From ideas to execution: The rules for strategic innovators, by V. Govindarajan
“Future is now. Future is not about what you do in the future.“
- Strategy is about next practices.
- For you to be a leader in 2030 your opportunity gap is a lot bigger than your performance gap.
- We need different methods and capabilities to succeed in the future.
- Don’t think about best practice think about next practices.
Three box model
- Box 1: manage the present
- Box 2: Selectively forget the past
- Box 3: Create the future
- Customers of the future will be fundamentaly different, and will demand fundamentally different companies.
- An emerging market will transform the corporation trying to adapt to it.
- Grow up in emerging markets cannot be caught up with box 1 approach.
- Emerging markets represents a huge discontinuity.
Three reasons why companies find it so hard to use next practices
- Physical inertia.
- Psychological inertia.
- Strategical inertia.
Company dedication to projects
- How many projects will be in horizon 1?
Core business. It should be 60%-70% of the efforts.
- How many projects will be in horizon 2?
Adjacent space. It should be 20%-30% of the efforts.
- How many projects will be in horizon 3?
Entirely new business model. It should be 5%-10% of the efforts.
- Non-linear shift
- Strategic intent
- Current core competencies
- Growth Playbook
- New core competences
- Because of the though economical conditions, projects are being more conservative today.
- Simple message: future is now. future is not about what you do in the future.
- Today I have to do two things: make the business work and invest in the future.
- The opportunity gap is enormous in the near future.
Extract by Josep Oriol Ayats and Guillem Mateos.