Top performers understand that while a company can pursue outstanding holistic performance, it still must develop its reinvention muscles to respond effectively in times of uncertainty. The opposite is also true: an organization can push to reinvent itself, but if it doesn’t deliver financial results, the transformation won’t be sustainable.
After committing to a transformation, the executive team should ask questions in ten categories about the holistic performance and business reinvention it is targeting to help the organization sharpen goals and carry them out rapidly
- Performance. How do financial and operational indicators compare with best in class? How is the company delivering versus its full potential?
- Organizational health. How does the culture create energy, inspire people to change, and build the required set of behaviors that will deliver on business strategy and aspirations?
- Talent and capabilities. Is the company significantly reskilling and upskilling its current workforce? How are its core capabilities? Is it attracting new talent?
- Customer experience. Is the customer the focus? Are the company’s goals ambitious enough when it comes to customer experience?
- ESG. Are environmental, social, and governance criteria central to the purpose, strategy, and culture of the company? How do these principles drive growth?
- Operating model. Has the company deployed a customer-centric operating model with new ways of working and a nimble organizational design? How is the pace of decision making? Do mistakes get corrected quickly?
- New businesses. Is the company building and buying new businesses to drive growth? Is it innovating fast enough?
- Big strategic moves. Is the company pursuing “big moves” in portfolio management, programmatic M&A, and the dynamic allocation of resources needed to sustain its competitive advantage? Is it being thoughtful about where to compete?
- Analytics. Does the company use advanced analytics in day-to-day decision making, driving sizable and measurable value to the bottom line?
- Digital and technology. Is the company leading the reinvention of its customer journeys and processes with digital? Does it have the right technological infrastructure and architecture?
Source: “How bold is your business transformation? A new way to measure progress”
Original Publication: McKinsey Quarterly
Subject: Change Management Questions
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