Presentation is loading. Please wait.

Presentation is loading. Please wait.

Escape Velocity Free Your Company’s Future from the Pull of the Past

Similar presentations

Presentation on theme: "Escape Velocity Free Your Company’s Future from the Pull of the Past"— Presentation transcript:

1 Escape Velocity Free Your Company’s Future from the Pull of the Past
Geoffrey Moore Managing Partner

2 HarperCollins Paper & eBook format Release Date: Sept 6, 2011

3 Introduction

4 The Problem: We’re Stuck
Technology and globalization keep changing the game Extraordinary opportunities, each also a threat We must engage with these new growth opportunities But face massive internal resistance to reallocating resources Year in, year out, we end up with the same old portfolio Nothing new ever achieves materiality—we are well and truly stuck How can we achieve escape velocity? How do we free ourselves from the pull of the past?

5 Companies Who Did Not Escape
Burroughs - Sperry Univac - Honeywell - Control Data – MSA – Cullinet – Cincom – ADR - Digital Equipment Company - Wang - Data General – Prime – Apollo - Tandem - Kodak – Polaroid - Lucent – Bay Networks - Nortel - Compaq – Gateway – Packard Bell - Lotus - Ashton Tate – WordPerfect - Borland – Software Publishing – Aldus - Novell – Banyan - Motorola – Nokia - Pacific Bell - Quest - America West – Nynex – AT&T – Silicon Graphics – Sun – Ingres – Informix

6 The Mistake We Keep Making
We focus on performance, not on power Performance Is critical to success, and we are good at managing it Power fuels performance; without it there is no performance So we must continually renew power if we are to perform long term But we do not know how to manage power consciously We recognize power when we see it But we lack the frameworks and metrics to go out and acquire it And our systems do not hold us accountable for doing so So instead we manage performance more intensely Which, of course, consumes even more power Making us even more anxious as performance gets harder to create Making our focus on performance even more intense Beware the performance trap!

7 The Solution: Manage Power Directly
Focus on power first, then on performance Create a “power generation” plan before your performance plan Allocate resources to power programs before performance budgeting Focus on go-to-market resources more than R&D Drive accountability for power into the operational plan Add power metrics to performance metrics Earmark resources for power program usage only Modify the compensation plan so that power objectives matter to all Use the Hierarchy of Powers to frame the effort Provides a common vocabulary to get everyone on the same page Structures power issues in ways that are directly addressable

8 The Hierarchy of Powers
Category Power Company Power Market Power Offer Power Execution Power Growth rates of your major categories Performance compared to your competitors Growth rates of your target markets Differentiation of your offerings Speed and impact of your key initiatives Goal : Align all of the above to achieve escape velocity

9 The Hierarchy of Powers How Much Power Do You Have Today?
Category Power Company Power Market Power Offer Power Execution Power Are we in hot high-growth categories, or do we have category envy? Do customers and competitors see us as the team to beat, or is that someone else? Are we winning the key “primaries,” and are we winning them fast enough? Do our core offers set the bar, or are we playing a lot of catch-up? Can we make stuff happen and make it stick, or are we continually pushing the reset button? Where do we have anchor strengths? Where do we have to do better?

10 Case Example: The Power of Apple
Category Power Company Power Market Power Offer Power Execution Power Music, mobility, & media: All hyper-growth The team to beat in all three No current need to target market segments iPod, iPhone, iPad + iTunes, AppStore All of the above in less than one decade And that is why Apple is currently the most highly valued company in high tech

11 “Mere Mortals” Case Examples
Cisco – Sybase – Agilent – Cognizant Akamai – BEA – Adobe – Amdocs Documentum – SAP – Activant – Lawson BMC – Agile – McAfee – Autodesk Synopsys – Rackspace – TeleAtlas Symbol – Compuware

12 Our Agenda Present frameworks for each level of the Hierarchy of Power to Assess the current landscape of threats and opportunities Identify the most attractive “power plays” for your company Guide the planning and execution of those plays

