Whether or not your company can innovate is going to be the big determinant of corporate success. Five essential characteristics determine if your organization has what it takes to innovate on an ongoing basis.
Businesses are becoming obsolete at an ever increasing speed. This is driven by forces like new technology breakthroughs and drastic shifts in customer needs; meanwhile markets have been disrupted by competitors pushing the productivity frontier or nimble, new entrants. Some companies have the natural drive and thrill for innovation but others struggle to sustain growth being unable to renew their business before it becomes outdated.
Employees at any level have always struggled between wanting to be their own boss in some capacity. The dream (for some) is to be able to work with a large degree of autonomy from the “boss”, in small teams that are personable, collegial and non-hierarchical. This setup is required in situations when things move fast and coordination is difficult or impossible. However, let’s hope it is not because the organization lacks inspirational leadership.
A typical case is a business development team that has been assigned the creation of new business entity in an overseas market. It is entrusted to be entrepreneurial, do the right thing, and adapt to local circumstances. How do you ensure this decentralized team does not reinvent the wheel, make choices that are inconsistent with the company brand, or miss out on opportunities to capture scale economies?
Effective decentralization is thus found in cohesive decentralization. First of all, amount organizational expectations. When a team is given decisional power, upper management should expect that they thoroughly inform themselves on and follow into the “grand scheme”. The team would immediately inform management about any issues that arise, come to them for advice, and take responsibility for corrective action and final results. Effective upward management means involving seniors for maximum effect, rather than keeping them at bay.
Cohesive decentralization is also about strengthening the fabric that keeps everything together, so that the whole organization can fly formation instead of all over the map. We’ve identified the seven key factors that bind teams for success, ensuring each team can thrive and survive within a larger team.
Be a better business with a better output. Be an Open BusinessGianluigi Cuccureddu
Guest lecture at the Hogeschool van Amsterdam, University of Applied Sciences for Business Administration students, course Business Development.
Inspiration session on Open Business.
Employees at any level have always struggled between wanting to be their own boss in some capacity. The dream (for some) is to be able to work with a large degree of autonomy from the “boss”, in small teams that are personable, collegial and non-hierarchical. This setup is required in situations when things move fast and coordination is difficult or impossible. However, let’s hope it is not because the organization lacks inspirational leadership.
A typical case is a business development team that has been assigned the creation of new business entity in an overseas market. It is entrusted to be entrepreneurial, do the right thing, and adapt to local circumstances. How do you ensure this decentralized team does not reinvent the wheel, make choices that are inconsistent with the company brand, or miss out on opportunities to capture scale economies?
Effective decentralization is thus found in cohesive decentralization. First of all, amount organizational expectations. When a team is given decisional power, upper management should expect that they thoroughly inform themselves on and follow into the “grand scheme”. The team would immediately inform management about any issues that arise, come to them for advice, and take responsibility for corrective action and final results. Effective upward management means involving seniors for maximum effect, rather than keeping them at bay.
Cohesive decentralization is also about strengthening the fabric that keeps everything together, so that the whole organization can fly formation instead of all over the map. We’ve identified the seven key factors that bind teams for success, ensuring each team can thrive and survive within a larger team.
Be a better business with a better output. Be an Open BusinessGianluigi Cuccureddu
Guest lecture at the Hogeschool van Amsterdam, University of Applied Sciences for Business Administration students, course Business Development.
Inspiration session on Open Business.
From strategy centers to maker spaces, learn how brands like PBJS clients PayPal, eBay and Coupons.com can plan, design and build dedicated venues for fostering the collaboration and experimentation they need to keep ahead of the proverbial curve.
Within itself, innovation holds many paradoxes. It can become a rod for the back of a company. It can drive growth. It can motivate people. It can be very difficult to do. It may at some point become impossible to innovate a given product further. This article explores the paradoxes of innovation as a major driver of company success today.
The Holmes Report's first Creative Index analyses award-winning PR campaigns from more than 25 shows worldwide to determine the most creative programmes of the past 12 months.
How to hire a CINO that can build lasting innovation capabilities.
The way businesses need to organize and behave has fundamentally shifted. Across industries, companies, and organizational functions, we have heard many of the world’s most innovative companies echo the same challenge: businesses must urgently embrace a more nimble and entrepreneurial approach in order to stay competitive. We call this challenge of how big companies can leverage scale while staying innovative “big entrepreneurship.” The Rising Billion is one of five pieces in our report, Big Entrepreneurship, aimed at deconstructing some of the complex challenges around big entrepreneurship and provide actionable insights for business leaders.
This report was created by Fahrenheit 212, a global innovation strategy and design firm. We define innovation strategies and develop new products, services, and experiences that create sustainable, profitable growth for our clients. We challenge the belief that innovation is inherently unreliable and have spent the last decade designing the method, building the model, and assembling the minds to make innovation a predictable driver of growth for our clients' businesses.
Hard work & Low cost do not help by themselves any more. Intellectual arbitrage is here to stay. Innovation is the way to stay ahead of the pack. Be the game changer. Let our C3 methodology (part of triniti Innovation Framework) help you break out of idea scarcity and convert your ideas into profitable, implementable solutions.
We identified the five U.S. companies that have moved the farthest, the fastest in answering that call for change. These are the enterprises that are best positioned to redefine our future and point the way to a better tomorrow.
The way businesses need to organize and behave has fundamentally shifted. Across industries, companies, and organizational functions, we have heard many of the world’s most innovative companies echo the same challenge: businesses must urgently embrace a more nimble and entrepreneurial approach in order to stay competitive. We call this challenge of how big companies can leverage scale while staying innovative “big entrepreneurship.” This report aims to deconstruct some of the complex challenges around big entrepreneurship and provide actionable insights for business leaders.
This report was created by Fahrenheit 212, a global innovation strategy and design firm. We define innovation strategies and develop new products, services, and experiences that create sustainable, profitable growth for our clients. We challenge the belief that innovation is inherently unreliable and have spent the last decade designing the method, building the model, and assembling the minds to make innovation a predictable driver of growth for our clients' businesses.
Presentation based on Harvard Business Review article: "What is Disruptive Innovation?", by Clayton M. Cristensen, Michael E. Raynor, and Rory McDonald – December, 2015 issue.
The theory of disruptive Innovation was introduced in the article: "Disruptive Technologies: Catching the Wave", by Joseph L. Bower and Clayton M. Christensen from the HBR january–february 1995 issue.
В нашем исследовании "Раскрытие силы инноваций" мы предлагаем инновационным компаниям решение пяти ключевых вопросов, чтобы впоследствии вы могли максимально эффективно использовать полученные инвестиции.
Обсудить отчет можно на странице PwC Startup Cloud в Facebook http://on.fb.me/11ZZJvU.
Using Innovation to Manage Brand Positioning | P Collings 2014Patrick Collings
I recently spoke at the Marketing Indaba conference in South Africa on using innovation methodologies and tools to determine and manage brand positioning. I have added speaker notes to several of the slides where you needed a speaker in front of them.
From strategy centers to maker spaces, learn how brands like PBJS clients PayPal, eBay and Coupons.com can plan, design and build dedicated venues for fostering the collaboration and experimentation they need to keep ahead of the proverbial curve.
Within itself, innovation holds many paradoxes. It can become a rod for the back of a company. It can drive growth. It can motivate people. It can be very difficult to do. It may at some point become impossible to innovate a given product further. This article explores the paradoxes of innovation as a major driver of company success today.
The Holmes Report's first Creative Index analyses award-winning PR campaigns from more than 25 shows worldwide to determine the most creative programmes of the past 12 months.
How to hire a CINO that can build lasting innovation capabilities.
The way businesses need to organize and behave has fundamentally shifted. Across industries, companies, and organizational functions, we have heard many of the world’s most innovative companies echo the same challenge: businesses must urgently embrace a more nimble and entrepreneurial approach in order to stay competitive. We call this challenge of how big companies can leverage scale while staying innovative “big entrepreneurship.” The Rising Billion is one of five pieces in our report, Big Entrepreneurship, aimed at deconstructing some of the complex challenges around big entrepreneurship and provide actionable insights for business leaders.
This report was created by Fahrenheit 212, a global innovation strategy and design firm. We define innovation strategies and develop new products, services, and experiences that create sustainable, profitable growth for our clients. We challenge the belief that innovation is inherently unreliable and have spent the last decade designing the method, building the model, and assembling the minds to make innovation a predictable driver of growth for our clients' businesses.
Hard work & Low cost do not help by themselves any more. Intellectual arbitrage is here to stay. Innovation is the way to stay ahead of the pack. Be the game changer. Let our C3 methodology (part of triniti Innovation Framework) help you break out of idea scarcity and convert your ideas into profitable, implementable solutions.
We identified the five U.S. companies that have moved the farthest, the fastest in answering that call for change. These are the enterprises that are best positioned to redefine our future and point the way to a better tomorrow.
The way businesses need to organize and behave has fundamentally shifted. Across industries, companies, and organizational functions, we have heard many of the world’s most innovative companies echo the same challenge: businesses must urgently embrace a more nimble and entrepreneurial approach in order to stay competitive. We call this challenge of how big companies can leverage scale while staying innovative “big entrepreneurship.” This report aims to deconstruct some of the complex challenges around big entrepreneurship and provide actionable insights for business leaders.
This report was created by Fahrenheit 212, a global innovation strategy and design firm. We define innovation strategies and develop new products, services, and experiences that create sustainable, profitable growth for our clients. We challenge the belief that innovation is inherently unreliable and have spent the last decade designing the method, building the model, and assembling the minds to make innovation a predictable driver of growth for our clients' businesses.
Presentation based on Harvard Business Review article: "What is Disruptive Innovation?", by Clayton M. Cristensen, Michael E. Raynor, and Rory McDonald – December, 2015 issue.
The theory of disruptive Innovation was introduced in the article: "Disruptive Technologies: Catching the Wave", by Joseph L. Bower and Clayton M. Christensen from the HBR january–february 1995 issue.
В нашем исследовании "Раскрытие силы инноваций" мы предлагаем инновационным компаниям решение пяти ключевых вопросов, чтобы впоследствии вы могли максимально эффективно использовать полученные инвестиции.
Обсудить отчет можно на странице PwC Startup Cloud в Facebook http://on.fb.me/11ZZJvU.
Using Innovation to Manage Brand Positioning | P Collings 2014Patrick Collings
I recently spoke at the Marketing Indaba conference in South Africa on using innovation methodologies and tools to determine and manage brand positioning. I have added speaker notes to several of the slides where you needed a speaker in front of them.
Platforms are everything on which we create. They are a trade show, a website, a river, a floating city, even a skateboard. Platforms are the base upon which we all business, and what we build to exchange value by creating opportunities for all kinds of interactions. The ability to design a platform that successfully scales value creation for all participants involved is a task fit for architects.
To become scalable, the platform must exploit digital angles to offer new benefits to its users. It must create a delivery system that can be reconfigured into different contexts, and do so by creating an innovative business model.
Let’s first understand platforms.
Comparing examples found in nature with examples of business enterprises, we highlight the different characteristics that make up an ecosystem's value chain.
Including specialists, coopetitors, cross feeders, system developers, infomediaries, system service providers, sector shapers, aggregators, open platforms, intermediaries, sectors, clusters, geographic hubs, adaptors, communities.
Providing a case study for each characteristic, this presentation helps you to understand your ecosystem positioning and using these levers, you will be able to visually map the different actors that make up your ecosystem.
As health is one of the most pressing issues of today, it is a recurring topic within THNK’s Challenge project, which are real-life open innovation projects that address broad social issues through a process of collaboration and human-centered design tools.
http://www.thnk.org/2015/04/personal-health/
The discovery of the atomic world and the constituents of matterRochelle Forrester
The discovery of the atomic world and the constituents of matter was written to investigate the order of discovery of the sub atomic particles. The discovery of these particles took place in a necessary and inevitable order with charged particles, such as electrons and protons, discovered before neutrons, and particles in the outer regions of the atom such as electrons being discovered before protons and neutrons in the atomic nucleus, and with quarks which exist within protons and neutrons being the last discovery. The order of discovery is from those particles closest to us to those further from us in the sense of being deeper in the atom. The order of discovery and the social and cultural consequences of the discoveries took place in a necessary and inevitable order and is consistent with the conclusions reached in my book How Change Happens: A Theory of Philosophy of History, Social Change and Cultural Evolution.
Research of usability of Mashup Tools done for Kent County Council as part of the Pic and Mix Pilot (2009), opening up Kent related datasets for all to use and exploit.
In this exclusive session, Magnus Penker is revealing his top insights and tools to be used for forming, storming, norming, performing, and creating an evergreen culture that will allow you to stay ahead of the competition.
Accelerating and Sustaining Business Model InnovationInês Almeida
In depth guide to accelerating and sustaining business model innovation in the enterprise. Includes tools, models, frameworks, and references to thought-leaders, best selling books and research on the subject.
Innovation isn’t the job of R&D or Marketing anymore. Innovation is everyone’s job – but most aren’t trained/experienced in innovation.
Whether you start at "small i" innovation or "BIG I" Innovation - can you really afford NOT to improve your innovation capabilities?
Building a Growth Engine: How to Drive Sustainable Innovation and Grow.Rob Munro
Driving sustainable growth comes from embracing a systems perspective to our innovation activities.
Because studies show that how you organize can make the difference between average performance from stand out performance.
I’ve found that innovation is not an event and that businesses who create an innovation habit get better results.
You will discover that How you innovate is as important as What you innovate.
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
The smartest people in innovation and intrapreneurship from companies like Phillip Morris, Gap, HP, Salesforce, Nike, Cisco Univision, and dozens of other companies assembled to talk about what real innovation at scale looks like. This ebook contains a few of our takeaways. For more information, contact us at innovation@gapingvoid.com
Disruptive Innovation describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves upmarket, eventually displacing established competitors.
Accelerating Corporate Innovation in Customer Engagement with a Startup Persp...Green Tomato Limited
Synopsis: The presentation discusses the mutual benefits of incorporating startups as part of the corporate innovation strategy. It explores the common approach to adopt a corporate incubation program, advantages and challenges tagged along with these initiatives. The speaker will share showcases from running her own venture builder program for almost 3 years and the lessons learned from it. The sharing session will also include a startup showcase to discuss how enterprises leverage chatbots and AI in customer servicing.
632020 Sources, Rules, and Creation of an Innovation Guide S.docxssuser774ad41
6/3/2020 Sources, Rules, and Creation of an Innovation Guide Scoring Guide
https://courserooma.capella.edu/bbcswebdav/institution/BMGT/BMGT8134/200100/Scoring_Guides/u08a1_scoring_guide.html 1/1
Sources, Rules, and Creation of an Innovation Guide Scoring Guide
Due Date: End of Unit 8
Percentage of Course Grade: 35%.
CRITERIA NON-PERFORMANCE BASIC PROFICIENT DISTINGUISHED
Analyze how effectively a
publicly traded for-profit
organization applies
theories, models, and
guidelines of disruptive
innovation.
25%
Fails to mention how
effectively a publicly
traded for-profit
organization applies
theories, models, and
guidelines for disruptive
innovation.
Outlines how effectively a
publicly traded for-profit
organization applies
theories, models, and
guidelines for disruptive
innovation.
Analyzes how effectively
a publicly traded for-profit
organization applies
theories, models, and
guidelines for disruptive
innovation.
