![]() However, changing the mission also called for changing the culture. Siemens moved beyond a purpose of maximizing shareholder value to a mission of “serving society.” This transformation began in 2014 with a plan called Vision 2020 that called for harnessing technologies such as AI and the Internet of Things. The technology companies on our list also discovered ways to infuse purpose into their organizations as part of their fundamental change. China’s AIA Group has moved beyond insurance to become a wellness company, whereas Dutch electronics giant Philips has largely divested its legacy lighting business to focus on healthcare technology. In a comparable way, the purpose-driven mission of preventative healthcare has spurred major change at other large organizations that made the list. Since unveiling that new purpose, Netflix revenue has roughly tripled, its profits have multiplied 32-fold, and its stock CAGR has increased 57% annually, versus 11% for the S&P 500. ![]() For us to be hugely successful we have to be a focused passion brand. In 2013, CEO Reed Hastings released an 11-page memo to employees and investors detailing a commitment to move from just distributing content digitally to become a leading producer of original content that could win Emmys and Oscars.Īs the memo said, “We don’t and can’t compete on breadth with Comcast, Sky, Amazon, Apple, Microsoft, Sony, or Google. The #1 company, Netflix, is a case in point. However, we believe it’s the decision to infuse a higher purpose into the culture, one that guides strategic decisions and gives clarity to everyday tasks, that has propelled these companies to success. For the third round, the following companies were selected as the Transformation 20 and ranked by a panel of management experts (see judges).Įach of these companies developed new-growth businesses outside its traditional core which have become a significant share of the overall business. From this second-round list, an Innosight partner panel voted to narrow it down to 27 finalists. Our initial phase of research identified 52 companies making substantial progress towards strategic transformation-merely 3% of the public companies in our data set.
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