Transformation is about growth, not cost savings
As an executive coach and program sponsor for enterprise transformation these last 15 years, one observation continues to resurface: Despite loads of advice to the contrary, none of the successful business transformations I’ve seen ever blossomed out of a cost savings and organizational simplification focused strategy.
It may be that some operational P90X work is needed to become the lean, mean transformation machine that will enable some future disruption. And if that is true for you, if this is really just phase one of a much bigger plan, then ok…but…I strongly encourage you to stay focused and get through the pre-work as fast as you possibly can because few escape the event horizon of navel gazing.?But more often than not, cost savings and simplification are simply distractions driven by political theatre, celebration of busyness, and a failure to think big. Doing things the way you have done them before, but more cheaply, is not disruption, it is just delay.
Instead, businesses that successfully transform, do it with a ruthless dedication to GROWTH – new markets, new segments, new products, new customer value propositions.
So if you are going through a transformation that seems to be cost-focused, work to clarify and communicate your growth strategy as the north star so that you and your teams don’t get lost?
"Be the change you want to see in others" (M. Gandhi)
2 年Agreed - with the addition that it is not only about growth in new market, new segments but at least as much about growth of people. Because a company is not made up just of monetary and physical assets - but at the heart of every companies success are its employees. So a digital transformation needs to give room for employees to join, come along and transform themselves alongside the company around them.
Values and Quality outcomes focused Executive. Accelerator, remediator, capability builder and turnaround enabler.
2 年Agreed; you can’t cost cut your way into a better future.
AI Chief @ Lloyds Banking Group?|?PhD in AI | Ex-Amazon, Accenture
2 年Absolutely, transformation is about growth... thanks for the reminder Eric!
CEO at Xponential | CTO | VC Partner | Retail & FinTech Advisor
2 年This is fully aligned with my experience as well. Its funny to think that without growth (at controlled cost) and reinventing the customer experience and even ideally the business model, there can be any reasonable transformation.
Strategic Engagements at Amazon Web Services (AWS)
2 年How true and Well said Eric!