Analyzes how effectively a publicly traded
for-profit organization applies theories,
models, and guidelines for disruptive
innovation. Synthesizes the application for
gaps in an exceptionally accurate and
impressive manner.
Develop approaches for
leading strategic foresight
and suggest alternative
models of disruptive and
value innovation for a
publicly traded for-profit
organization.
25%
Fails to list approaches
for leading strategic
foresight and suggesting
alternative models of
disruptive and value
innovation for a publicly
traded for-profit
organization.
Outlines approaches for
leading strategic foresight
and suggests alternative
models of disruptive and
value innovation for a
publicly traded for-profit
organization.
Develops approaches for
leading strategic foresight
and suggests alternative
models of disruptive and
value innovation for a
publicly traded for-profit
organization.
Develops approaches for leading strategic
foresight and suggests alternative models of
disruptive and value innovation for a publicly
traded for-profit organization.
Recommendations are supported with
substantial literature and superiority in
critical thinking skills is evident.
Create an innovation
“cookbook” with best
practice guidelines.
25%
Fails to create an
innovation “cookbook”
with best practice
guidelines.
Makes a limited attempt
at creating an innovation
“cookbook” with limited
practice guidelines and
limited or no supporting
theories.
Creates an innovation
“cookbook” with best
practice guidelines.
Creates a robust innovation “cookbook” with
exceptional clarity of best practice
guidelines. Presents and carefully integrates
supporting theories and highlighting
similarities and differences.
Communicate in a manner
expected of doctoral-level
composition, including full
APA compliance and
demonstration of critical
thinking skills.
25%
Fails to communicate in a
manner expected of
doctoral-level
composition, including full
APA compliance and
demonstration of critical
thinking skills.
Communicates at a basic
level in a manner
expec.
632020 Sources, Rules, and Creation of an Innovation Guide S.docxpriestmanmable
6/3/2020 Sources, Rules, and Creation of an Innovation Guide Scoring Guide
https://courserooma.capella.edu/bbcswebdav/institution/BMGT/BMGT8134/200100/Scoring_Guides/u08a1_scoring_guide.html 1/1
Sources, Rules, and Creation of an Innovation Guide Scoring Guide
Due Date: End of Unit 8
Percentage of Course Grade: 35%.
CRITERIA NON-PERFORMANCE BASIC PROFICIENT DISTINGUISHED
Analyze how effectively a
publicly traded for-profit
organization applies
theories, models, and
guidelines of disruptive
innovation.
25%
Fails to mention how
effectively a publicly
traded for-profit
organization applies
theories, models, and
guidelines for disruptive
innovation.
Outlines how effectively a
publicly traded for-profit
organization applies
theories, models, and
guidelines for disruptive
innovation.
Analyzes how effectively
a publicly traded for-profit
organization applies
theories, models, and
guidelines for disruptive
innovation.
Analyzes how effectively a publicly traded
for-profit organization applies theories,
models, and guidelines for disruptive
innovation. Synthesizes the application for
gaps in an exceptionally accurate and
impressive manner.
Develop approaches for
leading strategic foresight
and suggest alternative
models of disruptive and
value innovation for a
publicly traded for-profit
organization.
25%
Fails to list approaches
for leading strategic
foresight and suggesting
alternative models of
disruptive and value
innovation for a publicly
traded for-profit
organization.
Outlines approaches for
leading strategic foresight
and suggests alternative
models of disruptive and
value innovation for a
publicly traded for-profit
organization.
Develops approaches for
leading strategic foresight
and suggests alternative
models of disruptive and
value innovation for a
publicly traded for-profit
organization.
Develops approaches for leading strategic
foresight and suggests alternative models of
disruptive and value innovation for a publicly
traded for-profit organization.
Recommendations are supported with
substantial literature and superiority in
critical thinking skills is evident.
Create an innovation
“cookbook” with best
practice guidelines.
25%
Fails to create an
innovation “cookbook”
with best practice
guidelines.
Makes a limited attempt
at creating an innovation
“cookbook” with limited
practice guidelines and
limited or no supporting
theories.
Creates an innovation
“cookbook” with best
practice guidelines.
Creates a robust innovation “cookbook” with
exceptional clarity of best practice
guidelines. Presents and carefully integrates
supporting theories and highlighting
similarities and differences.
Communicate in a manner
expected of doctoral-level
composition, including full
APA compliance and
demonstration of critical
thinking skills.
25%
Fails to communicate in a
manner expected of
doctoral-level
composition, including full
APA compliance and
demonstration of critical
thinking skills.
Communicates at a basic
level in a manner
expec.
For organisations that need to keep up with the velocity of change in their markets, customers and technology, Digital Agility is an end-to-end concept to market approach that enables you to deliver innovation faster and with less risk.
Unlike traditional product development and delivery models, Digital Agility is a lean, insight driven technique that helps you become more nimble, innovative, and responsive.
A Playbook for Corporate Innovation - Explorium HKYangie Chung
Are you an innovator about to start a new innovation hub or join one?
We were in the same shoes not too long ago. We started Explorium in Hong Kong in 2018 and over the past two years we've tried, failed, hit brick walls, and succeed (on occasion) in helping the businesses of the Fung Group innovate following an ecosystem approach.
We learned a lot along the way and now are sharing back our reflections and suggestions in a Playbook for Ecosystem Innovation - this is the guide we wish we had at the beginning of our journey. Read it, and maybe you can avoid some of our mistakes.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
3. 3
INDEX
WILL TO INNOVATE
TRENDS & SIGNALS
56
CUSTOMER DIALOGUE
62
SPARKLING PARTNERSHIPS
69
LEVERAGED TAILWIND
7
INNOVATORS DNA31
INNOVATION CONGRUENCE45
OVERVIEW
EXTERNAL ORIENTATION
RENEWAL MUST37
OVERVIEW
78
TOP TALENT
BIG VISION
INNOVATION SYSTEMS
THREE HORIZONS
85
ORCHESTRATING TEAMS135
SELF ORGANIZING SYSTEMS164
BIPOLAR FOCUS
93
TALENT MAKE AND BUY144
LEARNING LOOPS175
MOEBIUS RING
99
CULT OF INNOVATOR ROCK STAR150
LEVERAGE THE CROWD185
GOVERNANCE HEADROOM
PATIENT FUNDING199
INNOVATION PLAYS
108
156
4. 4
INTRODUCTION
Businesses become obsolete at an ever increasing speed. This is driven by forces like new
technology breakthroughs, drastic shifts in customer needs and market trends and competitors
pushing the productivity frontier or industry disruptors. Some companies have the natural
drive and thrill for innovation but others struggle to sustain growth being unable to renew their
business before it becomes outdated
At THNK, we believe that build industry leadership through innovation and that the ability
of a company to innovate can be deliberately orchestrated. We work with leading global
companies on realizing innovation at scale. Even though some spontaneous innovation
does happen and some leaders seem to be born as idea generators, we have discovered from
our collaborations with entrepreneurs, corporates and in-depth research that continuous
innovation requires a congruent approach between creative leadership, strategy, and
organization. We framed these in 5 essential characteristics that determine whether your
organization can innovate on an ongoing basis
This book covers these 5 essentials in detail. Each essential provides you with a framework
to guide your thinking on innovation, highlights the most critical insights for successful
adaptation and offers you tools to develop and test your ideas before putting these into practice.
The essentials can be worked with on an individual basis, though they will come best to life as
part of a THNK program
5. INNOVATIVE ENTERPRISE ESSENTIALS
Orchestrating teams
Talent make and buy
Cult of innovator rock star
Governance headroom
Three horizons
Moebius ring
Bipolar focus
Innovation plays
Leveraged tailwind
Trends signals
Customer dialogue
Sparkling partnerships
5
Self organizing systems
Learning loop
Leverage the crowd
Patient funding
Innovators DNA
Renewal must
Innovation congruence
6. 6
HOW TO USE THIS BOOK
Essentials follow a standard format to facilitate ease of use and cater to different learning styles:
WHEN NEEDED:
ESSENCE:
KEY INSIGHTS:
TOOL:
FRAMEWORK:
SOURCES:
highlights 2-3 situations when the essential is particularly relevant
describes the framework to guide your thinking
synthesizes the key insights for successful adaptation
provides a model to develop and test your ideas before putting them into practice
describes a basic structure or frame to support your thinking arrount this essential
provides a list of references for more information
8. 8
OVERVIEW
DEFINITION OF INNOVATION
“INNOVATION is the application of new solutions that meet new or existing market needs
- something original, new, and important - in whatever field - that breaks in to a market or
society”
Innovation differs from invention in that innovation refers to the use of a better and, as a result,
novel idea or method, whereas invention refers more directly to the creation of the idea or
method itself
Innovation differs from improvement in that innovation refers to the notion of doing
something different rather than doing the same thing better
Source: Innovation. Wikipedia. 02 December 2013
www.en.wikipedia.org/wiki/Innovation
9. OVERVIEW
9
INNOVATION WITHIN GROWTH
ALLOCATING RESOURCES TO
MARKET SEGMENTS THAT GROW
AUTONOMOUSLY
CONTINUOUS SERVICE
IMPROVEMENT AND PRODUCT
RENEWAL
SYNERGISTIC OR MARKET
CONSOLIDATION ACQUISITIONS
BREAK-THROUGH INNOVATION
(INVENTING AND APPLYING
NEW PRODUCT MARKET
SOLUTIONS OR NEW BUSINESS
MODELS)
10. 10
OVERVIEW - WHY INNOVATE?
IMPORTANCE OF INNOVATION
The market demands innovative new solutions that work much better and can be offered at
much lower cost and burden on society and planet
Innovation is the only escape out of the commodity trap of mature markets with aggressive
competitive pricing
Technology development progresses at neck breaking pace and triggers a constant flow of
break-through innovation opportunities
Creative destruction continues to reduce the expected lifespan of corporations; innovation
leading to continuous renewal and adaptability is required to avoid being outplaced
The best, most entrepreneurial, most future-oriented people want to work on innovations; if
they cannot use the corporate platform to build new opportunities to scale, they leave
11. OVERVIEW - WHY INNOVATE?
STRONG DEPENDENCE ON INNOVATION FOR LONG TERM STRATEGY SUCCESS
Source: Koetzier, W., and Alon, A. Retrieved 2013, from Accenture
www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Why-Low-Risk-Innovation-Costly.pdf
11
12. 12
OVERVIEW - WHY INNOVATE?
PREEMPTING CREATIVE DESTRUCTION
Source: Foster, R., and Caplan, S. “Creative Destruction: Why companies that are built to last underperform the market – and how to successfully
transform them”. Doubleday/Currency, 2001
13. OVERVIEW - WHY INNOVATE?
EXITS
Source picture: Foster, D. Retrieved December, 2013, from Innosight
wwww.innosight.com
13
14. 14
OVERVIEW - WHY INNOVATE?
MOST ENTERPRISES NEED TO GET BETTER AT INNOVATION
PERCENTAGE OF GLOBAL EXECUTIVES WHO AGREE (%)
INNOVATION IS IMPORTANT
TO OUR GROWTH STRATEGY
OUR BUSINESS
MODELS ARE AT RISK
84%
80%
6%
WE ARE SATISFIED WITH OUR
INNOVATION PERFORMANCE
Source: McKinsey Global Innovation Survey
www.mckinsey.com
15. OVERVIEW - WHY INNOVATE?
15
WHERE DOES YOUR COMPANY STAND ON INNOVATION?
DO YOU HAVE A
VISION WHERE AND
HOW TO CREATE A
TOTALLY NEW-TOWORLD BUSINESS?
DOES YOUR
COMPANY SPEND
MORE TIME
LEARNING OUTSIDE
THAN INSIDE?
DOU YOU HAVE A
POOL OF INNOVATOR
TOP TALENT IN YOUR
RANKS?
DOES YOUR COMPANY
HAVE THE STRUCTURE
AND CULTURE FOR RISK
RAKING, AND SMART
FAILURE?
DOES YOUR
COMPANY HAVE
THE URGENT DRIVE
TO CONTINUOUSLY
INNOVATE?
16. 16
OVERVIEW - WILL TO INNOVATE
WHAT IS THE TRADE-OFF THAT YOU MAKE?
Do you accept the dicotomy between short term results and opportunity creation?
In a survey of 400 CFOs 80% stated “they would reduce discretionary
spending on potentially value creating activities in order to meet short term
earnings targets”
Source: The Boston Consulting Group’s Report on Innovation. Retrieved
December, 2011, from The Boston Consulting Group
17. OVERVIEW - WILL TO INNOVATE
17
ESSENCE
Either having passion for ongoing innovation in the “DNA” of the organization or having the
understanding that constant renewal is a must to survive and prosper. The behaviors need to be
congruent with the “will to innovate” throughout all layers of the organization, in words, actions
and values, across all stages of the economic cycle
Innovators DNA
Renewal must
Innovation congruence
18. 18
OVERVIEW - EXTERNAL ORIENTATION
DO YOU RISK DELIVERY MISPERCEPTION?
Source: Bain Company
www.bain.com
19. OVERVIEW - EXTERNAL ORIENTATION
ESSENCE
Being externally orientated as main source for new ideas and best hunting ground for future
opportunities. Including participating in privileged customer dialogues and co-creation,
adapting quickly to trends and market signals, priority presence in growth markets and
venturing with like-minded partners and start-ups with complementary skills and experiences
Leveraged tailwind
Trends signals
Customer dialogue
Sparkling partnerships
19
20. 20
OVERVIEW - BIG VISION
DO YOU STRUGGLE TO MAKE YOUR INNOVATION VISION COMPELLING?
Source: Richard Branson
www.virgin.com
21. OVERVIEW - BIG VISION
EXAMPLE SIMPLE VISION: SOLAR AND WIND PROVIDING ALL POWER FOR EU
Source: www.sciencedirect.com, THNK analyses
21
22. 22
OVERVIEW - BIG VISION
AND DOES YOUR INNOVATION VISION LACK SOCIAL RELEVANCE?
“People are seldom motivated by a numbers based story. Occasionally (but not nearly often
enough) organizations tell a change story related to the individual’s passion or purpose (“what
is in it for me”). Seldom do they tell a change story related to impact on society, the customer,
or the team”
Source Picture: Sunni Brown
www.sunnibrown.com
23. OVERVIEW - BIG VISION
ESSENCE
Having a clear vision for the “next big thing”. It builds on the current strengths, translates into a
serious investment commitment, combines societal and economic value, provides direction
to short term actions still providing some optionality. It leverages innovation plays like either
technology, consumer insight or business model disruption
Three horizons
Moebius ring
Bipolar focus
Innovation plays
23
24. 24
OVERVIEW - TOP TALENT
DO YOU LACK APPEAL TO INNOVATION TALENT?
