What are some industries might must change rapidly to survive?
(1) In light of changes, a company's success depends critically on how well it weathers this change. Key value drivers include here would include:
◆ retaining and migrating customers, and creating value for them through the transition;
◆ sequencing the changes to maintain performance and build market share; and
◆ reassigning investments so as to minimize stranded "old business" costs and assets.
Transition from the old state to a new reality with sustaining the values of the company becomes vital here. But when the old and new businesses are managed separately, ensuring an effective transition becomes the responsibility of neither. The key sequencing, retention and reallocation decisions and actions become blind spots for the organization - managed in executives' spare time rather than as part of their day jobs.
A better approach is to manage the transition in an integrated way. Far from putting distance
between the old and new, this means planning and executing change "horizontally" across the
businesses, rather than "vertically" through slices of them.
So how can top management ensure that the organization as a whole prospers and maintains its values during the transition from old to new? There are three main ways to improve ...
The solution examines how managers maintain and sustain values over time in light of rapid change, mergers, acquisitions and turnovers.