1. REASON FOR CHANGE
Your values is your DNA that makes you different from others.
To succeed in the marketplace, companies must embrace a business strategy. Authors Michael Treacy and Fred Wiersma describe three generic competitive strategies, or value disciplines: operational excellence, customer intimacy and product leadership. In today’s complex world of interacting organizations and individuals, we defined a fourth generic competitive strategy: Corporate Coherence [David J. Teece et al.]. The main premise is that companies must choose to excel in one of these disciplines, where it aims to be best-in-class, act upon it consistently and vigorously, and remain competent in the other three value disciplines. Having the discipline to focus is one of the most challenging aspects in building and running a business.
2. WIDTH OF CHANGE
Every innovation entails change, but not every change involves innovation.
Companies need to have an innovation strategy. Without understanding the challenges of your VUCA environment, different parts of an organization can easily wind up pursuing conflicting priorities, sub-optimization and poor implementation – even if there’s a clear business strategy. A good innovation strategy keep you focused on growth and innovation. We categorize your growth ambitions into 3 different ‘horizons’: expansion (red), exploitation (purple) and exploration (blue). Each horizon indicates purpose and direction of growth and innovation concerned that is bounded by its market dynamics and organization’s capacity to innovate. The three horizons approach help to consistently balancing your innovation portfolio and proper resource allocation.
3. DEPTH OF CHANGE
How well do you know your IST-SOLL situation? To push your business forward you need a sharply defined market strategy.
If you know where you come from and you know exactly where you want to go, you can organize and manage change as a project (hiking). But when neither starting point nor future are known, uncertainty is the only certainty. Managing in chaos is like Star Treks voyage: “To boldly go where no man has gone before…” Discovering should be organized and managed as a program. To be successful in today’s world, your market strategy should also consider how to work together with external parties. Working together through co-operation (shareholder value driven) or collaboration (shared value driven) with customers and suppliers (value-adding partnerships)? Or perhaps working together with competitors and complementors (coopetition)? Of course any way of working together has its pros and cons and impacts implementation complexity.