SCALABLE STARTUP
CEO’S
PERSONAL
CONTRIBUTION
LARGE COMPANY
ENTREPRENEURIAL-DRIVEN LEARNING
AND DISCOVERY
PROCESS-MANAGED EXECUTION AND GROWTH
SUPERSTAR
MANAGER OF PLANS, GOALS, PROCESS, AND PERSONNEL
CEO’S
PERSONAL
CONTRIBUTION
24/7
LONG TERM 9 TO 5
PLANNING
OPPORTUNISTIC AGILE
PROCESS-, AND GOAL-DRIVEN
PROCESS
HATES AND ELIMINATES
IMPLEMENTS AND USES
MANAGEMENT
STYLE
AUTOCRATIC, STAR SYSTEM
MAY BE BUREAUCRATIC
SPAN OF
CONTROL
HANDS-ON
DISTRIBUTED DOWN THE ORGANIZATION
FOCUS
HIGH AND PASSIONATE VISION
EXECUTION
UNCERTAINTY/
CHAOS
BRINGS ORDER OUT OF CHAOS
FOCUSES ON REPEATABILITY
Source: Steve Bank
www.stevebank.com
25. OVERVIEW - TOP TALENT
25
ESSENCE
Ensuring the organization nurtures, attracts and protects “ innovation super stars” – the
individual innovation super stars that will take the risks, and “break the eggs” to eventually
make innovations happen - and allows them to orchestrate strong creative teams around them
Orchestrating teams
Talent make and buy
Cult of innovator rock star
Governance headroom
26. 26
OVERVIEW - INNOVATION SYSTEMS
ARE YOU PLUGGED IN CO-CREATION NETWORKS?
Source: McKinsey Company
www.mckinsey.com
27. OVERVIEW - INNOVATION SYSTEMS
ESSENCE
Organizing the company into innovation projects and ventures , with tracking systems that
stimulate risk taking, smart failures, learning and improvement, that leverage the wisdom and
insights from the entire organization , customers and suppliers, and are fueled with patient
funding
Self organizing systems
Learning loop
Leverage the crowd
Patient funding
27
28. 28
OVERVIEW
UNDERLYING INNOVATIVE ENTERPRISE ESSENTIALS
Orchestrating teams
Talent make and buy
Cult of innovator rock star
Governance headroom
Three horizons
Moebius ring
Bipolar focus
Innovation plays
Leveraged tailwind
Trends signals
Customer dialogue
Neue Kombinationen
Self organizing systems
Learning loop
Leverage the crowd
Patient funding
Innovators DNA
Renewal must
Innovation congruence
29. 29
WILL TO INNOVATE
Either having passion for ongoing innovation in the “DNA” of the organization or
having the understanding that constant renewal is a must to survive and prosper.
This will to innovate needs to be congruent through the different layers of the
organization, between words and action and across the economic cycle
30. 30
WILL TO INNOVATE OVERVIEW
INNOVATORS DNA
RENEWAL MUST
INNOVATION
CONGRUENCE
Some enterprises have the natural
drive to innovate, with creativity in
their DNA and as a core element
in the culture. This coincides
with high expectations from all
stakeholders
Enterprises have to constantly
reinvent themselves to avoid
withering away. Business
models become obsolete at
an increasing speed, driven by
technology breakthroughs,
market developments and other
competitions
To realize successful innovation
requires commitment from the top
and congruence “talk and walk”
PAGE 31
PAGE 37
PAGE 45
31. 31
INNOVATORS DNA
SOME ENTERPRISES HAVE THE NATURAL DRIVE TO
INNOVATE, WITH CREATIVITY IN THEIR DNA AND AS CORE
ELEMENT IN THE CULTURE. THIS COINCIDES WITH HIGH
EXPECTATIONS FROM ALL STAKEHOLDERS
“I think that our investors value our innovative efforts,
but am not sure how to measure it”
“We spend all our time on managing the current wave of
success”
“We had one great hit, but we don’t have any new ideas
in the pipeline”
32. 32
INNOVATORS DNA
ESSENCE: INTRINSIC PUSH AND EXTERNAL PULL
Company drive
External expectations
“We brought you the iPhone”
“We invented Post-its”
“We dreamt up “Big Brother” and
“Deal or No Deal”
Enterprise value (market cap + debt)
Intrinsic drive and external expectations should coincide
Note: Walmart was listed on nr. 20 in the BCG report “The most innovative companies 2012”
Source: Wal-Mart Stores Inc. (WMT). Retrieved December 4, 2013, from Yahoo! Finance
www.finance.yahoo.com/q/ks?s=WMT
33. INNOVATORS DNA
33
KEY INSIGHTS: EXAMPLES OF INNOVATORS PREMIUM
THE WORLD’S MOST INNOVATIVE COMPANIES
(RANKED BY INNOVATION PREMIUM AVERAGE 2005-2009)
RANK
COMPANY NAME
INDUSTRY/KEY BUSINESSES
INNOVATION PREMIUM
1
SALESFORCE.COM
CLOUD COMPUTING
SOFTWARE
73%
2
INTUITITIVE SURGICAL
DA VINCI SYSTEM ROBOTS FOR
SURGERIES
64%
3
AMAZON.COM
ONLINE DISCOUNT RETAILER,
KINDLE, CLOUD COMPUTING
57%
4
CELEGENE CORP.
PHARMACEUTICALS
55%
5
APPLE
COMPUTERS, SOFTWARE,
MUSIC DEVICES, PHONES,
ETC.
52%
6
GOOGLE
SOFTWARE, PRIMARILY
FOR INFO RETRIEVAL (E.G.,
SEARCH)
49%
7
HINDUSTAN LEVER1
HOUSEHOLD PRODUCTS
47%
8
RECKITT BENCKISER GROUP
HOUSEHOLD PRODUCTS
44%
9
MONSANTO CO.
SEEDS, GENETICALLY
MODIFIED SEEDS, CORP
PROTECTION
44%
10
BHARAT HEAVY ELECTRICALS
ELECTRICAL EQUIPMENT
44%
: Unilever Heavy Electricals
1
Source: Holt and The Innovator’s DNA LLC.
34. 34
INNOVATORS DNA
KEY INSIGHTS: ONLY THE NEXT BREAK THROUGH COUNTS
The innovator’s DNA has to be constantly nourished and re-established
Source Picture: Baekdal, T. Retrieved June 14, 2013, from Baekdal.com
www.baekdal.com/insights/understanding-change-and-predicting-trends
35. INNOVATORS DNA
35
TOOL: ALLOCATION OF INNOVATION BUDGET TO THREE CATEGORIES
EXISTING BUSINESS
IMPROVEMENT
NEW-TO-COMPANY
PRODUCT LINE
EXTENSIONS
NEW-TO-WORLD
PRODUCT
INVENTIONS
36. 36
INNOVATORS DNA
SOURCES
READING
VIDEO
The most innovative companies 2012,
The state of the art in leading industries,
BCG
Google logic: why Google does the things
it does the way it does, The guardian, July
2013
www.guardian.co.uk/technology/2013/
jul/09/google-android-reader-why?
Jeff Bezos: Lessons to Learn from a Failing
Business
www.youtube.com/
watch?v=rOteo4IARgw
The Innovator’s DNA: Mastering the
Five Skills of Disruptive Innovators, by
Jeff Dyer, Hal Gregersen, Clayton M.
Christensen, 2011
37. 37
RENEWAL MUST
ENTERPRISES HAVE TO CONSTANTLY REINVENT
THEMSELVES TO AVOID WITHERING AWAY. BUSINESS
MODELS BECOME OBSOLETE AT AN INCREASING
SPEED, DRIVEN BY TECHNOLOGY BREAKTHROUGHS,
MARKET DEVELOPMENTS AND OTHER COMPETITIONS
“We have been in this business for years, nothing to
worry about”
“We still have a steady cash flow so nobody seems to
care about innovation”
“We are the market leader, so little to worry about”
38. 38
RENEWAL MUST
ESSENCE: INNOVATE CONTINUOUSLY
Need to constantly innovate to avoid withering away
TRADITIONAL LOGIC
MARKET
GROWTH
MARKET
MATURITY
CURRENT WORLD
MARKET
DECLINE
CONTINUOUS
INNOVATION
39. RENEWAL MUST
ESSENCE: SUSTAINING GROWTH IS HARD TO DO
Source: Donald, L., Doz, Y., and Sheer, C. Retrieved May, 2006, from Harvard Business Review
www.hbr.org/2006/05/creating-new-growth-platforms/ar/1
39
40. 40
RENEWAL MUST
KEY INSIGHTS
Traditional logic was to innovate when the market started to decline; the new prevailing logic is
to innovate continuously
Growth projections of a few innovations get inflated, leading to making large expenses at early
stages. Instead, start with small investments and demand early success to profitability
Create an innovation pipeline that is balanced in terms of diversity in timing, size, riskiness and
type of innovation. The chance of finding the next big opportunity is largely a function of how
many seeds one sows
41. RENEWAL MUST
KEY INSIGHTS: AVOID THE GROWTH GAP
Avoid the vicious cycle resulting from waiting too long
Source: Christensen, C., and Raynor, M. Retrieved September 3, 2003, from Harvard Business Review
www.hbr.org/product/there-is-good-money-and-there-is-bad-money/an/1545BC-PDF-ENG
41
42. 42
RENEWAL MUST
KEY INSIGHTS: A THICK AND BALANCED INNOVATION PIPELINE
Source: Innovation in Consumer Products: New products from concept to launch. Retrieved 2008, from Accenture
www.accenture.com/SiteCollectionDocuments/PDF/ConsumerProductsGroupPoV_103008_fnl.pdf
44. 44
RENEWAL MUST
SOURCES
READING
VIDEO
Creating new growth platforms. Harvard
Business Review, May 2006
Business model innovation, BCG,
December 2009
AMCF Horizon Series: Strategy Thought
Leaders Define Strategy
www.youtube.com/watch?v=0JyRXpYFIc
gfeature=youtube_gdata_player
Professor Richard Rumelt : What is Good
Corporate Strategy?
www.youtube.com/
watch?v=43kZDnyDXOc
Profit From The Core , Harvard Business
School Press, 2001
Winnovation - 5 ways to improve your
innovation pipeline
www.talarforum.se/artikel/rowan.
gibson/236/236/winnovation_5_
ways_to_improve_your_innovation_
pipeline.html
45. 45
INNOVATION CONGRUENCE
TO REALIZE SUCCESSFUL INNOVATION REQUIRES
COMMITMENT FROM THE TOP AND CONGRUENCE:
“TALK AND WALK”
“They say that innovation is important, but our leaders
aren’t interested of the latest technologies”
“Whenever I want to do a small experiment, I need to get
10 approvals and everybody is afraid of failure”
“Our values don’t stimulate any dialogue, it is more follow
what you are told”
46. 46
INNOVATION CONGRUENCE
KEY INSIGHTS
Congruence comes in several forms:
Translating innovation and growth vision into actual investments at risk
The leadership behaviors, demonstrating that innovation is valued through symbolic
actions, e.g. promoting innovation leaders who experienced entrepreneurial failure
Recruiting and capability building oriented to creativity, innovation, entrepreneurship and
risk taking
Metrics and rewards that stimulate behavior innovation and risk taking, e.g. Tracking and
rewarding new product revenues instead of total revenues
47. INNOVATION CONGRUENCE
KEY INSIGHTS: DEMONSTRATE THAT INNOVATION IS IMPORTANT
Source Picture: 10 business cases for CEOs to use social media. Retrieved June 20, 2013, from Arikhanson.com
www.arikhanson.com/2013/06/20/10-business-cases-for-ceos-to-use-social-media/
47
48. 48
INNOVATION CONGRUENCE
KEY INSIGHTS: CREATE THE RIGHT MINDSET
Develop appropriate mindsets towards risk and smart failure
At Google, Sheryl Sandberg made a bad decision costing millions of dollars. Co-founder
Larry Page responded:
“I’m so glad you made this mistake, because I want to run a company where we are moving
too quickly and doing too much, not being too cautious and doing too little. If we don’t have
any of these mistakes, we’re just not taking enough risk”
Source Picture: Official Logo of Google, Inc.Trademark and Website. Retrieved November, 2013, from Wikimedia
www.commons.wikimedia.org/wiki/File:Logo_Google_2013_Official.svg
49. INNOVATION CONGRUENCE
KEY INSIGHTS: EMBED INNOVATION VALUES
Source: Prokesch , S. How GE Teaches Teams to Lead Change. Retrieved January, 2009, from Harvard Business Review
www.ge.com/pdf/innovation/leadership/hbr_crotonville.pdf
49
50. 50
INNOVATION CONGRUENCE
KEY INSIGHTS: INSTALL THE RIGHT METRICS
Measure the innovation outputs, not the process (which is ugly)
Innovation strategy
vision e.g. contribution
of innovation to top-line
growth
Innovation process e.g.,
Net Promoter Score of
new concepts
Innovation pipeline e.g.,
e.g., overlap of portfolio
with vision in terms
of time, risk, size and
innovation type
Innovation leadership
commitment e.g.,
leadership time and funds
dedicated to innovation
Innovation skills and
culture e.g., % of time
spent with customers
Portfolio and project
management: Conversion
rate of ideas to profitable
projects, availability of key
resources
Innovators premium e.g.,
revenue and profit from
new products or services,
raking in top X of mostinnovative companies
Customer feedback e.g.,
customer satisfaction of
new products or services
Contribution to business
growth: positive ROI on
innovation
Source: Innovation Performance Measurement – Assessing and Driving the Innovation Performance of Companies. Retrieved January, 30, 2013,
from Detecon Consulting
www.innovationcenter.deteconusa.com/articles/innovation-performance-measurement-assessing-and-driving-the-innovation-performance-ofcompanies/
51. INNOVATION CONGRUENCE
51
FRAMEWORK: THNK INNOVATION CHANGE FRAMEWORK
Make innovation a critical part of your
growth vision and select the most
promising innovation plays
Build leaders that role model innovation
and build innovation capabilities through
tools and techniques
Make innovation a critical part of your
growth vision and select the most
promising innovation plays
52. 52
INNOVATION CONGRUENCE
FRAMEWORK: THNK INNOVATION CHANGE FRAMEWORK - EXAMPLES
Set-up time for external orientation among
all executives and managers (more time for
sensing)
Commit to a visioning journey with all
stakeholders involved over the course of 1-2
years
De-couple investments in innovation from
short term variability and earnings
Allocate substantial senior executive time on
innovation
Undertake an innovation challenge project
with the organization involved on a wider
societal project
Hire edgy external creative talent and put in leadership
positions before their age
Invest in technology skills in most relevant areas
Adopt concepting design methodologies
Reduce hierarchy and internal bureaucracy to foster
entrepreneurship
Put innovation success in KPI’s
53. INNOVATION CONGRUENCE
53
SOURCES
READING
VIDEO
Encouraging organizations to change: The
influence model, 2011, Colin Price
The inconvenient truth of change
management , 2000, Scott Keller and
Carolyn Aiken
Change Management - 30-Second
Management Training Course
www.youtube.com/watch?v=fpuHUiy_
xogfeature=youtube_gdata_player
Leadership training and change
management
www.youtube.com/watch?v=cB2vOmuzOgfeature=youtube_gdata_
player
Its not what you sell, it’s what you stand
for, Roy Spence
www.itsnotwhatyousell.com
Giving voice to values, Mary C. Gentile
The Innovator’s DNA: Mastering the
Five Skills of Disruptive Innovators,
Jeff Dyer , Hal Gregersen , Clayton M.
