Organisation Transformation

What really happens when companies cease to be relevant to the market way before their numbers made them realize the decline? Beyond a stock implosion and shareholder revolts, it’s organizational transformation; a reactive effect forced upon companies when the numbers don’t match expectations.

The process of transforming an organization often results in tremendous performance sacrifices while the organization prepares itself to move in a different direction by building capability for sustained success. According to John P. Kotter, “the rate of change is not going to slow down anytime soon. If anything, competition in most industries will probably speed up even more in the next few decades.”

The fortunate companies recognize performance dips in time to force change on themselves while they still have cash reserves and limited liabilities. Unfortunately, too often, the reality is that the pain of short-term losses creeps in or on the contrary some wins often see companies revert back to old habits like managing performance quarter by quarter with no long-term view. Very few companies get the transformation right and soon enough dwindle away to be a fraction of what they were or cease to exist altogether. It absolutely does not have to be like this!

Is it complacency, being in a comfort zone, lack of competence or the drive for personal gain at the C-level that gets companies into this state? At Populis, we don’t focus on why companies allow this on themselves. Whatever the reason, it leads to a lack of disciplined leadership in staying relevant, innovative or disruptive and ahead of the game.

Outperforming the competition and achieving performance metrics alike while transforming organizational capability for sustained long-term success must be an ongoing Board level priority and it must be balanced with executive compensation parameters.

How do highly effective Boards do it? Fra