- BCG TURN is our approach and methodology
for rapid full company transformation.
We created TURN,
because we found that our clients were increasingly
in situations of facing existential pressures,
either externally focused or internally focused.
BCG TURN is a methodology that allows us
to work shoulder to shoulder with our clients,
helping them improve the business in a comprehensive way.
Technology companies have been undergoing
massive transformation
over the course of the past couple of decades.
This went from an industry,
which was primarily driven by growth,
as an industry, as a sector, grew at double digits,
to now one which is much more faced,
focused on return on investment,
running efficient operations,
while still continuing to innovate and invest for growth.
One interesting fact is that the technology sector
has been one of the most targeted by shareholder activists,
which are obviously a catalyst
for full a company transformation.
TURN programs differ in three ways.
Number one, the full company is in scope.
That means that any lever for value creation,
that may be relevant to the company,
from organization redesign to growth,
to even working with the balance sheet and working capital,
is in scope.
Number two, BCG works shoulder to shoulder with our clients,
often helping them make decisions.
Literally potentially even staffing roles,
that the client may have on their senior team
or as a chief transformation officer.
Number three,
we are accountable and incentivized by results.
We want our clients to realize the benefits of the program,
and for BCG to actually have skin in the game.
What this means is we don't
shake your hand, and walk away, and just say,
"Good luck with the program,"
but we're actually there working with you,
until you realize the benefits of the program.
People think about TURN,
and their first thought
may be companies that are in financial distress.
In truth, this can apply to a broad suite of companies,
which could include companies,
which are still growing at 10% plus annually,
but have a significant opportunity
to improve their operations and effectiveness.
This could come from making decisions faster,
as a senior team.
This could come from having better connectivity to customers
and understanding what's top of mind for those customers.
This could involve things like setting up
a shared services center in a low cost location.
The business outcomes are everything
from improving organizational efficiency and effectiveness.
So making decisions faster,
having better connectivity
to the frontline and to customers,
all the way through to realizing cost efficiencies.
And so typically we're seeing
on the order of a hundred million dollars of cost,
annual operating expense reduction.
Plus it could be,
it could be significantly more,
it could be in the hundreds of millions of dollars.
Companies are able to reinvest in the business,
particularly in technology where innovation is so paramount.
And so we can see them
reinvesting into core R and D functions.
We can see them reinvesting into areas like marketing,
which can drive a significant amount of upside.
In addition, we can also see them having more cash,
in order to return to shareholders in one form or fashion.