Monday, April 16, 2007

The Cost and Return (ROI) of Corporate Development

Of the roads to corporate development/improvement, three great avenues stand out:
  • One is through the change of strategy, of tactics.
  • Another is through the reengineering of process.
  • The third, is through the transformation of the Operating Dynamic of the company.

Strategic/tactical change takes time to implement; is always disruptive; then takes time to prove - the success rate is seldom encouraging. And it is always expensive. The ROI (if any) is measured in percents per annum.

Reengineerig also takes time to implement; is even more disruptive; then takes time to prove that it works - the success rate here is little better than 30% (Hammer & Champy). It is of course expensive. And the ROI (if any) is still measured in percents per annum.

The third, improving the operating dynamic, is quick. It focuses and mobilizes the company. It costs little. It shows on the bottom line immediately - systemic improvements always do. And this provides the funds for further development.

The ROI is measured in multiples. A first year ROI of 10:1 is the least to be expected.

To transform the operating dynamic of the company requires just three things:

  • The ability to identify and measure its elements;
  • The techniques of triggering change; and
  • A manager with the courage to look deep into the soul of the company - and not flinch from what is seen.

For information on diagnosis, see article Mirror,Mirror, on the Wall . . .

For Information on triggering corporate change, see article: Fire In The Corporate Belly


At 2:52 PM, Anonymous Anonymous said...


I attended your IMA webinar yesterday and was intrigued by your firm's approach to triggering profitability and especially the ROI's you mentioned.

How can I get some materials specifically on your diagnostic and facilitation services?

Tom Allen

At 2:55 PM, Anonymous Anonymous said...

Hi Tom,

Send me an email at Or call me at 847-599-9960.

Tom FitzGerald

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