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Friday, May 24, 2013

What is Corporate Transformation?

What is corporate transformation?

Every business starts with great customer focus. With time attention shifts to the quality of products and services, then to staff performance in the vain hope that staff keep the business profitable. Finally, the focus turns to shareholders. At which point the business faces imminent failure as customers lose interest in the business and the business loses interest in the customer.

This gradual shift in focus is so subtle that it escapes the attention of the trained business eye and can deceive the most astute entrepreneur. Indeed, there are many who believe that the only reason a business exists is to make a profit to shareholders. However, the purpose of every corporate organization is to serve its customer. The moment an organization fails to meet its customer needs, it ceases to exist.

This “natural shift” or loss of focus on the customer hides a process of internal organization decay. The original design of a successful business serves a specific customer in an existing market. But with the passage of time that original customer ages, changes and moves on. That original customer may, in fact, completely disappear and leave a no longer successful business serving a non-existent market.

The organization that was formed to serve the VW Beetle customers of 50 years ago cannot serve todays customer who no longer wants the VW Beetle. Neither can the organization of 50 years ago supply today’s customer with a VW Touareg. To serve todays customer the VW company must undergo a process of fundamental change and create a new organization to remain in business.

However, a corporate business does not have to wait 50 years to change their organization structure, production systems and service processes to secure their survival. Refocusing a business should be a very deliberate, conscious and continuous process. Businesses that keep pace with the aging, changing and transforming customer remain relevant, vibrant and profitable in the long term. A business may change slowly or may be forced to change quickly, but all businesses change.
So, what then is corporate transformation? - A fundamental organization process of renewal that facilitates the long-term survival, sustainability and success of a business by focusing on fulfilling the needs of the evolving customer.

Allan Bukusi – Author, How to lead corporate transformation

The 5 Pillars of Corporate Transformation






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