2019 deloitte board symposium · habits and rules . that shape widely held “conventional...
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2019 Deloitte Board SymposiumInspire. Influence. Impact.
March 7-8, 2019
Detonate: Blowing up best practices in the boardroomGEOFF TUFFPrincipal and Senior Leader, Innovation and Applied Design, Deloitte Consulting LLP
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Blow up the playbooks.Ignite change.
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Best Practicesdriven by Conventional Wisdom
Playbooksdriven by Unspoken Rules or Orthodoxies
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I was told over and over again that I would never be successful, that I was not going to be competitive and the technique was simply not going to work. All I could do was shrug and say:
"We'll just have to see.”
“
Dick Fosbury
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IMPERATIVE TO INNOVATE
M&A Activities
Competitive Pressures
Capital Market Expectations
Regulatory Change
Leadership Changes
Technological Change
What’s different today is that technological change is occurring at an exponentially accelerating rate
Customer and Market Evolution
The Imperative to InnovateINNOVATION FUNDAMENTALS
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1960 1990 20201975 2005
60
50
40
30
20
10
AV
ERA
GE
NU
MB
ER O
F Y
EAR
S O
N S
&P
500
The average life span of a company listed in the S&P 500 in the early 1960s was right around 60 years. Today, it’s under 20.
EXPONENTIAL CHANGE
Sources: Richard N. Foster, “Creative Disruption Whips through Corporate America,” Standard & Poor’s, Winter 2012; “Disruptive Forces in Europe: A Primer,” Credit Suisse Equity Research, August 24, 2017.
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WH
ERE
TO P
LAY
(MAR
KETS
& C
UST
OM
ERS)
AD
JACE
NT
EXIS
TIN
GN
EW
Successful innovation efforts begin with clear innovation ambition and intent.
TRANSFORMATIONALDeveloping breakthroughs and inventing things for markets that don’t yet exist
ADJACENTExpanding from existing business into “new to the company” business
COREOptimizing existing products for existing customers
EXISTING INCREMENTAL NEW
HOW TO WIN (PRODUCTS & ASSETS)
See the May 2012 issue of HBR for “Innovation for the Risk Averse” by Doblin.
INNOVATION AMBITION
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The nature of innovation opportunity is shifting as digital drives accelerated change.
KNOWN AND KNOWABLE OPPORTUNITIESwhich can be plannedfor and tackled
INNOVATION AMBITION
UNKNOWN OPPORTUNITIESwhich must either
be discovered or developed
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SPOTTING ORTHODOXYIndustries and companies tend to develop a set of habits and rules that shape widely held “conventional wisdom” over time— we call these rules “orthodoxies.”
Orthodoxies are pervasive beliefs that often go unstated and unchallenged—they shape strategy and create blind spots.
They can get in the way of breakthrough opportunities as they prevent unconventional solutions from being considered.
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$3BN 110 TARGETS
80% YIELD
GoldCorp published it’s geological data and challenged the world to do the prospecting via an open innovation challenge
Mining is one of the world’s oldest industries and is governed by some very conventional thinking.
RULE #1: Do not share proprietary data.
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Blow up the playbooks.Ignite change.
Orthodoxies Table Exercise
Within
Within your table, think about and discuss the orthodoxies that you’ve heard or have discussed within the boardroom. Share with your tablemates what role you’ve played versus management in challenging those orthodoxies.
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FINANCIAL FORECASTING & BUDGETING
RISK MANAGEMENT SYSTEMS
STRATEGIC PLANNING CALENDAR
SYNDICATED DATA
TRADITIONAL INSIGHT GENERATION
CELEBRATING FAILURE
ORG CHARTS AND CAREER PATHS
THE SEVEN DEADLY PLAYBOOKSThere are seven corporate mainstays that we challenge in depth in our book.
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Four principles typify the mindset of successful “digital age” innovators.
Bring a Beginner’s Mind
THINK DIFFERENTLY
ACTDIFFERENTLY
Focus on Driving Human Behavior
Embrace Impermanence
Make Minimally Viable Moves
DETONATE
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Blow up the playbooks.Ignite change.
Function Table Exercise
Within
Within your table, discuss which functions within the organization is likely to be an enabler and which organization is a roadblock in the detonate process.
- Finance - Human Resources- Legal- Marketing/sales- Research & Development - Other Department
• Play the role as the conscience of the future organization, challenging management to apply a beginner’s mind
• Avoid the trap of calling for more data in the face of uncertainty over risk
• Repurpose Six Sigma’s 5 Why method to root out orthodoxy: “why, exactly, do we do this (this way)?”
• Ask more impactful questions
Key Takeaways
About Deloitte
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