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Transformation with a capital T
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Insights about improving the odds of success from McKinsey - 70% degrade or fail
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Transformation with a capital T
1.
Transformation with a capital T Some of my takeaways from Nov.'16 McKinsey Quarterly (adapted) Why a Transformation? - In industry after industry, improbable scenarios are becoming all too real: remember Pan Am, Bethlehem Steel, WaMu, Sharper Image, etc.? - Combined with the right strategic choices, a Transformation can produce extraordinary, sustainable results and turn good businesses into a world-class ones - Traditionally, organizational transformation / org redesigns, strategic transformations / new business models, digital reinvention - In contrast - Transformation with a capital T: intense, organization-wide program to radically enhance performance and boost organizational health! Insights about improving the odds of success from 6 years of experience with McKinsey Recovery & Transformation Services www.philippebarzin.com https://www.linkedin.com/in/philippe-barzin What are we talking about exactly? Execs embarking on a Transformation resemble commercial air pilots asked to fly a fighter jet: an extra effort does not cut it. They need to totally change gear, change their mindset, learn new tools, master new skills... Why 70% degrade and/or fail? 1. Stretch the organization for the full potential: - Traditionally, leaders "under-promise and over-deliver" but targets that are 2-3 times the initial estimates are routinely achievable [McKinsey RTS experience] - Assume the mindset of a private investor and demand a clear analysis of the potential, backed by well-grounded facts 4 MUSTS to create a long-term momentum and to overcome organizational inertia 2. Change the cadence with an empowered Transformation Office (TO) - With discipline, energy and focus, drive a markedly different workstream cadence from the normal day-to-day [Parkinson law: work expands to fill the time available] - TO should continuously ask: how can we move more swiftly? What do you need to make things happen? 3. Strengthen the executive team and engage ALL leaders with a FULL-TIME Chief Transformation Officer (CTO) - At the outset, CTO develops a compelling change story, ensures role modeling by the senior team, and plans for the skills to change - Very visibly endorsed by the CEO, the CTO challenges corporate orthodoxies, removes barriers and creates outsized incentives for the organization to think and act differently 4. There is no going back! Keep accelerating with a new culture of execution - Keep the unceasingly challenging "private investor mindset" and relentless focus on execution even as results improve - The litmus test? What happens once the TO is disbanded...
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