13 Category Power Reengineering Portfolio Management

14 Category Power Diagnostic
Where is category growth contributing to our overall growth objectives? Where is lack of category growth inhibiting our growth objectives? Organizations tend to over-commit to their legacy franchises in large low-growth categories To the degree we participate in multiple categories, how well balanced is our overall portfolio in terms of contribution to current earnings, current growth, and future growth objectives? Common pattern: strong on current earnings and future growth, weak on current growth In light of the above, do we need to enter a new category, divest ourselves from a category we are currently in, or stay the course with our current portfolio? Most companies stay with their current positions regardless—this is the pull of the past Is there time to develop our category position organically, or must we leverage M&A as well? For companies over several billion dollars is size, the answer is almost always the latter

15 Category Maturity Life Cycle
Indefinitely elastic middle A B C D Revenue Growth Emerging Market Growth Market Mature Market Declining Market Fault Line! E Technology Adoption Life Cycle End of Life Time 15

16 Where Are Your Resources Today? A Portfolio Analysis Framework
High Growth Low Growth PRESENT REWARDS Material B C A D Not Material FUTURE REWARDS

17 Typical Portfolio Pattern for a Public Company
High Growth Low Growth Material 2 3 1 4 Not Material What is the first question the board asks? Why don’t we have more businesses in Quadrant 2?

18 Pursuing Growth in a Mature Category Successive Generations of R&D Have Diminishing Impact
High Growth Low Growth Material Not Material

19 Overfeeding a herd of aging cash cows—
What’s Going On? Market is well established and highly material Customer relationships are established, products are well known Cost of sales is low R&D investments continue to improve the product For a while, better is better, and new R&D drives revenue growth After a while, good enough is good enough, pricing deflates, growth stalls Unit growth continues, but revenue growth flattens Lots of competitors meet the good enough standard Market bifurcates into commodity (growing) & value-add (shrinking) Overfeeding a herd of aging cash cows— waste of good fodder

20 Pursuing Materiality for an Emerging Category Successive Attempts at Market Development fail to Cross the Line High Growth Low Growth Material Not Material

21 Underfeeding a herd of hungry heifers— never reach material size
What’s Going On? Next-generation initiatives are not transitioning to materiality Products are immature, relationships are few Cost of sales is high Growth rates are high, but off a small base and at a high cost Overlay sales forces, dedicated marketing, complex services The more revenue you target, the higher the added cost Field organization cannot bear the cost burden Must prioritize resources to make the current quarter Next-generation initiatives are left to get by as best they can Underfeeding a herd of hungry heifers— never reach material size

22 Freeing Your Company’s Future The Three Horizons Model
Step-Out Businesses On-board next generation for revenue growth & share growth Horizon 3 36 to 72 months Current Businesses Defend & extend the franchise Growth Options Explorations into future high-growth businesses Horizon 2 12 to 36 months Horizon 1 0 to 12 months 030326HKO_MOT057_v1i 22

23 Portfolio Dynamics High Growth Low Growth Horizon 1 Material Horizon 2
Negative growth Not Material Horizon 3

24 Portfolio Dynamics The Impact of Performance Management
Performance management focuses on meeting material commitments (Horizon 1) This leads H1 managers to hoard spare resources to ensure they can meet them That crimps H2 efforts because they compete with H1 for the same resource pool It also makes H1 managers reluctant to exit H0 businesses (because every little bit of revenue helps) Horizon 3 is unaffected by any of these portfolio dynamics High Growth Low Growth Horizon 2 Horizon 1 Horizon 3 Horizon 0 Material Not Material

25 The Horizon 2 Gap This is not a failure to invest in R&D innovation
All the other horizons are OK H1 gets first dibs at resources H3 gets funded outboard of the process H0 is snuck in under the covers H2 is out in the cold H2 competes directly with H1 for resources H1, under pressure to meet current obligations, does not release resources willingly H2 cannot compete with H1, particularly when metrics and compensation focus on material returns in the current year This is not a failure to invest in R&D innovation This is primarily a go-to-market problem

26 Meeting the Horizon 2 Challenge Best Practices in Four Key Areas
Planning & Budgeting Organizational Structure Metrics Compensation These practices adapt venture capital ideas to enterprise realities

27 Best Practices: Planning & Budgeting Separate Resource Pools for Each Horizon
Organize planning and budgeting by horizon All funding requests are attached to one horizon only Funding requests compete within each horizon Funding request do not compete across horizons Executive team determines overall resource allocation Sets percentages for H1, H2, and H3 Functions each directed to allocate according to overall plan Special attention is paid to all market-facing functions Interlock to ensure functional allocations align with corporate priorities Don’t fund next-generation R&D if you are not willing to fund the go-to-market surcharge

