WHY? - REASON FOR CHANGE
To succeed in the marketplace, companies must embrace a business value strategy.
Having the discipline to focus is one of the most challenging aspects in building and running a business. Authors Michael Treacy and Fred Wiersma describe three value disciplines : Operational Excellence, Customer Intimacy and Product Leadership. In today’s complex world of interacting organizations and individuals, we defined a fourth value discipline: Corporate Coherence [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.
HOW? - WIDTH OF CHANGE
A good innovation strategy sets boundaries to your innovation performance expectations.
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 value strategy. Inspired by McKinsey’s Three Horizons model , we distinguish three horizons: Expansion (red), Exploitation (purple) and Exploration (blue). Each horizon indicates purpose and direction of growth and innovation concerned and is bounded only by its market dynamics and organization’s capacity to innovate. Not bounded by time. This approach help to consistently balancing your innovation portfolio and proper resource allocation.
WHAT? - DEPTH OF CHANGE
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. It is like Star Treks voyages of discovery: “To boldly go where no man has gone before…” Taming of complexity and ambiguity could best be organized by finding logical patterns in chaos, through asking following questions: What?, So What? and Now What? [Glenda H. Eoyang – 2014]. 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 or collaboration with customers and suppliers (value-adding partnerships)? Or perhaps working together with competitors and complementors (coopetition)?