Achieving Business Growth Through Corporate Transformations

Corporate transformations THE KEY FOR BUSINESS GROWTH

Introduction The constant socio economic changes are affecting the activity and performance of companies, leading to the need to transform themselves to remain competitive in their market. Sotiria Skytioti Corporate transformations

Introduction Each transformation is determined by: o the context o the content o the process o the participants o the effects. Sotiria Skytioti Corporate transformations

Introduction Globalization, competitive pressure, the digital revolutions and continuous innovation pushes companies for transformation Sotiria Skytioti Corporate transformations

Introduction The term business process redesign refers to a complete overhaul of a company s key business process with the objective of achieving a quantum jump in performance measures such as return on investment, cost reduction and quality of service. Business processes that can be redesigned encompass the complete range of critical processes, from manufacturing and production to sales and customer service. Sotiria Skytioti Corporate transformations

Summary Corporate transformations are achieved by one or more of: o Realigning the way staff work o How the organization is structured o The core product or service portfolio of the business o How technology is used Sotiria Skytioti Corporate transformations

Types Organizational transformation: This involves redesigning an organization s structure, mode of operation, and professional practices to enable it to work differently and more efficiently. Sotiria Skytioti Corporate transformations

Types Management transformation: Management transformation is a strategy developed with employees based on sharing information, explaining and persuading, with the aim of ensuring a more comprehensive change within the company. Sotiria Skytioti Corporate transformations

Types Cultural transformation: Cultural transformation involves changing ways of thinking, organizing and behaving. It is a source and consequence of the rules that govern the life of the company, both in its structure and in its operation or its expertise, and therefore introduces a notion of separation from recurrent everyday behavior. Sotiria Skytioti Corporate transformations

Types Information Systems Transformation: Information systems transformation is the result of developments in digital technology combined with the explosion in both available data and data storage capacity. Sotiria Skytioti Corporate transformations

Types Transformation of business processes: The transformation of a business process consists of moving from a function-oriented vertical vision to a business-oriented transversal vision. It involves automating and securing various repetitive, low added value tasks something that is most often achieved by digitizing the relevant tools, so that the company can focus on its core business and thereby increase productivity and competitiveness. Sotiria Skytioti Corporate transformations

Summary Typically corporations go through several stages in transforming themselves. They recognize the need to change and gain consensus amongst stakeholders. They agree what form the change should take, the objectives of the change and the vision that describes a better future. Sotiria Skytioti Corporate transformations

Conversion Corporate transformations are defined as the processes by which the status of a corporate entity is changed, without usually resolving and liquidating or transferring its assets under the rules of succession. Sotiria Skytioti Corporate transformations

Conversion There are three (3) basic categories of corporate transformations: o Merger (two or more companies merge into one, while the mergers are liquidated without liquidation) o Split (the act of universal succession transfer of the property of a company dissolved without liquidation to at least two companies) o Conversion (the act of changing the corporate form of a company without preceding its dissolution and without any succession to its assets). Sotiria Skytioti Corporate transformations

Conversion Corporate transformations give growth opportunities to businesses who choose to do so. The reasons vary and depend on the category of transformation that will take place. The main benefits are: 1. business reorganization 2. economies of scale 3. tax advantages. . Sotiria Skytioti Corporate transformations

Conversion Under the current law and according to the jurisdiction, an unlimited company may convert to a limited company by passing a special resolution. Unlimited companies are requires to lodge a notice for conversion with the Business Registry. Sotiria Skytioti Corporate transformations

Conversion The conversion will take effect upon issuance of the notice of conversion and the constitution may be altered accordingly with the terms of resolution. The effect of conversion such as the identity of the company will not be affected nor will any legal proceedings by or against the company be rendered defective. Sotiria Skytioti Corporate transformations

Conversion The conversion from a public company to a private company or vice versa requires the passing of a special resolution and the lodgment of a notice for conversion with the Registrar. The company has to lodge a statement in lieu of prospectus and to lodge a prescribed statutory declaration with the Registrar for the conversion of private company to public company. The conversion from public companies to private companies or vice versa will take effect on the issuance of the notice of conversion. Sotiria Skytioti Corporate transformations

Summary Business transformation can lead to developing new competencies and making better use of existing competencies. The conversion from one type of company to another constitutes an amendment of the companies Memorandum of Incorporation (MOI). Sotiria Skytioti Corporate transformations

Expectations Considering the increasing pace of technological change and volatility in many industries, the patterns suggest that the need for transformation is rising, while the chance of successfully achieving it is falling. Sotiria Skytioti Corporate transformations

Expectations Efficiency and investor expectations are key to short-term success in transformations. Leaders must regain investor confidence by telling a convincing story about how they will leverage their newfound flexibility for future success. Sotiria Skytioti Corporate transformations

Expectations Business transformation: 1. involves making fundamental changes in how business is conducted in order to help cope with shifts in market environment 2. is the execution of a change or series of changes that deliver major shifts in operational processes, product offerings or other outcomes that are not merely an incremental improvement of what went before Sotiria Skytioti Corporate transformations

Summary They understand what the corporation is changing and what needs to change in detail. In addition, they design the new organisational way of working and its support and management. They test and implement changes. Sotiria Skytioti Corporate transformations