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Leading The Revolution - Gary Hamel
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Leading The Revolution - Gary Hamel

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A Sharing of Gary Hamel's Book …

A Sharing of Gary Hamel's Book
Part 1: Facing up to the revolution
Part 2: Finding the revolution
Part 3: Igniting the revolution
Part 4: Sustaining the revolution

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  • 1. LEADING THE REVOLUTION - GARY HAMEL Facing Up to the Revolution Prepared by Yaw Chooi Fun, Master of Business Administration, University of Hertfordshire, UK @ June 2009
  • 2. TO THRIVE IN THE AGE OF CHANGE AND REVOLUTION
    • Inventing new strategies (the whats) supercedes the implementation (the hows) of improved old strategies.
    • The foundation for radical innovation is by going “back to basics”; harnessing core competencies (what it knows best) and strategic assets (what it owns).
  • 3. TO THRIVE IN THE AGE OF CHANGE AND REVOLUTION …
    • To reinterpret the essence of the company to enhance the “perceived value” of its products to customers which allows charging a premium price.
    • Opt for radical innovation to challenge conventions and change customer expectations significantly to alter the cost structure or the basis for competitive advantage within the industry.
  • 4. IDENTIFYING STRATEGY DECAY
    • Old strategies lose their potency over time and few companies know how to revamp old strategies and invent new ones.
    • Companies failing to face the reality of strategy decay get re-sized with suddenly diminished fortunes.
  • 5. Finding the Revolution
  • 6. BUSINESS CONCEPT INNOVATION
    • Radical Product – Has the power to change customer expectations and redefine the basis for competive advantage.
    • Incremental Product – Incremental innovation is better than no innovation at all!
    • But in an increasingly nonlinear world,
    • Only nonlinear ideas are likely
    • To create new wealth.....
  • 7. BE YOUR OWN SEER
    • The Goal is not to speculate on what might happen, but to imagine what you can MAKE happen.
    • Companies fail to create the future not because they fail to predict, but they fail to IMAGINE it.
    • See different, BE different.( Amazon’s Jeff Bezos)
  • 8. Igniting the Revolution
  • 9. CORPORATE REBELS
    • In a highly successful company the operating model, business model, mental model and political model are all perfectly aligned – each sitting squarely atop the one below:
      • Human Resource “alignment” is fine – if the world isn’t constantly changing.
      • But PERFECT alignment destroys any chance of innovation, because it brooks no dissent and allows no alternatives.
      • Alignment is the ENEMY of business concept innovation!
  • 10. CORPORATE REBELS…
    • Activists are not anarchists.
    • They are the LOYAL opposition.
    • Their loyalty is not to any particular person or office, but to the CONTINUED SUCCESS of the organization and those who labor on its behalf
  • 11. HOW TO START AN INSURRECTION
    • Step 1: Build a point of view (POV)
      • To come across an individual who has a well-developed point of view about opportunities for industry revolution is indeed RARE
      • More of the same is the NORM
      • As an activist, one must build one’s own IDEOLOGY; have a POV meeting 4 tests: Credible, Coherent, Compelling, Commercial.
  • 12. HOW TO START AN INSURRECTION…
    • Step 2: Writing a Manifesto
      • Think of your manifesto as a virus.
      • It must build a case for your intellectual authority and CAPTURE people’s imagination.
    • Step 3: Create a coalition
      • Transform individual authority into collective authority.
      • Speak with a COMMON voice as, it’s easy to dismiss corporate rebels when they are fragments and isolated
  • 13. HOW TO START AN INSURRECTION…
    • Step 4: Pick your targets and moments;
      • Activists always have a target – someone or a group who can yank the real levers of power.
    • Step 5: Co-opt and neutralize;
      • Go for win-win propositions with reciprocity.
      • Be a catalyst not a competitor.
      • Create a BIG impact from a small target.
    • Step 6: Find a translator;
      • With different experiences, different languages, different values, different plants.
      • Corporate revolutions NEED translators.
  • 14. HOW TO START AN INSURRECTION…
    • Step 7: Win small, Win early, Win often;
      • Propositions may create arguments but there is no argument with SUCCESS.
      • Companies need to feel its way towards revolutionary opportunities, going through the steps.
      • Do not OVER promise.
    • Step 8: Isolate, Infiltrate and Integrate;
      • Attract resources by making the leap from isolation to infiltration.
  • 15. ACTIVIST VALUES
    • Honesty – truth tellers.
    • Compassion – love the entire community.
    • Humility – terribly ambitious for their cause, but personally humble.
    • Pragmatism – more interested in action than in rhetoric.
    • Fearlessness – courageous.
  • 16. Sustaining the Revolution
  • 17.
    • 1. UPS: Getting Outside The Truck!
      • The essential foundation of UPS’s capacity to leverage its assets and competencies are:
        • Thinking BIG – high aspirations to grab a big chunk of the global logistics business.
        • BROAD business boundaries
        • Experimentation and Rapid Learning approach to new business development
        • Bringing in new talents to FUEL innovation.
    GRAY-HAIRED REVOLUTIONARIES
  • 18. GRAY-HAIRED REVOLUTIONARIES …
    • 2. Charles Schwab: Bricks and Clicks!
      • Schwab’s capacity for relentless innovation is a product of:
