Radical Renewal


A small number of companies will continue to use outsourcing to execute stem-to-stern enterprise transformations. New CEOs will take over neglected organizations with board-level mandates for change and compelling deadlines. Legislatures will adopt policies that run seismic fault lines through the playing field. Disruptive technologies will change the game, and some executives won’t notice until the final period that their team has the wrong uniforms on. The executives in these companies will recognize transformational outsourcing as a viable option for making the strategic changes that their organizations require for survival.

Some executives will use outsourcing to reposition their organizations; others will set their sights on a new competitive trajectory. Both of these objectives—repositioning and acceleration—stop short of tapping the full potential of transformation through outsourcing. The executives with the longest view will have an even more far-reaching objective for transformational outsourcing. They will want to use it once, and then never again. In fact, they will want to use it in a way that keeps their organization from ever having to transform again. They want to parlay it into an entirely new capability: the ability for fluid change. In other words, they want to liquefy the rigid walls around their organizational silos and create a capability to implement strategic change with sinuous grace (see Exhibit 12.2).

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Exhibit 12.2: Dynamic organizations evolve from fixed units to fluid ones.

Companies that stop short of this ultimate objective may achieve their radical agenda, but they may become hooked on transformation in the process. When their business models wear out or their performance flags, they will have to go through another lurching and expensive repositioning. If they can master the art of fluid change, they can escape this dysfunctional cycle.




Outsourcing for Radical Change(c) A Bold Approach to Enterprise Transformation
Outsourcing for Radical Change: A Bold Approach to Enterprise Transformation
ISBN: 0814472184
EAN: 2147483647
Year: 2006
Pages: 135

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