategy.Investment support in turbulent environment may not be a wise option though. Returns on such investment diminish quickly as investment level rise above the industry average.
  • Revisiting talent solution.For business stagnancy and losses, very often talent pool is blamed including Leadership as very often suggested by traditional HR practice.Parting away with established skill may be an easy option,but equally harmful in the long term. Here again, there are trade-offs, which have been clearly articulated by Harvard Business School professor Joseph Bower: “Insiders know the company and its people but are often blind to the need for radical change — they’ve drunk the Kool-Aid. Outsiders see the need for a new approach but can’t foster change because they don’t know the company or industry sector well enough.”
  • Revenue Growth is the primay driver of success.Organizations are busy leveraging finance and customer analytics ignoring operational part. But the trend is changing.
While cost cutting to live up to investors expectation are necessary so far it is rational with suffcient and tangible impact over the balance sheet and productivity, but in short term. Research by S&P Capital IQ, BCG Henderson Institute analysis reveals revenue growth becomes an increasingly important driver of TSR ( Total Shareholder Return) for Long Term success. Reducing skill head, cutting on miscellenous heads-such as stationary, refreshment, employees benefit etc may have little impact with no tangible impact over the balance sheet. Instead it will have negative impact over productivity and efficiency.

                                     You can't analyze your way to the future; you need to invent it 

Traditional analytical models that have been the bedrock of strategic planning for years are important as a means of establishing a foundational understanding of the world that exists today and the current opportunity areas, but in short term. However, if you are looking to define a strategy that will enable your company to achieve disproprtionate growth and create competitive advantage in the long term, you need to push beyond pure conventional & traditional analysis.
Successful strategy requires blend of deductive analysis and the type and the type of inductive reasoning that powers the creative leaps that anticipate, and often open, fundamentally new markets. To help your organization see into the future, focus on creating and organizational culture that values a mix of inside-out and outside-in  critical thinking.
Think about what the world will look like five to 10 years out - across a range of different industries, not just your own. In this future world exploring how it impacts the economy is essential,

  •  How do the needs of current consumer change?
  • Are there new opportunities outside existing customer base or current product offerings ?
  • How to manage frequent macro economic changes with frequent cost variation that impact margin and revenue growth?

Looking beyond traditional practice and to develop contemporary 21st Century business perspective, building exponential core competency economic business model canvas, ensuring revenue growth, look into the future enduring growth without disturbing talent pool  and incurring any R&D or Capital investment, contact us at for organic growth and holisitic business transformation.

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