First, major transformations need to be two different efforts happening in parallel. “Transformation A” should reposition the core business, adapting its current business model to the altered marketplace. “Transformation B” should create a separate, disruptive business to develop the innovations that will become the source of future growth.
Second, the key to making both transformations work is to establish a new organizational process we call a “capabilities exchange,” through which the parallel efforts can share select resources without changing the mission or operations of either.