1 2 3 4 5 6

Introduction

• Frans van Houten took over as Philips CEO in

2011
• Goal was to transform the struggling
conglomerate into a focused, high-performing
company
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Diagnosis

• Philips was unfocused, • Needed clearer strategy,

inefficient, lacked operating model changes, and
innovation, losing out to culture shift.
Asian competitors
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Four Pillars of Transformation

1 2 3 4 PHASE
5 6

Radical portfolio Transform operating

choices model

Accelerate growth Change culture and

leadership
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Execution Challenges
• Leadership resistance initially
hindered progress
• More focus needed on change
management and culture
• Complex new organizational
structure was hard to
understand
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Results
• By 2020, Philips was focused on health
tech and achieving growth
• Seen as a model transformation and
purpose-driven company
• But hit by major product recall issue in
2021
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Key Takeaways

• Achieving major strategic • Progress can regress - need to

transformation requires change sustain changes
across strategy, structure, processes
and culture

• Strong vision and leadership

commitment critical amid internal
resistance
Shivam Chaudhary
Tanmay Sharma
Tushar Pawar
Rupal Naidu
Rajveer Mehta
Gauranvit Singhania