The Impact of Strategic Transformation on Employee Productivity

Abstract

The purpose of this paper is to provide a strategic commentary on the interconnected areas of corporate strategy and employee performance by illustrating how two organizations adapted and transformed their businesses to the demands of digitalization and new media.,A longitudinal analysis (1995-2015) of employee productivity was calculated as operating income per employee for each firm and benchmarked against industry data.,Both firm’s corporate objectives and strategies were focused on ambitious levels of growth and the opportunities provided by an increasingly digital environment. However, the firms had transformed their businesses in different ways with distinct employee productivity performance outcomes.,This paper provides case studies of strategic transformation and argues that HR management strategies and practices need to be continually evaluated to assess their employee productivity in an uncertain digital operating environment.,This paper provides a longitudinal analysis of how media firms, Sky Plc and Pearson Plc, adapted, reconfigured and transformed their businesses to meet the demands of an operating environment characterized by inexorable changes in digital technologies. It presents data and conclusions on how the management of “human resources” had delivered different employee productivity outcomes over the long term.