Rethinking Risk & the Board Agenda
Managing Status Quo Risk
NACD Summit
Deer Valley, UT

December, 2013

Adam Hartung
Mana...
Which of these companies do you think is most
likely to double revenue in the next 5-10 years?

1
2

Disney

3

Starbucks
...
Which of these companies do you think is
most likely to fail in 5-10 years?

1
2

Microsoft

3

United Airlines

4

© Adam...
On which of these Boards would you prefer to
have served in the last 3 years?

OR

OR
OR
© Adam Hartung 2013
Doing things right, or doing the right thing:
What’s the Board’s Role?

Value Proposition:
What You Need to Know, at Your ...
Publishers Enhanced Delivery, But Missed the
“Game Changer” Surrounding Them

© Adam Hartung 2013
The true secret to business success
surprised us

Core
Focus

Overcoming Lock-in to past success

The biggest risk in
busi...
Apple’s success came from creating
new markets – Changing the Game

© Adam Hartung 2013
Apple’s best skill has been anticipating
the future - rather than “execution”

© Adam Hartung 2013
How can Boards help companies
manage Status Quo Risk?

Be future-oriented

Obsess about competitors

Encourage disruption
...
Step 1 – Focus on future trends;
not past markets/solutions

VS.

© Adam Hartung 2013
Rethink the Board agenda;
Reallocate the discussion time
What percentage of your Board’s time is spent discussing
Market T...
Step 2 – Focus on needs and competitors;
not current solutions and customers

Key Question:
How much is spent on improving...
Obsess about fringe competitors
and Game Changing opportunities

VS.

© Adam Hartung 2013
Step 3 – Ask how your company will be disruptive;
not just how it will be better, faster, cheaper

© Adam Hartung 2013
No company is beyond Game Changers,
and Managing Status Quo Risk

© Adam Hartung 2013
Step 4 – Ask about white space projects
and teams

© Adam Hartung 2013
Prediction
Revenue Doubler:

1

1

4

© Adam Hartung 2013

Apple

!

3

Disney

Starbucks

NBC/Comcast

2

Boeing

2
3

Li...
Manage Status Quo Risk for
superior rates of return
Invest for the future,
not from the past
Focus more on competitors,
le...
Contact Information

Board Member
Keynote Speaker
Planning Workshops

847.726.8465
www.adamhartung.com
adam@sparkpartners....
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Rethinking Risk & the Board Agenda

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Adam Hartung
Managing the Status Quo Risk
12-2013

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  • Source: http://www.businessinsider.com/apple-stock-aapl-2012-3?nr_email_referer=1&utm_source=Triggermail&utm_medium=email&utm_term=SAI%20Select&utm_campaign=SAI%20Select%202012-03-02
  • Source: http://www.businessinsider.com/apple-stock-aapl-2012-3?nr_email_referer=1&utm_source=Triggermail&utm_medium=email&utm_term=SAI%20Select&utm_campaign=SAI%20Select%202012-03-02
  • Rethinking Risk & the Board Agenda

    1. 1. Rethinking Risk & the Board Agenda Managing Status Quo Risk NACD Summit Deer Valley, UT December, 2013 Adam Hartung Managing Partner, Spark Partners CEO, Soparfilm Energy Corporation Chairman, The Content Laboratory © NACD. All rights reserved. © 2013 Adam Hartung ADVANCING EXEMPLARY BOARD LEADERSHIP
    2. 2. Which of these companies do you think is most likely to double revenue in the next 5-10 years? 1 2 Disney 3 Starbucks 4 © Adam Hartung 2013 Boeing Apple
    3. 3. Which of these companies do you think is most likely to fail in 5-10 years? 1 2 Microsoft 3 United Airlines 4 © Adam Hartung 2013 NBC/Universal/Comcast Facebook
    4. 4. On which of these Boards would you prefer to have served in the last 3 years? OR OR OR © Adam Hartung 2013
    5. 5. Doing things right, or doing the right thing: What’s the Board’s Role? Value Proposition: What You Need to Know, at Your Fingertips © Adam Hartung 2013
    6. 6. Publishers Enhanced Delivery, But Missed the “Game Changer” Surrounding Them © Adam Hartung 2013
    7. 7. The true secret to business success surprised us Core Focus Overcoming Lock-in to past success The biggest risk in business today is Status Quo Risk © Adam Hartung 2013
    8. 8. Apple’s success came from creating new markets – Changing the Game © Adam Hartung 2013
    9. 9. Apple’s best skill has been anticipating the future - rather than “execution” © Adam Hartung 2013
    10. 10. How can Boards help companies manage Status Quo Risk? Be future-oriented Obsess about competitors Encourage disruption © Adam Hartung 2013 Force white space
    11. 11. Step 1 – Focus on future trends; not past markets/solutions VS. © Adam Hartung 2013
    12. 12. Rethink the Board agenda; Reallocate the discussion time What percentage of your Board’s time is spent discussing Market Trends? 60% ? 33% ? 20% ? © Adam Hartung 2013
    13. 13. Step 2 – Focus on needs and competitors; not current solutions and customers Key Question: How much is spent on improving the current business model vs Developing new markets, opportunities and business models? © Adam Hartung 2013
    14. 14. Obsess about fringe competitors and Game Changing opportunities VS. © Adam Hartung 2013
    15. 15. Step 3 – Ask how your company will be disruptive; not just how it will be better, faster, cheaper © Adam Hartung 2013
    16. 16. No company is beyond Game Changers, and Managing Status Quo Risk © Adam Hartung 2013
    17. 17. Step 4 – Ask about white space projects and teams © Adam Hartung 2013
    18. 18. Prediction Revenue Doubler: 1 1 4 © Adam Hartung 2013 Apple ! 3 Disney Starbucks NBC/Comcast 2 Boeing 2 3 Likely Investor Failure: ? 4 Microsoft UAL Facebook
    19. 19. Manage Status Quo Risk for superior rates of return Invest for the future, not from the past Focus more on competitors, less on customers Be Disruptive, sustaining will decline Look for White Space projects to innovate and learn © Adam Hartung 2013
    20. 20. Contact Information Board Member Keynote Speaker Planning Workshops 847.726.8465 www.adamhartung.com adam@sparkpartners.com © Adam Hartung 2013

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