From ideas to execution: The rules for strategic innovators, by V. Govindarajan

Jun 18 2009

Future is now. Future is not about what you do in the future.

Highlights

  • 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

Emerging markets

  • 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.

Strategy Architecture

  • Non-linear shift
  • Strategic intent
  • Current core competencies
  • Growth Playbook
  • New core competences

Other highlights

  • 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.


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