Perform and Transform: navigating the leadership paradoxes of dual transformations
Most transformation journeys organizations take are dual transformations. To remain competitive in today’s dynamic environment, businesses must constantly refine existing business to remain competitive while exploring new strategic opportunities to secure the future.
Most leaders find dual transformations difficult to navigate. They require constant decisions about allocation of resources based on anticipated value. In some cases dual transformation results in seemingly paradoxical decisions where the company is shaping new opportunities that are poised to disrupt existing businesses.
Examples of these conflicts within the dual transformation journey are best illustrated by some of the organizations that have worked with IMD Voyager.
Shell is investing billions of dollars in increasing efficiency across the entire oil and gas supply chain. At the same time, the business is making a commitment to achieve zero net emissions (decarbonization) by 2050.
To achieve their transformation goal of decarbonization, an entire existing business will be eliminated.
Leaders in the company not only have to reconcile the two goals, but also effectively lead the company through the transformational journey.
Headquartered in Tokyo, Konica Minolta was formed through the merger of Konica and Minolta in 2003. The organization built its reputation and business around being one of the world’s leading suppliers of business and industrial imaging and printing equipment, most famously its multifunction products (MFPs).
Over the next five years, Konica Minolta will be tapping the hyper-growth possibilities of managed IT and data services to create a far bigger business revolving around helping its customers take costs out of their operations to generate more revenue.
Sam Errigo, Chief Operating Officer at Konica Minolta Business Solutions in the US, speaks to Professor Ric Roi about their dual transformation journey here
Cu persued a so-called “dual transformation” of the business, meaning reforming two elements in parallel: transforming its traditional mobile services business, while at the same time creating a digital services company to serve all Filipinos.
Globe transformed from a mobile phone company in the traditional mobile and SMS/text industry into one of the two largest mobile operators and digital payments businesses in the Philippines.
To get Globe to where it is today, Ernest L Cu, CEO of Globe Telcom, pursued a dual transformation of the business. Globe reformed two business elements in parallel: transforming its traditional mobile services business, while at the same time creating a digital services company to serve all Filipinos.
Five key leadership domains to master to lead dual transformations effectively
Leaders have to reconcile these paradoxical business choices. They must provide clarity and consistent direction to those who work with them, motivating them to deliver high performance today while enabling them to adapt for tomorrow. Beyond their own business, leaders also need to gain commitment and alignment from stakeholders within their organization and beyond, even enabling transformation in their industry.
IMD Voyager has identified the five critical domains that leaders must address to effectively deliver dual transformation. Effective leaders who maximize value need to navigate Perform and Transform decisions across leading strategy, execution, stakeholders, people – and leading themselves.
The challenge lies in leaders having to toggle between polarizing behaviors across these different situations. They must be both structured and spontaneous, strategic and tactical, cohesive and disruptive… in other words, they need to be ambidextrous.
Developing leaders for dual transformation amid the global talent crunch
Leaders who have the skills required to lead value generation from both existing and new businesses are hard to find. IMD research shows that only 12% of leaders we studied can do both – we categorize them as ambidextrous leaders.
Many CEOs we spoke to described how the dearth of transformational talent makes it hard for them to achieve their strategic ambitions. Conversations with CHROs confirm this insight. CHROs also report a struggle to provide a pipeline of suitably skilled senior executives.
Identifying and developing ambidextrous leaders is critical for organizations to continue effectively navigating their dual transformation journey. IMD Voyager can also offer support to enhance the transformational capabilities of leadership teams, leveraging the complementary strengths of your top teams and increasing their effectiveness in harnessing these strengths to deliver dual transformation.
Find out how IMD Voyager’s science-driven approach to targeted development strengthens the pipeline of transformational talent to deliver measurable impact on leader and organizational performance.