To my mind a true Corporate Strategy must be imbibed with comprehensive, long-term plan developed by an organisation to achieve the Organisational objectives, create value, and gain a sustainable competitive advantage in the industry. This may encompass various key focus areas of the businesses and need to align resources and actions towards company’s long-term visions and aspirations.

In the Bhagavad Gita, a central tenet is the idea of impermanence and the constant nature of change. It also advocates a powerful message for the corporate world be it Public or Private Sectors and the importance of – Dharma (Duty), Karma (Path of Action), Bhakti (Path of Devotion), Jnana (Path of Knowledge), The Self & Atman (Distinct from Temporary), Detachment (Detachment from Material Possessions, Desires), The Yoga (Union and Collaboration) and Moksha (The Holistic Well-being and State of Enduring Success and Fulfilment). One of the most touching references to this concept is found in Chapter 2, Verse 14:

“मात्रास्पर्शास्तु कौन्तेय शीतोष्णसुखदुःखदाः। आगमापायिनोऽनित्यास्तांस्तितिक्षस्व भारत॥”

(Transliteration: “mātrā-sparśās tu kaunteya śītoṣṇa-sukha-duḥkha-dāḥ āgamāpāyino ‘nityās tāṁs titikṣasva bhārata”)

Translation: “O son of Kunti, the non-permanent appearance of happiness and distress, and their disappearance in due course, are like the appearance and disappearance of winter and summer seasons.” They arise from sense perception, and one must learn to tolerate them without being disturbed. This verse underscores the transient nature of all experiences and situations in life. The Bhagavad Gita teaches that everything in the material world is subject to change and that recognizing this can lead to equanimity and peace. Understanding that pleasure and pain, success and failure, and all dualities are temporary helps one remain balanced and focused on the eternal truth. Additionally, the Gita emphasizes the importance of performing one’s duty without attachment to the outcomes, recognizing that results are beyond one’s control and are subject to the broader cosmic order. This acceptance of impermanence and change is a core principle in navigating life with wisdom and detachment.

If we apply the mantra of Bhagavad Geeta in the corporate world, it is evident that Corporate Restructuring and Strategic Transformation are critical for businesses aiming to adapt to changing market dynamics, improve financial health & performance, and ensure long-term sustainability. Some of the key motivations that necessitates Restructuring and Strategic Transformations are –

1. Adaptation to Market Dynamics and Technological Advances – Rapid technological advances be it AI/GenAI, Cloud Solutions, BigData Analytics, IOT enabled applications, Blockchain based transactions, 5G-the latest advancements in mobile communications, need for an advance Data Security/Privacy framework etc. require businesses to innovate and stay competitive.

2. Changing Consumer Preferences – Shifts in consumer behaviour and preferences are compelling corporations to rethink their strategies and adopt to changing market scenarios and necessitates adjustments. The factors which driving these shits are Digital Transformation, Personalisation & Customization, Sustainability & Ethical Practices, Convenience & Speed, Health & Wellness, Social Media & Influencer’s Impact, Economic Factors etc.

3. Improving Financial Performance & Cost Reduction – It has been observed that restructuring help streamline operations, reduce costs, and enhance efficiency. It also helps manage and reduce debt, improving financial stability. It also aims to develop enhanced flexibility to respond more quickly to shifts in demand, competition or regulatory requirements. Organisations can identify and eliminate redundant costs, process bottlenecks, layers of management and administrative expenses.

4. Responding to Competitive Pressures – Staying competitive requires businesses to restructure and transform strategies to maintain or improve market position. It adds value in the form of financial and cost efficiency by way of streamlining operations, assets optimization, debt restructuring, capital allocation. Strategic refocus and transformation like mergers & acquisitions, divestitures, R&D investments, technology adoption would help withstand the market pressures.

5. Innovation – Keeping up with or leading in innovation can necessitate strategic transformation. Innovation plays a critical role and is a catalyst for both corporate restructuring and strategic transformation by streaming silos in operations, optimize financial performance, help develops new business model etc. My own experience of developing a powerful innovative business model as part of restructuring and strategic transformation suggest that it not only helps in establishing a win-win business model between two business houses or between public & private, but it also helps create the required digital ecosystem, facilities & amenities, manpower resources and training & change management requirements. It also helps address consumer issues and provides assurances for a SLA driven customer experiences.

6. Regulatory Compliance and Legal Requirements – Changes in laws and regulations would require businesses to restructure to remain compliant. For an example, recently enabled DPDP Act that regulates the Protection and Processing of the Digital Personal Data of its citizens, which also includes the other aspects such as rights of Data Principles, Obligation of Data Fiduciaries, Transparency and Accountability and Cross-Border Data Transfers. The DPDP Act necessitates corporate restructuring and strategic transformation for companies to comply with the legal requirements and to leverage the opportunities it presents. In this scenario, in my view corporations may plan for establishing compliance teams, plan for internal audit and assessments, operational adjustments and realignments such as data processing policies/data minimization, infrastructure and technology upgrades for enhanced data security/data management, training and awareness etc. as part of their restructuring strategies. To cite USE cases, tech companies like Google and Microsoft have restructured their operations to include robust data protection measures, complying with GDPR and similar regulations globally. Banks and Financial Institutions have adopted encryption and security measures as well as rigorous compliance programs, to protect customer data and comply with data protection laws.

7. Risk Management – Corporate restructuring and strategic transformation play pivotal roles in improved governance and risk management practices. Financial risk mitigation like debt restructuring by renegotiating debt terms or converting debt to equity, cost reduction technique like streamlining operations & eliminating redundancies, process optimization etc. would help improve corporate Risk mitigation strategies.

8. Globalization and Entering New Markets – To capitalise on emerging opportunities and for business to remain competitive and to adhere to the need for Globalisation and pursuit of new markets, the restructuring and strategic transformation is the need of the time. Cross-border integration, decentralization are some of the options to be exercised.

9. Sustainability and Corporate Responsibility and Environmental Impact – Aligning business operations with environmental sustainability goals, adapting to meet social and corporate governance expectations, corporate restructuring and strategic transformation are essential and also to ensure that businesses remain agile, competitive, and financially healthy in an ever-evolving marketplace. These processes help organizations navigate challenges and seize opportunities for growth and improvement.

To conclude, as in the Bhagavad Geeta, Lord Krishna guides Arjuna through a period of doubt, confusion, and uncertainty, helping him understand his purpose and duty, as a warrior, Similarly, in corporate restructuring and strategic transformation, leaders must navigate uncertainty and clarify their organisation’s purpose and direction. Just as Arjuna had to reconcile his personal conflicts with his duty to fight, businesses undergoing restructuring often face internal conflicts and resistance to change. Leaders encouraging the workforce to remain focused on the GREATER GOOD of the organisation and its long-term goals, even in the face of challenges and resistance teaches the power of detachment and clear focus on its duty.

Author: Golok Kumar Simli, प्रधान सलाहकार and Chief Technology Officer, Passport Seva Program (India/Global), Ministry of External Affairs, Government of India.