To our clients and friends,
More and more, we see companies fighting to remain competitive in today’s fast paced world. Even firms with a strong track-record of success that have become very good at continuous improvement now struggle to make the bigger changes required to survive.
No question, continuous improvement has been good for business, and for many years. This concept of incremental change is rooted in kaizen – which literally means “good change” – and is demonstrated through widely-accepted methodologies such as Lean and Six Sigma. These principles for improving efficiency and productivity have revolutionized how companies operate and are still a fundamental component of many successful organizations. But is this type of change good enough?
Go big, or go home.
Regulation, technology, and changing consumer expectations are just a few of the factors pushing today’s enterprises toward transformational rather than incremental change – and companies lagging to make these bold moves could very well be left behind.
Over the past several years, broad business transformation – the type that touches every part of an organization - has become central to what we do at West Monroe Partners. We see its impact in all industries but particularly in healthcare, utilities, financial services and others that are going through rapid and complex evolution. The sheer pace of change within these markets means companies that rely solely on incremental change to improve their business will likely find themselves sitting on the sidelines.
Our industry teams have responded by developing solutions that directly support key elements of transformation—mergers and acquisitions; customer experience, the primary lens through which much of today’s transformation is taking place; operations excellence; and data and analytics, which are instrumental in helping companies look forward rather than backward.
We expand on this perspective about transformational versus incremental change in this newsletter. It’s a critical topic we know is top of mind for many of our clients as they look at the road ahead. We hope you find the discussion relevant.
We’ve also highlighted several other current topics:
- Is your organization undergoing major change without an established program management office? Bob Landgren explores how PMOs must transform to meet today’s rapidly changing market.
- Most companies understand the importance of customer experience, but how many have the capabilities in place to produce a competitive advantage? Dave Nash reveals key insights from West Monroe’s 2013 Customer Experience Diagnostic Survey.
- Both private equity and corporate investors are looking for new ways to maximize revenue and minimize costs of a transaction. In this article, we examine the value of analytics and data-driven decision making in merger & acquisition activity.
As always, we welcome your thoughts and are more than happy to discuss your questions and challenges.