Today's business leaders understand that transformation is the key to achieving ambitious business goals. As we've previously reported, companies embark on transformation to reset, venture into new areas, drive growth, and evolve their cultures. But what exactly is transformation? We define it as a process that begins with a bold ambition, supported by facts and an external perspective, driving strategic choices that fundamentally change how an organization operates. One of the most critical aspects of transformation is growth, and our latest analysis shows that about 50 percent of transformation value now comes from growth initiatives. In this article, we'll explore the strategies and behaviors of leading growth transformers and how they embed these in their daily work.

Unlock the Secrets of Leading Growth Transformations

Starting with Competitive Insights

Leading growth transformers understand the importance of starting with a competitive edge. They look externally to understand where and how to win, building a strategic vision based on competitive insights, consumer sentiment, market trends, and an investor's perspective. For example, a global retailer sought external perspectives before embarking on a holistic transformation. They examined customer demand and satisfaction, which led to a 30 percent revenue growth opportunity over the next four to five years. By setting a courageous performance aspiration and considering various factors, these transformers are able to activate pathways for growth.

Another company, a global software firm with stagnant revenues, transformed its product portfolio and go-to-market capabilities. By shifting to higher-growth markets and using M&A, it revamped its strategy and expanded its customer base. All these moves were supported by changes in organizational structure and culture to emphasize speed and efficient decision making.

Using External Partnerships to Fuel Growth

Through external assessments, many companies realize they need external capabilities to achieve their full growth ambition. A global retailer, for instance, conducted an assessment to define their growth focus. They used this information to build a transformation plan, quantifying the market share available and targeting specific initiatives. This led to significant growth and put them on track to achieve their goals.

Another example is a company that recognized the need for specific skills held by partners. By forming external partnerships, they were able to access those capabilities and fuel their growth. This approach shows the power of leveraging external resources to drive business expansion.

Making Ambition a Part of Leadership Expectations

Leading growth transformers challenge and reward employee behavior that brings bold thinking and new solutions. They set a high bar and encourage employees to take initiative and make decisions. A leading US financial services company exemplified this by appointing managers to rethink the business and business builders to come up with new ideas. They structured a growth system and implemented a rigorous program of execution, resulting in 10 percent annual revenue growth.

This approach not only drives growth but also creates a culture of continuous improvement and innovation within the organization.

Using Technology and Digital Strategy as a Foundation

Leading growth transformers make technology an integral part of their strategic choices. They identify areas where technology can provide a competitive advantage, such as automating the customer experience and using AI tools. A company might choose to automate processes to make the customer experience frictionless and use AI to determine the next-best actions for the salesforce.

They also prioritize building employee capabilities to support the growth ambition and use these capabilities to drive faster decision making and higher growth. By creating a central tech strategy and using digital tools for transparency, they can make informed decisions on growth topics.

Making Decisions Based on Facts and Data

Leading growth transformers commit to creating a fact base from trusted sources and using it to make decisions throughout the transformation. A global software firm, for instance, revamped its product strategy by using data to shift to higher-growth markets and using M&A. These moves were supported by changes in organizational structure and culture to emphasize speed and efficiency.

By making decisions based on facts, these transformers are able to achieve profitable growth and sustainable success. They understand that data-driven decisions are crucial for long-term success.

These behaviors are essential for growth transformers. By starting with competitive insights, using external partnerships, making ambition a part of leadership expectations, using technology as a foundation, and making decisions based on facts, they are able to achieve significant growth and success. Transformations that embed these behaviors have the opportunity to go beyond cost-cutting and realize profitable growth.