strategy+business Winter 2018

Midway through the development of “The Four Building Blocks of Transformation,” by Al Kent, David Lancefield, and Kevin Reilly (page 60), the authors and I were challenged by one of the most senior executives at PwC. Asked to review the draft, he said it seemed stale: “It could have been written this way 75 years ago.” That led to a thorough revision and some soul-searching at strategy+business. We often say we’re looking for “timely originality” in our articles. But topics like transformation have been written about so much, they’re almost stale by definition. To think freshly — and productively — about change in organizations, we need to better understand how that change affects people. The four building blocks can help. The urgency of change is the underlying theme of “Leading a Bionic…

The rate of adoption for an emerging technology is influenced by how well it is understood and trusted. Potential adopters may feel anxious, or at least skeptical, about embracing a wholly new system — in particular, one that requires companies to rethink traditional ways of managing and sharing their data. This is perhaps especially true for blockchain, a technology whose very purpose is to fill gaps in confidence. Let’s dissect that paradox. Block-chain technology, by creating an immutable record of data transactions, should engender trust among its users. But survey data from a new global study by PwC reveals that trust issues are threatening to impede companies’ blockchain efforts at nearly every turn. This is not to say that companies aren’t experimenting: 84 percent of our survey respondents — representing a…

It’s good to be green, but it’s not easy. Changing the way products are made or packaged, abandoning longtime practices in favor of more eco-friendly options, or adopting new technologies to meet sustainability targets can involve high cost and risk. The temptation to greenwash — to appear to limit environmental impact without actually doing so — may rise. Pascual Berrone, professor of strategic management and the Schneider Electric Sustainability and Business Strategy Chair at IESE Business School in Madrid, has spent the last 10 years studying this phenomenon. Although the backlash against companies that commit greenwashing is typically swift, it doesn’t seem to be a deterrent. As consumers, we can see evidence of this practice everywhere, in claims of “all-natural” foods and cleaning supplies, of homes and appliances that purport to…

The media and entertainment industry has a long history of embracing disruptive innovations, from the printing press to the personal computer. But the rapid shift from physical to digital over the past decade or so has been truly revolutionary. In general, physical media has suffered a great deal. Printed newspapers and magazines have migrated to online versions, while DVDs and CDs have been supplanted by film – and music-streaming services. But the oldest form of physical media is actually holding up quite well. According to PwC’s Global Entertainment & Media Outlook 2018–2022, the consumer market for physical, printed books is holding its own in an increasingly digital world (see “Print Presses On”). Between 2018 and 2022, sales of physical video games, recorded music, and home video are expected to decline each…

Arapid and far-reaching transformation of the US$450 billion pharmacy benefits manager (PBM) market, which touches virtually every healthcare consumer, is unfolding before our eyes. In the fall of 2017, after retail chain CVS proposed a $69 billion acquisition of insurer Aetna, and insurance giant Anthem partnered with CVS to create a PBM, we argued that the pharmacy benefits function was poised to evolve. The PBM industry, which historically had administered drug plans and focused on containing drug spending for employers and insurers, would likely have to en ter new collaborative arrangement models with stakeholders along the value chain. Over the past year in the PBM industry, however, we’ve seen the announcement of even more significant deals, which point to a potential transformation beyond the degree we contemplated, and which are likely…

What do three former Olympic gymnasts: Monica Gorman (1980), Kathleen Finnegan (1984), and Bonnie Wittmeier (1984) have in common? They all trained at the Winnipeg Gymnastics Centre. The 11,000 square foot facility, which first opened doors in 1977, is home to one of Canada’s largest gymnastics programs, boasting over 1400 active members in the 2018 calendar year. The person in charge of keeping the lights on is none other than Celia Champion, current owner and longtime gymnastics coach who took over the operations of the facility nearly a decade ago. Working as the Owner, Head Coach and Facility Manager is no easy task; Celia is not only responsible for processing payroll, but she’s also accountable for scheduling competitions, facilitating coaches’ meetings, planning gym space for weekly training programs, and much more.…