Ten principles to enable a successful transformation

It used to be that a business transformation was a once-in-a-lifetime event. But now, companies must institutionalize the capacity to change.

US corporations are facing organizational challenges. They see huge opportunity for organic growth, but to get there they must hone market strategies, design new ways of working that maximize technology and prepare to capitalize on AI.

What, then, is the role of the leaders throughout this transformation? And how can strong leaders keep business transformation on track? We’ve distilled a set of ten guiding principles to help any leader who is starting or restarting this journey now.

Source: PwC, 23rd Global CEO Survey, January 2020.

CEOs see organic growth as central to 2020

Percentage of CEOs planning these activities in the next 12 months

Executives beginning a transformation journey often have three fundamental questions. Here's how our ten principles answer them:

How do I energize my organization for transformation?

1. Make the case for change

Start with a clear, candid assessment of business conditions and the challenges facing the company. Take a market-back and customer-focused perspective, connecting transformation objectives to customer needs and marketplace dynamics. Describe the company's differentiating capabilities, and underscore the importance of channeling resources to these critical sources of competitive advantage. Conclude with an inspiring vision of the company's potential if it becomes fit for growth.

How do I achieve cost fitness while also enabling growth?

5. Put everything on the table

A credible, effective cost transformation scrutinizes every expenditure. Putting everything on the table signals the urgency of strategically aligning costs, while dissuading individual managers from lobbying for special exemptions. It also sends a message that "we're all in this together."

How do I manage the transformation and make it enduring?

8. Set up a parallel organization to run the transformation

You need to keep doing business while you change your business. Don't ask managers and line workers to do both. Establish a program management office with responsibility for achieving transformation goals, led by a respected senior executive.

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Dr. Deniz  Caglar
Dr. Deniz Caglar

Principal, Strategy&, PwC US

Dr. Deniz Caglar is a leading practitioner in strategic cost transformation for Strategy&, PwC's strategy consulting business.

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