Phases of Business Startup Growth Maturity Innovation, Investment Marketing, Sales, Strategy Diversification, Reinvent Acquired, Private, Bankruptcy
High Performers vs Average High PerformersAverage Invest in reinventionInvest in managing existing operations Renew their capabilitiesStagnation Built pool of talentLimited resources Analyze changing customer needsCustomer Needs not reviewed Create distinctive capabilitiesRide on latent capabilities Netflix – Delivery by mail, Online Streaming Blockbuster – Old superstore model
Hidden capabilities curve High performers develop high capabilities Examples – Dell with its direct model of PC sales – Wal-Mart with its unique supply chain capabilities – Toyota with not just its production method but also its engineering capabilities, which made possible Lexus’s luxury cars and the Prius
Hidden talent curve Companies often lose focus on developing and retaining enough of what we call serious talent—people with both the capabilities and the will to drive new business growth The high performers maintain a steady commitment to talent creation
Edge Centric Strategy To make reinvention possible, companies must supplement their traditional approaches with a parallel strategy process that brings the edges of the market and the edges of the organization to the center Moving the edge of the market to the center – An edge-centric strategy allows companies to continually scan the periphery of the market for untapped customer needs or unsolved problems Moving the edge of the organization to the center – Frontline employees, far-flung research teams, line managers—all these individuals have a vital role to play in detecting important shifts in the market.
Change at the Top Early top-team renewal - Intel Balance short-term and long-term thinking - Adobe Organize to avoid overload Surplus Talent Hire for cultural fit – Four Seasons Hotel and Resorts Prepare for challenges ahead - GE Give employees room to grow – P&G
Conclusion Every organization is vulnerable to slowdowns. In fact, an economic downturn can exacerbate problems for companies already nearing the end of their financial S curve Even in the best of times, business crises – whether they are caused by hungry new competitors – transformational technology – or simply the aging of an industry or a company—come with regularity Companies in other industries may be feeling great, while your business (or industry) faces its own great depression
Recommendation No business is stable Only thing constant is change Innovation quotient to be high Re-invent mandatory Strategies to be devised at right time Connect between engineering and management Sales/Management to be aware of the skill sets and capabilities of the company Realistic estimates Ideas get implemented and matured