Performance Transformation and Management

Most businesses that I have talked to over the past 30+ years of consulting have a great expectation that their management team will work on transforming their business and move it to the next level of performance. Is this a reasonable expectation? I would say not. In most cases the management team can help to develop incremental change of the current processes/ levels of performance but most do not venture into the transformational change realm. The primary reason for this is risk and most managers are risk averse. They work  constantly to make sure that the risks involved in the day to day operations are avoided. This risk averse point of view does not lend itself to easy change in order for them to allow new transformational ideas to arise. The ironic thing is that the largest risk to a business is to become too stagnant in terms of change. This can lead to commoditization. This usually leads to reduced pricing, profits and compromised business integrity. What can often result is a struggling or failed enterprise. The way to overcome this is to provide outside stimulation to the process. This usually comes from a board of advisors or other third party sources. The leader can also intentionally stimulate it through strategic transformational discussions. Either way without transformational change the long term viability and health of the enterprise is at risk.



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