28 Best Practices: Organization Business Unit Structure for Horizon 2
Line function structure is the default model for enterprises Best way to achieve efficiencies at scale Best support for professional and career development Integrated business unit with dedicated resources key to H2 BU structure achieves much greater effectiveness Faster and more agile to adapt to changing market dynamics BU structure is virtual and temporary Team is seconded from the line functions, reports directly to BU GM Participants are 100% dedicated to BU which covers all their costs GM reports directly to CEO or EVP for Next-Gen Businesses Organization dissolves once H2 initiative graduates to H1

29 Best Practices: Metrics Different Metrics for Each Horizon
TIMEFRAME HORIZON 1 (0-12 mos) HORIZON 2 (12–36 mos) HORIZON 3 (36-72 mos) Driving Goal Run a Business Become a Material Business Enter a Business Key Performance Indicators Revenue vs plan Bookings Contribution margin Market share Wallet share Target accts vs plan Sales velocity Deal size Segment share Time to tipping point Name-brand customers Deal size Name-brand partners PR buzz Flagship projects “Op Ex” “Time Ex” “Cap Ex”

30 Best Practices: Compensation Everyone is on the Hook
CEO and his or her direct reports Significant variable compensation tied to each Horizon 2 initiative achieving its core metrics BU GM All variable compensation tied to meeting the BU’s Horizon 2 metrics Business Unit participants Significant variable compensation tied to the BU meeting its Horizon 2 metrics Horizon 2 initiatives are “must win” battles Be careful how many you undertake

31 Company Power Making Asymmetrical Bets

32 Company Power Diagnostic
Which power game are we playing: Complex Systems or Volume Operations? Which power tier are we on: Tier 1, Tier 2, or Tier 3? Achieve escape velocity relative to your reference competitors on the same tier with the same business model For that game and that tier, what is our ranking relative to our peers? Do we want to proactively change our game, our tier, or our ranking? Normally you do not change your game, but you do change your tier or ranking Do we have crown jewels that could power this change in state? Are there disruptive market forces in play that could enable us (or our competitors) to gain new power? To achieve escape velocity requires exceptional force: it cannot be done incrementally Are we making a sufficiently asymmetrical bet to distance ourselves from the competition definitively and sustainably? Most organizations fall short on this criterion. People are too afraid to make an error of commission and so they fall into making an error of omission

33 Two Business Architectures Complex Systems vs. Volume Operations
Sweet Spot Sweet Spot Effectiveness Complex Systems Volume Operations Complexity Volume 100 101 102 103 104 105 106 107 108 109 Number of Customers Government Programs Small Business Societal Entitlements Enterprise Consumer Figure 3.2 33

34 The Models are Polar Opposites
Area of Focus Complex Systems Model Volume Operations Model Research Qualitative Interviews Quantitative Analytics Design Assembled Architectures Stand-Alone Modules Sourcing Exploit scarcity Exploit abundance Manufacturing Adaptive Methodologies Deterministic Processes Marketing Relationship Marketing Branding & Promotion Sales High-Touch Persuasion Low-Touch Distribution Services Consultative Dialogs Closed-Loop Transactions For escape velocity initiatives, choose one as your competitive frame of reference

35 The Power of Tiers Three Tiers Tier strategy
Tier 1: Flagship enterprises Cisco, Microsoft, Singtel Tier 2: Known brands with niche followings: Juniper, Mozilla, T-Mobile Tier 3: Brand-less companies with low prices OEM/ODM supply chain companies Tier strategy Markets support all three tiers for both architectures Escape velocity initiatives can focus on winning the #1 position in your current tier or moving up a tier

36 Achieving Escape Velocity Asymmetrical Bets Change the Balance of Power
* Create unmatchable capability in your core innovation zone Competitor 1 * * YOU Competitor 2 * Over-invest to the point that competitors cannot or will not follow Competitor 3 * Redefine buying criteria for the category by setting a new standard Competitive Set Same tier Same architecture

