Four successful factors of enterprise strategic transformation

The growth history of Apple, IKEA, Starbucks and Honda has never lacked the word "change", but why do most enterprises "change and wait for death"?

Eliot, the accounting firm of PricewaterhouseCoopers, believes that the main reason for this phenomenon is that the traditional measures taken by enterprises have failed to keep pace with the times to absorb the new technologies that have emerged in the past decade, including new networks, new ways of data collection and analysis, and new ways of knowledge arrangement.

Traditional transformation measures are top-down reorganization of enterprises, accompanied by cost reduction, technological upgrading and other aspects of reengineering. However, these measures are often "expedient measures", with huge investment but little effect, so that enterprises are exhausted and staff morale is low.

Transformation will change the ability and image of enterprises, promote enterprises to create valuable results and achieve their goals. There may not be many successful cases of transformation, but they do exist. PricewaterhouseCoopers Eliot's latest research report "Four Successful Elements of Strategic Transformation: Leading Enterprises to Realize Subversive Transformation" introduces successful cases of transformation, and suggests that enterprises can adopt the following four ways to carry out transformation.

1, reshape the strategic image

Apple, IKEA, Starbucks, Honda ... these ever-changing and powerful enterprises, no matter how they change, all follow a consistent business model, and have followed a consistent business model as a whole and shaped a unique strategic image. Every enterprise must create a distinctive signboard, and enterprises with consistent and differentiated strategic images will have the opportunity to become industry benchmarks.

The core of the transformation of Conagra Brands, an American food supply giant, is to reshape its corporate image-being keen on innovation and being the most dynamic and influential company in the food industry.

Transformation measures focus on both business and structure. ConAgra sold its own brand business and spun off its vertically integrated potato business. At the same time, the enterprise has re-set the cost structure and cancelled the traditional practice of using discount promotion to lose money. The company also updated its operation mode, carried out new operation practices based on flexible small enterprises, and established an IT management system aimed at breaking internal barriers, innovation and rapid communication. In addition, the company moved its headquarters and changed its name from ConAgra to ConAgra brand.

The ConAgra brand, which reshapes the strategic image of the enterprise, can save more than $300 million in operating costs every year and realize the rapid growth of financial indicators. According to statistics, from May 20 15 to May 20 17, the total return of corporate shareholders increased by more than 40%. In 20 18, the company acquired Pinnacle Foods for/kloc-0.09 billion US dollars, becoming the second largest frozen food company in the United States after Nestle.

PricewaterhouseCoopers Eliot believes that enterprises that reshape their strategic image need to return to the mentality of newcomers. Leaders should simply and clearly express the core of the company's transformation to employees, customers and other stakeholders, and explain the company's new strategic image in vivid daily language.

Leaders should openly list the challenges faced by the company, think about solutions to the challenges, invite employees to make suggestions, and * * * describe the future development blueprint of the company. At the same time, when explaining the necessity of change, leaders should not only talk about threats, but also talk more about hope, and show how enterprises plan to give full play to the advantages and talents of employees to realize their vision.

It is very important to link the strategic image with the unique ability of the enterprise.

Bosch rexroth is building a new corporate image-industrial Internet platform hub. In order to implement the strategic image, enterprises use their professional abilities in sensors and other fields to position their strategic image as "smart city" projects and medium-sized enterprises. The person in charge of bosch rexroth said that by 2020, the internal operation of the company will save nearly US$ 654.38+US$ 200 million, thus better benefiting customers. ?

2. Gain the trust of many parties

Enterprises should build trust with employees. If employees believe in the goal of transformation, they will invest time and energy to build a new image and help enterprises achieve their goals. Building trust is not only convincing, but also has great influence on customers, employees, investors, regulators and other stakeholders.

Dwr Cymru？ Welsh Water Company is the sixth enterprise in the field of water storage and wastewater utilization in the UK, and started the retail business transformation on 20 15. In order to reduce bad debts and reduce costs to a normal level, the Welsh Water Company asked more than 3,000 employees to re-apply for positions, and only 60% of them were re-employed. Subsequently, the company participated in the investigation of the rehired employees. The survey found that employees' satisfaction and loyalty have been greatly improved, and the service cost has been greatly reduced.

Such achievements are inseparable from the efforts of enterprises in building trust.

At the beginning of the transformation, the leadership of Welsh Water Company clearly explained the re-employment standards to employees. From the new standards, employees can see that the ability of business leaders to make management decisions is constantly improving. Employees also found that the company is thinking about and implementing solutions to original problems, such as poor financial management, excessive accumulation of debt and management fees, and declining customer experience. Welsh Water has issued electronic scorecards to employees and started a new evaluation method with a cycle of three months. For the first time, employees saw the key performance indicators of job evaluation, which effectively improved the operational efficiency of the enterprise. Electronic scorecards and other initiatives have helped employees build confidence in transformation.

