She rallied her maintenance team around this tangible goal and made it clear how their work tied to the overall transformation objective of becoming the most efficient producer in the world. After engaging with the transformation leads, one maintenance supervisor understood that minimizing down-time on her line would translate to more units produced and a lower cost per unit.
For example, one organization set an operational goal of substantially lowering its cost per unit in order to stay competitive in a shifting global landscape. In other words, broader goals need to be broken down into bite-sized pieces that are adapted to different employee roles and functions. People need to understand what this means for their day-to-day roles and what they are expected to do differently. An ambitious target alone is not enough to motivate and inspire employees. You can't do things the way always done them and achieve those kind of results." This stretch target communicated a clear departure from the status quo and energized the company to go all-in on the transformation. In his words, "When you set a very aggressive goal, it forces you out of our comfort zone. After completing a rigorous assessment of the business, one CEO set a transformation goal of 150 percent of the initial opportunity range. In fact, the most successful transformations (based on TRS performance) set financial targets at 75 percent or higher of trailing earnings.Īn aspirational target signals a meaningful step change in performance across the organization and sets the tone for what is possible. In an in-depth review of 15 transformations, we found that organizations on average delivered 2.7 times more value than their senior executives thought possible at the start. When companies set high expectations, people tend to meet them.
Day one or one day full#
This due diligence enables leaders to confidently set an ambitious yet realistic target that reflects the full value potential. To avoid this mistake, leaders should complete a comprehensive, fact-based assessment of the business across all sources of value-from strategy to operations, talent, capital, growth, and organizational health. Companies often underestimate the true potential of their transformation. Here are three actions that leaders should prioritize during the initial stages of a transformation. The good news is that our research points to specific indicators that are especially predictive of value capture-and many of these can be applied before day one. Nearly one half of value loss occurs early in the transformation, during the target setting and planning phases. Yet, even successful transformations often leave significant value on the table-33 percent of the maximum financial benefit, on average. Our latest global survey confirms this stubborn reality: Less than one third of respondents said their companies' transformations have been successful.
February 17, 2022Transformation success is the exception, not the rule.
0 kommentar(er)
