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HarperCollins
Paper & eBook format
Release Date: Sept 6, 2011
2
Time
RevenueGrowth
Growth
Categories
Mature
Categories
Declining
Categories
Indefinitely elastic
middle
End of
Life
Faul...
3
Portfolio Management
The Growth/Materiality Matrix
High
Growth
Low
Growth
Material
Not
Material
Emerging
MatureGrowth
De...
Typical Portfolio Pattern
High Growth
Categories
Low Growth
Categories
Material to
Current
Financials
Not Material
1
2 3
4...
Managing a Portfolio
The Three Horizons Model
Horizon 1
0 to 12 months
Horizon 2
12 to 36 months
Horizon 3
36 to 72 months...
Horizon2
Horizon 1
Horizon 3 “Horizon0”
Three Horizons Model Mapped to
Growth/Materiality Matrix
High
Growth
Low
Growth
Ma...
7
Goals, Metrics, and the Three Horizons
Different Metrics for Each Horizon
TIME FRAME
HORIZON 1
(0 - 12 mos)
HORIZON 2
(1...
8
Achieving Escape Velocity
Focus on Competitive Separation
Competitor 2
*
Competitor 1*
Competitor 3*
YOU*
Gain bargainin...
Two Business Architectures
Complex Systems vs. Volume Operations
Complex
Systems
Volume
Operations
Sweet
Spot
Sweet
Spot
C...
1. Target Customer
2. Compelling Reason to Buy
3. Whole Offer
4. Partners and Allies
5. Sales Strategy
6. Pricing Strategy...
Failed
Attempts
Waste
Return on Innovation
Differentiation Neutralization
Optimization
Figure 5.1
12
The Six Levers
Free Resources Trapped in Context Tasks
1. Centralize. Bring operations under a single authority to redu...
Price/Benefit Sensitivity
How Customers Internalize Value
PriceSensitivity
Benefit Sensitivity
HI
HI
LO
LO
PREMIUM
PERFORM...
Value Disciplines and
Price/Benefit Sensitivity
PriceSensitivity
Benefit Sensitivity
HI
HI
LO
LO
Product
Leadership
Custom...
Creating the Unmatchable Offer
The Core/Context Model
Core
Unmatchable
Differentiation
Context
Neutralizing
Innovations
Mi...
The Arc of Execution
Complex Systems Enterprises
Playbooks
Projects Products
Figure 6.1
Invent
Deploy
Optimize
The Arc of Execution
Volume Operations Enterprises
Partners
Products Processes
Figure 6.2
Invent
Deploy
Optimize
Catalyzing Escape Velocity
The “Tipping Point” Role of Programs
Deploy
Invent Optimize
Transition
Program
Transition
Progr...
Four Modes of Execution
Execution Mode Invention Deployment Optimization Transitions
Type of Leader
Visionary
Inventor
Pra...
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Escape Velocity Illustrations

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Geoffrey Moore is an author, speaker and advisor as well as a venture partner at Mohr Davidow Ventures (MDV). Recognized as a leading business advisor, Geoffrey divides his time between consulting on strategy and transformation challenges with senior executives and on developing mental models to support his advisory practice. With this intent in mind he has written his newest book published by HarperCollins in September of 2011: Escape Velocity: Free Your Company’s Future from the Pull of the Past, the result of his years of experience working with large enterprises in his former role as a Managing Director at TCG Advisors. Recognized as well for his expertise in market development and business and investment strategies, as a Venture Partner at Mohr Davidow Ventures he also serves as an advisor to MDV portfolio companies by drawing upon best practices derived from his extensive experience working with technology startups over the last two decades.
Geoffrey has made the understanding and effective exploitation of disruptive technologies the core of his life's work. His books, Crossing the Chasm, Inside the Tornado, The Gorilla Game, Living on the Fault Line and Dealing with Darwin are best sellers and required reading at leading business schools. Highly regarded as a dynamic public speaker, he integrates a speaking practice with his advisory work.
He is a founder of both The Chasm Group and TCG Advisors. Earlier in his career, he was a principal and partner at Regis McKenna, Inc., a leading high tech marketing strategy and communications company, and for the decade prior, a sales and marketing executive in the software industry. He holds a bachelor's degree in literature from Stanford University and a doctorate in literature from the University of Washington.
To find out more about Geoffrey Moore please visit:

More information about Geoffrey Moore:
http://www.geoffreyamoore.com

More information about the Escape Velocity Book:
http://www.escapevelocitybymoore.com

