One year ago, we embarked on a major transformation journey. We’ve made significant progress, laying the groundwork for the next phase of this three-year program. Here are five key lessons we’ve learned along the way:
1. The Incumbent’s Dilemma:
Established companies carry the weight of legacy systems, processes, and mindsets. In today’s rapidly changing world, agility and adaptability are crucial. We must actively shed these burdens to remain competitive and meet evolving customer expectations.
2. Four Pillars of Transformation:
Our transformation strategy rests on four key pillars:
- Customer Focus: Radically simplifying product offerings, eliminating pain points, and creating digital-first experiences.
- Strategic Restructuring: Creating a standalone business to optimize the performance of our infrastructure assets.
- Operational Efficiency: Streamlining our organizational structure and ways of working to empower employees and serve customers better.
- Cost Optimization: Implementing a robust cost reduction and portfolio management program.
3. Five Key Lessons:
- Embrace Discomfort: Large-scale transformation is inherently uncomfortable. It requires embracing uncertainty and prioritizing progress over perfection.
- Ruthless Discipline: Resist the urge to overcomplicate solutions. Simplicity is key to improving customer experience and achieving cost reductions.
- Speed is Crucial: Move quickly and decisively. Agile methodologies are essential for adapting to rapid change.
- Courage and Conviction: Transformation requires courage to make tough decisions and stay the course despite challenges.
- Become a Technologist: Technology is transforming every industry. Leaders must invest in their own understanding of technology to navigate this new landscape.
Looking Ahead:
We are at the dawn of a new industrial revolution. The pace of change will only accelerate. To thrive, we must embrace technology and continually transform ourselves. We are not waiting for the future; we are building it.