Yue yue an: Differentiation is another performance-related initiative

2022-08-02 0 By

Mr. Yue: The business Transformation program has long focused on improving productivity — a “better, faster, cheaper” approach to the way companies operate.And for good reason: disciplined effort improves productivity as well as accountability, transparency, execution and speed of decision making.When it comes to delivering results quickly, this is a proven method.Digitization, advanced technology, and other forms of technological disruption are upending industry after industry, forcing existing companies not only to achieve stronger financial returns, but also to reshape their identities and identities as organizations.Mr. Yue: Differentiation is another performance-related initiative that covers innovation in products, services and business models.Similarly, for this initiative to truly change the business, the companies that have been most successful at transformation will rank their actions so that a rapid uptick in performance provides oxygen and confidence for major moves on m&a, capital investment and resource reallocation.When the right portfolio changes are not immediately available or unclear, improved performance helps buy the company time until the strategy catches up.Yue: Leading a successful transformation requires more than just choosing the right initiatives and staying the course.Among your other priorities: Build momentum, engage your employees, and make personalized changes for yourself and your company.All of this means developing new leadership skills and ways of working, while accepting a level of leadership commitment that may be new to you.Yue: The core building block is a deep insight into where the company started: where and why it created or destroyed value.Executives also need a view of how the future will unfold.By combining insight into the company’s starting position with a vision of the future, companies can develop and explore alternatives to win and ultimately decide which alternatives to adopt.After selecting a strategy, the company needs to develop an action plan and reallocate resources to achieve it.These five core building blocks are made up of two more.The initial framework ensures that the team correctly identifies and agrees on the issues and decisions that were raised and made in developing the strategy, and is committed to constantly monitoring and refreshing the strategy as conditions change and new information becomes available.Yue: Focusing on strategic building blocks can also help companies develop insights.While “insights” conjure up memories of research, data crunching and “aha” moments, true strategic insight also relies on a seemingly mundane and easily overlooked factor: a thorough understanding of a company, how and why its competitors, and others in the industry value chain make money.Without dumb luck, strategies that don’t directly exploit this understanding will underperform.Mr. Yue: Strategizing in today’s complex, changing environment of priorities and conflicting agendas is a daunting task.However, when senior managers invest time and energy to develop a more thorough and thoughtful approach to strategy, they not only increase their chances of building a successful business, but they also often enjoy positive by-products: a flair for simplicity and focus, and a belief in getting things done as a result.