REASON FOR CHANGE

What is your reason for existing? What value are you giving your customers? And why is your firm uniquely capable of providing it? 

To succeed in the marketplace, companies must embrace a Business Value Strategy. Michael Treacy and Fred Wiersma describe three value disciplines [1993]: Operational Excellence, Customer Intimacy and Product Leadership. In today’s complex world of interacting organizations and individuals, we include a fourth value discipline: Corporate Coherency [David J. Teece et al. – 1994]. 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. We also believe firms can do business in ways that both deliver long-term shareholder value and benefit society (shared values). As such, making choices and finding the right ‘inside-out / outside-in’ balance is part of the Business Value Strategy.

WIDTH OF CHANGE

Width refers to understanding the challenges of your VUCA environment. Otherwise different parts of an organization can easily wind up pursuing conflicting priorities, sub-optimization and poor implementation.

Formulating an Innovation Strategy helps ambidexterity balancing short and long term priorities. It indicates whether Transactional, Transitional or Transformational types of change is needed to successfully achieve the outcomes desired. Inspired by McKinsey’s Three Horizons model [2000] we distinguish three horizons: Expansion (red), Exploitation (purple) and Exploration (blue). Each horizon is bounded by its market dynamics and organization’s capacity to innovate. It sets boundaries to your innovation performance expectations. It helps to creating a high-level innovation portfolio plan for allocating resources and people to the different kinds of innovations and its magnitude.

DEPTH OF CHANGE

Depth refers to understanding the nature of your initiative, and diagnose the gaps between your current capabilities and what is needed to make your business initiative a success.

Not all initiatives have similar attributes; hence, they should be managed with different approaches and styles. A sharply defined Business Development Strategy not only defines your business initiative but also identifies the most appropriate practice on four dimensions: Novelty, Technology, Complexity and Pace. For example, if you know where you come from and you know exactly where you want to go combined with a well defined work method (existing technology), you can organize and manage the initiative from a reductionist perspective as a SMART initiative (“hiking”), possibly beefed up with issue management (“dropping”) or even contingency planning (“scouting”). But when neither starting point nor future are known, uncertainty is the only certainty than you better organize and manage the initiative from a Design Thinking perspective. As a Value-Based initiative in terms of shared values exploration, curiosity, questions and self-reflection (“discovering”).

Last but not least: To be successful in today’s world, your Biz Dev Strategy should not only focus on internal operations but also on external levels of complexity. How you wish to work together with external parties? By co-operation or collaboration with customers and suppliers (value-adding partnerships)? Or perhaps with competitors and complementors (coopetition)?

DEFINE - Motivation and Attention

Ideation | Screening | Selection

Generating, developing, and communicating new ideas. But not every idea is relevant to your company. Using Design Thinking principles we focus on solving an underlying problem at its root through new ideas. We explore the problem contextually (empathize), identify the missing gaps that are causing the problem (define), and streamline your understanding into an actionable problem statement (ideate). An actionable problem statement brings out the possibility of promising ideas to resolve it. As Team Worker and Coordinator we determine compatibility with overall business objectives and whether the idea would offer a viable return on investment. We select best ideas and create mini business case proposals.

Belbin Team Roles: Sharpers (dynamic, direct), Plants (creative, free-thinking) and Resource Investigators (inspiring, influential).

DESIGN - Clarification and Negotiation

Concept Development | Validation

We examine and prioritize viable ideas on its feasibility and desirability from the perspective of your customer. As Team Worker and Coordinator we create detail business case proposals and validate the idea or the feasibility of the concept (Proof of Concept). Using Lean Start up principles we gather evidence and learning around concepts through experimentation and user testing (Prototyping). Using Agile methodology we develop iteratively and release incrementally in various sizes over time. (Prototype or MVP). We adjust and optimize the business case. In parallel, we create commitment, sponsorship and set-up partnerships.

Belbin Team Roles: Plants (creative, free-thinking), Monitor Evaluators (analytical, critical, cautious) and Specialists (dedicated, knowledge).

DEVELOP - Rational and Planned

Realization | Implementation

Realization is where we capture the momentum and translate engagement and intent into tangible results. Using PRINCE2 and Agile methodologies we actively implement the concept. As Team worker and Coordinator we  manage the operational implementation or execution of the innovation, including upscaling. We secure partnerships. We manage the business case.

Belbin Team Role: Implementers (practical, efficient).

DEPLOY - Learn and Refuel

Launching | Anchoring

Using Marketing and Knowledge Management principles, we assist and support Business Management during the market introduction. As Team Worker and Coordinator we pick up learning from the commercial roll-out, transmit learning to management and refuels the innovation strategy cycle.

Belbin Team Role: Completer Finishers (conscientious, polisher).