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“Until a business returns a profit that is greater than its cost of capital, it operates at a loss. Never mind it pays taxes as if it had a genuine profit. The enterprise still returns less to the economy than it devours in resources … Until then, it does not create wealth, it destroys it.”

Peter Drucker

 

How can you make transformation? Ask six key questions:

1. What is your goal?

It is important to create clarity of purpose and layout a compelling vision of the future. Don’t just communicate the details of the change, emphasize the destination.

2. What will move the right needle?

Identify the specific and practical behaviors that are critical to success. Organizations change when people’s behavior change.

3. Who will be the key players?

Identify who will be key in motivating the right behaviors and who will be most affected.

4. Who will be your coach?

Executives to front line supervisors need effective coaching to successfully perform their leadership roles. The organization needs strong change leadership.

5. How much more can the organization and management team absorb?

Individuals and management have capacity limits and can absorb only so much. Anticipate when people involved in multiple initiatives are stretched too thin and then stop nonessential projects.

6. How red hot are our risks?

Do not ignore red-light warning signals until a problem becomes severe. Diagnose risks and address them early and completely.