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Most companies are grappling with tremendous uncertainty,

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being hit by all kinds of changes.

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It can be digitalization,

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new upstarts, trade war, changes in supply chain,

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changes in talent.

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There's a need to transform

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and we see that a lot of transformations fail.

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We have, in BCG,

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been doing hundreds of transformations.

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We've tried to put together three, four, five factors,

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that if you do those things right,

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your chances of succeeding with transformation

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dramatically goes up.

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What increases the odds of a transformation's success

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is number one,

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that you have a good balance

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between short-term and long-term.

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Take out cost.

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Improve operations

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to be able to put cash to the bottom line.

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Get the momentum.

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But then you also need to have a long-term orientation.

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Invest in R&D,

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digital new business models.

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Secondly,

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you need to have a comprehensive program

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to execute fast enough,

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disciplined enough.

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The third point is

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you need to actually communicate with investors.

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In a way, we see that most transformations,

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they have a very short-term effect in the stock market.

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So you need to be able to tell the story

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and also communicate it.

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Another thing that's interesting is

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new CEOs do better.

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And I think what that means for incumbent management teams

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is that you cannot afford to be complacent.

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You have to address the transformations head-on,

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constantly be paranoid.

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And that also links to the point that we can see

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that the earlier you start a transformation,

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the higher the chance of success,

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and also the cheaper it is,

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the less you need to restructure

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to get to the new future.