The Agile Transformers: Reinventing success through strategy and discipline.
Part 3 of our segmentation series explores this category of companies; does this describe your corporate strategy?
In our previous posts, we introduced PivotXY’s segmentation framework and explored the characteristics of Champions – companies that master a self-reinforcing cycle of Economic Profit and Invested Capital growth. Today, we turn our focus to Agile Transformers: companies that embrace disciplined reinvention as a pivot to profitable growth and shareholder value creation. (Find the other posts here: Post 1, Post 2, Post 4, Post 5 and Post 6)
Funding corporate maneuvers through divestment
Agile Transformers are companies embarking on a new strategic journey that begins with a narrower, more focused portfolio, often involving divestments to fund the new path forward.
From our consumer-focused peer set for this set of articles, HSY, MKC, KDP, MDLZ and CHD classify as Agile Transformers.
Leaders of these companies work dilligently to align capital deployment to EBITDA growth, with top-line growth as a secondary consideration. This disciplined approach ensures growth is delivered by bets that have proven profitable and contribute to more reliable growth of Economic Profit. As a result, Agile Transformers will generally deliver superior performance in Total Shareholder Return (TSR) to other segments, except for Champions.
An Agile Transformer charts a narrow path and must track its progress closely and accurately, ready to make quick decisions to reinforce winning strategies and cut those that don’t deliver results.
In our next post, we’ll analyze Chasers companies that aggressively pursue growth at the expense of sustainable profit generation. Stay tuned as we continue to explore what separates the best from the rest.
Get a free Competitive Benchmarking report on your company
Is your company ready to pivot? PivotXY equips decision-makers for precise, agile navigation through their transformation leadership journeys. Our Competitive Benchmarking module closely tracks which capital deployment choices are delivering superior share price trajectories. Take the next step toward an eye-popping TSR by contacting us for a free report or a demo.
Interested in learning more about PivotXY?
Contact us to explore your options—receive a detailed report, enjoy a live guided tour of our tool, or try a hands-on demo, all free of charge.