I was researching on strategic transformation and found this article from Emeritus, an organization that specializes in making accessible and affordable high-quality education by collaborating with top-tier universities worldwide.
The article, “Everything You Need to Know About Strategic Transformation,” provided me with a simple definition and context, together with a separate case study by Prof. Roger Martin, former chairman of Tennis Canada (TC), the governing body of the sport, which did a strategic transformation a decade ago and is now reaping the fruits from its success.
A true strategic transformation is not limited to isolated or cosmetic changes to a single product or operational strategy but involves reimagining and reconfiguring the way an enterprise operates across the entire organization and bringing all employees along for the journey.
Strategic transformation can take many forms and may include digital transformation, marketing transformation, leadership transformation, sustainability transformation and business strategy transformation, among others.
It is in the last form, i.e., business strategy transformation that TC undertook using these five key strategy questions which associations may use in their own context:
1. What is your winning aspiration?
TC set out the goal of becoming a leading tennis nation which meant always having players ranked in the top 50 men’s and women’s singles world rankings, being part of the elite world groups in the Davis and Fed Cups, and winning a Grand Slam tournament.
It is important for an organization to be focused and to work towards its aspiration at all times. Only with a clear and specific vision will it be able to move towards its goal.
2. Where to play?
TC focused on the very hardest game: singles, the most important market in international tennis. It also chose to identify and develop talent in an organized fashion at a young age (8 years old to 9 years old) rather than waiting until a later age.
Knowing your market inside and out is a great asset for an organization. Don’t expend energy on markets or competition that doesn’t precisely fit with your vision.
3. How to win?
TC has two major thrusts for winning. One was to benchmark and adopt select practices of successful organizations and another was to get the highest possible funding to funnel the resources to high performance tennis.
Similarly, associations can seek out best-performing counterparts for insights and inputs and generate funding to achieve success.
4. What capabilities must be in place?
It was clear that great coaching and a modified national tennis center were needed.
TC spent money on its best chances of success, rather than saving money by focusing on cheaper but more mediocre options. As a result, its ROI (return on investment) improved.
5. What are the management systems?
TC developed a unique development path and criteria that players had to achieve to gain and maintain funding which enable it to focus its very limited resources on the players with the brightest future.
Organizations undertake strategic business transformations in response to significant and sustained pressures from the market, the process of which may involve pivoting products, services, or offerings, or realigning how it does business to maximize consumer satisfaction and shareholder returns. TC has definitely built a sustainable platform for success. And like any organization that effectively competes for success, TC continues to play to win.
Octavio Peralta is currently the executive director of the UN Global Compact Network Philippines and founder and volunteer CEO of the Philippine Council of Associations and Association Executives, the “association of associations.” E-mail: bobby@pcaae.org.