What does a CEO fighting for a turnaround do after running tangible cost cutting and other defensive measures? When the “easy” work is done—what next?
BCG’s Strategy Lab has looked closely at the discriminating differences between long-term successful and unsuccessful transformations by comparing companies in like industries and time periods.
It turns out that there are two common transformation trajectories:
The second path is far less common. What can a company do to follow it?
Companies that achieved long-lasting success went beyond the first chapter of transformation. The initial transformation addressed costs; chapter two focused more on growth and innovation.
In the second chapter, successful organizations deployed a new strategy, vision, or business model, which—through subsequent iterations of adaptive innovation—they continued to improved.