HBS professors Ranjay Gulati and Ashish Nanda are faculty cochairs for the Designing and Executing Corporate Revitalization program. Below, they share the program's goals and discuss how its innovative curriculum can help leaders drive changes to optimize their company's future.
Corporate revitalization is the process of transforming an organization—across its strategy, capabilities, financial health, operations, structure, and processes—to significantly boost performance. The spectrum of corporations seeking revitalization is broad: on one end of it are radical turnaround situations where the company might be in or on the edge of bankruptcy and in need of immediate intervention to survive. On the other end are businesses that are doing fine but foresee challenges on the horizon that demand transformation—they are looking to proactively transform themselves for the world that the company is headed into tomorrow. The program covers this entire spectrum of transformation.
To put it another way, one may think of corporate revitalization as analogous to personal wellness—both entail a wide range of levels and different intensities of intervention. For instance, one seeking improved health may feel fine but wants to get stronger, while others may have more pressing needs: to alleviate a minor pain, treat an emerging problem, address a serious illness, or schedule a lifesaving surgery. Leaders need to understand where the organization is on the revitalization spectrum and find the appropriate way to treat the organization that leads to the best possible outcome.
Given the disruptions caused by the pandemic, global economic volatility, geopolitical risk, climate change, and rapid advances in technologies and markets, leaders of many companies are contemplating where they should go next. This program helps those leaders take a disciplined approach to that question by grounding them in what has worked or not worked for others. But even at times when the business landscape is not as uncertain as it is today, companies should be looking for ways to revitalize rather than wait until their situation is dire.
The core question asked in our program is: If your organization is underperforming compared to its potential, what can you do?
We all know of iconic companies that declined over time or suddenly just froze up. They stopped performing at their fullest potential or started to behave erratically. We start to form solutions to these situations by exploring the various reasons why companies begin to underperform. Potential factors include a turbulent environment, the wrong strategy, internal dynamics, and leadership challenges.
We then examine the various ways in which leaders can unlock better performance in their companies. An effective coach not only helps athletes perform better than they have, but also empowers them to play at a higher level than they ever knew they could. Similarly, we help participants understand how leaders create pathways for success that help their organizations perform better than expected.
This program takes a truly cross-disciplinary approach by incorporating strategy, finance, leadership, and organizational dynamics. The curriculum explores the complementary perspectives you need to consider if you are going to be successful in turning the ship. Our teaching team reflects deep knowledge in all of those areas. We are excited to bring this line-up of faculty members together in this program.
Our cross-disciplinary curriculum considers strategic issues. Maybe the company is focused on the wrong market or is not considering alternative approaches to the market. Strategic questions are often interwoven with operational issues. For example, are there too many products? Inventory challenges? Next, we look at organizational structure and work environment. Are there clear lines of responsibility and accountability? Does the company have the right people to lead its functions? We study capital structure, incentives, and governance. The structure and systems of an organization significantly influence how its members are motivated. We also examine culture. What imbues people within an organization with a sense of excitement and purpose? Interwoven with all these subjects is the topic of leadership. How can a leader unlock the potential in a business? All these levers come into play when transforming a business to create value.
Because the program is about transforming businesses, it is best suited to those with executive-level responsibility who are empowered to drive changes that will increase performance. Thus, potential participants include leaders in the C-suite but also division heads, business unit heads, and functional heads. The program would be useful to general counsels and board members who provide strategic input to firm leaders.
Size and sector of companies is less important than responsibility level; participants can come from any industry and from companies of any size. The program is relevant for both large incumbents struggling to maintain primacy and small entrants struggling to establish themselves and grow.
In addition, the program would be useful for advisory professionals—strategy consultants, investment bankers, private equity executives, and strategic communications experts—that provide valued counsel during corporate transformation.
Yes, it would be highly relevant for partners in private equity firms that specialize in corporate revitalization. A lot of private equity is about financial restructuring—and we cover those topics. However, more and more, private equity is also engaged in restructuring organizations and leadership. The program is useful to master all the potential levers within corporate transformation.
The cases are quite new and varied. Some cases focus on companies that are household names but have fallen on difficult times. Others focus on new organizations that need to build on business ideas. Some cases examine companies that need a turnaround. Still, others explore companies that made changes in anticipation of challenges. We also look at companies that failed to make changes that would have improved their performance.
We employ these case studies to discuss frameworks and options for revitalization. They are also a means to uncover ways to overcome organizational inertia, severe underperformance, and even moribund enterprises.