37 Innovation Zones Pathways to Escape Velocity
Product Leadership Zone Customer Intimacy Zone Operational Excellence Zone Disruptive Innovation Line Extension Innovation Value Engineering Application Innovation Enhancement Innovation Integration Innovation Product Innovation Marketing Innovation Process Innovation Platform Innovation Experiential Innovation Value Migration Innovation

38 Product Leadership Innovation Types
Disruptive Innovation Results in a new category. Not backwards compatible. Order of magnitude improvement. Enterprise: Genetic sequencing (Applied Biosystems) Consumer: Online auctions (eBay) Application Innovation Also called solution innovation. New markets for existing products by finding unexploited uses. Enterprise: Fin services for high tech (Silicon Valley Bank) Consumer: GPS range-finders for golf (Sky Caddie) Product Innovation Existing products in existing markets differentiated through dramatic increase in price/performance Enterprise: Telepresence (Cisco) Consumer: iPad (Apple) Platform Innovation Repositioning a ubiquitous product to become an enabler of entire class of new offerings built on top of that product Enterprise: Relational databases (Oracle) Consumer: Game-enabling computers (Sony)

39 Customer Intimacy Innovation Types
Line Extension Innovation Creates a subcategory to engage new customers or re-engage old ones. Underlying infrastructure remains unchanged. Enterprise: Rugged mobile computers (Symbol) Consumer: Children’s Tylenol (Johnson & Johnson) Enhancement Innovation Innovation in finer and finer elements of detail with less and less impact on the primary function of the offer Enterprise: High-quality color printing (Xerox) Consumer: Fashion watches (Swatch) Marketing Innovation Focuses on differentiating the interaction with a prospective customer during the purchase decision process Enterprise: Pro bono executive briefings (McKinsey) Consumer: American Girl stores (Mattel) Experiential Innovation Innovation based on differentiating the experience of the offering (as opposed to its function) Enterprise: Package status visibility (Federal Express) Consumer: First class airline travel (Singapore Airlines)

40 Operational Excellence Innovation Types
Value Engineering Extracts direct cost from a product or service without changing its external properties Enterprise: Business Process Outsourcing (Tata) Consumer: Feature phones (Nokia) Integration Innovation Integrates many disparate elements into a single centrally managed system, reducing indirect operating expense Enterprise: Enterprise Resource Planning (SAP) Consumer: TV/phone/video/Internet service (Comcast) Process Innovation Extracts waste from enabling processes by removing non-value-adding steps from the work flow Enterprise: Lean Manufacturing Process (Toyota) Consumer: Social networking (Facebook) Value Migration Innovation Redirects the business model away from a commoditizing element in the value chain toward one more rich in margins Enterprise: Software as a Service ( Consumer: From razors to razor blades (Gillette)

41 Selecting Your Core Innovation Type
Good fit with your crown jewels Play in the innovation zone you are most qualified for In demand at this point in the category’s life cycle Product leadership plays best in secular growth categories Customer intimacy and operational excellence are better for cyclical growth categories Has not been preempted by your competition When you attack your competitors’ strengths, it is not likely you will become unmatchable any time soon

42 Crown Jewels Checklist
Technology Expertise Platform products Passionate customer base Scale Balance sheet Brand Relationships Business model Other

43 Making the Asymmetrical Bet
Restrict the competitive set One architecture, one tier to escape from Over-invest in the core innovation zone To the point where competitors cannot or will not follow Leverage a mega-trend To fill your sails with wind Leverage one or more crown jewels To win and to retain dominant power

44 Disruptive Mega-Trends
Globalization Changing demographics Digital technology Disruptive business models Regulatory interventions Emerging market opportunities Global warming Terrorism Other

45 The Standard to Meet Customer base adopts enthusiastically
Never-before-seen price/performance Ecosystem rallies to support Everyone wants to get onto the new bandwagon Reference competitor is left behind Cannot or will not compete on these terms Investors revalue the franchise Moves the P in the P/E ratio

46 Executive Leadership Style Required We Must Look to Leaders instead of Managers
Asymmetrically allocate their time and attention Change the game to their advantage Expect mistakes and correct them quickly Get out in front of their peers Test their relationships Are visionaries Equitably allocate their time and attention Play the hand that they are dealt Take extra time to avoid mistakes Stay in step with their peers Preserve their relationships Are pragmatists Look to managers drive on the straight stretches Look to leaders to take you through the turns

