The title of the BCG report sounds serious, but its a bit of a gem – easy to read and understand.
- Successful CEOs need to plan the transformation before they start work
- Transformation is expensive, need to fund the journey with cost takeout
- There are 10 types of transformations; see below
1. Hit the ground running. New CEOs are often brought in at critical junctures in a company’s life. At these inflection points, there is heightened expectation that something BIG will happen – more than incremental improvement, and definitely more than just prudent management. New CEOs are under the gun to make change happen.
BCG argues that there is a “short window of opportunity” to get things going, and there is a greater danger of CEOs doing too little, too late:
“Stakeholders expect changes to occur when a new CEO is hired. In fact, a principal risk for new CEOs is that they may resist taking action too quickly—or hesitate to make changes that go deep enough.”
CEOs need to establish their ambition for change 100 days BEFORE starting the job. It’s not enough to be strategic and thoughtful after you get there. No, you have to develop your point of view months before you get your employee badge. The subsequent steps of rallying the troops, getting some quick-wins, and holding people accountable are both useful, and a bit unsurprising.
BCG cost takeout list. They show 12 ways to take out cost, free up resources, and fund the journey. Note that many of these are complementary or have overlap; organizational simplification can be tied to outsourcing, or personnel costs.