LEADING THE REVOLUTION - GARY HAMEL Facing Up to the Revolution Prepared by Yaw Chooi Fun, Master of Business Administrati...
TO THRIVE IN THE AGE OF CHANGE AND REVOLUTION  <ul><li>Inventing new strategies (the whats) supercedes the implementation ...
TO THRIVE IN THE AGE OF CHANGE AND REVOLUTION … <ul><li>To reinterpret the essence of the company to enhance the “perceive...
IDENTIFYING STRATEGY DECAY  <ul><li>Old strategies lose their potency over time and few companies know how to revamp old s...
Finding the Revolution
BUSINESS CONCEPT INNOVATION <ul><li>Radical Product – Has the power to change customer expectations and redefine the basis...
BE YOUR OWN SEER <ul><li>The Goal is not to speculate on what might happen, but to imagine what you can MAKE happen. </li>...
Igniting the Revolution
CORPORATE REBELS <ul><li>In a highly successful company the operating model, business model, mental model and political mo...
CORPORATE REBELS… <ul><li>Activists are not anarchists.  </li></ul><ul><li>They are the LOYAL opposition.  </li></ul><ul><...
HOW TO START AN INSURRECTION <ul><li>Step 1: Build a point of view (POV) </li></ul><ul><ul><li>To come across an individua...
HOW TO START AN INSURRECTION… <ul><li>Step 2: Writing a Manifesto </li></ul><ul><ul><li>Think of your manifesto as a virus...
HOW TO START AN INSURRECTION… <ul><li>Step 4: Pick your targets and moments; </li></ul><ul><ul><li>Activists always have a...
HOW TO START AN INSURRECTION… <ul><li>Step 7: Win small, Win early, Win often; </li></ul><ul><ul><li>Propositions may crea...
ACTIVIST VALUES <ul><li>Honesty – truth tellers. </li></ul><ul><li>Compassion – love the entire community. </li></ul><ul><...
Sustaining the Revolution
<ul><li>1. UPS: Getting Outside The Truck! </li></ul><ul><ul><li>The essential foundation of UPS’s capacity to leverage it...
GRAY-HAIRED REVOLUTIONARIES … <ul><li>2. Charles Schwab: Bricks and Clicks! </li></ul><ul><ul><li>Schwab’s capacity for re...
GRAY-HAIRED REVOLUTIONARIES … <ul><li>3. Cemex: Nothing Is Set In Cement </li></ul><ul><ul><li>Cemex’s capacity for revolu...
GRAY-HAIRED REVOLUTIONARIES … <ul><li>Many companies start a venture fund or set up an incubator to attract ATTENTION.  </...
DESIGN RULES FOR INNOVATION <ul><li>Top management’s job isn’t to build strategies; but to build an organization that is c...
DESIGN RULES FOR INNOVATION … <ul><ul><li>Design Rule 1: Unreasonable Expectations </li></ul></ul><ul><ul><li>Design Rule ...
DESIGN RULES FOR INNOVATION … <ul><li>At the end, you must engage your colleagues in a serious and prolonged discussion ab...
Is your company built for Innovation? <ul><li>Is your company ready to pump up its aspirations to the point where anything...
THE NEW INNOVATION SOLUTION <ul><li>Three things in order to commit your organization to building a capability for radical...
THE NEW INNOVATION SOLUTION … <ul><li>Reinventing management processes for innovation is about accelerating the payoff for...
THE NEW INNOVATION SOLUTION … <ul><li>Company’s chance of creating new wealth is directly proportionate to the number of i...
THE NEW INNOVATION SOLUTION …
THE NEW INNOVATION SOLUTION … <ul><li>The New innovation Agenda </li></ul><ul><ul><li>Continuous improvement  -> Nonlinear...
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Leading The Revolution - Gary Hamel

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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

Published in: Education, Business

Leading The Revolution - Gary Hamel

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

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