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DESCRIPTION
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).
This PPT provides a comprehensive overview of the two critical phases of business transformation: Cost Reduction and Growth & Innovation. It delves into the transformation trajectories, phases, and stages that organizations typically navigate. The presentation outlines two common transformation trajectories: short-term recovery with a long-term slow decline and short-term recovery with long-term restoration of growth and performance.
In Phase 1, the focus is on operational turnaround, emphasizing cost reduction efforts. This phase is crucial for stabilizing the organization and setting the stage for future growth. The document highlights the importance of bold cost-cutting measures and the risks of repeated rounds of cost-cutting that can undermine employee morale and leadership credibility.
Phase 2 shifts the focus to new strategy, vision, business model, and adaptive innovation. This phase is about driving top-line revenue growth through new strategic directions and innovative approaches. The document emphasizes the need for a clear shift in strategic direction and the importance of adhering to a vision over a multi-year period to ensure long-term success.
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Source: Best Practices in Business Transformation PowerPoint Slides: Two Phases of Business Transformation PowerPoint (PPT) Presentation, PPT Lab
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