Executive leadership for innovation and transformation

 

1. The innovators dilemma

We live in a world in which the pace of change is increasing at an exponential rate, and businesses are required to demonstrate ever greater agility in proactively adapting to turbulent economic conditions and volatile, uncertain, complex and ambiguous (V.U.C.A.) markets, in order to effectively compete and thrive. In increasingly more industries, supply exceeds demand and global competition is intensifying.

Often enterprises and multinationals seek to extend their market leadership positions by focusing on their ability to sustain current business; the traditional, existing products and/or business models, that have historically made them so successful with their most valued customers in established markets.


Every corporate business leader struggles with the dilemma of simultaneously balancing the short term financial health of the business with the need to search for future opportunities for growth.

A (large) enterprise continuously balances between these two areas of tension; (1) innovating for growth, where success is uncertain and unpredictable, or (2) focusing on cost control through rationalization and restructuring, where potential gains are significantly more limited. In general, business leaders are conditioned to prioritize those activities that directly contribute to the achievement of key targets. And while this can result in near-term survival, it also oftentimes leads to an inability to capitalize on the big breakthrough innovations that could potentially realize greater returns and longer-term business success.

2. Top-line revenue growth is extremely important for companies

For companies today, top line revenue growth is critical to success as an organization in the market. For example, according to The Boston Consulting Group’s 2014 study “When the Growing Gets Tough, the Tough Get Growing.”, fully 71% of the total shareholder return for the S&P 500 top quartile performing stock is due to top line revenue growth.


3. Creating breakthrough and disruptive innovation

So how can corporates redress the balance and put greater emphasis on effectively growing the topline?

What might facilitate successful achievement of the kind of breakthrough or disruptive innovations that we see coming from a number of influential start-ups around the world?


Ideally, a large enterprise needs to operate almost like a startup. A guided missile – maneuvering at full speed and capacity, while also responding appropriately to environmental signals. And in this way learn through repeated iterations, quickly adapting and making necessary course corrections that enable it to reach the intended target. Alternatively, a large enterprise might choose to ignite a whole batch of guided missiles – multiple teams all targeting similar opportunities, and so maximize the chances of being successful.

4. Lean Startup is methodology that we teach your teams to create new products and services

Most new product development launches fail. And that is a fixable situation.

Actually, we need to Start with Search!

The answer to such dilemmas lies in the application of Lean Startup - a rigorous process to create order out of chaos and greater ability to capitalize on opportunities for growth with maximum acceleration. In applying the Lean Startup process, you can first ensure that you have a viable business idea worth launching BEFORE spending too much time and energy on developing and launching it. It is much more effective than a traditional waterfall methodology as it’s better launching products - and incorporates the uncertainty involved in development into the process.


5. Integrated approach to embed innovation in the organization

Transformation through business innovation and organizational development
In effectively moving an enterprise towards a new way of working that more quickly results in a greater degree of innovation, it’s critical to determine how best to balance the interplay between the three pillars of 1. transformation, 2. organizational development and 3. business innovation.

Source: Innomics