The Stanford model
• In general • The strategic exersise. • Escape Velocity – Leadership/Management.• Rapid Prototyping – The operating model.• Summing up
BOARD GOVERNANCE A/S CREATING BOARD VALUE™
Peter Drucker on business - 2Because the purpose of business is to create a
customer, the business enterprise has two—and only two—basic functions: 1 – marketing2 – innovation
Marketing and innovation produce results; all the rest are costs.
BOARD GOVERNANCE A/S CREATING BOARD VALUE™
Alice’s Adventures in WonderlandWould you tell me, please, which way I
ought to go from here?
That depends a good deal on where you
want to get to!
I don't much care where…so long as I get somewhere
Then it doesn't much matter which
way you go!
Charles Lutwidge Dodgson
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Strategy
A strategy is an action – taken as a means to an end – in a situation where the outcome also depends on other people’s actions and strategies.
(Pax Leksikon)
Say the word: Strategy, and we get a sense of drinking of the management profession’s vintage wines. It is here leadership becomes an art and an elevated activity. Overview and mastermind. We drink the drops from the Zun Tzu’s Art of War, and sense with Von Clausewitz the satisfaction and pride of the grandeur in the view of the battle field. At te same time there is something evanescent about the concept of strategy. We sense the importance of the Strategy, use our strenght on putting together carefully thought out battle plans, just to experience how the battle takes another turn and the strategy crumbles.
Kristian Dahl, Business Psychologist
Mintzbergs five P’s:PlanPloy Pattern PositionPerspective
Strategy is the art of distributing military means to fulfil the ends of policy.
Liddell Hart
Strategy is exploiting the battle to win the war. Tactic is use of the military forces to win the battle.
Clausewitz
Strategy, a word of military origin, refers to a plan of action designed to achieve a particular goal.
(Wiki)
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Strategic Execution Framework (SEF)
Who are you?
Where are you going?
How will you operate?
What needs to be created?
What is the context?
How will we build it?
The Strategic Execution Framework (SEF)
The SEF helps organizations improve
how they innovate (execute their
strategy) through project-based work
(PBW).
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Ideation
Develop the who, why, and where
Clarify and communicate your company’s purpose, identity,
and long-range intention
BOARD GOVERNANCE A/S CREATING BOARD VALUE™
The SEF: Six critical relationships
Ideation—Purpose, Identity, and IntentionNature—Culture, Structure, and StrategyVision—Goals, Metrics, and StrategyEngagement—Portfolio and StrategySynthesis—Portfolio, Programs, and
ProjectsTransition—Programs, Projects, and
Operations
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Achieving Breakout ResultsWhat Does It Take to Gain Escape Velocity?
• Focus on Power before Performance– Power fuels performance– Performance converts power into returns
• Focus on Leadership before Management– Leadership develops power– Management delivers performance
We need to get smarter about power
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Three Investment HorizonsWhere Breakout Innovations Get Stuck
Horizon 1ROI in 0 to 12 mos
Horizon 2ROI in 12 to 36 mos
Horizon 3ROI in 36 to 72 mos
Current Categories
Meet Performance Commitments
Break-Out Categories
On-board next generation for future growth
Future Category Options
Develop options for future growth
Not a problemFits in with status quo
Also not a problemStill in the far future
Sticking point(The transition to
material resourcing)
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Resource Allocation DynamicsHorizon 1 is the Enemy of Horizon 2
• H3 does not compete with H1 and is unaffected by any of these portfolio dynamics
This is not an innovation problemThis is a resource allocation problem
• Horizon 1 is responsible for current operating results and has the most organizational power
• H1 managers to hoard scarce resources to ensure they can meet their immediate commitments
• H1 managers block H2 initiatives because they compete for the same pool of scarce resources
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Meeting the Horizon 2 ChallengeNew Prescriptions in Five Key Areas
• Number of H2 Initiatives
• Planning & Budgeting
• Organizational Structure
• Metrics
• Talent & Compensation
BOARD GOVERNANCE A/S CREATING BOARD VALUE™
Innovation Incubation ModelIt’s Not a Funnel. It’s an Hourglass!
Horizon 3
Horizon 2
Horizon 1
ResourcingBottleneck
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Staffing for Change ManagementLet Orchestrators Lead During the Transitions
Invent Deploy Optimize Transition
Type of LeaderVisionaryEvangelist
Pragmatic Doer
ConservativeOptimizer
PragmaticOrchestrator
Core Competence Creativity Competitiveness Control Collaboration
Core Attribute Imaginative Tough-minded Prudent Empathetic
Organizational Preference
IntegratedTeams
Line Functions
HierarchicalOrganizations
Cross-FunctionalTeams
Facilitate the Transition
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Three questions to the ”practician”
• How do you implement ideas in practice ?– When the creativity by the employee is combined with the
result oriented structure at the innovation unit.
• How is ownership secured among the the employees / Leaders ?– The employees participate in the development work and
are motivated through results and incitements.
• How can the innovation culture be strengthened in everyday work ?– Eductation, Motivation (results) and incitements.
Always set the right team