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Transformation projects are common in organizations these days. They are becoming more pervasive, as markets become more turbulent and likewise market leadership becomes less durable. It may sound surprising then that about 75% of such efforts fail, based on research conducted by the Boston Consulting Group (BCG).

Based on this same study, BCG identified 2 phases that exist in all business transformation projects, which traverse through 4 stages:
1. Trigger
2. Operational Turnaround
3. New Strategy, Vision, or Business Model
4. Adaptive Innovation

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).

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Source: Two Phases of Business Transformation PowerPoint document

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Two Phases of Business Transformation

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