Boosting Your Company's Strategic Agility

Boosting Your Company’s Strategic Agility

July 2015

We are a global strategy consulting firm entirely focused on growth transformation. Founded by Harvard Business School Professor Clayton Christensen in 2000, we collaborate with the world’s top companies to create growth strategies, build innovation capabilities, and accelerate new growth initiatives.

Our Co-Founder Our Focus

CREATE GROWTH STRATEGIES How do I ensure my organization continues to achieve its growth goals in an ambiguous and changing environment?

BUILD INNOVATION CAPABILITIES How do I build the organizational capabilities Harvard Business School required to make innovation repeatable Professor Clay Christensen and sustainable? Awarded the Number 1 Management Thinker ACCELERATE NEW GROWTH INITIATIVES in the World in How do I spot, seize, and scale 2011 and 2013 opportunities to create new growth businesses?

• Every idea is partially right and partially wrong

• Customers lie and spreadsheets deceive

• White spaces exist for a reason

• It always takes longer, it always costs more

So be DEFT and have HOPE to smartly manage strategic uncertainty

© Copyright 2015 Innosight LLC 3 © Copyright 2015 Innosight LLC 4 © Copyright 2015 Innosight LLC 5 “For every one of our failures we had spreadsheets that looked awesome.” © Copyright 2015 Innosight LLC 6 Lessons from Life in the First Mile

• Every idea is partially right and partially wrong

• Customers lie and spreadsheets deceive

• White spaces exist for a reason

• It always takes longer, it always costs more

So be DEFT and have HOPE to smartly manage strategic uncertainty

Is there a Said Shown Used Purchased Repeated Advocated need?

Can you Dreamed Drawn Prototyped Piloted Delivered Scaled deliver?

Revenue Model: Producing; Line of Is it Model: Model: Unit Entire Unit Sight to Profitable worth it? Envelope Economics Business Economics Profitability Validated

© Copyright 2015 Innosight LLC 9 © Copyright 2015 Innosight LLC 10 © Copyright 2015 Innosight LLC 11 © Copyright 2015 Innosight LLC 12 © Copyright 2015 Innosight LLC 13 © Copyright 2015 Innosight LLC 14 What would you like to discuss?

Decision Mastering Enabling Shaping the Making in Interfaces & Leadership Corporate Uncertainty Transitions Behaviors Culture

 The customers love it Search Successful Strategy  You can deliver it reliably  You know how to make money

Scale Successful Strategy

A startup is a temporary organization searching for a scalable and repeatable business model

Pre-determine 1 evaluation criteria

Involve objective 2 outsiders Double Down Pivot Impose a constraint 3 to force a decision

Never consider an  4 idea in isolation Continue Exploring Kill

Consider all 5 alternatives

Science, my lad, is made up of mistakes, but they are mistakes which it is useful to make, because they lead little by little to the truth. Jules Verne

We were stupid We were sloppy We hadn’t trained We shrewdly and missed and executed enough to have learned that an something poorly or the skills to assumption was obvious imprecisely execute well wrong

Codify re-usable 1 learning

2 Celebrate success

3 Communicate widely

4 Provide closure

© Copyright 2015 Innosight LLC 23 Our job is to protect Change and new ideas from those uncertainty are part of Failure isn’t a who don’t understand life. Our job is not to necessary evil. In fact, that in order for resist them but to it isn’t evil at all. It is a greatness to emerge, build the capability to necessary there must be phases recover when consequence of doing of not-so-greatness. unexpected events something new. Protect the future, not occur. the past.

The essence of strategy is choice – what things will you decide not to do?

Strategy isn’t what you say, it is what you do. Allocate resources to create the future

Make the tough calls to break the sucking sound of the core business

Demonstrate a love of learning at key ritual moments to shape the corporate culture

Match the decision-making frame to the nature of the strategic challenges

© Copyright 2015 Innosight LLC 25 © Copyright 2015 Innosight LLC 26 “We don’t look at the financial analysis because it’s garbage in garbage out. We evaluate opportunities by the attractiveness of the market. The team attacks the project from all angles and rates it. You look directionally to see ‘Are they getting closer to the bulls eye?’ by reducing uncertainties. You watch the movement. If it’s flowing out typically we kill it.”

Learn to Code Serve Pizza

Take a Field Trip Make New Friends

“I had a [sales] call...where I literally told the sales rep to take the iLook out of the bag and show it to the physician. He didn’t do it. So I asked him again. I had to ask him three times because he would not do it. And I’m the president of the company. He wasn’t being defiant, he was just nervous. It was palpable.” Kevin Goodwin, CEO, SonoSite

1. Hostile – corporate antibodies actively fight it

2. Indifferent – active and consistent leadership is required

3. Encouraging – it can be a struggle but we’re committed to it

4. Enabling – it is part of who we are

© Copyright 2015 Innosight LLC 37 © Copyright 2015 Innosight LLC 38 © Copyright 2015 Innosight LLC 39 © Copyright 2015 Innosight LLC 40 Knows the Takes idea Experiments customerDiscoversroad trips regularly

Tests

Seeks ideas Has internal Shares half- everywhereIntersectscollisions baked ideas

Don’t ask for … Without …

Ideas Mechanisms to process them

Answers Defining problems worth solving

Experiments Providing a stocked laboratory

Risk taking Being tolerant of ‘failure’

Disruption Ring-fencing resources

Breakthrough Impact Dedicating ‘A team’ talent

Checklists Idea Supply Chain Idea Sorter

Core of Curiosity

• Innovation and Entrepreneurship by Peter Drucker (1985) • Only the Paranoid Survive by Andrew S. Grove (1996) • The Innovator’s Solution by Clayton Christensen & M. Raynor (2003) Basic language • Seizing the White Space by Mark Johnson (2010) and conceptual • The Little Black Book of Innovation by Scott D. Anthony (2011) overview • The Innovator’s Extinction by David E. Ulmer (2013) • Creativity, Inc. by Ed Catmull with Amy Wallace (2014) • Playing to Win by Roger Martin & A.G. Lafley (2013)

• Made to Stick by Chip & Dan Heath (2007) Developing • Borrowing Brilliance by David Kord Murray (2009) Ideas • Business Model Generation by A. Ostetrwalder & Y. Pigneur (2010) • Where Good Ideas Come From by Steven Johnson (2010)

• The High Velocity Edge by Steven Spear (2009) • Discovery-Driven Growth by Rita McGrath & Ian MacMillan (2009) Assessing and • The Innovator’s Guide to Growth by Anthony et al (2008) Testing Ideas • The Lean Startup by Eric Ries (2011) • The Four Steps to the Epiphany by Steven Gary Blank (2005) • The First Mile by Scott D. Anthony (2014)

• The Other Side of Innovation by Govindarajan & Trimble (2010) Building • Building a Growth Factory by Anthony & Duncan (2012) Capabilities • The Innovator’s DNA by J. Dyer, H. Gregersen & C. Christensen (2011) @ScottDAnthony [email protected] sg.linkedin.com/in/scottdanthony/ © Copyright 2015 Innosight LLC 47 flexible humble thorough active innovative bold

[email protected]

innovationsfirstmile.com

@ScottDAnthony