47 If We Fail, Why We Fail Performance bias Internally focused and driven
Compensated for performance only, no accountability for power Always safer to play the hand you are dealt Leads to privileging managers over leaders Internally focused and driven All about making our numbers Lose sight of our mission to be in service to the world Not adapting to mega-trends

48 Market Power Guaranteeing Early Wins for Asymmetrical Bets

49 Market Power Diagnostic
Is targeting a market niche a priority for our current strategy to succeed? Are we looking to start a fire? Is the market segment we have targeted big enough to matter, yet small enough to win decisively? Pay attention to your fish-to-pond ratio Are our market-specific commitments sufficiently focused and intense to assure we will win market power? Your whole product must blow away the competing alternatives Are we winning market power fast enough? Normally a sign either your target market or whole product is not sufficiently focused Are we capturing a price premium commensurate with the unique value proposition we provide? Same problem as above. Discounting means you have not cleared the bar Do we have a clear line of sight to expansion growth opportunities in adjacent market segments? Market segments must also be pathways to future growth

50 Understanding Market Segments Think of the Dynamics of Presidential Elections!

51 The Logic of Market Power
Markets are self-referencing communities People buy what their peers buy People are loyal to what their segment is loyal to Clear winners are a must In the absence of a clear winner, people hesitate If the situation persists, the market fragments with no winner Winning is contagious People in adjacent segments are influenced Partners want to get on the winning bandwagon

52 9-Point Market Strategy Framework Capturing the Target Market
Key sponsor 1. Target Customer 2. Compelling Reason to Buy 3. Whole Product 4. Partners and Allies 5. Sales Channel 6. Pricing 7. Competition 8. Positioning 9. Next Target Core problem Complete solution Needed for whole product Function of whole product complexity Value based Legitimate alternatives Differentiation Next growth segment

53 Target Market Initiatives
What are TMIs? Massive attacks on highly focused targets A separate playbook based on Crossing the Chasm and Inside the Tornado Taught by the Chasm Institute, facilitated by CI, The Chasm Group, and TCG Advisors Not covered in this material Why invest in a TMI? Ensures early wins Dramatically accelerates initial adoption Jump-starts broader adoption from a position of power

54 Eight Great Reasons for a TMI
Gaining market adoption for a disruptive technology Penetrating a new geography Getting out from behind the market leader Anchoring a turnaround Solving for the “stuck in neutral” problem Capitalizing on a great niche opportunity Exploiting the “granularity of growth” Capitalizing on a market in transition

55 Additional Frameworks
Target Market Initiatives are the core curriculum of The Chasm Institute ( There are currently over 300 slides in library illustrating frameworks that pertain to this topic. Please contact them for further information.

56 Offer Power Allocating Resources Asymmetrically

57 Offer Power Diagnostic
Is this offer a proven hit, a potential hit (escape velocity candidate), or more of a product-line filler? This establishes the basis for the type of innovation investment (see following) For proven hits, have we neutralized our reference competitors’ innovations sufficiently to keep them in our competitive set? This is all about getting to “good enough” fast enough For escape velocity initiatives, is this offer sufficiently differentiated to gain escape velocity from its competitive set? What can we do to amplify its differentiation further? This is all about being beyond compare For product line fillers, have we optimized these to the maximum for gains in resource utilization and cost reduction? This is all about spending the minimum to fill a space in a product line Where are we wasting resources chasing a competitor’s tail, going beyond good enough but falling short of beyond compare? This is where established enterprises waste the preponderance of their innovation

58 Offer Power Getting a Return from Innovation
Differentiation Neutralization Productivity

59 Offer Power for Escape Velocity Three Mandates to Execute in Parallel
Differentiate Separate from your competitive set Neutralize Catch up to your competition Optimize Reduce the drag of legacy

60 Differentiate Separate From Your Competitive Set
* Competitor 1 * Leverage your unmatchable capabilities to create an unmatchable offer * YOU Competitor 2 * Competitor 3 * Failure to separate means more of the same battling day to day on price and execution Competitive Set

61 Cases Examples & Cautionary Tales Innovating to Differentiate
Case Examples Cautionary Tales Google Sun Workstation Amazon Kindle Apple iPhone Cisco Telepresence AskJeeves IBM PS2 Sony Reader Palm Treo HP Halo Separate yourself from the pack Sustain the gap

