Small-scale changes can often outperform large-scale restructuring in organisations. This is the key finding from analysis of 411 companies in the S&P 1500 index. Incremental changes, or ‘small-c’ changes, are continuous adjustments to a company’s business model, strategy, or operations. These changes can lead to higher returns on assets (ROAs) and sales growth, without the disruption and risks associated with large-scale transformations.
An example of a successful small-c change is the shift from physical to digital sales. This incremental adjustment can be more effective than a complete overhaul of the business model. It’s also important to note that small-c changes are not just about cost-cutting. They can also involve investing in new technologies or improving customer service.
The analysis also revealed that companies making small-c changes had a higher probability of survival. This is because they can adapt to changes in the market more quickly and effectively. However, to implement small-c changes, companies need to have a clear vision and strong leadership. They also need to foster a culture of continuous improvement and learning.
In conclusion, small-c changes can be a powerful tool for companies looking to improve their performance and competitiveness. They offer a more sustainable and less risky approach to organisational change, compared to large-scale transformations.
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