Change is inevitable. Only 71 companies of the original Fortune 500 list from 1955 have survived. Here’s why: If you hang back and wait for competitors to act first, you put your company in the position of reacting to and being defined by others’ strategies instead of taking charge of your own outcome. Think about how many companies have allowed Amazon – a paragon for managing continual change – to define their destinies. Managers cannot afford to be spectators anymore.
Methodology for managing changeSuccessful change begins with defining the company’s core competencies – those differentiated strengths that customers find valuable and that can be leveraged to grow the organization. In some cases, competencies built within organizations can be applied externally. For instance, SunTrust Bank and First Republic Bank have found ways to extend aspects of their internal HR programs to customer advisory services for corporate clients.
- SunTrust Bank’s financial wellness program, Momentum onUp, was originally conceived to help SunTrust employees achieve their financial goals. Results showed reductions in financial stress and employee turnover. With goals of acquiring and retaining corporate clients, the bank began to offer coaching sessions and online tools last year.
- First Republic Bank in San Francisco extended its popular employee benefits program for student debt assistance to corporate clients. The program originated as a way to cultivate loyalty and promote retention among millennial employees and is doing the same for corporate clients.
Compressed company lifecycles demand actionGiven the number of companies that have fallen by the wayside through the years, being a spectator has never been sustainable. There’s even more pressure today, however, because company lifecycles have become compressed. Companies – particularly those that have reached maturity – must act quickly to identify and introduce new growth vehicles to stave off declines in market reputation, revenue, and profitability.
Research on 25,000 companies over the span of 45 years by Deloitte concluded:
“Better before cheaper” [wins]
[Focus on] “Revenue [growth] before cost”