Business Transformation

Although many business transformations deliver short-term impact, 75% fail to deliver long-term, fundamental change. Successful company transformations are marked by three critical outcomes:

• Sustainable value creation: Gains are sustained post-transformation, with a focus on continuous value delivery. 
• Step changes in capabilities: The organization is fully equipped to deliver changes and drive continuous improvement. 
• Sustained culture shift: The culture ensures that the organization is aligned and engaged in new ways of working. 

These companies are three times more likely to outperform average short- and long-term total shareholder return for their sector. The 50 largest transformations that BCG worked on over a recent five-year period have delivered 15% higher TSR for those companies compared to relevant stock indices.

We partner with clients to deploy an industry-leading proprietary methodology that ensures a relentless focus on value. Our methodology is based on deep experience, which has shown that to create sustained results, programs must address the what and the how of strategic transformation.

The what focuses on making the right improvements in operations and processes, including:

• A holistic strategy to uplift end-to-end business performance, supported by a transformative approach covering the entire business.  
• Revenue growth driven by actions such as pricing optimization and salesforce activation and effectiveness, all tied to metrics and KPIs. 
• Cost reduction realized through cost excellence, organizational simplicity, capital efficiency, and other measures, also tied to metrics and KPIs. 
• An improved balance sheet from optimizing working capital and liquidity management.  

The how sets up a company for sustained success through:

• Executional certainty. All change efforts are coordinated through a transformation office and backed by financial tracking, a defined transformation structure, and rigorous processes and tools to embed and reinforce change. 
• Leader enablement. Leaders agree on what needs to change. They’re motivated to deliver on objectives, accountable for results, and lead by surrounding themselves with teams of champions. 
• People engagement. People feel seen and supported, and they understand what is happening and why. They are energized by the vision, motivated and enabled to contribute, and upskilled to support their growth. 
• Desired culture. The culture is aligned to the transformation vision, and leaders role-model target behaviors. Teams exhibit these same behaviors, which are embedded throughout the organization’s structures, processes, and policies. 

Our business transformation consultants work closely with clients to drive strategic impact quickly, so an organization is engaged and able to make the impact stick.