Setting the tone from the top to embrace the big changes!
Setting the tone from the top to embrace big changes!
Organisations are constantly in the process of structuring and re-structuring to stay abreast of these complexities.
In an effort to respond to the big changes in market and social conditions, organisations are constantly in the process of structuring and re-structuring to stay abreast of these complexities. In view of these convolutions, an organisation needs to strategically plan and develop the most appropriate and adaptive structure that will allow it to best leverage and optimise on its resources. The strength of an organisation needs to be bolstered by higher value-added initiatives on the back of a robust strategic plan. Whether it’s through challenges or opportunities, organisations must be able to deliver on their high-level plans, amid fluctuating external forces.
Key strategic levers to embrace the big changes, include:
Lever #1: Set the wheels in motion
For years, leaders were labelled as either being ‘visionaries’ who set the compass and embrace strategy or ‘implementers’, who get things done. Indeed, only 8% of company leaders are said to excel at both strategy and execution. Organisations need leaders that can create big promises to customers whilst supporting and equipping their organisations to deliver on them, deeply valuing the connection between the two skill sets. A bold strategy needs to include both a very ambitious destination and a wellconceived path for effective execution.
Lever #2: Steward and manage transformation
Organisations must develop new and disruptive economic streams to accelerate their growth momentum. Only a startling 24% of CEOs believe that their company has a flexible enough operating model to focus on activities that result in growth. Leaders must be smart enough to capture the right opportunities yet astute enough to balance caution with bold action. Organisations remaining in their comfort zone will be overtaken whilst organisations standing in pole position will be instantly imitated.
Lever #3: Do intelligent cost-cutting
Organisations are to target cuts and efforts to build their capabilities, rather than focusing on just getting costs in line with revenues which at times might actually impede revenue generation, as a result of which weakening their organisation. 79% of all companies have cut costs in response to the global economic crisis, but only 53% of executives think that doing so has helped their organisations weather it.
Lever #4: Leverage your customers’ engagement
70% of people, esteem companies with a proactive relationship more than those with a reactive stance. Yet, when facing budget constraints, some companies still opt to cut costs by reducing travels and face-to-face contact with their customers. Today’s world provides us with a multitude of alternatives on how to stay close with customers. The strength of customer relationships is a key leading growth indicator which pays dividends to nurture.
Lever #5: Position your organisation as a house of talent
Rising labour costs are stress-testing organisations. Having a house of talent where it matters can improve productivity whilst ensuring that the organisation is equipping itself with the right people to execute its strategy. Having the right people on the bus taking the organisation forward is imperative for successful strategy implementation.
Lever #6: Harness research & development initiatives
Research and Development plays a critical role in the innovation process. It’s essentially an investment in technology and future capabilities which is transformed into new products, processes, and services. When organisations take the time to invest in R&D they get a huge influx of knowledge. Their R&D all boils down to useful knowledge that organisations can use to further develop their product lines.
Today’s marketplace requires organisations to react more quickly and fluidly if they want to keep up with today’s fast-changing and dynamic business environment. Market forces will continue to impose pressures on organisations to perform. This is what ignites further development of great products and improved customer experiences. Yet again, drafting daunting lists of strategic initiatives to combat external forces is not only distracting, it slows growth. As the priority list grows, there is a tendency that the organisation’s revenue growth in fact declines relative to its peers. The reverse is also true. Whittling down a priority list to a few, yet pertinent levers, emits clear thinking which drives results.
© 2022 KPMG, a Maltese civil partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.