For Transformation, Managing Energy is Everything

I was thumbing through a Harvard Business Review article on business transformation and delighted to find the revival of Virgin Australia featuring in it.

The article, by two Bain & Company leaders reiterated that very few transformations deliver lasting results – only about 1 in 8 according to their numbers, and they had found six important differences between those that worked and those that didn’t.

Explicitly managing organisational energy was on their list of six, and this is where the link to Virgin Australia is found.

After going into voluntary administration due to covid disruption, the airline was acquired by Bain Capital in September 2020 and then, under Jayne Hrdlicka’s leadership, pursued a significant transformation program to become a leaner, mid-market carrier.

There was a lot going on, such as expanding the fleet, hiring new employees, opening new routes and reimagining the customer experience. As a regular customer myself, the experience has been consistently good.

What the authors highlighted was how much focus was put on managing the energy of the transformation. Significant programs of change have to be paced out, you can’t do everything, everywhere all at once.

Sequencing and prioritisation are paramount.

Three months ago, Virgin Australia exited private ownership and was listed on the local stock exchange – it’s currently trading at about a 20 percent premium to its listing price.

The takeaway for leaders driving change is clear: the cadence of the change process can make or break success.

It’s a lesson that’s worth noting for the change programs and transformations you’re involved in.

>> If you’d like to share your experiences or add a comment, you can do so by viewing the article on LinkedIn.

Phil Preston helps leaders and teams navigate change and transformation. He’s a keynote speaker, strategist, facilitator, event host and author who can be contacted via phil@philpreston.com.au