Nathalie Lundqvist (SKEMA 1991)

“BETTER TWO SUCCESSFUL

INITIATIVES

THAN FIFTY THAT

FAIL”

Transforming a business is not just a matter of gradual adaptation. This is the conclusion of Nathalie Lundqvist (SKEMA 1991), Partner at Bain & Company. For her, transformation is above all a necessity, a strategic vision and a collective commitment that can only be achieved through flawless execution.

interview by Antoine Boitez

What distinguishes genuine transformation from incremental improvement?

Transformation is not simply an evolution. It is a radical change that profoundly alters an organisation’s strategic, operational or financial trajectory. It goes far beyond gradual adjustments, as it affects not only processes but also the way people work and interact.

This type of transformation generally involves three key levers: strategic, operational and behavioural. To succeed, it is not enough to have a clear roadmap; every initiative must also be successfully carried through. What distinguishes a successful transformation is its ability to become enduringly established within the company.

Where do you start when initiating a transformation?

The first step is to get the management team to get in line with each other. This involves developing a clear case for change: why is it needed? If this necessity is not made explicit, it will be difficult to get employees on board. Once this foundation is laid, we work with senior management to set a shared ambition and measurable objectives.

This process cannot be purely topdown. We convince each leader to own the ambition and decide on their specific contribution. This involves individual discussions to ensure that everyone understands not only the “what” but also the “how” of the change.

How can you ensure that teams adopt these transformations?

The secret is to involve teams directly at every level. You cannot impose change solely through emails or mass meetings. It requires constant communication, personalised support and targeted training.

We also pinpoint “influencers” within the company. These are staff members respected by their peers, who can put the message across and rally teams around initiatives.
These networks of influence enable us to reach key people and gain their support. We also stress the importance of rapid results: visible, measurable successes, even if low-key, boost credibility and commitment.

What mistakes should be avoided during a transformation?

One of the most common mistakes is to overwhelm teams with too many initiatives. It is vital to prioritise and focus on the ones that will have the greatest impact. Another mistake is failing to listen to employees on the ground. They often have invaluable ideas for improving processes or solving problems, and their involvement is crucial.

Last but not least, inconsistent communication between divisions is a classic pitfall. If leaders send mixed messages, it creates confusion and undermines commitment. Clear,
consistent, regular communication is essential.

« A failed transformation
always costs more than gradual change. »

What are the major challenges in transformation at present?

Businesses have to deal with several major challenges today. Firstly, pressure on margins due to inflation, rising raw material costs and logistical issues. Secondly, customer requirements are changing rapidly, with declining loyalty and altered purchasing patterns.

Digitisation, particularly artificial intelligence and automation, is also a key lever. These technologies offer enormous potential, but require targeted investment and rapid adoption. And lastly, sustainability is a must. Whether driven by regulatory pressure or consumer expectations, companies have to adopt more responsible practices if they want to stay competitive.

How can you measure the success of a transformation?

Financial indicators are still fundamental, but no longer sufficient. A successful transformation must also be assessed according to behavioural and cultural criteria. For example, the adoption of new practices by teams is a speaking indication of success. In addition, customer and employee satisfaction is essential. If these two groups do not perceive tangible benefits, there is a risk of losing their commitment or loyalty. Lastly, in a world where sustainability is becoming a priority, it is now crucial to measure ecological and social impact.

« It’s not enough to have a vision; you have to give teams the means to act. »

What lessons have you learned from your past experiences?

Successful transformations are those that combine strategic vision, rigorous execution and committed teams. Nothing can be left to chance: every detail counts, from initially aligning the leaders to training the employees. But above all, it’s important to understand that transformation is never a straight line. It requires flexibility, adaptability and the ability to learn as you go.

It is vital to remember that transforming a business involves both methodology and leadership. Leaders must embody change, and be not only its primary champions but also its primary learners.

How important is sustainability in business transformation, and how can organisations make it a strategic priority?

It is a real lever for standing out and innovating. Consumers now incorporate it into their buying decisions, especially the younger generations. Likewise, employees look for companies with values in line with their own. To integrate sustainability into a transformation, it must first be positioned at the heart of the strategy. This starts with a clear diagnosis: what is the company’s current environmental and social impact, and what priority initiatives can be launched? Another key aspect is measuring impact. Actually, a lot of companies start up sustainability initiatives with no specific monitoring. Tools like ESG (Environmental, Social and Governance) indicators can quantify areas of progress and demonstrate their value to investors and stakeholders.

You mention changes in consumer behaviour and their impact on businesses. How can organisations anticipate and adapt to these changes?

Consumer behaviour is changing at an unprecedented rate, often accelerated by crises like the pandemic or technological advances. To adapt, companies need to adopt a proactive rather than a reactive stance. This starts with a thorough understanding of customer expectations and frustrations. Another essential aspect is organisational agility. A company must be able to test new ideas rapidly, gather feedback and iterate. Methodologies like design thinking or agile sprints can be used to develop products or services in line with changing expectations.

Lastly, it is vital to maintain open communication with customers. Successful companies are those that actively listen to their consumers and are willing to adapt their offerings according to their feedback. By involving customers in the innovation process, they improve not only their products but also brand loyalty.

Middle management plays a central role in rolling out transformations, but it is also one of the most vulnerable levels. These managers often find themselves having to balance the strategic expectations of senior management with the operational needs of their teams, all of which creates significant pressure. To support them, it means first clearly defining their role in the transformation. All too often, middle managers feel completely swamped because they don’t clearly understand what is expected of them. Another important lever is upward communication. Leaders need to create spaces where middle managers can express their concerns and ideas. This can be done through working groups, surveys or regular interviews. When these managers feel they are heard, their commitment increases significantly. And lastly, it is crucial to acknowledge their efforts. Middle management is often overlooked when it comes to celebrating the successes of a transformation. Highlighting their contribution through rewards or simply public recognition can make a big difference to their morale and motivation.

Finally, what advice would you give to a company that hesitates to initiate transformation because of the potential risks and uncertainties?

Companies that stagnate eventually fall behind, due to either more agile competitors or customer expectations they can no longer satisfy. To reduce uncertainty, I recommend starting with a clear diagnosis of the current situation. What are your strengths? What are your weaknesses? What external issues could affect your business in the coming years? Once these aspects have been clarified, it is possible to construct a vision for transformation that is ambitious yet realistic. And lastly, it is essential to adopt a step-by-step approach. Rather than trying to change everything in one go, start with pilot initiatives. This means that you can test your assumptions, adjust your strategies and demonstrate initial results to your stakeholders. Better two successful initiatives than fifty that fail. A successful transformation is not a race against the clock but a gradual, well thought-out process that delivers results.

« Transformation is not a race against the clock. »