An interesting recent article from McKinsey about how a company can focus on dual transformation that involves reinventing and transforming its core business while in parallel building new businesses. The article frames up that “Although there can be challenges to executing this well—such as an unclear strategic vision, funding constraints, or operational complexity—adopting a two-pronged approach can broaden the impact of an effective transformation. It can also enhance successful business building, where the synergies created together can exceed the contributions from each alone”. The article goes on to say “For any company ready to embrace a dual transformation, it’s important to first define a clear strategy on where to play and how to succeed. This involves conducting a thorough evaluation of a company’s core business to gauge its current performance, strengths, and weaknesses. It also means exploring potential growth opportunities within core markets. At the same time, the company should emphasize strategic innovation, identifying new markets or segments where it can effectively compete and grow. This dual-focused approach ensures a balance between strengthening existing capabilities and actively pursuing expansion opportunities, setting the stage for sustained success in a dynamic business environment.” Quite an interesting concept, and applicable for companies across different industries/sectors.

For more specifics, check out the article itself here.