62 Leverage Crown Jewels for a 10X Effect SaaS for a 10X reduction in installation and operating costs Skype Peer-to-peer IP telephony for a 10X reduction in long distance charges Wikipedia Open source collaboration for a 10X increase in speed and a 100X reduction in cost for encyclopedia development and maintenance VMWare Cross-platform virtualization technology for a 10X reduction in IT capital equipment purchase and maintenance Akamai Internet overlay network for a 10X improvement in content delivery latency reduction

63 Neutralize Catch Up to Your Competition
Competitor 2 * Competitor 1 Competitor 3 Competitive Set Neutralize a competitor’s differentiating innovation by reaching “good enough” quickly * * Refocus the market back on your differentiation YOU * Failure to neutralize quickly can result in market leaving you behind

64 Cases Examples & Cautionary Tales Innovating to Neutralize
Case Examples Cautionary Tales Microsoft & the Mac Microsoft & the Web Netflix & the Web Google Apps & MSFT Office Apple & Kindle Nokia & the iPhone Lotus Notes & the Web Blockbuster & Netflix Yahoo & Google Search Borders & Kindle Catch up fast Assimilate the innovation

65 Price/Benefit Sensitivity Focus Neutralization Where it Matters Most
Operational Excellence HI COST PERFORMANCE Product Leadership Price Sensitivity Customer Intimacy LO CONVENIENCE PREMIUM LO HI Benefit Sensitivity

66 Optimize Cut Yourself Free from the Long Tail
Attack the bottom 10% of your workload: Centralize this population under a single manager Freeze maintenance Install a “no surprises” end of life program

67 Freeing Resources Trapped in Context The Six Levers Model
Centralize. Bring operations under a single authority to reduce overhead costs and create a single decision-making authority to manage risk Standardize. Reduce the variety and variability of processes delivering similar outputs to further reduce costs and minimize risks. Core Context

68 Optimize Tighten Up Your Flabby Middle
Engage the “flabby middle” of your workload: Target the big pockets of resource waste Isolate them through API-like process firewalls Reengineer to streamline Reintegrate

69 Freeing Resources Trapped in Context The Six Levers Model
Centralize. Bring operations under a single authority to reduce overhead costs and create a single decision-making authority to manage risk Standardize. Reduce the variety and variability of processes delivering similar outputs to further reduce costs and minimize risks. Modularize. Deconstruct the system into its component subsystems and standardize interfaces for future cost reductions. Optimize. Eliminate redundant steps, automate standard sequences, streamline remaining operations, substitute lower-cost components, or otherwise cost- and resource-reduce Core Context

70 Optimize Redraw the Core/Context Boundary
Recharter. Rearchitect. Reallocate. Redefine the boundaries Transfer the investment responsibilities Focus on risk management & agile responsiveness

71 Freeing Resources Trapped in Context The Six Levers Model
Centralize. Bring operations under a single authority to reduce overhead costs and create a single decision-making authority to manage risk Standardize. Reduce the variety and variability of processes delivering similar outputs to further reduce costs and minimize risks. Modularize. Deconstruct the system into its component subsystems and standardize interfaces for future cost reductions. Optimize. Eliminate redundant steps, automate standard sequences, streamline remaining operations, substitute lower-cost components, or otherwise cost- and resource-reduce. Instrument. Characterize the remaining processes in terms of the variability of key parameters and develop monitor-and-control systems to manage their performance. Outsource. Drive processes out of the enterprise entirely to further reduce overhead, variabilize costs, and minimize future investment. Incorporate vendor use of monitor-and-control systems into Service Level Agreement. Core Context

72 Three Innovation “Playbooks”
Differentiate Neutralize Optimize Core Value Separation Time Cost Focal Point Unmatchable Good enough Systemic Challenge How far? How fast? How deep? Mixing Modes of Innovation Creates Waste One Playbook per Project! 72

73 Return on Innovation Differentiation Neutralization Failed Attempts
Optimization Waste Sources of Waste: Differentiation projects that don’t achieve unmatchable results Neutralization projects that try to differentiate at the same time Optimization projects that don’t attack the critical costs

74 The Good News About Waste
Waste is money that is in your budget today If you stop wasting it, there is no downside If you spend it on better things, there is upside What are you waiting for?

