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© Copyright 2013 Innosight LLC© Copyright 2015 Innosight LLC

Boosting Your Company’s Strategic AgilityJuly 2015

@ScottDAnthony

© Copyright 2015 Innosight LLC 1

Innosight overview

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 FocusOur Co-Founder

Harvard Business School Professor Clay Christensen

Awarded the Number 1 Management Thinker

in the World in 2011 and 2013

CREATE GROWTH STRATEGIESHow do I ensure my organization continues to achieve its growth goalsin an ambiguous and changing environment?

BUILD INNOVATION CAPABILITIESHow do I build the organizational capabilities required to make innovation repeatable and sustainable?

ACCELERATE NEW GROWTH INITIATIVESHow do I spot, seize, and scale opportunities to create new growth businesses?


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


“Everybody has a plan … until they get punched in the face.”


“For every one of our failures we had spreadsheets that

looked awesome.”


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


Overcoming First Mile Challenges


Question Low Degree of Proof High

Is there a need? Said Shown Used Purchased Repeated Advocated

Can you deliver? Dreamed Drawn Prototyped Piloted Delivered Scaled

Is it worth it?

Model: Envelope

Model: Unit Economics

Model: Entire

Business

Revenue Producing;

Unit Economics Validated

Line of Sight to

ProfitabilityProfitable


What would you like to discuss?

Decision Making in

Uncertainty

Mastering Interfaces & Transitions

Enabling Leadership Behaviors

Shaping the Corporate

Culture


Decision Making in Uncertainty


Remember the different stages in the life of an idea

Successful Strategy

The customers love it

You can deliver it reliably

You know how to make money

Search

Scale

Successful Strategy

A startup is a temporary organization searching

for a scalable and repeatable business

model


Keys to decision making in uncertainty

Double Down

Continue Exploring

Pivot

Kill

Consider all alternatives5

Involve objective outsiders2

Never consider an idea in isolation4

Pre-determine evaluation criteria1

Impose a constraint to force a decision3


Not all failures are created equal …

We shrewdly learned that an assumption was

wrong

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 sloppyand executed

poorly or imprecisely

We hadn’t trained enough to have

the skills to execute well

We were stupidand missed something

obvious


The ‘4Cs’ of successful disengagement

Provide closure4

Celebrate success2

Communicate widely3

Codify re-usable learning1


Enabling Leadership Behaviors


Change and uncertainty are part of life. Our job is not to

resist them but to build the capability to

recover when unexpected events

occur.

Our job is to protect new ideas from those who don’t understand

that in order for greatness to emerge, there must be phases of not-so-greatness.

Protect the future, not the past.

Failure isn’t a necessary evil. In fact, it isn’t evil at all. It is a

necessary consequence of doing

something new.


Shareholder value is a result, not a reason; ground activities in a motivational purpose

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

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

“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

Your executive training regimen

Serve Pizza

Take a Field Trip Make New Friends


Managing Interfaces and Transitions


Lesson 1: Avoid the core except for when you truly need it


Lesson 2: Think a round ahead


Lesson 3: Remember new business models often require new sales channels (among other things)!

“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


Lesson 4: Micromanage transitions


Shaping Your Corporate Culture


Q: What word best describes the innovation environment inside your organization?

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


We are organized to deliver consistent,

reliable results.And that’s exactly the

problem.


Discovers

Tests

Intersects

Knows the customer

Takes idearoad trips

Seeks ideas everywhere

Experimentsregularly

Has internal collisions

Shares half-baked ideas


‘On the folly of rewarding A, while hoping for B’

Ideas Mechanisms to process them

Answers Defining problems worth solving

Experiments Providing a stocked laboratory

Disruption

Risk taking Being tolerant of ‘failure’

Ring-fencing resources

Don’t ask for … Without …

Breakthrough Impact Dedicating ‘A team’ talent


The Everyday Innovation System

Idea Supply ChainChecklists

Idea Sorter

Ritual ReinforcementInnovation Training

Experiment Enablers

Core of Curiosity


different … that

creates value


To Learn More … The Innovator’s Bookshelf

sg.linkedin.com/in/scottdanthony/@ScottDAnthony [email protected]

Developing Ideas

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

Assessing and Testing Ideas

• The High Velocity Edge by Steven Spear (2009)• Discovery-Driven Growth by Rita McGrath & Ian MacMillan (2009)• The Innovator’s Guide to Growth by Anthony et al (2008)• 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)

Building Capabilities

• The Other Side of Innovation by Govindarajan & Trimble (2010)• Building a Growth Factory by Anthony & Duncan (2012)• The Innovator’s DNA by J. Dyer, H. Gregersen & C. Christensen (2011)

• 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)• Seizing the White Space by Mark Johnson (2010)• The Little Black Book of Innovation by Scott D. Anthony (2011)• 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)

Basic language and conceptual overview


humble

thorough active

innovative

flexible

bold


@ScottDAnthony

www.innosight.com

innovationsfirstmile.com

[email protected]

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