COO Insights "Growth through transformation" - Roland Berger

can we make the most of the great opportunities that this
offers for our customers, our employees and the Bosch
Group as a whole," says Denner.
SETTING THE BAR THROUGH
TRANSFORMATION
I
If you want to shape the future market, simple
organizational repairs and optimizations are not
enough. Firms must systematically reorganize their
business systems, intelligently linking restructuring
and innovation, cost optimization and growth. Keeping up
with the best in the industry is not suffi cient: You need to
constantly reset the bar. The key word is transformation;
the goal is a company that continuously transforms itself.
If it decides to go down this road, it needs to reformulate
and restructure its strategic and operating processes.
This process must involve every part of the company,
including marketing, management, structures, strategies,
resources and processes. Successful transformation means
institutionalizing change in the organization, thereby
securing the very future of the business. Transformation
is not an isolated management tool.
In its most effective form, it is a practical combination of
various methods and approaches. Fundamental portfolio
adjustments, innovative market strategies, business
process reengineering and organizational realignment
are combined with tools from sustainable change
management, implementation and steering.
Transformation is not just about optimizing or adding
things, either. Sticking to the old structures or adding new
elements does not always lead to success. Ultimately,
transforming an operating model is about swapping
something old for something new. Physical assets need to
make room for new elements. New competencies need to
be incorporated. The firm's culture, traditions and IT
systems must evolve.
Continuous transformation streamlines the company's
processes, but reshaping the operating model can go much
deeper. It can be painful, too, involving shutting down
factories, changing the value chain model, spinning
off traditional activities and outsourcing former core
competencies. Transformation doesn't just mean careful
optimization: it means transitioning to a radically new
operating model.
Sometimes transformations can go wrong. French
electronics company Technicolor (formerly Thomson) tried
FROM SHOCK AND DENIAL TO ACCEPTANCE AND INTEGRATION:
Dealing with major change always follows a certain pattern
MOTIVATION/
PERFORMANCE
>Good management
helps people understand
change, accept it
and make the necessary
adjustments faster
TARGET
TARGET
Denial
With change
management
Integration
ACTUAL
Acceptance
Shock
Anger/guilt
Trial
Depression
TIME
Source: Roland Berger