OFES companies need to be able to fund the organic and inorganic investments required to build these new businesses. While the improving market for OFES should increase cashflow and enable some new investment, most companies will require divestitures of their traditional businesses to make this pivot at scale.
As important as funding, it’s the recognition that making this pivot will require significant changes to the culture, capabilities and organizational structure of OFES businesses.
Companies must make five key changes to pivot successfully.
1. Reflect commitment in organization structure
OFES businesses need to be bold with the positioning of their diversification initiatives in terms of their organizational structure.
2. Focus on a more robust strategy and marketing functions
As OFES companies diversify and learn how to win and sell in many new markets with many new customer segments, they will need more robust strategy and marketing teams to guide the business.
3. Embrace partnerships
Most of the pivots OFES businesses will undergo will be faster and more successful through partnerships that can augment the unique capabilities present within OFES companies today.
4. Welcome new talent strategies
Similar to partnerships, OFES businesses will also need to embrace new strategies for how they acquire and develop talent.