{"id":328,"date":"2020-08-08T00:41:18","date_gmt":"2020-08-08T00:41:18","guid":{"rendered":"http:\/\/tyselimited.com\/?p=328"},"modified":"2020-08-08T00:41:18","modified_gmt":"2020-08-08T00:41:18","slug":"to-transform-your-business-you-need-to-go-all-in","status":"publish","type":"post","link":"https:\/\/tyselimited.com\/cl\/insights\/to-transform-your-business-you-need-to-go-all-in\/","title":{"rendered":"To transform your business, you need to go all in"},"content":{"rendered":"
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Productivity improvement is only one of five moves that lead to big gains<\/div>\n<\/header>\n<\/div>\n
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For much of my career in consulting, I\u2019ve seen business transformations focus on productivity improvements\u2014and usually stop there. It makes sense: finding better, faster, cheaper ways to operate is a proven way to boost performance. The problem is, that\u2019s no longer enough. Various forms of tech-enabled disruption are upending entire industries, forcing incumbent companies not only to become more efficient and agile but to reinvent who and what they are.<\/p>\n

Accomplishing such an \u201call-in\u201d transformation represents a true quantum leap: over a decade, only 1 in 12 companies manage it. But the rewards are big, as my co-authors and I describe in a recent\u00a0book<\/a>. Those that reach the top quintile of the\u00a0Power Curve of economic profit<\/a>\u00a0earn 30 times more than the average company.<\/p>\n

So how do different types of strategic moves contribute to improving a company\u2019s performance? Recently, I teamed up with colleagues Wesley Walden and Marc de Jong to delve into that question. Our earlier research had found that five big moves contribute the most to upward mobility on the Power Curve: \u201cperformance-related\u201d ones cover productivity and differentiation improvements, while \u201cportfolio-related\u201d moves include active resource reallocation, programmatic M&A, and capital programs. These moves must be\u00a0big relative to competitors<\/a>, but that does not make them reckless. In fact, we know now that making big moves tends to reduce the risk and adds more to the upside than the downside.<\/p>\n

We divided corporate transformers into four categories, and found their efforts produced significantly different results:<\/p>\n