Person
1 episodes · 8 quoted claims
Louisa Greco says earlier transformations were typically triggered by events such as competitive entry, an acquisition or an activist investor.
“Companies might have embarked on transformation previously in response to an event, that might have been competitive entry, it might have been an acquisition, it might have been an activist investor.”
Louisa Greco says traditional transformations had a distinct start and end and were often given a branded name, such as a mountain name like Everest.
“they invariably had a discrete beginning and a discrete end, often with a fancy name.”
Louisa Greco says organizations focused on growth deliver five times higher profitability, and those exceeding sub-sector median growth deliver twelve times the total returns to shareholders.
“organizations that focus on growth deliver five times higher profitability, and we see organizations that exceed sub-sector median growth deliver twelve times TRS versus those that don't.”
Louisa Greco says McKinsey research over roughly the last eight years shows engaging a broader set of employees raises transformation success odds by more than three times.
“We know that when we engage a broader set of employees in the ambition, the odds of success increase by more than three times.”
Louisa Greco says organizations often reinvest about half of captured cost savings into growth and let the rest flow to the bottom line.
“we'll invest a portion of that, often half, back into the business for growth, and the rest of it will drop to bottom line.”
Louisa Greco says companies in the top quartile for executing their committed plan deliver total shareholder returns six and a half times those in the bottom quartile.
“Those companies in top quartile of execution of their bankable plan commitments deliver TRS of six and a half times those in the bottom quartile.”
Louisa Greco describes a life sciences client whose CEO tied the transformation to serving more patients, which generated grassroots initiatives.
“One was a life sciences organization where there was an in intense opportunity to actually serve more patients.”
Louisa Greco says leaders should not promise that there will be no layoffs, because it is a commitment they may not be able to keep.
“when the response is we're not expecting any or no, it's just not a commitment you can keep.”