Zeroing out the past

If you always do what you always did, you will always get what you always got.

Disruption is pushing companies to rethink the business as a matter of survival. After all, 75 percent of the S&P 500 will be replaced in the next 10 years. Yet capabilities and talent—often among the largest P&L investments—are not pivoting fast enough, creating a gap between companies’ ambition and ability to compete in the new.

Across industries, the workforce is performing tasks and routines in ways that have been passed from one generation to the next. Many activities have been simplified, disappeared due to digital, or made leaner by scaling back from a current state organization designed for yesterday’s needs. But many organizations have too many people doing work that does not connect to valued outcomes.

The resulting organizational inertia is deadly. So forward-looking companies are turning to ZBx, or a zero-based mindset. ZBx is a new way to drive pro tability that emphasizes agility over austerity and the future over the past. ZBO (zero-based organization) is a critical component of ZBx. It empowers you to design the “right” organization from a clean sheet, shifting talent from work that no longer contributes to desired outcomes to the distinctive capabilities and operating model required to fuel profitable growth.

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