        • Outrageous ambition for growth
        • Great customer empathy
        • Innovation meritocracy receptive to great ideas
        • Open and rapid experimentation allowing prototyping and testing of new ideas
        • A flexible and evolving definition of the service offering.
  • 19. GRAY-HAIRED REVOLUTIONARIES …
    • 3. Cemex: Nothing Is Set In Cement
      • Cemex’s capacity for revolution and renewal arises from;
        • Passion to prove a Mexican company can out-compete all comers.
        • Empathy for finding and solving customer problems
        • Effective network of lateral communication with a common performance scorecard
        • Ever-changing patterns of cross-corporate collaboration that combine ideas from a wide cross-section of employees.
        • Willingness to push the boundaries that constrain the definition of “served market”
        • Continuing investment in time and effort for innovative thinking and real-world experimentation.
  • 20. GRAY-HAIRED REVOLUTIONARIES …
    • Many companies start a venture fund or set up an incubator to attract ATTENTION.
    • This attention grabbing ploy is not what the company needs.
    • In the end, the work of renewal comes down to two fundamental challenges:
      • Inventing new business that directly leverage the company’s core competencies and strategic assets
      • And/or transforming the core business in some profound way……
  • 21. DESIGN RULES FOR INNOVATION
    • Top management’s job isn’t to build strategies; but to build an organization that is capable of continuously spawning cool, new business concepts and reinvigorating old ones.
    • Its role is to operationalize the design rules for creating a deeply innovative organization – the design rules we see at work in our gray-haired revolutionaries.
  • 22. DESIGN RULES FOR INNOVATION …
      • Design Rule 1: Unreasonable Expectations
      • Design Rule 2: Elastic Business Definition
      • Design Rule 3: A cause, not a business
      • Design Rule 4: New Voices
      • Design Rule 5: A market for Innovation
      • Design Rule 6: Low-risk Experimentation
      • Design Rule 7: Cellular Division
      • Design Rule 8: Connectivity
  • 23. DESIGN RULES FOR INNOVATION …
    • At the end, you must engage your colleagues in a serious and prolonged discussion about how to put the design rules to work in your company.
    • With the design rules as a foundation, you can begin to create the metrics, skills and process that will support innovation whenever and wherever it arises.
  • 24. Is your company built for Innovation?
    • Is your company ready to pump up its aspirations to the point where anything less than radical innovation won’t suffice?
    • Is your company ready to throw out its definition of “served market” and define its opportunity space more broadly?
    • Is your company ready to begin searching for a cause that will be so great, so totally righteous, that it will turn a bunch of apprehensive cubicle dwellers into crusaders?
    • Is top management in your company ready to shut up for a while and start listening – really listening – to the young, the new hires and those at the geographic periphery?
    • Is your company ready to throw open its strategy process to every great idea, no matter where it comes from?
    • Is your company ready to start funding ideas from the fringe even if many of them return precisely zilch?
    • Is your company ready to emancipate some of its best people so they can get to work on the new?
    • Is your company ready to start paying attention to the tiny seeds of innovation that are right now struggling to break through the topsoil?
    • Is your company ready to take on the imperialist who would rather preside over a big but slowly crumbling empire than give self-rule to eager young business builders?
    • Is your company building the cross-boundary connections, both internally and externally, that create the kind of fusion that produces truly cool new ideas?
  • 25. THE NEW INNOVATION SOLUTION
    • Three things in order to commit your organization to building a capability for radical innovation:
      • An investment in making innovation a capability will yield huge dividends.
      • There is a wealth of latent imagination and untapped entrepreneurial zeal in your organization.
      • It’s actually possible to make innovation a systemic capability.
  • 26. THE NEW INNOVATION SOLUTION …
    • Reinventing management processes for innovation is about accelerating the payoff for radical ideas.
    • Management processes are inimical to innovation.
      • calendar driven.
      • conservation rather than growth.
      • existing business model as point of departure.
      • focused on existing customers and markets.
      • subtle bias toward serving existing customers better.
  • 27. THE NEW INNOVATION SOLUTION …
    • Company’s chance of creating new wealth is directly proportionate to the number of ideas it fosters and the number of experiments it starts.
    • More and more companies are setting up venture funds to invest in a portfolio of upstarts outside the company.
    • The logic of portfolio investing is to minimize the risk of the overall portfolio by diversifying your investments.
  • 28. THE NEW INNOVATION SOLUTION …
  • 29. THE NEW INNOVATION SOLUTION …
    • The New innovation Agenda
      • Continuous improvement -> Nonlinear Innovation
      • Product and process innovation -> Business concept innovation
      • “ Releasing” wealth -> Creating wealth
      • Serendipity -> Capability
      • Visionaries -> Activists
      • Hierarchies -> Market

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