Christensen, Mel Foster
Innovation metrics
www.innovation-point.com/
innovationmetrics.htm
IBM iForum - Rethinking Innovation
Measurement by Dean Spitzer
54. 54
EXTERNAL ORIENTATION
Being externally orientated, resulting in privileged customer dialogue and cocreation, adapting quickly to trends and market signals, priority presence in
growth markets and venturing with like-minded partners with complementary
skills and experiences
55. EXTERNAL ORIENTATION OVERVIEW
55
TRENDS
SIGNALS
CUSTOMER
DIALOGUE
SPARKLING
PARTNERSHIPS
LEVERAGED
TAILWIND
Openness to uncertain
trends and weak signals
increases the probability
of a serendipitous insight
on opportunity spaces
and most attractive
hunting grounds
Innovation needs to
meet customer needs,
but in surprising new
ways that will not emerge
from simply asking the
customer what he or she
wants
Innovation partnerships
aim not so much for
synergy but for a creative
spark between two
literacies, two sets of
capabilities, two worlds of
experience
Focus on market
opportunities that are in a
growth window and take
advantage of the resulting
momentum; or renew a
market that is shrinking
with a break-through
innovation
PAGE 56
PAGE 62
PAGE 69
PAGE 78
56. 56
TRENDS SIGNALS
OPENNESS TO UNCERTAIN TRENDS AND WEAK SIGNALS
INCREASES THE PROBABILITY OF A SERENDIPITOUS
INSIGHT ON OPPORTUNITY SPACES AND MOST
ATTRACTIVE HUNTING GROUNDS
“For market research, we have default, automated set of
data that we collect to get new insights”
“I don’t have time to look at any other materials outside
of work”
“We are in execution mode now, we need to focus on
optimization – trends aren’t that important”
57. TRENDS SIGNALS
KEY INSIGHTS: MEGA TRENDS ARE PARAGDIGM SHIFTS
The world is complex and uncertain: inspiration for innovation results from being open to
contrary and surprise insights, the unusual news and disturbing information
The certain trends and the consistent signals only serve to continue the existing business
Examples of a few megatrends (THNK Paradigm Shifts)
Source: THNK Paradigm Shifts
www.thnk.org
57
58. 58
TRENDS SIGNALS
KEY INSIGHTS: “WEAK SIGNALS” HAVE A PATTERN
NOISE (RANDOM)
START OF
UPSWING IN
THE ECONOMY
DAILY VARIATION IN JOB ADVERTISEMENTS
NEW
CUSTOMER
TREND E.G.
SPIRITUALITY
NEWS ARTICLES
NEW
TECHNOLOGY
TREND
SCIENTIFIC ARTICLES
ILLUSTRATION
WEAK SIGNALS (PATTERNS)
INCREASING SHARE IN IT JOB ADVERTISEMENTS
AMOUNT OF ATTENTION IN GLOSSARIES, SEARCH
VOLUME
ACCUMULATION OF VC INVESTMENTS
59. TRENDS SIGNALS
KEY INSIGHTS: OTHER PLAYERS AS SOURCE OF WEAK SIGNALS
Southwest Airlines, a leading US budget airline, has
viewed the car and bus as its competitors and thereby
focused on offering inexpensive, frequent flights
between urban centres separated by 500 miles or
less. Short-haul, point-to-point flying however puts
greater physical stress on aircraft, adds to maintenance
costs and increases aircraft time on the ground which
is non-revenue producing time. To overcome these
disadvantages, Southwest Airlines has pursued a
number of operating strategies:
Strong focus on turning aircraft around quickly so
as to minimize time on the ground. This has required strong cross-functional collaboration
among pilots, gate agents, mechanics, fuelers, cleaners, caterers and others
Standardizing on one single operating platform – the Boeing 737 – and aligning as far as
possible all Standard Operating Procedures for these aircraft over time
Using less congested airports close to big urban centers – such as Dallas’ Love Field or
Chicago’s Midway – to avoid delays from using congested hubs
Radically limiting customer services, from on-board meals to advanced seat selection, to
reduce operational complexity and cost
Source Picture: JetBlast. Retrieved August 31, 2012, from Wikipedia
www.en.wikipedia.org/wiki/File:Southwest_Airlines_Logo.png
59
60. 60
TRENDS SIGNALS
TOOL: EXTERNAL ORIENTATION SURVEY
SURVEY FOR THE TEAM - QUESTIONS TO ASK YOURSELF
WE HAVE A CLEAR VIEW ON THE MAJOR 3-5 TRENDS AND DO A GOOD JOB IN
DEFINING THE POSSIBLE OPPORTUNITIES AND THREATS FOR OUR BUSINESS?
WE ARE OPEN TO AND IDENTIFY WEAK SIGNALS FROM THE MARKETS ABOUT THE
FUTURE TRENDS?
WE HAVE FREQUENT, CASUAL DIALOGUES WITH USERS THAT FORM THE BASIS
FOR UNDERSTANDING WHAT THEY VALUE MOST?
OFTEN NEW IDEAS OR INSIGHTS ARE A SPIN-OFF FROM SUGGESTIONS IN THE
MARKET?
WE ARE UP TO SPEED TO WHAT COMPETITORS DO IN THE INNOVATION SPACE AS
SOURCE FOR DIFFERENTIATION, INNOVATION AND POSSIBLE PARTNERSHIPS?
WE MAKE USE OF SOCIAL MEDIA AND LEVERAGE THE CROWD TO UNDERSTAND
WHAT IT VALUES MOST?
WE MAINTAIN STRONG RELATIONSHIPS WITH VARIOUS STAKEHOLDERS E.G.,
COMMUNITIES, GOVERNMENTS, REGULATORS?
STRONGLY
DISAGREE
DISAGREE
NEUTRAL
AGREE
STRONGLY
AGREE
61. TRENDS SIGNALS
61
SOURCES
READING
VIDEO
Harvard Business School: How can big
companies keep the entrepreneurial spirit
alive?
N/A
Harvard Business School case study:
Innovation and Collaboration at Merrill
Lynch
INSEAD case study: Transforming DNV:
From Silos to Disciplined Collaboration
across Business Units – Changes at the
Top
The Conference Board: The
entrepreneurial flame: How to keep it
burning brightly in your company?
IDEO workshop for techstars
www.slideshare.net/thulme/ideoworkshop-for-techstars?
Trend Watching
www.trendwatching.com
62. 62
CUSTOMER DIALOGUE
INNOVATION NEEDS TO MEET CUSTOMER NEEDS, BUT
IN SURPRISING NEW WAYS THAT WILL NOT EMERGE
FROM SIMPLY ASKING THE CUSTOMER WHAT HE OR
SHE WANTS
“I know that our product is good, the customer just still
has to discover how to best use it”
“You need to measure stuff – focus on the quantitative
data”
“As we know, it is more a push than a pull market”
63. CUSTOMER DIALOGUE
ESSENCE: MEETING CUSTOMER NEEDS IS CRUCIAL FOR INNOVATION
Reasons cited for failure of new products, %
Source: Innovation in consumer products. Retrieved 2008, from Accenture
www.accenture.com/SiteCollectionDocuments/PDF/ConsumerProductsGroupPoV_103008_fnl.pdf
63
64. 64
CUSTOMER DIALOGUE
KEY INSIGHTS: LISTENING IN GIVES VERY DIFFERENT CLUES
Example: customer research on diapers - survey vs. online dialogue
Source: Nielsen McKinsey Incite
65. CUSTOMER DIALOGUE
KEY INSIGHTS: MARKET RESEARCH IS NOT ENOUGH
Customers...
often have trouble articulating their unmet
needs
rarely have a clue why they do what they do
do not tell the truth
and rarely know what novel products and
services they would crave for, if only they knew
all possibilities that existed and had experience
with these
Source Picture: Retail prophet consulting
65
66. 66
CUSTOMER DIALOGUE
KEY INSIGHTS: WHO FOLLOWS THE USER BREAKING FREE?
Desired customer paths often deviate from the
paths as designed by the architect and usually
represents the shortest or most easily navigated
route between an origin and destination
How flexible do you think the architect is to change
his design and follow the preferences of the users?
Source Picture: The gentle author. Retrieved August 16, 2012, from Spitalfields life
www.spitalfieldslife.com/wp-content/uploads/2012/08/IMG_2244.jpg
67. CUSTOMER DIALOGUE
TOOL: USER INSIGHT AND FORESIGHT TOOLS
Source: THNK Concepting Flow
www.thnk.org
67
68. 68
CUSTOMER DIALOGUE
SOURCES
READING
VIDEO
The customer’s voice. Why are we so bad
ad hearing it? BCG
www.bcg.com/documents/file35167.pdf
Innovation in Consumer products,
Accenture, 2008
www.accenture.com/
SiteCollectionDocuments/PDF/
ConsumerProductsGroupPoV_103008_
fnl.pdf
Why I brought PacMan to Moma
www.ted.com/talks/paola_antonelli_
why_i_brought_pacman_to_moma.
html
Malcolm Gladwell: Choice, happiness
and spaghetti sauce
www.ted.com/talks/malcolm_gladwell_
on_spaghetti_sauce.html
The Power of Habit Why We Do What
We Do in Life and Business
www.youtube.com/
watch?v=a6p3lG9EDXw
Understanding change and predicting
trends
www.baekdal.com/insights/
understanding-change-and-predictingtrends/
Why we’re so bad at predicting the future
www.venturevillage.eu/predicting-future
69. 69
SPARKLING PARTNERSHIPS
INNOVATION PARTNERSHIPS AIM NOT SO MUCH FOR
SYNERGY BUT FOR A CREATIVE SPARK BETWEEN TWO
LITERACIES, TWO SETS OF CAPABILITIES, TWO WORLDS
OF EXPERIENCE. SCHUMPETER CALLS THIS “NEUE
KOMBINATIONEN”
“We do all our development in-house”
“We really struggle to build competitive advantage by
partnering with externals”
“Whenever we partner, we don’t really have a clear
added value or approach identified – it is more random”
70. 70
SPARKLING PARTNERSHIPS
ESSENCE: A COMPLEMENTARY COMBINATION
Company: An
international coffee and
coffeehouse chain
Contributions: Most
influential and recognized
brand for coffee drinks
Win: Brand extension,
capacity building, and
access to know-how that
fueled subsequent growth
and drove the creation of
other JVs. E.g., ice cream
partnership with Dreyers
Grand ice cream
Source Pictures: www.starbucks.com , www.pepsico.com
Company: A global
500 company active
in manufacturing,
marketing, and
distribution of snacks
and beverages in 200
countries
Contributions:
Well-established
manufacturing and
distribution channels
Win: Successful extension
into new product market
with reduced risk and
cost than go-alone
71. SPARKLING PARTNERSHIPS
KEY INSIGHTS: “UPWARD MARRIAGE”, PARTNERS OF BEST CHOICE
Red Bull, as a company, is all about
creativity, innovation, and doing things
differently, which is what Red Bull
Racing shares
It takes a completely different approach
to Formula One and offers partners the
ability to make their sponsorship come
alive – to create something people will
remember and gravitate toward
It tries to open up the possibilities, not
restrict the partners. It creates value
streams for partners in addition to those
normally associated with Formula
One, allowing them to exploit rights in
interesting and unusual ways
It is a premium sponsorship
opportunity, dedicated to working
with a small number of partners – with
the relationships based on creativity
and innovation – so that they gain
maximum benefit from the cooperation
Source Picture: Partnerships a team-building exercise. Retrieved November, 2013, from Red Bull
www.redbull.com/cs/Satellite/en_INT/Red-Bull-Racing-Partners/001242811070589
71
72. 72
SPARKLING PARTNERSHIPS
KEY INSIGHTS: THINK BROAD ABOUT POSSIBLE PARTNERSHIPS
Partnerships with venture capital firms
Benefits for VCs: Insight in market attractiveness,
commercialization viability, path to exit
Benefits for company: Insight in innovations, opportunity to
buy in early on, expand deal flow and network, great source for
innovation opportunities
Example: PG serves as a strategic partner for clean-tech
sector of VantagePoint
Partnerships with experts/academic institutions
Benefits for academic institution: Increased funding, facilities,
capabilities
Benefits for company: Access to cutting-edge and academic
research
Example: Unilever invested more than £13mn to establish
a world-leading research group in Cambridge, chemistry
department in emerging field of molecular informatics
Partnerships with suppliers
Benefits for supplier: Guaranteed volumes, control over supply
chain
Benefits for company: Discount on procurement; no need to
integrate upstream
Example: Green Giant, vegetable producer, partnered with
Seneca, processor of canned foods
Source Pictures: www.pg.com , www.v pcp.com , www-ucc.ch.cam.ac.uk , www.greengiant.com , www.senecasnacks.com
73. SPARKLING PARTNERSHIPS
ESSENCE: STRATEGIC FIT IS ONLY ONE CRITERIA
Example: JV assessment framework used by Lilly
Source: www.lilly.com
73
75. SPARKLING PARTNERSHIPS
75
TOOL: INNOVATION PARTNERSHIP CURRENCIES (1/2)
CURRENCY TYPE
RATIONALE FOR COMPANY
COINVESTMENT
ACCELERATE PROCESS
ACCESS TO CAPITAL
JOINT VENTURE
FINANCIAL SUPPORT
WHAT OTHERS MIGHT VALUE
SECURE ACCESS AND/OR
OWNERSHIP OF STRATEGIC
SOURCE OFVALUE
ACCELERATE PROCESS
EQUITY INVESTMENT
(MINORITY STAKE,
ACQUISITION)
REDUCE RISK AND COSTS
SECURE ACCESS AND/OR
OWNERSHIP OF STRATEGIC
SOURCE OF VALUE
COST SHARING
RATIONALE FOR PARTNER
REDUCE RISK AND COSTS
PAY FOR SERVICES
OISTRIBUTION NETWORK
(SCALE)
CHANNELS
POTENTIAL TO MONETIZE
FLXED COSTS IN
DISTRIBUTION AND CUSTOMER
RELATIONSHIPS
ACCESS TO DISTRIBUTION
NETWORK
ACCESS TO CUSTOMERS
(ACCESS)
ACCESS TO NEW
RELATIONSHIPS
SALESFORCE
LEVERAGE NEW CAPABILITIES
LICENSING
LOWER SGA AND MARKETING
COSTS
COMARKETING
LEVERAGE EXISTING
PARTNERSHIPS
ACCESS TO NEW PARTNERS
MANUFACTURING
CAPABILITIES (SCALE, CAPEX)
BRAND AND
RELATIONSHIPS
FIT WITH BRANDS WHILE
REDUCING UPFRONT
INVESTMENT
DRIVE PLANT UTILIZATION
REDUCE UPFRONT CAPEX
INVESTMENT
RESOURCES (E .G ., RD,
FINANCE)
HELP DRIVE VALUE FROM
FIXED COSTS
ACCESS NEW
MANUFACTURING
CAPABILITIES
COBRANDING (BRAND EQUITY)
FACILITATE INTERACTION WITH
OTHER PARTNERS
PHYSICAL ASSETS
LAB/OFFICE SPACE
LEVERAGE SCALE
LEVERAGE EXPERTISE
76. 76
SPARKLING PARTNERSHIPS
TOOL: INNOVATION PARTNERSHIP CURRENCIES (2/2)
CURRENCY TYPE
RATIONALE FOR COMPANY
TECHNOLOGY, LP
MONETIZE EXISTING
INSIGHTS, PROPRIETARY
KNOWLEDGE , TECHNOLOGY
ACCESS TO NEW INSIGHTS
PROPRIETARY KNOWLEDGE,
TECHNOLOGY
CONSUMER INSIGHTS
OVERLAP OF CONSUMER
SEGMENT
OVERLAP OF CONSUMER
SEGMENT
INTERNAL RECOGNITION
ENERGIZE INTERNAL EFFORT
STRENGTHEN PARTNERSHIP
MEETINGS WITH SENIOR
LEADERS
LOW COST INVESTMENT
POTENTIAL ACCESS TO
ADDITIONAL KNOW-HOW AND
PARTNERSHIPS
INVITATION TO FORUM , TRADE
SHOWS
STRENGTHEN PARTNERSHIP
ACCESS TO INTEMAL FORUM
KNOW-HOW
WHAT OTHERS MIGHT VALUE
RATIONALE FOR PARTNER
FACILITATE CROSS PARTNER
COMMUNICATION
SHARED VALUE AND MISSION
BUILD OR STRENGTHEN
COMMUNITY AROUND SHARED
SET OFVALUES
INDUSTRY EXPERTISE
FUNCTIONAL CAPABILITIES
RECOGNITION
KNOW-HOW AND
PARTNERSHIPS
ENGAGE OWN COMMUNITY
AROUND SHARED SET OF
VALUES
77. SPARKLING PARTNERSHIPS
77
SOURCES
READING
VIDEO
Creating new growth platforms. Harvard
Business Review May 2006
Managing Alliances with the Balanced
Scorecard. Harvard Business Review,
2010
Clay Shirky: Institutions vs. collaboration
www.ted.com/talks/clay_shirky_on_
institutions_versus_collaboration.html
OECD patent database
www.oecd.org/sti/inno/
oecdpatentdatabases.htm
78. 78
LEVERAGED TAILWIND
FOCUS ON MARKET OPPORTUNITIES THAT ARE IN
A GROWTH WINDOW AND TAKE ADVANTAGE OF THE
RESULTING MOMENTUM; OR RENEW A MARKET THAT IS
SHRINKING WITH A BREAK-THROUGH INNOVATION
“We only look at the general market trends, it’s not worth
it to zoom in into smaller markets”
“Our market is shrinking, but it will take a long time before
it is gone – no need to worry”
“We always tend to be unlucky – launching the product
where it is not relevant”
79. LEVERAGED TAILWIND
KEY INSIGHTS
Flying against the wind, swimming against the tide is incredibly difficult – so is growth in
declining markets
These markets are prone to be replaced by new entrants with innovations
Markets that do grow provide the room and expectation for ongoing innovation – this is a
major driver for enterprise growth
At the granular product/market/geography - segment level differences in growth are very
significant - for every “dog” there is an adjacent “star”
79
80. 80
LEVERAGED TAILWIND
KEY INSIGHTS: SWIMMING AGAINST THE TIDE IS DIFFICULT
On the verge of losing billions of dollars in revenue, U.S. Postal Service launched a campaign to
warn about the dangers of email and proposed paper-mail as a safer alternative
Source: Postal Service launches new ad campaign promoting snail mail. Retrieved September 29, 2011, from Washington Post
www.washingtonpost.com/posttv/business/economy/postal-service-launches-new-ad-campaign-promoting-snail-mail/2011/09/29/gIQAZJBB8K_video.html
81. LEVERAGED TAILWIND
FRAMEWORK: GROWTH OPPORTUNITIES ARE GRANULAR
Source Picture: Matheson, Z. Retrieved April 5, 2011, from The Atlantic
www.theatlantic.com/business/archive/2011/04/the-metro-story-growth-without-growth/73368/
81
82. 82
LEVERAGED TAILWIND
SOURCES
READING
VIDEO
Is your growth strategy flying blind?
