The New CEO’s Guide to Transformation

The New CEO’s Guide to Transformation

          
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The New CEO’s Guide to Transformation

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    The Transformation Framework

    On the basis of our experience helping implement transformations across industries and regions worldwide, we have developed a proven framework that can help leaders define the collective transformation ambition for the company. (See Exhibit 2.) The framework has three critical components:

    • Funding the Journey. Launch short-term, no-regret moves to establish momentum and to free up capital to fuel new growth engines.
    • Winning in the Medium Term. Develop a business model and operating model to increase competitive advantage.
    • Building the Right Team, Organization, and Culture. Set up the organization for sustainable high performance.
    exhibit

    A transformation should include all three elements, but the relative importance of these components changes at various points in the process. In the beginning, funding the journey is often the most critical aspect, not only to establish momentum but also to free up capital rapidly. Over time, as a transformation takes root, the priorities typically shift toward winning in the medium term. Throughout a transformation, a focus on building the right team, organization, and culture is vital to ensuring that a transformation is not short-lived but rather becomes a long-term endeavor that delivers—and sustains—improved performance.