Aligned For Change

Overview: Today, even the most venerable financial institutions are grappling with increasingly complex and contradictory challenges: Grow the business and meet strategic objectives, but still reduce costs. This article highlights a case of Thomson Financial, who like others, had to change strategies because of industry boom and bust cycles. Thomson Financial, a subsidiary of Thomson Corp., typifies a company that has faced rapid growth through expansion and then the sudden loss of business because of market conditions. Therefore, the company developed solutions that include data, analytical tools, and workflow for businesses worldwide. It recorded $1.5 billion in revenue in 2001. However, the company had reached a dominant position in its core reference-content businesses. To restore its growth trajectory, it had to move into new markets, such as fixed-income and institutional equities. As Thomson began its alignment efforts, the most compelling short-term and long-term objectives were identified. At the end of the day, Thomson's fortunes would rise and fall in large part on the quality of products and whether it can price those products competitively. Thomson increased its odds of developing superior technologies, driving costs down, and establishing itself as the "preferred provider"—even in a shaky market.

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Format: HTML | Date: May 2003 | Pages: 3