Uncertainty may be a constant these days, but so is the power of successful transformation. Companies that outperform the competition recognize the need for ongoing, end-to-end transformation of their business, operating and technology models. And they’re relentless in their focus.
When considering why and how top performers outpace others, PwC found that the top 20% of companies captured a “performance premium” — the combined effect of profit margin and revenue growth in industry-adjusted terms — greater than 13 times that of the bottom 80%. Those are measurable results that demonstrate how leading companies actually create lasting value in a competitive business environment.
These top companies thrive through transformation, and they’re not about to stop. How can you join them to drive performance and extract significant short- and long-term value in a persistently uncertain business environment? It starts with becoming obsessed with outcomes.
How can you be outcomes obsessed and join top performing companies to drive performance and extract value in the face of unknowns?
Transformational leadership
Transformational leaders encourage collaboration, camaraderie and conviction. They build and rely on teams that can translate vision into action, create value for customers and keep employees engaged and energized. To succeed, you should take time to invest in relationships and give your employees the support they need — both professionally and personally — to navigate uncertainty and help drive your transformation efforts.
Demanding ROI
Don’t overlook these three powerful letters. As pressure grows on many companies, leaders should consider each team and department and the value it brings to the larger organization. Many companies think they need to pull back on investments during turbulent times, but you should pull back only on investments that don’t deliver ROI. Top performers are 3.8 times more likely to have increased their investments in enterprise-wide transformation by 30% or more.
Taking advantage of M&A and other deal opportunities
As recession fears grow, companies often pull back to reduce risk, maintain the status quo and weather the storm. Top performers know that acquisitions can be less expensive during downturns or that strategic divestitures can provide capital for reinvestment. If you retreat, competitors can gain market share. Instead, making deals a priority can open up future revenue streams and reveal new business models.
Outcomes Obsessed: Leading companies capture more than 13 times the performance premium* relative to the bottom 80% of companies through top-to-bottom, end-to-end transformation.
Investing in customer relationships
During tough times, it's easy to look at a customer as a means to an end – a way to help meet goals, drive revenue and improve your bottom line. That's the wrong approach. Instead, seek a deeper understanding of customers and integrate that into your business models, operations and decision making. Developing ecosystems can expand your access to new data, insights, customers and markets. Top-performing companies are 1.2 times more likely to leverage this approach to obsess about customer pain points and ask how they can be there for customers.
Learn more
- PwC Customer Loyalty Executive Survey 2023
- Case Study: U.S. Bank-Marketing automation and sales data analytics
- Harvard Business Review: How to Gain a Competitive Advantage on Customer Insights
Taking back transformation
Many top-performing companies succeed by accomplishing "enterprise-level" reinvention. This means an end-to-end transformation across business models, operating models and technology models. As a result, top performers are 1.7 times more likely to be faster to market, 1.2 times more likely to be more flexible and agile, and 2.3 times more likely to have high levels of innovation.
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