Companies are redefining their business strategies because of their shrinking profit margins, lost market shares or stagnant growth. New business strategy, whether it is for sustainability or for growth, demands business transformation. As the overall gross revenue is spread across multiple different layers of value-chain, business transformation requires reassessment of these value-chain, along with realignment of business units.

Digital transformation may or may not be the part of business transformation planning, but these both require a change management plan. Change management is a critical intersection of business and digital transformation, if both these strategies were to be executed in parallel. Many executives may have managed to execute both in parallel with minimum disruption in business continuity.

The interaction/ crossroads of both these transformation creates a fundamental cultural paradigm shift. ‘Business as usual’ may continue within a framework of basic assumptions and established customer base, however from operational perspective some companies may fail to mitigate risks or manage the impact of the paradigm shift.

There’s no right or wrong about multi-strategy approach, as there are various factors that come in play depending on the company size and scope of the strategic impact. To avoid a collision at the crossroads, many strategists plan for adaptive strategy that allows the leaders to comprehensively assess the business impact, and make changes as needed.

Author: Jasbir Sandhu