Reinventing Business Through Resilience Takes Shared Capabilities.

Our previous blog mentioned a very effective strategy for building organizational resilience. We ended our discussion by learning that to make the two transfiguration efforts work, one needs to know certain methods and strategies to implement them. Here in this article, we will proceed by broadly viewing the aspects that both organizations, TA (Legacy business) and TB (disruptive business), would need from each other and what boundaries must be drawn to make this approach possible.?

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When established businesses launch separate extended businesses to keep up with the changing market shifts, they have a huge competitive advantage over newly developed start-ups. There are certain aspects and resources which can be borrowed from the parent organization, allowing the disruptive business to avoid the struggles of starting from scratch. In this way, the teams, strategies, business experience, customers, data collected, connections, stakeholders, marketing team, and established brand name are all possible things that can get used to make TB into a full-fledged successful running organization.?

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Now, let's have a look at the four methods and strategies to?keep?in mind while turning the transfiguration efforts into reality;?

• Hierarchy of leadership;?The core leadership in the organization gets run by several executives at various levels, the hierarchy of management is well-developed, and the chain is longer in a traditional enterprise. Whereas in a disruptive business, it is vital to ensure that the line of authority is short and only run by the company's top executives.?Any outsider in a position of authority can cause damage in several ways and weaken the organization.?By keeping the power in a few hands, the CEO, the core transfiguration leader as well as the leader of the disruptive business will ensure the high-end protection that the new disruptive company would require.?

• Recognize the resources that can become a huge advantage;?a disruptive business stems from an established name with sound capital and resources at its disposal. When both organizations, TA and TB, recognize the resources and capabilities that can get shared in both enterprises, the plan for transfiguration efforts accelerates.?Let's suppose a company whose expertise and core capability lies in research and development and using analytics for gaining customer information; the company can use this capability in a new venture which can result in fast development.?A lot of resources can get shared among both enterprises, the editorial team and marketing teams, and using the same customer data and the same brand name can benefit both organizations in many cases.?

• Creating healthy boundaries;?doesn't mean that the disruptive business, i.e., TB, would get to take whatever it needs from the parent company; it has to pay for what it takes from the other side. In order to avoid weakening the established enterprise, there should be some healthy boundaries created for the exchange of resources and capabilities. The accounting and financial details must be kept separate, and the disruptive business gets to keep the money it makes. Another important factor is that both enterprises must work to lead not for survival but to thrive as an organization with the changing market shifts. For example, Deseret News, a print publication, must consider that print still has a future and its disruptive side of the business Deseret Digital, an online platform for news and updates, will be the source of income in the coming future.?

• The focus should be on promoting the new business;?the top executives and managers responsible for the organization's ongoings should focus on promoting the new disruptive business. With the board of directors, promotional methods should get conducted to inform stakeholders and customers about the company's new venture. As the focus of reinventing is on the disruptive side of the business, top executives should emphasize the Transfiguration B effort and provide it with the resources and fulfil its needs to bring the future of the business game in front. The legacy business must become self-sufficient and invest in TB, which will be the source of future growth.?

Conclusion?

Since the life span of corporate life is declining with the fast-pacing world, the need to disrupt the business becomes an essential part of an enterprise. The two transfiguration efforts are not new in the world of business; instead, it has been used as a competitive strategy by many business holders over the years. We see the same approach applied by Hindustan Unilever, Nestle, ITC, and so on with their disruptive businesses on the side, making them even more potent as an enterprise.?

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The four points discussed above are crucial to making this transfiguration effort into reality, and this capabilities exchange is a way to reinvent businesses. Hope this discussion has provided you with some form of enlightenment!?