Harvard Business Review, Mehrdad
Baghai, Sven Smit, and Patrick Viguerie,
2009
Jon Vander Ark: Get small to grow big in
micromarkets
www.youtube.com/
watch?v=PYzc9ZdVm2E
The alchemy of growth, 2000, Mehrdad
Baghai, Steve Coley, David White,
Stephen Coley
The granularity of growth, 2007, Patrick
Viguerie, Sven Smit Mehrdad Baghai,
2007
Business Growth - Get Connected, Get
Granular, Get Focused
www.youtube.com/
watch?v=BlC1IHMOENQ
Seth Godin: How to get your ideas to
spread
www.ted.com/talks/seth_godin_on_
sliced_bread.html
Malcolm Gladwell: Choice, happiness
and spaghetti sauce
www.ted.com/talks/malcolm_gladwell_
on_spaghetti_sauce.html
Megatrends. Tailwinds for growth in a
low-growth environment, 2010, BCG
83. 83
BIG VISION
Having a clear vision for the “next big thing”, that builds on the current strengths,
translates into serious investment commitment, includes optionality, combines
societal and economic value, aligns short term actions and leverages either
technology, business model disruption and customer delight
84. 84
BIG VISION OVERVIEW
THREE
HORIZONS
BIPOLAR FOCUS
MOEBIUS RING
INNOVATION
PLAYS
Any corporate needs a
balance of activities across
the 3 horizons: managing
core business, the next big
innovation and a portfolio
of future growth options
Combine commitment
to the longer term vision
with execution in the
very short term (“next
Monday”) actions. All at
the expense of futile midterm planning
Drive the enterprise
to deliver societal and
shareholder value in a
symbiotic way. Similarly,
deliver premium
value and lower cost
simultaneously
Three major plays of
innovation can be
observerd: technology,
business model
disruption and customer
delight
PAGE 85
PAGE 93
PAGE 99
PAGE 108
85. 85
THREE HORIZONS
ANY CORPORATE NEEDS A BALANCE OF ACTIVITIES
ACROSS THE 3 HORIZONS: MANAGING CORE BUSINESS,
THE NEXT BIG INNOVATION AND A PORTFOLIO OF
FUTURE GROWTH OPTIONS
“Investing in innovation would harm the bottom line”
“I am too busy with running the current business, no
time to think about what’s next”
“We have our current business and a few wild ideas, but
no innovation initiatives that are ready to be launched”
86. 86
THREE HORIZONS
ESSENCE: FROM ONE FLOWER TO AN ECOSYSTEM
“ Our thinking about growth and decay is
dominated by the image of a single life span,
animal or vegetable. Seedling, full flower, and
death. The flower that once has bloomed
forever dies...
... but for an ever-renewing society the
appropriate image is a total garden, a balanced
aquarium, or other ecological system. Some
things are being born, other things are
flourishing, still other things are dying, but the
system lives on.”
John Gardner
Self Renewal: The Individual and the Innovative Society,
W.W. Norton, 1981
Source Picture: Wallace, R. Retrieved August 31, 2013, from Flickr
www.flickr.com/photos/rob_wallace/9637672207/
Source Picture: ynnil. Retrieved April 12, 2009, from Flickr
www.flickr.com/photos/nnil/sets/72157617095488185/with/3465661693/
87. THREE HORIZONS
ESSENCE: BALANCE CURRENT AND FUTURE ACTIVITIES
Source: Inspired by original concept of Scott, A. Retrieved August 21, 2013, from Business Model Innovation Hub
www.businessmodelhub.com/profiles/blogs/the-business-model-canvas-and-2
87
88. 88
THREE HORIZONS
ESSENCE: BALANCE CURRENT AND FUTURE ACTIVITIES
Horizon 1: Defending and securing core business.
Horizon 2: Building emerging business.
Building on existing foundations and ensuring the “right to grow” by focussing efforts on
good business operations that are well equipped to absorb change and opportunity. Truly
understanding the business and the areas for improvement to build the best foundations.
Focusing on those ideas or initiatives that are ready to be executed, have been tested
and will extend existing business into parallel or new areas. Horizon 2 often involves
the development of new business models and defining and manage the impacts on the
incumbent business through implementing initiatives from Horizon 2.
Horizon 3: Market making.
Always dedicating some effort or thought to challenging business around what is truly
market defining. Having the ability to quickly test or recognise those ideas or opportunities
arising from Horizon 3 that will work and generate new markets.
Source: Scott, A. “The Business Model Canvas and Horizon Thinking”. Business Model Innovation Hub. 15 February 2011
www.businessmodelhub.com/profiles/blogs/the-business-model-canvas-and-2
89. THREE HORIZONS
KEY INSIGHTS: HAVE A BALANCED PORTFOLIO
Various dangerous profiles exist:
Horizon 2 only: “the all eggs in one basket” bet without a core business generating cash flow
Horizon 1 only: being focused on continuous firefighting in core business or maximizing
profitabily and market share while opportunities pass
Horizon 3 only: the risky profile of a visionary company that runs out of fuel
The optimal allocation of time and cash investments is probably (round numbers):
H1: 40-60%, H2: 30-40% and H3: 20-10%
89
90. 90
THREE HORIZONS
KEY INSIGHTS: LEADING FOR CONTINOUS GROWTH
Source: Baghai, M., Coley, S., and White, D. The alchemy of growth. London: Orion Business, 1999
www.mckinsey.com/Client_Service/Strategy/Latest_thinking/The_Alchemy_of_Growth.aspx
91. THREE HORIZONS
91
TOOL: 3 HORIZONS MANAGEMENT MODEL
ISSUE
H1
MATURE, WELL-ESTABLISHED
BUSINESSES
H2
RAPIDLY GROWING BUSINESS
TIME
HORIZON
CURRENT
FOCUS
EXTEND AND DEFEND CORE BUSINESS
INCREASE PRODUCTIVITY AND PROFIT CONTRIBUTION
LOW UNCERTAINTY/RISK
CURRENT; WILL EVENTUALLY FLATTEN OUT AND
DECLINE
SUBSTANTIAL PROFITS MAY BE 4-5 YEARS IN THE
FUTURE
WITHIN NEXT FEW YEARS, SHOULD COMPLEMENT OR
REPLACE CURRENT CORE BUSINESSES
FIND NEW REVENUE AND PROFIT GROWTH FOR THE
IMMEDIATE FUTURE THROUGH INCREMENTAL SALES,
LINE EXTENSIONS, AND INCREMENTAL EFFICIENCIES
MAKE REVENUE PLANS
BUILD THE BUSINESS
SCALE UP QUICKLY
MANAGE TRIPLE-DIGIT GROWTH
PROFIT
IMPACT
KEY
CHALLANGE
OUTPUTS
TYPE OF
PEOPLE
TALENT
APPROACH
MEASURES
CORPORATE
BEHAVIORS
MEDIUM TERM
BUILD EMERGING BUSINESSES
SCALE PROVEN BUSINESS MODELS, INCREASE
MARKET SHARE, AND GROW TO OPPORTUNITY
MEDIUM UNCERTAINTY/RISK
ANNUAL OPERATING PLAN: TACTICAL PLANS,
RESOURCE DECISIONS, BUDGETS
OPERATORS:
DEEP FUNCTIONAL AND/OR INDUSTRY EXPERTISE
STRONG DRIVE TO CONSISTENLY MEET PLANS
DISCIPLINE
CREATE PERSONAL CONSEQUENCES FOR NON-TERM
PERFORMANCE INCLUIDING CLEAR PENALTIES FOR
UNDER-PERFORMANCE
IMPOSE “NO EXCUSES” MANAGEMENT STYLE
H3
EMERGING BUSINESSES
BUSINESS-BUILDING STRATEGIES: INVESTMENT
BUDGET, DETAILED BUSINESS PLANS FOR NEW
VENTURES; VIABLE PRODUCTS
BUSINESS BUILDERS:
ENTREPRENEURIAL DESIRE TO CREATE
COMFORT WITH AMBIGUITY AND CHANGE
TOP-LINE FOCUSED, SHARP DECISION MAKER
LONG TERM
CREATE VIABLE OPTIONS
TEST BUSINESS MODELS, PROVE VIABILITY,
CAPABILITIES AND VALUE
DELIBERATE INITIATIVES TO SEED GROWTH
OPPORTUNITIES
HIGH UNCERTAINTY/RISK
MOST WILL NOT SUCCEED
A FEW CAN SECURE LONGER-TERM FUTURE
EXPLORE OPTIONS ON FUTURE OPPORTUNITIES,
SUCH AS RESEARCH PROJECTS, PROTOTYPES,
TEST MARKETS, ALLIANCES, AND INVESTMENTS TO
IDENTIFY AND BEGIN TO DEVELOP OPPORTUNITIES
TARGETS CANNOT BE SET WITH PRECISION
DECISIONS TO EXPLORE: INITIAL PROJECT PLAN,
PROJECT MILESTONES
VISIONARIES:
CHAMPIONS
UNCONVENTIONAL THINKERS
PROVIDE AUTONOMY/FREEDOM TO ACT AND MANDATE
TO CREATE AND BUILD
OPPORTUNITY TO CREATE PERSONAL WEALTH
THROUGH CASH BONUSES AND EQUITY PARTICIPATION
OPPORTUNITY TO BUILD AND LEAVE A LEGACY
PROVIDE PSYCHOLOGICAL REWARDS: RECOGNITION OF
IDEAS, FREEDOM TO EXPERIMENT AND EXPLORE
PROVIDE CAREER ADVANTAGE: OPPORTUNITY TO
SATISFY INTELLECTUAL CURIOSITY, OPTION TO
BECOME HORIZON 2 BUSINESS BUILDERS
TRADITIONAL BUDGETS AND CONTROLS
PROFIT
RETURN ON INVESTED CAPITAL
PRODUCTIVITY OF EFFICIENCY
HIGH REVENUE GROWTH
MARKET SHARE GAINS
NEW CUSTOMER ACQUISITIONS
CAPITAL INVESTMENT EFFICIENCY
EXPECTED NET PRESENT VALUE
REVIEW, CHECK
SET AGGRESSIVE TARGETS TO IMPROVE
SUPPORT TAKING RISKS
ADDRESS PROBLEMS TO SCALING
UNDERSTAND VIABILITY
PROJECT-BASED MILESTONES
OPTION VALUATION
RATE OF CONVERSION FROM IDEA TO BUSINESS
LAUNCH
NUMBER OF INITIATIVES
ENGAGE AND WORK WITH AND FOR
FIND VIABLE BUSINESS MODEL
Source: Garvin, David A., and Levesque, L. “Emerging Business Opportunities at IBM.” Harvard Business School Case 304-075, March 2004
www.hbs.edu/faculty/Pages/item.aspx?num=30958
92. 92
THREE HORIZONS
SOURCES
READING
VIDEO
Scott, A. “The Business Model Canvas
and Horizon Thinking”. Business Model
Innovation Hub. 15 February 2011
www.businessmodelhub.com/profiles/
blogs/the-business-model-canvas-and-2
AMCF Horizon Series: Strategy Thought
Leaders Define Strategy
www.youtube.com/
watch?v=0JyRXpYFIcg
Professor Richard Rumelt : What is Good
Corporate Strategy?
www.youtube.com/
watch?v=43kZDnyDXOc
Evan Williams on listening to Twitter
users
www.ted.com/talks/evan_williams_on_
listening_to_twitter_users.html17
Enduring Ideas: The three horizons of
growth. McKinsey Quarterly, 2009
Profit From The Core , 2001, Harvard
Business School Press
Profit From The Core , 2001, Harvard
Business School Press
Staircase to growth. McKinsey Quarterly,
1996
Stop Chasing Too Many Priorities.
