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What is the Transformation Investment profile likely to look if Enterprise Debt™ is managed?


Manage Enterprise Debt™ to achieve Predictability and Stability of Transformation investments.

Now we illustrate (in green) the cumulative Transformation Costs of an Enterprise that does expose and manage Enterprise Debt™.

Cumulative Transformation Costs rises more steeply than before, as management decisions release resources to keep Enterprise Debt™ under control.

Enterprise Debt™ does build up but this debt is exposed and managed and does not get as large as before, purely because we are managing it and spending money wisely.

Since we are managing Enterprise Debt™, increased Transformation Costs to reduce it can be planned ahead, so that when debt reaches a critical point we can use those  execute the Transformation in a controlled way.

In addition, while this increased Transformation Cost solves any short term problems that may be evident it is also aligned to longer term goals.

After the increased Transformation Costs, we again return to a more moderate level of Transformation Costs and the whole process repeats its self.

Exposing and managing Enterprise Debt™ is characterised by:

¨      An Increased level of Transformation Costs while Enterprise Debt™ is exposed and managed…

¨      Followed by moderate Transformation Costs when planned…

¨      Providing Predictability, which leads to Stability, which means management is in Control.

Exposing and Managing Enterprise Debt™ relieves this boom and bust investment cycle. The downside is that it requires an increased initial investment in the short term. The upside is that it requires lower investment over time and prevents Enterprise Debt™ from spiraling out of control.



“If you don’t control your Enterprise Debt™, it will control you.”

- Pragmatic



Do you think this investment profile is preferable, and if so, why?

What will you do to achieve it?

How much hidden Enterprise Debt™ exists within your Enterprise?

What is the interest rate you are paying?

How long will you have to continue to pay the debt for?

How do you intend to pay off the Debt and when?

How close are you to maxing out your Enterprise’s credit card?

What do you need to do in order to answer these questions?



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