In chess, successful players know that a strong opening can give them the advantage to win the game. In fact, studies have shown that Grandmaster chess players often draw on something entirely “un-logical” from their playbook to create an unexpected opening. This is what gives them an early competitive edge over their opponent.
A study by one of my former professors at London Business School found that “Only 55% of the middle managers we have surveyed can name even one of their company’s top five priorities.”
Your ability to innovate depends on your ability to conceive of new strategic options, which in turn is a function of the number and variety of stories you recognize. When you face a challenge and ask, “What does Porter’s Five Forces tell me to do?” or “What does Clayton Christensen’s Disruptive Innovation model dictate?” you end up defaulting to what others – your competitors, your peers – would do as well. Instead, use our IDEAS framework – specifically the “Expand” step – as the key to getting out of that rut.
In our last blog, we argued that great strategies stem from impossible questions, typically a long-term one (e.g., Tesla’s how to create an electric vehicle the every-day consumer can afford?) and a near-term one (e.g., today Tesla’s might be how to establish the capacity to manufacture at scale?).
Why are so many breakthrough strategic possibilities killed off before they see the light of day? Years of research have provided us insight into the mistakes teams make that tend to kill off the most exciting ideas.
General Electric just announced it is selling off GE Digital, the much-hyped software business based in California and a keystone in GE’s strategy to transform itself from an unfocused conglomerate (in financial services and media) into a digital player that would usher in the next industrial era, creating the “industrial internet of things.”
We are passionate about understanding how the strategic conversations you hold – in boardrooms or hallways – can lead to breakthrough ideas … and why so often they don’t. We have found five mistakes teams often make that tend to kill off the most exciting strategic possibilities, and we’ve come up with a way to counter each mistake, called the IDEAS framework (Imagine, Dissect, Expand, Analyze, Sell).
In this article, I share this framework with you, in addition to a special announcement about a new program we are launching this month (see below).
I started my career in the 90s, as an external management consultant who worked on the business process reengineering aspects of large systems integrations. Our clients would spend millions of dollars reengineering the organization, but they often did not implement the changes. My personal experience reflected what research indicated: 80% of change projects fail.
In a sun-filled boardroom overlooking lower Manhattan, I was sitting with a group of chief strategy officers for part of our Outthinker Roundtable discussion. Professor George Day, leading expert on innovation and marketing, and faculty member at Wharton Business School, shared a concept about disruption that has been infecting my thoughts ever since.
US corporations invest more than $350 billion a year on innovation through R&D efforts. So it’s easy to assume that such formal efforts propel innovation more than any other factor.