Harvard Business review, 2011
Emerging Business opportunities at IBM,
2010, Harvard Business School
93. 93
BIPOLAR FOCUS
COMBINE COMMITMENT TO THE LONGER TERM VISION
WITH EXECUTION OF VERY SHORT TERM (“NEXT
MONDAY”) ACTIONS. ALL AT THE EXPENSE OF FUTILE
MID-TERM PLANNING
“Everything seems to be a priority, we are fire fighting”
“We spend endless time on strategic planning, but it is
more like a paper exercise”
“We don’t have a clear and inspiring goal to aim for”
94. 94
BIPOLAR FOCUS
ESSENCE
Combine long term commitment with short term action
Source Picture: Fisk, P. GeniusWorks
www.emeraldinsight.com
96. 96
BIPOLAR FOCUS
KEY INSIGHTS
Articulate the vision:
Ascertain oneself of organizational buy-in
Articulate an inspirational vision in a simple statement
Make the vision specific so that each employee knows what to focus on and what not to
focus on a day-to-day basis
Focus on action:
Ensure shared understanding, clear roles, decision-making rules, complementary skills
Shorten the feedback cycles drastically; don’t let people work for a long time without
getting input
Have an “undue” expectation of immediate follow-up and resolution (act immediately)
97. BIPOLAR FOCUS
97
TOOL: BIPOLAR FOCUS ASSESSMENT
IN OUR ORGANIZATION...
WE CAN DESCRIBE OUR LONGER TERM VISION IN 50 WORDS
ALL EMPLOYEES UNDERSTAND AND ARE COMMITTED TO THE LOGIC
OF THE LONGER TERM VISION AND WHAT GETS PRIORITIZED
WE FOCUS OUR DISCUSSIONS ON KEY STRATEGIC ISSUES, RATHER
THAN GETTING LOST IN IRRELEVANT NON-STRATEGIC MATTERS
OUT INTERNAL PROJECTS ARE INCONSISTENT WITH OUR LONGER
TERM VISION
OUR TIME SPENT ON PLANNING IS USEFUL AND EFFECTIVE
WE TRANSLATE OUR LONGER TERM VISION TO ANNUAL PLANS AND
BUDGETS IN A DISCIPLINED AND TRANSPARENT PROCESS
OUR PLANNING PROCESS IS DISCIPLINED WITH FOCUSED
INFORMATION REQUESTS AND ANALYSES REQUIRED FOR DECISION
MAKING
WE HAVE IDENTIFIED A FEW EARLY WARNING SIGNS FOR POSSIBLE
RISKS/THREATS THAT ARE ASSESSED PERIODICALLY (RATHER THAN A
VERY DATA INTENSIVE PROCESS)
WE HAVE A CLEAR LIST OF 3-6 CRITICAL STRATEGIC INITIATIVES WE
FOCUS ON
WE UNDERSTAND THE CRITICAL PATHS AND THE ACTIVITIES ON
THESE PATHS ARE STREAMLINED TO ACHIEVE OUR GOALS MOST
EFFECTIVELY
OUR PLANS ARE TRANSLATED INTO ACTIONS AND USED TO MEASURE
PROGRESS
WE HAVE CLEAR ACCOUNTABILITIES AND OUR INDIVIDUAL TARGETS
ARE ALIGNED WITH THE ANNUAL PLANS
LONGER
TERM VISION
EFFECTIVE
PLANNING
SHORT TERM
IMPACT
STRONGLY
DISAGREE
DISAGREE
NEUTRAL
AGREE
STRONGLY
AGREE
98. 98
BIPOLAR FOCUS
SOURCES
READING
VIDEO
Dave McClure’s 10 tips for the perfect
investment pitch
www.thenextweb.com/
entrepreneur/2011/10/29/davemcclures-10-tips-for-the-perfectinvestment-pitch/
The elevator pitch
www.youtube.com/
watch?v=Tq0tan49rmc
Effective Strategic Planning with the “Art
of Action”
www.youtube.com/
watch?v=yoFVPpo1eEE
Eleven start-up pitches archetypes with
examples from YC companies
www.jasonshen.com/2012/elevencompelling-startup-pitch-archetypeswith-examples-from-yc-companies/
Getting behind the perfect pitch, M. Kok
www.mjskok.com/resource/gettingbehind-perfect-pitch
Looking beyond the `Vision Thing’, 1997,
by Harari, Oren, Management Review,
1997
The power of bifocal vision by Albrecht,
Karl G,1994, Management Review
99. 99
MOEBIUS RING
DRIVE ENTERPRISE TO DELIVER SOCIETAL AND
SHAREHOLDER VALUE IN A SYMBIOTIC WAY. SIMILARLY,
DELIVER PREMIUM VALUE AND LOWER COST
SIMULTANEOUSLY
“I don’t think business and doing good for society can
go hand in hand”
“We are a non-profit, so we better not have any
overhead”
“Contributing to society always makes the business
more complicated and expensive”
100. 100
MOEBIUS RING
ESSENCE: INTEGRATE PEOPLE, PLANET, PROFIT
People/planet versus profit are not two sides of a ring–
they are the same side of the coin
Source Picture: Benbennick, D. Retrieved March 14, 2005, from Wikimedia Commons
www.commons.wikimedia.org/wiki/File:M%C3%B6bius_strip.jpg
101. MOEBIUS RING
KEY INSIGHTS: EXAMPLE OF TRIPLE P INTEGRATION
We help people around the world meet everyday
needs for nutrition, hygiene and wellbeing, with
brands that help people look good, feel good
and get more out of life. We work to create a
better future every day for our consumers and
the communities in which we operate. We aim
to double the size of Unilever while reducing our
impact on the environment
Our oral care brands encourage children to brush their teeth day and night for optimal dental
health. We helped parents believe that children learn through play, and mud spatters and
grass stains can easily be removed with effective laundry product. We bring our expertise in
nutrition to children in some of the world’s poorest countries. Our margarine brands have
been scientifically proven to help reduce cholesterol levels. We provide research into skin
conditions and support for people affected by them. We promote hand washing with soap
has reached more than 70 million people in rural India. (Through Dove) we educate and
inspire millions of young women. We provide affordable oral care solutions for consumers in
developing markets. We encourage consumers to change their laundry habits to reduce water
and energy consumption. We back sustainable forest management projects in Africa. Many
of our brands contain ethically and sustainably sourced ingredients that are independently
certified. Around half our raw materials come from agriculture and forestry, so we’re working
towards making our key crops 100% sustainable
Source Picture: Unilever. Retrieved December, 2013, from Unilever.com
www.unilever.com
101
102. 102
MOEBIUS RING
FRAMEWORK: SOCIAL IMPACT AND SHAREHOLDER VALUE
Break-through innovation creates shareholder and societal value
103. MOEBIUS RING
KEY INSIGHTS
Break-through innovation can lead to increasing both societal and shareholder value in an
integrated manner
Opportunity for “profit” sector:
To broaden scope from reducing cost to reducing societal burden
To broaden scope from revenue growth to convincingly improve society
To stimulate innovation through usage of stretched targets e.g., zero footprint and
continued employment growth
Opportunity for “non-profit” sector:
Combine social mission with economically sound business model
Apply good business practices to maximize impact
103
104. 104
MOEBIUS RING
KEY INSIGHTS: EXAMPLES OF TRIPLE P BREAKTHROUGHS
LAMP
CAR
BOTTLE
CONTRIBUTE
TO SOCIETY
LED LAMP ENABLES
STUDENTS TO STUDY
BETTER IN CLASSROOM
CAR WITH AUTOMATED
SYSTEM TO AVOID
ACCIDENTS
BOTTLE PROMOTES BREAST
CANCER AWARENESS
REDUCE COST
TO SOCIETY
LED LAMP SAVES
ELECTRICITY
CAR CONSUMES LESS
FUEL
BOTTLE OF
BIODEGRADABLE
MATERIALS REDUCES CO2
AND WASTE FOOTPRINT
105. MOEBIUS RING
TOOL: FROM SOCIAL RESPONSIBILITY TO SHARED VALUES
Source: Porter, M. and Kramer, M. Retrieved December 22, 2010, from Harvard Business Review
www.hbr.org/2011/01/the-big-idea-creating-shared-value
105
106. 106
MOEBIUS RING
TOOL: “NON-PROFIT” PROFESSIONAL MANAGEMENT
FROM TRADITIONAL NON-PROFIT PRACTICES...
FOCUS OFTEN ON ACTIVITIES RATHER THAN
...TO COMMON BUSINESS PRACTICES
CLEAR, QUANTITATIVE METRICS ON IMPACT
IMPACT
PERFORMANCE
MEASURES
MEASURE ONLY AT THE END OF A PROJECT
SYSTEMATIC AND FREQUENT MEASUREMENTS
OFTEN BLURRED LINES BETWEEN BOARD AND
CLEARLY DEFINED RESPONSIBILITIES ACROSS
STAFF
GOVERNANCE
BOARD MUST SUBSTITUTE FOR DISCIPLINARY
THE WHOLE ORGANIZATION
STRONG SUPERVISORY BOARD
ROLE OF CAPITAL MARKETS
FUNDING PARTNERS FOCUS ON DIRECT
PROJECTS EXPENSES RATHER THAN SUPPORT
STRUCTURE
FUNDING
FRAGMENTED FUNDING SOURCES AND
RELIANCE ON DONATIONS
OFTEN FACE HR CONSTRAINTS AND LESS
MANAGEMENT CAPABILITY
HUMAN
RESOURCES
STAFF TYPICALLY MOTIVATED BY CAUSE
OBTAIN FUNDING ALSO FOR “OVERHEAD” AND
MARKETING
DON’T RELY ONLY ON GRANTS OR GIFTS FOR
FUNDING , ALSO CONSIDER OTHER BUSINESS
MODELS
HIRE AND INVEST IN GOOD MANAGEMENT BY
PROVIDING MARKET CONFORM SALARIES
PROVIDE REWARDS/INCENTIVES BASED ON
PERFORMANCE
LACK OF MARKETING BUDGET
EFFECTIVE MARKETING EFFORTS FOCUSED ON
TARGET SEGMENTS
MARKETING
UNFOCUSED, WIDELY SPREAD MARKETING
DECENT MARKETING BUDGET
LIMITED OR UNPROFESSIONAL SUPPORT
EFFECTIVE MANAGEMENT PROCESSES
EFFORTS
SUPPORT
PROCESSES
PROCESSES DUE TO LACK OF INVESTMENTS
AND SKILLED RESOURCES
AVERSE ATTITUDE TOWARDS CLEAR
ACCOUNTABILITY AND FORMAL PROCESSES
(INVESTMENT DECISIONS, HR MANAGEMENT,
BUDGETING, ETC)
LEAN OPERATIONAL PROCESSES
107. MOEBIUS RING
107
SOURCES
READING
VIDEO
Building Social Business Models: Lessons
from the Grameen Experience
www.sciencedirect.com/science/article/
pii/S0024630109001290
Michael Porter, Creating shared value
www.youtube.com/watch?v=z2oS3zk8V
A4feature=youtube_gdata_player
What non-profits can learn from
CocaCola
www.ted.com/talks/melinda_french_
gates_what_nonprofits_can_learn_
from_coca_cola.html
The way we think about charity is dead
wrong
www.ted.com/talks/dan_pallotta_the_
way_we_think_about_charity_is_
dead_wrong.html
Creating shared value, Harvard Business
Review, 2011
Peepoo bag: customer value proposition
and business model for social
entrepreneurs
www.businessmodelalchemist.
com/2010/08/combiningbusiness-model-prototypingcustomer-development-and-socialentrepreneurship.html
Shaping the future: Solving Social
Problems through Business Strategy,
McKinsey Company
108. 108
INNOVATION PLAYS
THREE MAJOR PLAYS OF INNOVATION CAN BE
OBSERVERD: TECHNOLOGY, BUSINESS MODEL
DISRUPTION AND CUSTOMER DELIGHT
“We have been succesfull with this business model for a
while, no need to change the value chain dynamics”
“We always base our offerings on clearly identified
customer preferences, supported by quantitative data”
“Technology doesn’t play a clear role in our industry”
109. INNOVATION PLAYS
109
OVERVIEW
TECHNOLOGY
BUSINESS MODEL
DISRUPTION
CUSTOMER DELIGHT
Using a new, improved or new
combination of technologies in the
offering itself, in the development,
manufacturing or delivery process
Change the value chain players,
economics, creating new profit or
changing the delivery models for an
offering
Break-through innovation is not
based on customer preferences or
articulated needs; indeed innovation
will surprise customers and create
new needs
PAGE 110
PAGE 117
PAGE 126
110. 110
INNOVATION PLAYS:
TECHNOLOGY
USING A NEW, IMPROVED OR NEW COMBINATION OF
TECHNOLOGIES IN THE OFFERING ITSELF, IN THE
DEVELOPMENT, MANUFACTURING OR DELIVERY
PROCESS
“We do all our RD in-house, more effective than to
involve externals”
“When the market starts to disqualify the initial hype,
what do you do?”
“It will take a long time before technologies will be able
do that”
111. INNOVATION PLAYS: TECHNOLOGY
ESSENCE: BUY IS OFTEN MORE EFFECTIVE THAN BUILD
BENEFIT OF BUY VS. BUILD
LEVERAGING EXTERNAL ASSETS/TALENT AT LOW/NO COST
REDUCTION OF
RD COST
SHARING OF UP-FRONT INVESTMENTS AND RUNNING EXPENSES
ACCESS TO MORE SPECIALIZED TALENT
LOWER
PROJECT
FAILURE RATE
EARLY UNDERSTANDING OF STAKEHOLDER NEEDS (CUSTOMERS, SUPPLIERS, ETC.)