Geoffrey Moore on Twitter:
http://www.twitter.com/geoffreyamoore

Geoffrey Moore on Google Plus:
http://gplus.to/geoffreyamoore

Published in: Business, Technology

Escape Velocity Illustrations

  1. 1. HarperCollins Paper & eBook format Release Date: Sept 6, 2011
  2. 2. 2 Time RevenueGrowth Growth Categories Mature Categories Declining Categories Indefinitely elastic middle End of Life Fault Line! EDCBA Technology Adoption Life Cycle Category Maturity Life Cycle Emerging Categories Figure 2.1
  3. 3. 3 Portfolio Management The Growth/Materiality Matrix High Growth Low Growth Material Not Material Emerging MatureGrowth Declining 1 2 3 4 Figure 2.2
  4. 4. Typical Portfolio Pattern High Growth Categories Low Growth Categories Material to Current Financials Not Material 1 2 3 4 Figure 2.3
  5. 5. Managing a Portfolio The Three Horizons Model Horizon 1 0 to 12 months Horizon 2 12 to 36 months Horizon 3 36 to 72 months Current Businesses Generate today’s cash flow High Growth Businesses Today’s revenue growth + tomorrow’s cash flow Growth Options Options on future high-growth businesses Expected Window of Returns AccumulatedTotalReturns Figure 2.4
  6. 6. Horizon2 Horizon 1 Horizon 3 “Horizon0” Three Horizons Model Mapped to Growth/Materiality Matrix High Growth Low Growth Material Not Material Figure 2.5
  7. 7. 7 Goals, Metrics, and the Three Horizons Different Metrics for Each Horizon TIME FRAME HORIZON 1 (0 - 12 mos) HORIZON 2 (12 - 36 mos) HORIZON 3 (36 - 72 mos) Create a Category Maximize Economic Returns Become a Going Concern Driving Goal Key Performance Indicators Revenue vs. plan Bookings Contribution margin Market share Wallet share Target accts vs. plan Sales velocity Deal size Segment share Time to tipping point Name-brand customers Deal size Name-brand partners PR buzz Flagship projects “Opex” “Timex” “Capex” Figure 2.6
  8. 8. 8 Achieving Escape Velocity Focus on Competitive Separation Competitor 2 * Competitor 1* Competitor 3* YOU* Gain bargaining power by getting separation from your competitive set * Competitive Set Failure to separate means lower revenues or profit margins or both CORE An Unmatchable Offer Figure 3.1
  9. 9. Two Business Architectures Complex Systems vs. Volume Operations Complex Systems Volume Operations Sweet Spot Sweet Spot Complexity Volume Effectiveness Small Business Government Programs Societal Entitlements Enterprise Consumer 100 101 102 103 104 105 106 107 108 109 Number of Customers Figure 3.2
  10. 10. 1. Target Customer 2. Compelling Reason to Buy 3. Whole Offer 4. Partners and Allies 5. Sales Strategy 6. Pricing Strategy 7. Competition 8. Positioning 9. Next Target Key sponsor Complete solution Function of whole product complexity Legitimate alternatives Next growth segment Core problem Needed for whole product Value based Differentiation 9-Point Market Strategy Framework Figure 4.1
  11. 11. Failed Attempts Waste Return on Innovation Differentiation Neutralization Optimization Figure 5.1
  12. 12. 12 The Six Levers Free Resources Trapped in Context Tasks 1. Centralize. Bring operations under a single authority to reduce overhead and create a single point of control to manage mission-critical risk. 2. Standardize. Reduce the variety and variability of processes delivering similar outputs to eliminate costs and minimize risks. 3. Modularize. Deconstruct the system into its component subsystems and standardize interfaces for future cost reductions. 4. Optimize. Eliminate redundant steps, automate standard sequences, streamline remaining operations, substitute lower-cost components, or otherwise cost- and resource-reduce. 5. Instrument. Characterize the remaining processes in terms of the variability of key parameters and develop monitor-and-control systems to manage their performance. 6. Outsource. Drive processes out of the enterprise entirely to further reduce overhead, variabilize costs, and minimize future investment. Incorporate vendor use of monitor-and-control systems into Service Level Agreement. Figure 5.2
  13. 13. Price/Benefit Sensitivity How Customers Internalize Value PriceSensitivity Benefit Sensitivity HI HI LO LO PREMIUM PERFORMANCECOST CONVENIENCE Figure 5.3
  14. 14. Value Disciplines and Price/Benefit Sensitivity PriceSensitivity Benefit Sensitivity HI HI LO LO Product Leadership Customer Intimacy Operational Excellence Figure 5.4
  15. 15. Creating the Unmatchable Offer The Core/Context Model Core Unmatchable Differentiation Context Neutralizing Innovations Mission Critical Enabling 1 2 3 4 Figure 2.1
  16. 16. The Arc of Execution Complex Systems Enterprises Playbooks Projects Products Figure 6.1 Invent Deploy Optimize
  17. 17. The Arc of Execution Volume Operations Enterprises Partners Products Processes Figure 6.2 Invent Deploy Optimize
  18. 18. Catalyzing Escape Velocity The “Tipping Point” Role of Programs Deploy Invent Optimize Transition Program Transition Program Tipping Point Tipping Point   Figure 6.3
  19. 19. Four Modes of Execution Execution Mode Invention Deployment Optimization Transitions Type of Leader Visionary Inventor Pragmatic Deployer Conservative Optimizer Pragmatic Orchestrator Core Competence Creativity Competitiveness Control Collaboration Core Attribute Spontaneous Tough-minded Prepared Empathetic Decision Style Intuition Experimentation Deliberation Consensus Functions Most in Alignment R&D, Creative Services Sales, Engineering Finance, Operations HR, Marketing, Customer Suppt Figure 6.4

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