The Top Ten List of
Transformational Companies…
The newest trend in corporate “self-identity labeling” is suggesting that a company is performing some type of transformational advancement in both its corporate structure as well as its community of purpose. Where companies used to call themselves “innovative,” or “forward-thinking,” that is not enough in this day and age.
However, when you delve more deeply into whether those organizations are truly redefining what they are and how they do it, documentable stories of successful “transformation,” are exceptionally rare. In fact, a recent study of S&P 500 and Global 500 firms found that those leading the most successful transformations share uniquely common characteristics and strategies.
How do we define “successful transformation?” A company that creates new offerings and business models that result in aggressive growth into new market verticals meets the definition of successfully developing a transformative model for their company. Most will not be surprised by this list.
Top 10 Rated
- Amazon Jeff Bezos CEO
- Netflix Reed Hastings CEO
- Priceline Jeff Boyd/ Glen Fogel CEO
- Apple Steve Jobs/ Tim Cook CEO
- Aetna Mark Bertolini CEO
- Adobe Shantanu Narayen CEO
- DaVita Kent Thiry CEO
- Microsoft Satya Nadella
- Danone Emmanuel Faber CEO
- ThyssenKrupp Heinrich Hiesinger CEO
Measurable Metrics
A total of fifty-seven (57) companies were identified globally that had made substantial progress toward such marked transformations. The list was then narrowed down to a list of eighteen (18) finalists using the following three sets of metrics:
- New Growth. How successful has the company been at creating new products, services and/or business models? The gauge for assessing this level of success was the based on the percent of revenue outside the core that can be attributed to new growth.
- Core Repositioning. How effectively has the company adapted its legacy business to change and environmental disruption, allowing it to adapt to these conditions?
- Financial Performance. How have the firm’s growth, profits and stock performance compared to a relevant benchmark (such as NASDAQ for a tech company…or the DAX Index for a German firm) during this transformation period?
Based on the above criteria, the aforementioned list of the top ten (10) finalists were able to be compiled. As we stated before, the list of finalists may not hold many surprises for experienced global business analysts. However, no doubt a few surprise entries did make the list.
Insider Outsiders…
One of the most interesting aspects of the Top Ten List was just how many of the companies are headed by visionary founders with no prior experience in their industry. As an example, Jeff Bezos was from the finance industry while Reed Hastings came from software development.
It appears that not having a predetermined way of launching a new entity can be an asset when it comes to reinventing retailing as an example. It may be that this “outsider’s “perspective helped to fuel tremendous waves of growth for these new ventures.
Make no mistake that these “insider outsider’s” have substantial relevant experience in general business backgrounds. They also generally have been highly successful in these other indigenous ventures. It is only though when they move outside their comfort zones that they are able to truly drive these new initiatives.
It is also true that many of these management leaders worked their way up the corporate ladder from positions and departments that rarely incubated CEO types. That makes their rise to these flagship titles all the more impressive. It is something akin in many instances of the “bat-boy,” rising to successfully manage a World Series team.
The Bottom Line…
There are three basic lessons that can be exploited from this data (and probably many more). First, don’t sell yourself short. It is not where you came from but how you got to where you are now. Second, don’t write off an opportunity Chaired by an executive who may not be the traditional choice for such a position. Third, innovation and inventiveness come from people who have never seen a problem resolved in the traditional sense before. They have no boundaries or pre-conceived barriers while looking at a problem.
It is this out-of-the-box thinking that MosaicaFX brings to our efforts to solve problems for our clients. We think you will find that our approach to protecting your profits and supporting your ventures is not only unique but innovate as well. Allow us the opportunity to explore these options with you today.
“Opportunity is missed by most people because it is dressed in overalls and looks like work.” Thomas A. Edison
Please Note: Much of the data provided in the above article was derived from the work of Scott Anthony and Evan I. Schwartz of the Harvard Business Review