DEVELOP MULTIPLE TECHNOLOGIES IN PARALLEL
ACCESS TO BROADER IDEA AND TALENT BASE
BETTER
QUALITY OF
INNOVATION
ACCESS TO DEEPER KNOWLEDGE OF CUSTOMERS’ AND SUPPLIERS’ NEEDS
MORE EYES ON PROBLEMS
FASTER TIME
TO MARKET
INVOLVEMENT OF MORE SPECIALIZED TALENT AND ASSETS SPEEDS UP IDEATION PHASE
111
112. 112
INNOVATION PLAYS: TECHNOLOGY
KEY INSIGHTS: TECHNOLOGY PERFORMANCE OVER TIME
Leveraging the external market to source intellectual property and develop new technologies is
often more effective than developing these in-house
NEXT TECHNOLOGY LOOKS INITIALLY INFERIOR
113. INNOVATION PLAYS: TECHNOLOGY
KEY INSIGHTS: STEP IN AFTER THE PHASE OF DISILLUSIONMENT
The optimal time to commit to a new technology might be when the market starts to disqualify
the initial hype
Source: Gartner’s 2012 Hype Cycle for Emerging Technologies. Retrieved July, 2012, from Gartner.com
www.gartner.com/technology/research/hype-cycles/
113
114. 114
INNOVATION PLAYS: TECHNOLOGY
KEY INSIGHTS: DO-IT-YOURSELF
Digitalization is the “über” technology trend driving down costs exponentially, providing
superior control and access and opening up the “Internet of things”. Moore’s law dynamics
continue to surprise progress
COST OF COMPUTING POWER EQUAL TO AN IPAD2
Source: Cost of Computing Power Equal to an iPad2. Retrieved August 5, 2011, from hamiltonproject.org
www.hamiltonproject.org/multimedia/charts/cost_of_computing_power_equal_to_an_ipad2/
116. 116
INNOVATION PLAYS: TECHNOLOGY
SOURCES
READING
VIDEO
Disruptive technologies: advances that
will transform life, business and global
economy. McKinsey Global Institute
www.mckinsey.com/insights/mgi.aspx
Everything is a remix
www.everythingisaremix.info/watch-theseries
Digital transformation, we haven’t seen
anything yet
www.youtube.com/
watch?v=AZ5ePL36BbU
Johanna Blakley: Lessons from fashion’s
free culture
www.ted.com/talks/johanna_blakley_
lessons_from_fashion_s_free_culture.
html
Ray Kurzweil: The accelerating power of
technology
www.ted.com/talks/ray_kurzweil_on_
how_technology_will_transform_
us.html
Digitizing the value chain for high
performance, Accenture, 2012
www.accenture.com/
SiteCollectionDocuments/PDF/
Accenture-Digitizing-the-Value-Chainfor-High-Performance.pdf
2013 internet trends. Kleiner Perkins
Caufield Buyers
www.kpcb.com/insights/2013-internettrends
Pretty profitable parrots
www.economist.com/node/21554500
First mover or fast follower, Bloomberg
www.bloomberg.com/news/2012-0614/first-mover-or-fast-follower-.html
117. 117
INNOVATION PLAYS: BUSINESS
MODEL DISRUPTION
CHANGE THE VALUE CHAIN PLAYERS, ECONOMICS,
CREATING NEW PROFIT OR CHANGING THE DELIVERY
MODELS FOR AN OFFERING
“Our value chain is still intact – we control and operate
in all steps”
“Technology enables our customers more are more –
they almost take over the power”
“Software is taking over our service industry”
119. INNOVATION PLAYS: BUSINESS MODELS
KEY INSIGHTS
Split of value chains and modularity. Value chains from raw materials to final products or from
research to after-sales service are split into separate steps. Niche players who excel in just one
step in the chain emerge
Do-it-Yourself business models. Empowered by the Internet, consumer and business
customers can design and create their own services. This is superior in terms of engagement,
customization and cost of delivery
Shift from services to software. Related to DIY is the shift to software. It significantly reduces
costs, and increases functionality for users
“Big hit” and long tail (platform) opportunities. The number of global hit products and
services is increasing. So it the fragmentation of the long tail of niche products and services
Bipolarization. Both the “premium” high end and the “valued” low end grow at expense of the
middle. This holds for almost all industries
Mass Individualization. Customer Relationship management (customer databases combined
with software based recommendation engines allows for individual offers at mass scale)
Authenticity/craftsmanship/relationship. The antidote of software based services and global
“big hit” brand is the appeal of any product local, with a story and a face of the craftsman who
produced the good
119
121. INNOVATION PLAYS: BUSINESS MODELS
KEY INSIGHTS: DO-IT-YOURSELF
MakerBot
Manufacturing
3-D Prototyping/Printing
oDesk/eLance
Workforce as a Service (WaaS)
Employment
On-Demand/Global
Airbnb
Housing
Turn Privately-Owned Properties into Hotel
Experience
Source Pictures:
www. store.makerbot.com/replicator2.html , www.odesk.com , www.airbnb.com
121
122. 122
INNOVATION PLAYS: BUSINESS MODELS
KEY INSIGHTS: SERVICES TO SOFTWARE
VIP Fridge magnet
Pizza ordering by home delivery in Dubai
Bluetooth enabled fridge-magnet button to
order pizza’s
Västtrafik Tram sightseeing
Free app that guides visitors to the nearest trams
stop
Public transport
Phone GPS triggers the right audio tour guide
Push to talk in Shanghai
Taxi service
Voicemail of customer is instantly delivered to
all nearby available taxis
Taxi driver chooses to answer
Source Pictures:
www. redtomato.biz/magnet , www.vasttrafik.se/timetables/sightseeing/index_eng.html ,
www.commons.wikimedia.org/wiki/File:Shanghai_62580000_Taxi.jpg
123. INNOVATION PLAYS: BUSINESS MODELS
KEY INSIGHTS: WHAT TO DO TO THRIVE WITH PLATFORMS
Will you be the disrupter or the disrupted?
To act on platform opportunities, consider the three factors transforming industry and
embrace them:
Remake the role that experts play inside your business to leverage user capabilities outside
your business. Build social curation and reputation systems to employ the collective
intelligence and judgment of your users
Connect consumers to their best product options, regardless of source, through data-driven
matchmaking. The firm that builds an OpenTable for consumer finance, considering
appetites for risk and reputations of products that deliver on promises, would help buyers
make sense of the dizzying array of complex and disconnected products. The value would
be enormous
Finally, solve a consumer problem in your industry by marshaling spare resources. If you’re
in transportation, build systems that employ other people’s trucks before expanding your
own fleet
Source: Choudary, S.P. Retrieved October 19, 2013, from platformed.info
www.platformed.info/platform-economics
123
125. INNOVATION PLAYS: BUSINESS MODELS
SOURCES
READING
VIDEO
Big Bang disruption, Harvard Business
Review, March 2013
Digitalizing the value chain for high
performance. Accenture
www.accenture.com/
SiteCollectionDocuments/PDF/
Accenture-Digitizing-the-Value-Chainfor-High-Performance.pdf
Authors@Google: Eric Ries “The Lean
Startup“
www.youtube.com/
watch?v=f EvKo90qBns
Platform thinking
www.platformed.info/platformeconomics
Reinventing your business model,
Harvard Business Review, 2008
Unbundling of the value chain, The
internet’s impact on supply chain
relationships
www.boozallen.com/media/file/80560.
pdf
125
126. 126
INNOVATION PLAYS: CONSUMER
DELIGHT
BREAK-THROUGH INNOVATION ISN’T BASED ON
CUSTOMER PREFERENCES OR ARTICULATED NEEDS;
BUT WILL SURPRISE CUSTOMERS AND CREATE NEW
NEEDS
“Our NPS is way below the industry average”
“We have many new ideas and technologies, just didn’t
discover yet how they can be useful for the customer”
“We focus innovation either on making a premium or
providing and offering at extremely low cost”
127. INNOVATION PLAYS: CUSTOMER DELIGHT
KEY INSIGHTS
The customer needs to be delighted and therefore conclude he wants it
Almost all industries have the potenial for a high NPS
Source: Consumer Benchmark Survey. Retrieved Q3, 2013, from Temkin Group
www.experiencematters.wordpress.com/category/temkin-group-research/
127
128. 128
INNOVATION PLAYS: CUSTOMER DELIGHT
KEY INSIGHTS
The customer needs to be delighted and therefore conclude he wants it
NPS has to reach treshold for market to take off
Source: IT Benchmark Survey. Retrieved Q1, 2012, from temkingroup.com
www.experiencematters.wordpress.com/2012/05/14/net-promoter-score-and-market-share-for-60-tech-vendors/
129. INNOVATION PLAYS: CUSTOMER DELIGHT
FRAMEWORK: BI-POLARIZATION SPECTRUM
Break-through innovation combines better functionality and lower cost, combining the two
ends of the spectrum (E.g. Wikipedia versus an encyclopedia)
129
130. 130
INNOVATION PLAYS: CUSTOMER DELIGHT
TOOL: PIVOT POINTS
The final purpose of a new concept of technology can derivate significantly from the original
intent
With “pivot”, you keep one fundamental aspect of your concept fixed, with changing the other,
based on what is most wanted in the moment
CUSTOMER SEGMENT
(SAME SEGMENT,
DIFFERENT SERVICE/
PRODUCT)
CUSTOMER NEED
(SAME PROBLEM
RESOLVED, DIFFERENT
PRODUCT/SERVICE)
CHANNEL
(SAME SERVICE/PRODUCT,
NEW CHANNEL)
VALUE CAPTURE
(SAME SERVICE/PRODUCT,
NEW REVENUE MODEL)
ZOOM IN
(FEATURE BECOMES
PRODUCT)
ZOOM OUT
(PRODUCT BECOMES
FEATURE)
PURPOSE
(SAME OVERARCHING
PURPOSE, DIFFERENT
BUSINESS MODEL)
TECHNOLOGY
(SAME TECHNOLOGY,
DIFFERENT USAGE)
131. INNOVATION PLAYS: CUSTOMER DELIGHT
TOOL: USER INSIGHT AND FORESIGHT TOOLS
Source: THNK Concepting Flow
www.thnk.org
131
132. 132
INNOVATION PLAYS
SOURCES
READING
VIDEO
The customer’s voice. Why are we so bad
at hearing it? BCG
www.bcg.com/documents/file35167.pdf
Innovation in Consumer products,
Accenture, 2008
www.accenture.com/
SiteCollectionDocuments/PDF/
ConsumerProductsGroupPoV_103008_
fnl.pdf
Why I brought PacMan to Moma
www.ted.com/talks/paola_antonelli_
why_i_brought_pacman_to_moma.
html
Malcolm Gladwell: Choice, happiness
and spaghetti sauce
www.ted.com/talks/malcolm_gladwell_
on_spaghetti_sauce.html
The Power of Habit Why We Do What
We Do in Life and Business
www.youtube.com/
watch?v=a6p3lG9EDXw
Understanding change and predicting
trends
www.baekdal.com/insights/
understanding-change-and-predictingtrends/
5 ways companies can pivot like lean
www.fastcodesign.com/1672580/5ways-big-companies-can-pivot-like-leanstartup
Why we’re so bad at predicting the future
www.venturevillage.eu/predicting-future
133. 133
TOP TALENT
Ensuring the organization nurtures, attracts and protects innovation “rock stars”
– the individual innovation leaders that will take the risks, and “break the eggs”
to eventually make innovation happen - and allow them to orchestrate strong
creative teams around them
134. 134
TOP TALENT OVERVIEW
ORCHESTRATING
TEAMS
TALENT MAKE
AND BUY
CULT OF
INNOVATOR
ROCK STAR
GOVERNANCE
HEADROOM
There are three essential
elements to an effective
team: casting, setting-up
the team, followed by
leading the organization
Break-through innovation
requires infusion of
external talent to engage
“fresh eyes”, ask naive
questions and collect
novel analogies
The output difference
between an outstanding
creative talent and a good
creative talent is huge ,
much more significant
than in operating or
management jobs
Form a supervisory
board that can stretch
the executive board
and stretches with the
board in the continued
accelerated growth in
terms of vision and
innovation
PAGE 135
PAGE 144
PAGE 150
PAGE 156
135. 135
ORCHESTRATING TEAMS
THERE ARE THREE ESSENTIAL ELEMENTS TO AN
EFFECTIVE TEAM: CASTING, SETTING-UP THE TEAM,
FOLLOWED BY LEADING THE ORGANIZATION
“We have great idea generation sessions with our
management team, but nobody seems to care about the
execution”
“I can’t rely on my team members, they never keep their
promises”
“Our roles are not very clear, each member of the board
seems to focus on their own hobby horses”
137. ORCHESTRATING TEAMS
KEY INSIGHTS
Hire bigger than you are
“If each of us hires people who are smaller than we are, we shall become a company
of dwarfs. But if each of us hires people who are bigger than we are, we shall become a
company of giants.” - David Ogilvy
“Hop, step, jump”
Hop: Cast the management team with the right mix of capabilities and personality types
Step: Align the team on a common goal and primitives
Jump: Lead the team from the front and the back
The creative people for one’s team can be found across all functions and are best characterized
as paradoxical
As innovation is a perilous journey, one wants people who one can trust
137
138. ORCHESTRATING TEAMS
KEY INSIGHTS
HIRE PEOPLE THAT ARE BIGGER THAN YOU ARE
B
UT I
F
CH O
F EA
WE S
E
AN W
R TH
LLE
A
E SM
O AR
E WH
PL
rfs
PEO
dwa
RES
Y OF
S HI
PAN
FU
O
M
ACH
A CO
IF E
OME
B EC
L
HAL
WE S
ARE
H
US H
BE
ALL
IR
EO
ES P
COM
EA
PLE
W
OF
E AR
E
N TS
GIA
RE
HO A
Y
PAN
COM
NW
THA
BIGG
ER
- David Ogilvy
138
139. ORCHESTRATING TEAMS
KEY INSIGHTS: TYPICAL PROFILE OF CREATIVE PEOPLE
Creative people are paradoxical
Combining convergent and divergent thinking
Smart and fast , yet naïve about what does not work
Playful with discipline, putting in long hours.
Imagination combined with a rooted sense of reality. Rebellious yet deeply rooted in an area
of expertise
Extroverted, yet reserved and reflective
Humble about importance of luck and of predecessors while proud of achievement
Sensitive, even in pain, with lack of perfection, yet truly enjoying the creative pursuit
Great bursts of energy, combined with periods of quiet and at rest
Source: Csikszentmihalyi, M. “Creativity: The Work and Lives of 91 Eminent People.” HarperCollins, 1996
www.hbs.edu/faculty/Pages/item.aspx?num=30958
139
140. 140
ORCHESTRATING TEAMS
FRAMEWORK: WHO TO TRUST
Behaviors that build trust
Credibility: Personality traits for and
track record in creative efforts
Reliability: Consistency
between what is said and
body language
Personal connect:
Empathy and
willingness to
disclose and be
vulnerable about
weaknesses and
concerns
Source: storebukkebruse. Retrieved September 14, 2012, from Flickr
www.flickr.com/photos/tusnelda/8408155485/
Behaviors that undermine trust
Self-orientation: Degree of egocentricity.
Lack of willingness to understand the
other person. Inability to be generous
141. ORCHESTRATING TEAMS
141
TOOL: MBTI PRE-TEST
DISCLAIMER
These are 4 questions, only to give a first indication. To do a proper assessment of your MBTI
profile, use the formal MBTI test1.
MBTI PRE-TEST
QUESTIONS
PROFILE INDICATION
PEOPLE AROUND YOU: E
INNER STRENGTH: I
FUTURE: N
WHEN PUSHED, WHAT IS MORE IMPORTANT, WHAT IS BEING SAID OR WHO SAID IT? WOULD YOU LIE FOR A FRIEND?
NO: T
DO YOU PREFER PLANNING OR SURPRISE? HOW DO YOU APPROACH HOLIDAY?
SURPRISE: P
WHAT IS YOUR SOURCE OF ENERGY, PEOPLE AROUND YOU OR INNER STRENGTH?
DO YOU THINK ABOUT THE PRESENT OR DO YOU THINK ABOUT THE FUTURE? WHAT DO YOU ENJOY MOST,
REALIZATION OF ANTICIPATION?