The new practice has also promoted the trust between enterprises and customers. Welsh Water has made a reasonable payment plan, and more than 5,000 customers who defaulted in the past can now settle the payment on time. Positive customer feedback enhances employees' value recognition of their work and confidence in the company.

The report pointed out that to build trust, enterprises should first inspect the leadership and enhance the unity and leadership ability of the leadership. Secondly, enterprises should design an incentive mechanism to transform employees' trust in the company into actual rewards such as salary, promotion, extra income, flexible working hours and training opportunities, and tailor-made incentive methods for employees. In addition, enterprises should establish a trust relationship with customers, establish a capable, sincere and reliable image, and avoid damaging customers' trust in the company due to improper use of data or dishonest behavior.

It is worth emphasizing that enterprises should respect the organization members who raise objections. Facing the key employees who oppose the new strategy, enterprises should first try to communicate with them, find out the reasons and try to reach an understanding. If opponents must be fired, enterprises should also provide support for them to find new jobs. Fair treatment of former employees helps to enhance the trust of existing employees in the company.

3. Grasp the rhythm of transformation

New ideas need time and space to develop.

In the early stage of the formation of innovative ideas, enterprises should protect them from interference, but if they are isolated for too long, new ideas may be marginalized. PricewaterhouseCoopers Eliot believes that solving this paradox requires a lot of practical skills. But in any case, leaders should make up their minds to transform from the beginning, combine the experience of agile innovation of startups, constantly try to innovate, develop and constantly optimize their differentiation ability.

Headquartered in Paris, Pernod Ricard is the second largest wine and spirits company in the world. In order to become a global leader, Pernod Ricard began to change its marketing and operation mechanism in 20 16.

Distribute applications? Briefcase? It is one of the tools of change, which replaces the traditional way of recording information by Pernod Ricard. Through this tool, the sales team can get comprehensive sales data, product manuals of specific customers and brands and cocktail recipes on their smartphones. At the beginning of developing this program, Pernod Ricard found that relying on the research ability at that time, the company could not complete the development and online tasks in a short time. In order to speed up the transformation, the company convened a special team composed of internal and external professionals to concentrate on the development on the cloud platform. Through small-scale internal testing, the team constantly gets feedback, constantly improves products, and constantly expands the application scope of the program, finally making it an important tool for change.

Pernod Ricard's experience in developing new solutions shows that the transformation needs to try every possible new method, and through the rapid iteration of innovative measures, it will eventually accumulate into scale and realize comprehensive transformation.

PricewaterhouseCoopers Eliot believes that small-scale innovation accumulates into large-scale transformation, and enterprises need to establish agile teams covering stakeholders and experts in various professional fields and try various innovative methods. Enterprises should set up an executive leading group to protect new ideas with great potential but immature strength, and choose suitable projects for large-scale changes in a series of innovation attempts.

Facing the group resisting innovation, PricewaterhouseCoopers Eliot suggested that enterprises should deepen their understanding of customers and their market needs and help them understand the necessity of implementing innovation. The company needs to arrange employees to conduct in-depth customer research and practice, visit customer representatives who buy the company's products and services, establish cooperation with them, and consolidate relations.

4. Respect enterprise tradition

The fine traditions of enterprises need to be passed down, and it is even more necessary to think calmly about how to make full use of the existing value of enterprises when enterprises are transforming. Leaders need to make clear and effective plans, give full play to the optimal benefits of traditional businesses, and improve or divest businesses that affect enterprise transformation.

20 1 1 McGraw-Hill, an American media and information service provider, has been criticized by radical investors for its extensive business diversification. Business leaders realize that it is the general trend to divest large-scale education publishing and other businesses that are not conducive to the company's development. The leadership of the company did not dissolve the company in a hurry, but made a long-term plan for transformation and gradually implemented measures such as cost restructuring, management reconstruction and business model reconstruction. Enterprises try to maximize the role of these businesses in the company while divesting related businesses. After the transformation, McGraw-Hill focused on financial information and the renamed S&P global business, and its market value increased by $23 billion.

It is not easy to manage traditional business in the process of transformation, and the decision of leaders is often questioned by employees. PricewaterhouseCoopers Eliot suggested that enterprises should keep communication with employees, affirm the value they created in the past, and ensure that employees can work effectively under the new system. ? At the same time, employees should be encouraged to get rid of the comfort zone and focus on improving new capabilities that are beneficial to enterprises.

The report pointed out that enterprises should arrange courageous and talented employees in the front line of managing enterprises. In the process of transformation, people often despise the enterprise tradition and advocate radical change. Managing enterprise tradition by executives with critical thinking and overall view can enhance the stability of enterprises in the process of transformation.