As I wrote about in a related post, the most important skill business leaders can have today is the ability to lead significant organizational change. As far as the business world is concerned, we’re dealing with evolution at the speed of light — and only those who know how to adapt will survive.

Adapting means devising and executing a strategy for change (a business transformation strategy). What that strategy looks like will be different for every organization. But you can start the conversation with the following six questions:

How are we reacting to current market conditions?
Most businesses have reacted to the current recession with piecemeal solutions (hiring freezes, cost cutting, layoffs, etc.). If you’re doing the same, then you’re missing a chance to capitalize on gaps your competitors are leaving in the market. While everyone else is focused on cost-cutting and survival, leaders who embrace the current changes will uncover new products, services and business models that offer value to the market, and distinguish their companies from competitors. It’s a fact that many innovative companies, including Microsoft and Disney, were born during previous recessions. Piecemeal solutions didn’t put them on top. The key is to recognize where the competition is falling short in response to customer needs, and to provide innovative solutions despite the state of the economy.

Have we outsourced our core competencies?
If you run a hospital, you wouldn’t outsource surgery and patient care to someone else. It’s a core competency that needs to remain in your control. For manufacturers, the same could be said of product development and production. On the other hand, enabling processes, such as Human Resources or Information Technology can often be run by a third party more cost effectively. Now is a good time to revisit the organization’s insourcing vs. outsourcing strategy. Bring core competencies in-house, including R&D and innovation, and include a plan for strengthening core competencies in your new strategy. In addition, consider if there are any processes or systems that are no longer needed. You may be outsourcing something which is no longer a priority.

Have we commoditized our business?
If your company has performed well because of overall market growth, but you mainly compete on price, you have created a commodity business. It’s not a long-term growth strategy, especially in today’s competitive environment. To survive, you need to differentiate your offerings on a basis other than price and aesthetics. If you’re a car maker, for example, this means forgoing sales, special financing and limited editions in favor of engines that run on electricity or cars that drive themselves. We’re talking commitment to significant change. It’s time to disrupt or be disrupted. If you have created a commodity business, think about how you can change your business model to blow away the competition – and then do it. And if you’re #1 in your industry, don’t relax – start planning for the inevitable disruption that will come from your competition and new innovation startups.

Do we have a system for innovation and organic growth?
Most companies don’t have a system for innovation, nor do they prioritize organic growth. In the past, they may have grown via mergers, or because of market demand or piecemeal innovation. But now, staying in the game requires making innovation an integral, operational strategy. Think of innovation like a computer operating system. You need innovation to run your business, just as you need an operating system to run your computer. Both enable you to operate day-to-day, and you use them all day long. Too many people think of innovation like a word processing or spreadsheet application; they only bring it up when they think they need it. This ad hoc approach is much less effective than a systematic approach that encourages innovation every day, in every way.

Do we offer products and services, or solutions?
The right system for innovation helps you think in terms of solutions to customer problems, as opposed to mere product and service offerings. But how do you know what problems customers need to have solved? That is where customer intimacy comes in – knowing your customer so well that you understand their challenges, and you go above and beyond to help them solve their problems. You can see this transformation happening with companies that take advantage of social media (e.g., Twitter, Facebook, etc.). By interacting with customers directly, companies are learning how to view them as people, not just dollar signs. There are many ways to understand customers and their needs, but too many companies assume they know already. This is a crucial shift in mindset that you, as a change leader, can initiate.

How engaged are our employees?
In addition to systems and processes, a strategy for change must consider the “people” component. There are many questions you can ask related to employees, but one of the most important criteria to evaluate now is the level of employee engagement and dedication. During hard times, it’s easy to make employees feel disposable and unappreciated. However, when the economy recovers, employees who felt this way will likely move on, taking their knowledge and skills with them. One way to prevent this is to continue to prioritize the learning and development processes and tools in the company. Another way is to encourage teamwork and creativity (which are also components of a system for innovation). Make sure that employee engagement is one of your new priorities – now, before it’s too late.