75 Execution Power Getting to the Tipping Point

76 Execution Power Diagnostic
Are we clear about the state of each of our lines of business and the corresponding execution mode that should be emphasized? Organizations tend to emphasize what they are best at, not necessarily what is required. To a man with a hammer, everything looks like a nail. Do we have the right kinds of leaders in charge, given the execution discipline that is required? Again, organizations tend to leave the same people in place for the life of a line of business, which is often not good either for the business or the people. Have we highlighted the lines of business that are in transition, either from invention to deployment (the escape velocity transition) or from deployment to optimization (the maturation transition)? These are the times of greatest risk to lose power, and it is critical that everyone pay close attention until the transitions are complete. With respect to the transition programs, do we have clear milestones and metrics and visibility to ensure we know when they have reached their tipping points? The answer here is almost certainly “not today,” as this is a novel idea. But it is essential to install these disciplines if your enterprise is to achieve its highest ambitions.

77 The Arc of Execution Complex Systems Enterprises
Playbooks Deploy Profitability Scalability Projects Products Invent Optimize

78 From Projects to Playbooks Scaling the Complex Systems Model
Communication From rolodex relationships to referrals into target market Distribution From founder led to target market expert driven Adoption From technological possibilities to target use cases Whole Product From customer bespoke to partner friendly Monetization Solution-based, calibrated by amount of cost and risk relief

79 The Arc of Execution Volume Operations Enterprises
Partners Deploy Profitability Scalability Products Processes Invent Optimize

80 From Products to Partners Scaling the Volume Operations Model
Communication Pushed , personalized, and pulled Distribution Physical or virtual as convenient for consumer Adoption Viral word-of-mouth referencing Whole Product Self-organizing ecosystem pursuing its own gains Monetization Frictionless, far-reaching, and fair

81 Catalyzing Escape Velocity The “Tipping Point” Role of Programs
Transition for Scale Transition For Yield Deploy Tipping Point Tipping Point Invent Optimize

82 Catalytic Programs Mini-TALCs Different from business as usual
Early adopters Chasms Beachheads and bowling alleys Tornadoes Main Streets Different from business as usual Not best efforts Not pay as you go Not what you see is what you get Committed to create persistent change in state Measured and evaluated against that commitment

83 Four Modes of Execution
Execution Mode Invention Deployment Optimization Transitions Type of Leader Visionary Inventor Pragmatic Deployer Conservative Optimizer Pragmatic Orchestrator Core Competence Creativity Competitiveness Control Collaboration Core Attribute Original Tough-minded Prepared Empathetic Decision Style Intuition Test-&-Adjust Deliberation Consensus Organizational Preference Integrated Teams Line Functions Hierarchical Organizations Cross-Functional

84 Staffing Leadership Roles
Let category growth be the guide Adjust management dynamics to market dynamics Transition the offerings through the modes Follow the arc of execution Maintain the modes Most people excel at one mode—play to their strengths Adjust the mechanisms to the mode Organization, compensation, metrics

85 Transformation Initiatives Playbook Headlines for Transforming Vision, Strategy, & Execution

86 Transformation Zones Category Power Company Power Market Power
Offer Power Execution Power Vision Strategy Execution

87 Transforming Vision Playbook Headlines
Category Power Review Category Maturity Landscape Overview Growth/Materiality Matrix Assessment Three Horizons Opportunity Scan Company Power Review Crown Jewels Vector of Sustainable Differentiation Relevant Mega-trends Reference Competitor Market Power Review Market Segmentation Target Market Segments

88 Transforming Strategy Playbook Headlines
Company Power Review Crown Jewels Vector of Sustainable Differentiation Relevant Mega-trends Reference Competitor Market Power Review Market Segmentation Target Market Segments Offer Power Review Differentiation Priorities Neutralization Priorities Productivity Optimization Priorities

89 Transforming Execution Playbook Headlines
Market Power Review Market Segmentation Target Market Segments Offer Power Review Differentiation Priorities Neutralization Priorities Productivity Optimization Priorities Execution Power Review Arc of Execution Status Check Transition Program Assessment Leadership Staffing Review

Download ppt "Escape Velocity Free Your Company’s Future from the Pull of the Past"

Similar presentations

Ads by Google