The 10th topic in my series of “Ask the experts – why companies to go through transformation”, focuses on the role of shareholders.
If the markets perceive that a business is overburdened with cost, or its business model in danger of falling behind its competitors, then an active transformation programme can improve perception in the investor community, which will have a positive impact on the share price.
This will require the board of directors to demonstrate that the successful execution of the company’s strategy, facilitated by a transformation programme, will improve financial strength.
Typically, this will be done by investing in new systems, applications and business platforms to drive growth, plus increasing operating effectiveness and efficiency.
Next topic in the series (coming soon): Front End Problem. Back End Problem.