Understand strategy and 'way to play'
Transformation isn’t reserved for large enterprises. The first step toward realizing your vision for growth is to take stock of and clearly articulate what sets you apart from your competitors. What do you do better than anyone else?
In identifying your differentiating capabilities, keep customer and employee experience top of mind. While you may have loyal customers, it’s important to understand what they value and what truly differentiates you from your competitors. Then you can design a strategy that fits your customers’ needs, which in turn builds trust.
Build industry-leading capabilities
Build on the industry-leading capabilities you identify in your strategy. It’s important to make the most of your investments by focusing on differentiated and sustainable capabilities.
Technology is a critical component of building your capabilities, but only when it aligns with your strategy and is deployed successfully. With careful planning and investment, technology can help you find efficiencies, solve problems in new ways and create unique customer and employee experiences.
Create an environment where everyday innovation is welcomed and applauded. Companies need innovation as a core business function to succeed, and their people need to feel safe about voicing different ways of looking at and doing things. Generate new ideas without pressure from the company, and once those ideas are ready for full-scale deployment, they can be more effective in helping you differentiate yourself.
Transform the cost structure
Develop a clear cross-organizational cost agenda, making deliberate choices for process improvement, from the front end to the back office. Review all processes and then make strategic cost and investment choices based on your differentiating capabilities.
Keep in mind that standard cost reduction is different from strategic cost reduction under the Fit for Growth approach. You have to address the root cause of issues when aligning your costs, and not just act on the symptoms. It all starts with a clear strategy while also being bold and creative, using technology, innovation and new ways of working to help reduce costs.
Deploy your investments and costs toward your key differentiating capabilities by identifying and protecting the “good” costs and pruning the “bad” costs.
Re-organize for growth
A well-designed organization model can fuel growth by empowering your people to act like owners of the business, which helps build trust and strengthen customer relationships. You design every move so it resonates with customers and employees and bring together together front-office functions to deliver unique and differentiated experiences that improve customer acquisition and retention.
Re-evaluate your team and truly focus on their highest and best use to help the company sustain cost reductions. Focus on strengths and supplement for weaknesses, concentrating on your differentiating capabilities.
Accelerate change and cultural evolution
Motivate and mobilize employees through successful change management programs by addressing uncertainty and helping them transition to the future state. Create an environment and culture to embed and sustain change in the company’s DNA.
Put your culture to work: Help people change what they do and how they do it by focusing on a critical few behaviours. First, identify the critical few behaviours you want to see, and then empower the critical few employees who exhibit those behaviours.