Enterprise-wide reinvention involves rethinking the strategies, technologies and operating models in five areas: Competitiveness, Carbon, Connectivity, Customers and Culture (the 5Cs). This year, our research identified 21 companies as reinvention leaders. They are pursuing more holistic 5C change than the 49 laggards we identified. Yet, both groups still prioritize Competitiveness and Carbon. We believe this may hamper reinvention. Each of the 5Cs is a critical component of reinvention and should, therefore, be prioritized equally with a distinct set of actions.
There are, however, encouraging signs that leaders (and laggards, to a lesser extent) are recognizing that success amid long-term market disruptions will depend on a holistic and realistic approach to portfolio allocations, growth, digital innovation, organizational change and environmental, social and governance (ESG) performance. In other words, they are adopting a more balanced approach to transformation, even if that balance is not yet reflected in their reinvention priorities.