PRESENT: S
YES: F
PLANNING: J
TEAM IMPLICATIONS
Ensure team members are aware of differences in style and personalities without being
judgmental
Ensure the team is sufficiently balanced or is aware of the weaknesses (e.g., no one likes
planning)
1
. Please refer to the official website of Myers and Briggs for the official MBTI test: www.myersbriggs.org
142. 142
ORCHESTRATING TEAMS
TOOL: TEAM ASSESSMENT
SURVEY FOR THE TEAM - QUESTIONS TO ASK YOURSELF
OUR TEAM HAS ALL FUNCTIONAL SKILLS AND BEHAVIOR STYLES TO WIN
OUR TEAM HAS SUFFICIENT COMMONALITY TO RECOGNIZE AND TRUST
EACH OTHER
OUR TEAM IS SUFFICIENTLY DIVERSE TO AVOID GROUP THINK
TEAM MEMBERS ENJOY WORKING WITH AND INTERACTING WITH EACH
OTHER
WE ALL AGREE ON THE SAME VISION FOR THE COMPANY IN 3-5 YEARS
TIME
TEAM MEMBERS WILLINGLY MAKE SACRIFICES (SUCH AS BUDGET, TURF,
HEAD COUNT) IN THEIR DEPARTMENTS OR AREAS OF EXPERTISE FOR
THE BETTER OF THE TEAM
WE HAVE CLEAR AGREEMENTS ON ROLES, DECISION RIGHTS AND WAY OF
WORKING
WE HAVE AN OPEN DIALOGUE, WE DARE TO CHALLENGE EACH OTHER IN
A PRODUCTIVE CONFLICT, LEAVING NOTHING UNSAID AND PICKING UP THE
BEST IDEAS
WE WORK TOGETHER IN A TRUST-BASED MANNER, SHARING FEARS,
ADMITTING MISTAKES AND CONNECTING ALSO ON A PERSONAL LEVEL
WE GIVE EACH OTHER FEEDBACK
WE ALL RECEIVE CLEAR DIRECTION
EACH OF US HAS A PROPER MANDATE AND THIS IS CASCADED DOWN INTO
THE ORGANIZATION THROUGH DELEGATION OF ROLES AND AUTHORITIES
WE GET THE RIGHT TRAINING, TOOLS AND SUPPORT
WE HAVE THE RIGHT CONTROLS AND SAFETY-NETS IN PLACE TO AVOID
SIGNIFICANT FAILURES
CASTING
ORCHESTRATING
LEADING
STRONGLY
DISAGREE
DISAGREE
NEUTRAL
AGREE
STRONGLY
AGREE
143. ORCHESTRATING TEAMS
143
SOURCES
READING
VIDEO
MBTI profile
www.myersbriggs.org
Alternative MBTI profile
www.similarminds.com
Five Dysfunctions of a Team
www.youtube.com/
watch?v=UtB6D9tIjl8
Learning styles inventory, California
Management Review Article “Innovation
as a Learning Process: Embedding Design
Thinking”
www.vimeo.com/3475327
Dare to disagree
www.ted.com/talks/margaret_
heffernan_dare_to_disagree.html
Personality pathways
www.personalitypathways.com/type_
inventory.html
Team work at the top, 2001, McKinsey
Quarterly
Three steps to building a better top team,
2011, McKinsey Quarterly
144. 144
TALENT MAKE AND BUY
BREAK-THROUGH INNOVATION REQUIRES INFUSION OF
EXTERNAL TALENT TO ENGAGE “FRESH EYES”, ASK
NAIVE QUESTIONS AND COLLECT NOVEL ANALOGIES
“I really need a radical new way of thinking in our
organization”
“It will just take too long to train people in-house to be
able to master this skill”
“We have a blind spot for those competences and we
typically don’t have them in our DNA”
145. TALENT MAKE AND BUY
ESSENCE: RECRUIT INNOVATIVE PEOPLE
To illustrate, Bezos described how
he surrounds himself with people
at Amazon who are inventive.
He asks all job candidates: “Tell
me about something that you
have invented.” He adds, “Their
invention could be on a small
scale—say, a new product feature
or a process that improves the
customer experience, or even a
new way to load the dishwasher.
But I want to know that they will
try new things.”
“I also look for people who
believe they can change the
world,” Bezos stated. “If you
believe the world can change,
then it’s not a stretch to believe
you can be a part of it.”
Source Picture: Forbes Staff. Retrieved April, 2012, from Forbes.com
www.forbes.com/sites/forbespr/2012/04/04/press-release-amazons-jeff-bezos-tops-the-list-of-the-best-ceos-for-the-buck-while-sirius-xm-radiosmel-karmazin-ranks-as-one-of-the-lowest/
145
146. 146
TALENT MAKE AND BUY
KEY INSIGHTS
There is significant resistance against external creative talent hiring
Most organizations find attracting creative talent externally as admitting defeat or dismissing
internal expertise
Genuine interest in what the external world can bring in terms of new ideas is precious
Executive search typically centers on “safe pair of hands”, the opposite of what is needed for
break-through innovation
When external talent is hired, the corporate expectation is to first have them to learn the
organization and the business before making any suggestions for change
147. TALENT MAKE AND BUY
TOOL: INTERVIEW QUESTIONS
Tell us about a time when the tried-and-true solution did not work and if you were able to solve
the problem and how?
Tell us about a situation in which you had to come up with several new ideas in a short period
of time. Were they accepted and were they successful?
Describe the most significant plan or program that you ever developed or implemented
Tell us about a time when you created a new process or program that was considered risky
Tell us about a problem that you solved in a unique or unusual way. Were you happy with the
outcome?
147
149. TALENT MAKE AND BUY
149
SOURCES
READING
VIDEO
Encouraging organizations to change,
2011, The influence model, Colin Price
N/A
Meeting the challenge of corporate
entrepreneurship, 2012, Harvard Business
review
What every CEO should know about
creating new businesses, Harvard
Business Review, D.A. Garvin, 2012
The innovators DNA, Clayton M.
Christensen, Hal B Gregersen Jeff Dyer,
2011
150. 150
CULT OF INNOVATOR ROCK STAR
THE OUTPUT DIFFERENCE BETWEEN AN OUTSTANDING
CREATIVE TALENT AND A GOOD CREATIVE TALENT IS
HUGE , MUCH MORE SIGNIFICANT THAN IN OPERATING
OR MANAGEMENT JOBS
“We recruit creative people, but we can’t fit them into our
system so they leave quickly”
“We don’t have any creative or innovative leaders in our
board”
“We aren’t able to recruit creative people at the top – just
doesn’t fit in our same salary scheme”
151. CULT OF INNOVATOR ROCK STAR
ESSENCE: BRING IN THE INSPIRATIONAL TOP TALENT
KEEP
CALM
THE CAVALRY
HAS ARRIVED
151
152. 152
CULT OF INNOVATOR ROCK STAR
KEY INSIGHTS
Appoint the “top of the top”, and avoid past glory. Recruit creative top talent with failures on
their resume
Failure is a source of creative dissent and pursuit. Success often equals repeat and complacency.
Protect your hired top talent again the organizational push-back
Be willing to pay a special price for special talents (in terms of salary, recognition and freedom
to act)
153. CULT OF INNOVATOR ROCK STAR
KEY INSIGHTS: BREAK THROUGH TRADITIONAL QUALIFICATIONS
Be flexible in applying the traditional qualifications for senior roles
It’s imperative to staff the “next big thing” with the strongest business development and
business building talent (so not with junior staff).
Typically senior talent is staffed on largest units not on the ones with the most future potential,
and full-time involved on the most pressing operational issues, not full time leading future
oriented projects.
IBM is one of few companies with a pool of senior development leaders available for project
leadership.
Source: Clean Sheet Capital Redesign
153
154. 154
CULT OF INNOVATOR ROCK STAR
TOOL: GUESS WHO
What new skills does your organization need (next to what it’s already good at)?
Who externally (individual or firm) is truly leading edge in this skill area?
How are you going to win this individual or firm over?
Source Picture: Khan, Bethany Ann. Retrieved January 24, 2010, from Flickr
www.flickr.com/photos/bethanykhan/4466733616/
155. CULT OF INNOVATOR ROCK STAR
155
SOURCES
READING
VIDEO
Meeting the challenge of corporate
entrepreneurship, Harvard Business
review, 2012
The innovators DNA, Hal Gregerson.
www.youtube.com/watch?v=Xy6Ex1C_
SAs
What every CEO should know about
creating new businesses, Harvard
Business Review, D.A. Garvin, 2012
The innovators DNA, Clayton M.
Christensen, Hal B Gregersen Jeff Dyer,
2011
Claudia Kotchka on innovation at PG,
Institute of Design Strategy Conference,
May 2008
www.vimeo.com/5203345
156. 156
GOVERNANCE HEADROOM
FORM A SUPERVISORY BOARD THAT CAN STRETCH THE
EXECUTIVE BOARD AND STRETCHES WITH THE BOARD
IN THE CONTINUED ACCELERATED GROWTH IN TERMS
OF VISION AND INNOVATION
“I am selecting my new board member, but don’t know
what is a good mix”
“How can I get my supervisory board to get more
innovative minded?”
“What is the right balance of controlling what happens
versus pushing our innovative vision for our board?”
157. GOVERNANCE HEADROOM
ESSENCE
A supervisory board that can stretch the executive board and stretches with the executive
board in the continued accelerated growth in terms of visioning and innovation
Source Picture: Baltic Development Forum. Retrieved January 19, 2011, from Flickr
www.flickr.com/photos/baltic-development-forum/5369318551/
157
158. 158
GOVERNANCE HEADROOM
KEY INSIGHTS
Compose the board for heavy engagement on growth, innovation, and change
Avoid any legacies and protection of the past
Aim for deep engagement
Avoid too strict split in roles, work as a team
160. 160
GOVERNANCE HEADROOM
TOOL: BOARD INVOLVEMENT CHECK-LIST
Does the board actively engage with the CEO and top team in development of corporate
strategy, providing judgment and senior perspective and approval of strategy?
Does the board support the CEO in major periodic performance reviews with the top team
including challenging aspirations and performance?
Does the board assist the CEO in senior management reviews; help set performance standards;
proactively counsel CEO on senior management development and succession planning?
Does the board help the CEO and top team transform culture of providing external
perspectives and judgment and modeling behaviors; encourage injection of external
perspectives in company processes?
Does the board provide external access?
161. GOVERNANCE HEADROOM
161
SOURCES
READING
VIDEO
Business Knowledge Resource online
www.business.gov.in/corporate_
governance/index.php
N/A
eHOW, What Is the Purpose of
Corporate Governance?
www.ehow.com/about_6630366_
purpose-corporate-governance_.html
Organisation for Economic Co-operation
and Development
www.OECD.org
United Nations ESCAP
www.unescap.org/pdd/prs/
ProjectActivities/Ongoing/gg/
governance.asp
162. 162
INNOVATION SYSTEMS
Organizing the company into innovation projects and ventures, with tracking
systems that stimulate risk taking, small failures, learning and improvement, that
leverage the wisdom and insights from the entire organization, customers and
suppliers, and are fueled with patient funding
163. INNOVATION SYSTEMS OVERVIEW
163
SELF ORGANIZING
SYSTEMS
LEARNING LOOPS
LEVERAGE THE
CROWD
PATIENT FUNDING
For innovation or
adaptability, the principle
of emergence and selforganizing systems
becomes valuable
Innovation is a path of
discovery, consisting
of rapid, consecutive
cycles of best-efforts
trial, surprise insight,
adjustment and next trial
The “crowd”, customers
in particular, but also
competitors, suppliers,
professionals, academia,
and financiers, provides a
great platform for cocreation, and support for
roll-out
Manage the innovation
portfolio separate, in a
“VC-like” manner, with
sufficient patience
PAGE 164
PAGE 175
PAGE 185
PAGE 199
164. 164
SELF ORGANIZING SYSTEMS
FOR INNOVATION OR ADAPTABILITY, THE PRINCIPLE
OF EMERGENCE AND SELF-ORGANIZING SYSTEMS
BECOMES VALUABLE
“In our organization each process is defined so
precisely that it is difficult to step out”
“We are a traditional silo organization which works well, I
don’t know where to start to stimulate cross pollination”
“There are no incentives to step out our usual way of
working”
165. SELF ORGANIZING SYSTEMS
ESSENCE: DRIVE TOWARDS HIGH VALUE WORK
Source Picture: Stroh, J. Retrieved October, 2012, from jarche.com
www.jarche.com/wp-content/uploads/2012/10/fractal_JoachimStroh.jpg
165
166. 166
SELF ORGANIZING SYSTEMS
KEY INSIGHTS
For innovation or adaptability, the principle of emergence and self-organizing systems become
valuable. This means to use spontaneous coordination through the self-interested behaviors
of the employees and rules embedded in the way of interacting instead of the traditional formal
and well-structured management processes to deliver and control outputs
Hierarchy and silos are the largest impediment to innovation. Large corporates stumble
because of internal complexity. Instead of finding the optimal structure, try to avoid it
Various alternative coordination mechanisms exist including performance transparency,
internal markets, projects, shared values, externalization of functions and coordination
platforms
167. SELF ORGANIZING SYSTEMS
KEY INSIGHTS: SILOS ARE OFTEN THE BIGGEST OBSTACLES
I strongly believe innovation is a team sport. The 2004 National Innovation Initiative report
observed that innovation “is multidisciplinary and technologically complex. It arises from
the intersections of different fields or spheres of activity.” That is why it often takes a group of
people who are not only highly talented but who bring together diverse skills and points of
view in order to successfully tackle the kinds of complex problems we face in the 21st century.
But perhaps even more important, a collaborative approach to innovation helps provide the
energy and emotional support that new ideas need in their very early stages. New ideas are
almost always rough and ill-formed at first. Nothing works better than bouncing ideas off other,
supportive people.
This back-and-forth dialogue is crucial in helping to shape the idea into something more
concrete, understandable, and actionable. Then it is more ready to face the tougher challenges
and criticisms from line management and others in the organization. That is why isolating
people in organizational silos is one of the biggest obstacles to innovation.
Companies that are serious about innovation do everything possible to break down silos and
encourage communication and collaboration across the organization and beyond. Fostering
innovation is very hard, especially if the innovation is disruptive in nature. A spirit of innovation
and collaboration does not come naturally to an organization. For such a spirit to take hold,
it must become an integral part of the company’s culture. None of this is easy, but it is what a
company must do.
Source: Wladawsky-Berger, I. Retrieved August 22, 2008, from Business Week
www.businessweek.com/stories/2008-08-22/the-challenges-of-innovationbusinessweek-business-news-stock-market-and-financial-advice
167
168. 168
SELF ORGANIZING SYSTEMS
KEY INSIGHTS: LET GO OF BUREAUCRATIC CONTROL
Management structures to coordinate activities
are limiting the engagement, cross-pollination
and capabilities of employees, which are especially
important for innovation
So when innovation becomes more important,
stimulating the principle of emergence and selforganizing systems rather than direct bureaucratic
control
Example traffic system in Drachten, NL:
Municipality took away traffic lights, pedestrian barriers, road markings and cycle lanes
and created instead a “shared space” for all users of the road network
Not only did the safety record go up but the speed of movement improved as well.
Everyone got used to being a bit more careful
Source: Birkinshaw, J., and Goddard, J. What is your management model. Retrieved January 01, 2009, from Harvard Business Review
www.hbr.org/product/what-is-your-management-model/an/SMR307-HCB-ENG
170. 170
SELF ORGANIZING SYSTEMS
KEY INSIGHTS: ALTERNATIVE COORDINATION SYTEMS
Performance transparency: provide employees with all information required to make
informed own decisions
Internal markets: create markets for jobs, assignments, staffing, investments
Projects: organize around projects from one staffing pool
Shared values: embed shared values as compass to make right decentral decisions without
need for consultation
Externalization/virtual organizations: outsource activities to create freedom to act and survive
Collaboration platforms; stimulate information sharing and mutual support