What are the risks of enterprise strategy transformation

The transformation of most enterprises in China is mainly a strategic transformation. "Transformation" master Larry Bossidy and Ram Charan once said, "it is time to completely change the thinking of the enterprise, either transformation, or bankruptcy. So what are the risks of strategic corporate transformation?

Policy and legal risks

The success of the transformation strategy depends to a certain extent on the relevant national laws and policies, such as national policies on land control, energy consumption, environmental protection, credit and taxation, and even the survival of the enterprise's strategic transformation will be concerned. The limits and variables of the state on the degree and manner of the enterprise to be involved in the transformation of the business field, the gradual clarification of some of the policy provisions, the reform and restructuring of an industry will have a huge impact on the strategic transformation of the enterprise and the direction of the strategic development of the enterprise. Enterprises facing policy and legal risks must be carefully studied and can successfully foresee, avoid and effectively release.

The risk of enterprise positioning

Since the enterprise has implemented the transformation, its business before and after the transformation of both in the connotation and in the extension of certain differences. Especially for the long history, business maturity, platform stability, the majority of customers are familiar with or even recognition is still high, but in fact the crisis of the business regardless of the promotion of a new or related corporate positioning, funders, management to the operational layer, the client can be accepted in a relatively short period of time, is also a question worthy of deep thought.

Transformation just to grasp the risk

Transformation of the business has a payback period of inputs, the initial period can not collect money, or the benefits are not obvious, and need to be supported by the traditional business. However, the transformation of the pace is small, can not achieve the goal of transformation, in the future new environment, operation and competition will lag; if all the transformation of the business, the transformation of the spread is too large, then the traditional business is not enough to support the transformation of the business, so it is necessary to determine a transformation of the "degree", grasp this! The "degree" is very important.

The risk of conceptual change

Attitude determines everything, and concepts influence behavior. If you lose the concept that matches the action, the more scientific development strategy is meaningless. Transformation is a choice at the strategic level, which is not well understood by grassroots enterprises and employees. Enterprises after the propaganda and organization of the discussion, the short-term staff for the importance of the transition and the need may have a preliminary understanding, but really set up with the strategic transformation of the enterprise to adapt to the new concept, but also need a process. Usually, there are four kinds of understanding and attitude of the employees towards the transformation:

One is from the heart that the transformation should be carried out,

The second one is to support the transformation in the form of statement,

The third one is to hold the dissenting view or opposition,

The fourth one is to think that the transformation is a matter for the upper level, and it is not a matter of concern for oneself and adopt the attitude of indifference.

If the majority of employees are not able to adapt to the requirements of transformation conceptually, the practice of transformation will inevitably be affected.

The risk of human resource allocation

Theoretically speaking, the enterprises to be transformed are mostly old enterprises or large and medium-sized enterprises, with a large number of employees, complex parameters of all kinds of human resource composition, and the vast majority of the employees are facing the challenges of technology, concepts, and thinking, etc. It is not possible for most of the enterprises to adopt the market-oriented and simple means like the enterprises in foreign countries, so it is not possible to make effective and harmonious allocation of the original human resources, but it will be more difficult to do so. Effective and harmonious configuration, facing greater risks.