Ten Rules For Strategic Innovators
Vijay Govindarajan
Tuck School of Business at Dartmouth
VG@dartmouth.edu
www.vg‐tuck.com
World Innovation Forum
May 5, 2009

Box 1 Box 2 Box 3
Manage Selectively Create
the forget the
present the past future
William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth

Growth Playbook
Core Adjacent Entirely New
Business Space Space
Horizon 1 Horizon 2 Horizon 3
William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth

Box 1 Box 2 Box 3
Manage Selectively Create
the forget the
present the past future
William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth

William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

Olympic Gold Medal Winners in High Jump
2.6
Fosbury
Flop
2.4
2.2 Straddle
Western
Scissors Roll
2
1.8
1.6 1900 1920 1940 1960 1980
William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
Source: Pascale

Olympic Gold Medal Winners in High Jump
2.6
2.4
2.2
2 Scissors
1.8
1.6 1900 1920 1940 1960 1980
William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
Source: Pascale

Olympic Gold Medal Winners in High Jump
2.6
2.4
2.2
Western
Scissors Roll
2
1.8
1.6 1900 1920 1940 1960 1980
William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
Source: Pascale

Olympic Gold Medal Winners in High Jump
2.6
2.4
2.2 Straddle
Western
Scissors Roll
2
1.8
1.6 1900 1920 1940 1960 1980
William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
Source: Pascale

Olympic Gold Medal Winners in High Jump
2.6
Fosbury
Flop
2.4
2.2 Straddle
Western
Scissors Roll
2
1.8
1.6 1900 1920 1940 1960 1980
William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
Source: Pascale

Strategic Balance
Box 1 Box 2 and Box 3
Competition Competition
for the for the
present future
Performance Gap Opportunity Gap
Restructuring Renewal
William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth

Strategy Architecture
Non‐linear shifts
Strategic intent
Current core competencies
Growth Playbook
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

Growth Playbook
Core Adjacent Entirely New
Business Space Space
Horizon 1 Horizon 2 Horizon 3
William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth

Strategy Architecture
Non‐linear shifts
Strategic intent
Current core competencies
Growth Playbook
New core competencies
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

Mission Statement
≠
Strategic Intent
William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth

Criteria For Strategic Intent
Direction
Motivation
Challenge
William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth

The Apollo Program
“We will put a man on the moon and bring him
“We will put a man on the moon and bring him
back before the end of this decade.”
back before the end of this decade.”
John F. Kennedy
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

M
E X
Apollo 13
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

Think
Make Sure
Do
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

Payoffs From A Bold Intent
A B
Resources Very Very Limited
High
Slack Stretch
Ambition Limited Very Large
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

Xerox’s Rules of the Game
Target corporate users
Direct sales force
Central copying
24 hour service
Package pricing
Leasing
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

Xerox’s Bullet‐Proof Castle
Patents Direct Service Lease Brand
Sales Organ­ Base Name
Force ization
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

Xerox’s Bullet‐Proof Castle
Patents Direct Service Lease Brand
Sales Organ­ Base Name
Force ization
IBM
IBM
Kodak
Kodak
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

Xerox’s Bullet‐Proof Castle
Patents Direct Service Lease Brand
Sales Organ­ Base Name
Force ization
R.I.P. R.I.P
IBM Kodak
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

Marathon Race
Mile 26
rs Mile 26
400 Meters ete s
400 Meters M ter
40400
0 MM 00Me
40
WE ARE HERE
WE ARE HERE e
ete ters 40
rs
William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth

The Top 11 Things You Can Do
With a Dead Horse
11. Whip the horse a little harder.
10. Change the rider.
9. Harness several dead horses together for
increased speed.
8. Emulate the best practices of companies riding
dead horses.
7. Proclaim that it’s cheaper to feed a dead horse.
6. Shorten the track.
SOURCE: Net Ready, Hartman & Sifonis with Kador

The Top 11 Things You Can Do
With a Dead Horse
5. Affirm that “This is the way we have always
ridden this horse.”
4. Declare that “This horse is not dead.”
3. Have the lawyers bring suit against the horse
manufacturer.
2. Engage a consultant to study the dead horse.
1. Promote the dead horse to a senior management
position.
SOURCE: Net Ready, Hartman & Sifonis with Kador

By:
C hr
is T
rim
b le
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth