Transformation is essential for firms looking to transition from mature to emerging industries.
In a world marked by constant disruption, businesses must fearlessly embark on transformation journeys on the back of organisational agility and adaptability. Given the disruptive technological advancements, business strategists need to be adaptable, open-minded about scaling and change, and possess the agility required to respond to sudden shifts in consumer demands.
Furthermore, transformation is critical to safeguard a company’s long-term earnings integrity. For example, Yinson proactively aligned its focus with the Green Industry, driven by global climate goals, such as achieving Net Zero Emission by 2050. Businesses should prioritize development during periods of stability, rather than waiting until they have no other choice but to adapt.
During the process of transformation, companies should not compete against each other, but against the common “enemy”. Companies in the same industry should join forces and work towards ousting aging technology.
In addition to a business transformation strategy, reinvestment plays a pivotal role in building firm value.
Reinvestment is crucial to ensure business growth and promote innovation. Capital providers and investors should acknowledge their roles as enablers and custodians in facilitating growth.
The concern that reinvestment will erode company value is often overblown. A culture of risk-taking is important for firms undergoing transformation, and Yinson’s approach to addressing this challenge involves recognizing the value of time, allowing for mistakes, and embracing the idea that failure is acceptable, as long as the company learns quickly.
Consequently, companies must find a balance between shareholder interest and the overarching goals of the company. While pursuing innovative business models can be challenging when shareholders demand capital returns on investments, transparent shareholder engagement is crucial to gain their support.
A robust work culture and talented workforce is essential to sustain a company’s growth.
Decentralization is key to business agility and efficiency. By delegating authority and empowering divisions to make decisions, it cultivates a sense of ownership and responsibility.
The importance of ‘Building a champion team instead of a team of champions’ lies in creating a cohesive team with a shared passion and a hunger for success. This approach is often more effective than assembling a group of industry titans who may have conflicting ideologies.
Emphasis on the importance of team chemistry. Strong team chemistry fosters collaboration, trust, and a shared commitment, which are essential pillars for driving innovation, productivity, and adaptability in a disruptive business landscape.