business organization transformation
Definition
Transformation moves an business organization from one business model to another, developing new capabilities, levels of performance, and a departure from a business model that is no longer competitive. The capability to transform as needed, or even before a need is truly evident, but when a better business model can be achieved, is essential for an organization's survival in a dynamic evolving economy. A business organization can either perform creative destruction on itself or have the market destroy it.
See
Hamel's discussion of transformations (Hamel, 2002, pp 207 - 250)
- Hamel's model of transformation options based on two capabilities -- Capability to innovate with respect to the past and capability to innovate with respect to the industry. Depending on the capabilities, the options for transformation are as follows --
- retrenchment -- when neither capability exists renewal -- when only innovation with respect to the past exists
- revolution -- when only innovation with respect to the industry exists
- resilience -- when both capabilities exist
- Examples of what enabled the transformation of the business organization
- UPS
- out-sized aspirations
- broad definition of business boundaries
- learn-as-you-go
- listen to new voices
- Charles Schwab
- outrageously ambitious growth objectives
- heart-felt customer empathy
- innovation meritocracy
- rapid experimentation and prototyping
- loose and evolving definition of the service offering
- Cemex
- burning desire to compete
- passion for finding and solving customer problems
- dense network of lateral communication and a common performance scorecard facilitating the transfer of new ideas
- ever-changing patterns of cross-corporate collaboration to spread ideas and their use
- deeply felt humility
- willingness to push the boundaries
- creating the time and space for innovation
- portfolio shuffles
- venture funds
- spin-outs
- spin-ins
- new business creation
- core renewal