With over 12,000 cases file after implementation of the Insolvency and Bankruptcy code, 2016, it is quite clear that businesses are in dire need of a turnaround to put the house back in order.
The future path for such businesses is quite clear – “Transformation”. This calls for a readiness to change the current way of conducting business and adopting an agile approach.
The question that most CEO’s are asked when presenting the idea of transformation to their team is – “Why do we need to transform?”. It cannot be overstated that taking the team along in this journey is perhaps the biggest challenge.
The changing competitive landscape, customer preferences, regulatory environment, and pressure from various other players in the value chain is forcing the CEO to take a relook at the existing business model.
But before embarking on a transformation journey, the purpose of the transformation and a clear roadmap needs to be chartered with clearly identified goals and metrics to measure the success of the journey.
Various reasons for which one pursues a transformation of one’s business are –
- Identifying new sources of revenue
- Expansion of existing business activities
- Exit from loss making business
- Free up resources to invest in future ventures
- Realignment of business processes
- Business Model threated by disruptors
- Improving Margins – Profitability improvement
- Operational Excellence
- Procurement Optimization
- Reduce selling cost and other associated costs (SG&A)
Intueri follows a 3-step approach to turnaround your business:
- Establish the current status or base-line – Mapping of your value chain, identification of various drivers of your business and establishing the base line for improvement
- Current business unit level profitability
- Competitive Positioning
- Market Dynamics
- Business Process Complexity
- Draw up the roadmap – Driven by answers to questions as simple as – Why do you want to transform, what is important to you, what do you intend to achieve, and by when you want to achieve these goals.
- Strategic Considerations
- Defined Goals and performance measurement metric identification
- Timelines and milestones
- Establishing a PMO – To monitor the implementation of identified initiatives and to ensure adherence to the roadmap a PMO will be set up.
- Team formation
- Monitoring and Reporting
- Handholding individual teams
- Change management