Don't Miss Out! The Crucial Turning Point that can Transform Your Business
2/11/23
In my co-authored 2018 Management Consultancy Through An Academic and Practitioner Perspective book, we stressed throughout that knowledge remains the critical driver of success in the digital age. We highlighted how management consultancy firms need to stay relevant to compete effectively.
In the 1990s, Andy Gove, former CEO of Intel Corp, popularised the term strategic inflection point. Such pivotal moments termed strategic inflection points, mark the start of profound change, and there is no looking back. Risk assessment is essential as the fundamental external forces driving the strategic inflection point can lead to positive or negative outcomes.
Fast forward to today, we now witness how organisations in all sectors have reached another inflection point and are developing new ways to transform their value proposition to stay relevant. We have seen the Internet as a disrupter in shopping, with Amazon leading the way. With Generative AI capturing the attention of us all, we currently see a change in C-suite behaviour with leaders placing their bets on differing strategies.
For example, legal firms are redesigning their delivery of core services, with large firms' equity partners facing lower payouts. Firms are under pressure to reduce headcount to boost profits-per-partner metrics. Likewise, accounting firms face similar issues, wrestling with labour issues and capacity challenges, leading to, in some cases, increasing M&A activity.
Interestingly, all firms face a strategic inflection point challenge regardless of sector and size. As stated by Lewis and Lewis, some firms may need to recognise that they are at this point. They also highlight the labour turmoil with the impact of remote—and hybrid working on people strategies.
Given the above scenario, the rest of this article will briefly delve into these latter points and explore how your firm can spot and navigate your strategic inflection point effectively.
Conclusion: Preparing for the inevitable
By recognising the signs, embracing change, and continually reassessing your business model, you can weather the storm and thrive in the face of a “Strategic Inflection Point”. The key is to see these pivotal moments as opportunities for growth, innovation, and staying ahead of the curve rather than threats to the status quo. In the business world, adaptability is the ultimate competitive advantage.
ENDS
Recommended Read
As business executives know to their peril, change management is an inherently complex process, marked by a multitude of interconnected variables and potential challenges. Such initiatives get pushback from staff, who feel uncomfortable with the disruption. Given that the current business climate is one of numerous change management initiatives, leaders embarking on their journeys or who have hit roadblocks may need to reassess their approaches.
Melanie Franklin’s book Agile Change Management, demystifies some of this complexity. Then, introduces the term agile, supported by a broad array of practical tools to help leadership teams.
Without these foundations, leaders may find themselves navigating a turbulent and uncertain terrain with a higher risk of failure. Solid foundations provide the stability and direction to guide organisations through the complex change management process.
This book stands out as a valuable resource for the bookshelf. The contents are well presented and easy to execute in all contexts.
ENDS