Transform, Sell Out or Fail

One of the biggest organizational issues today is deciding the future of your organization. To a large degree the future is set and one only has to determine the pathway to be taken. There are three basic pathways. One is to transform your organization and its strategic and operating models. The second is to sell out to someone who will transform it for you. The third is to fail. As consultants we prefer to work with those that want to transform. This means that they understand that they may need to do so 4, 5 or more times in their lifetime in order to prosper. Remember that transformation requires reinventing your business model and not just incrementally improving the old one. It is a commitment to creatively take the organization to the next level. The companies that we work with are committed to this path. An alternative path is to sell out and let someone else take it to the next level. This is best done when the current business model has reached its maximum return level and not when it is on a downward spiral. We have helped some clients in the past who did not have the resources to transform to select this option and merge with an organization that could benefit both. This creates a win/ win scenario. The third option and the one taken by most organizations is to hold on and do too little to change and move forward. These organizations are doomed from the start. So it comes down to leadership and decision making. The leader, or leaders, must understand these pathways and select the first or second pathway whichever best fits their goals and capabilities. The third pathway is to be avoided at all costs because it destroys value.

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