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Strategic transformation

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Presentation is all about an organization's transformation comprises of its 4 important aspects,that is, restructuring,renewal, reframing, revitalization with examples.

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Strategic transformation

  1. 1. PRESENTED BY: ANSHUL PAREEK BITASTA BHADRA VIMLA MISHRA SONIA GROVER
  2. 2. Strategy ? A method or Plan chosen chosen to bring about a desired Future, such as achievement of GOAL / SOLUTION PROBLEM Transformational ? • High Improvement Potential. • Change the Business unit, Geographies & Functions completely. • Change addresses all aspects like People, Processes, Organisation, Technology, Finance.
  3. 3. Strategic Transformation • It is the Link between the strategy Formulation and Implementation Phases. • It Plays a major role in defining strategy effectiveness. When it is used ? • External Changes on the Market such Organisation Product / Services. • New Regulation Coming into Force. In return It Helps in • Increase Revenue and Market share. • Improve Customer Satisfaction. • Cutting Cost.
  4. 4. 4 Steps To A Successful Transformation  Step One: Getting the right strategic vision is critical  Step Two: Execution is the hardest part of transformation.  Step Three: The biggest challenge to transformation may be a leader wedded to a past or current success  Step Four: Take a broad view of customer demand when embarking on business transformation.
  5. 5. Insights to Strategic Transformation
  6. 6. Strategic Organizational Renewal “SOMETIMES THE MOST DIFFICULT LEADERSHIP CHALLENGE IS NOT FIGHTING THE COMPETITION, BUT TELLING YOUR PEOPLE IT’S TIME TO CHANGE.” According to Covin & Miles, “The phenomenon whereby the organization seeks to redefine its relationship with its markets or industry competitors by fundamentally altering how it competes.” Strategic renewal is a firm’s transformation in terms of changing its scope of business or strategic approach on which it is built. Instances when SOR can be implemented: 1. Timing 2. Division Analysis 3. Company Purpose 4. Products
  7. 7. Process of Renewal STEP-1 Understanding Exposure • Customer Strategy • Operational Effectiveness • Technology Optimization • Human Capital STEP-2 Analyze Scenario • Change in Business Model • Employees mindset • Beyond short- term Cost Cutting • Future requirements STEP-3 Renew Organization • Roadmap • Prioritization of needs • Sequences of activities • Training & Org. requirements
  8. 8. Reframing The management of a business assesses its operation via multiple outlooks. STRUCTURAL FRAME POLITICAL FRAME SYMBOLIC FRAME HUMAN RESOURCE FRAME Busines s Frame
  9. 9. Restructuring  Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs
  10. 10. Steps:  Ensure the company has enough liquidity to operate during implementation of a complete restructuring  Produce accurate working capital forecasts  Provide open and clear lines of communication with creditors who mostly control the company's ability to raise financing  Update detailed business plan and considerations
  11. 11. Restructuring strategies  Downsizing  Starburst  Verticalization  De-layering  Business Process Reengineering  Virtualization  Outsourcing IBM Layoff 85k employees Pfizer’s decision to spin off four non-pharmaceutical firms this year. HCL verticalized to meet the specific demands of five different industries: retail, media and telecom, manufacturing, finance and life sciences. General Electric Hewlett Packard, Ford Motor ATMs offered by banks are their virtual units.
  12. 12. Revitalization Strategy Employed when brand has reached maturity and profits begin to decline. It include approaches like market expansion, product modification or brand expansion.
  13. 13. References  http://www.forbes.com/sites/forbesinsights/2014/03/18/4-steps-to-a- successful-business-transformation/  https://www.pwc.ch/en/our_services/advisory/finance/strategy_transformation. html  http://www.brighthub.com/office/human-resources/articles/122397.aspx  Endeavormgmt.com  Yourbusiness.azcentral.com  Innovationexcellence.com  Sloanreview.mit.edu/article/the-art-of-strategic-renewal/  Strategies on Reframing Change in Your Organization by KJ Henderson, Demand Media

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