Stanford modellen Kjeld Lisby, Chief Innovation Officer, North Denmark Region. Solstrand, maj 2014 The Stanford model • • • • • In general The strategic exersise. Escape Velocity – Leadership/Management. Rapid Prototyping – The operating model. Summing up Peter Drucker on business - 2 Because the purpose of business is to create a customer, the business enterprise has two— and only two—basic functions: 1 – marketing 2 – innovation Marketing and innovation produce results; all the rest are costs. BOARD GOVERNANCE A/S CREATING BOARD VALUE™ Alice’s Adventures in Wonderland Would you tell me, please, which way I ought to go from here? I don't much care where…so long as I get somewhere BOARD GOVERNANCE A/S That depends a good deal on where you want to get to! Then it doesn't much matter which way you go! Charles Lutwidge Dodgson CREATING BOARD VALUE™ Strategy 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 Strategy is exploiting the battle to win the war. Tactic is use of the military forces to win the battle. Clausewitz Mintzbergs five P’s: Plan Ploy Pattern Position Perspective BOARD GOVERNANCE A/S Strategy is the art of distributing military means to fulfil the ends of policy. Liddell Hart 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) Strategy, a word of military origin, refers to a plan of action designed to achieve a particular goal. (Wiki) CREATING BOARD VALUE™ The strategical exercise – has it been done? BOARD GOVERNANCE A/S CREATING BOARD VALUE™ Strategic Execution Framework (SEF) Who are you? What is the context? Where are you going? What needs to be created? How will we build it? How will you operate? BOARD GOVERNANCE A/S CREATING BOARD VALUE™ The Strategic Execution Framework (SEF) The SEF helps organizations improve how they innovate (execute their strategy) through projectbased work (PBW). Ideation Clarify and communicate your company’s purpose, identity, and long-range intention Develop the who, why, and where BOARD GOVERNANCE A/S CREATING BOARD VALUE™ The SEF: Six critical relationships Ideation—Purpose, Identity, and Intention Nature—Culture, Structure, and Strategy Vision—Goals, Metrics, and Strategy Engagement—Portfolio and Strategy Synthesis—Portfolio, Programs, and Projects Transition—Programs, Projects, and Operations BOARD GOVERNANCE A/S CREATING BOARD VALUE™ Escape Velocity (Leadership and Management) Free Your Company’s Future from the Pull of the Past Achieving Breakout Results What 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 BOARD GOVERNANCE A/S CREATING BOARD VALUE™ Three Investment Horizons Where Breakout Innovations Get Stuck Also not a problem Still in the far future Break-Out Categories On-board next generation for future growth Horizon 3 ROI in 36 to 72 mos Current Categories Meet Performance Commitments Horizon 2 ROI in 12 to 36 mos Horizon 1 ROI in 0 to 12 mos Sticking point (The transition to material resourcing) Future Category Options Develop options for future growth Not a problem Fits in with status quo BOARD GOVERNANCE A/S CREATING BOARD VALUE™ Resource Allocation Dynamics Horizon 1 is the Enemy of Horizon 2 • 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 • H3 does not compete with H1 and is unaffected by any of these portfolio dynamics This is not an innovation problem This is a resource allocation problem BOARD GOVERNANCE A/S CREATING BOARD VALUE™ Meeting the Horizon 2 Challenge New 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 Model It’s Not a Funnel. It’s an Hourglass! Horizon 3 Horizon 2 Resourcing Bottleneck Horizon 1 BOARD GOVERNANCE A/S CREATING BOARD VALUE™ Staffing for Change Management Let Orchestrators Lead During the Transitions Invent Deploy Optimize Transition Type of Leader Visionary Evangelist Pragmatic Doer Conservative Optimizer Pragmatic Orchestrator Core Competence Creativity Competitiveness Control Collaboration Core Attribute Imaginative Tough-minded Prudent Empathetic Organizational Preference Integrated Teams Line Functions Hierarchical Organizations Cross-Functional Teams BOARD GOVERNANCE A/S Facilitate the Transition CREATING BOARD VALUE™ Dynamic development – Rapid Prototyping Think Internationally - Work Internationally BOARD GOVERNANCE A/S CREATING BOARD VALUE™ Strong national and Nordic basis …for international cooperation and partnerships 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 BOARD GOVERNANCE A/S CREATING BOARD VALUE™ Questions? BOARD GOVERNANCE A/S CREATING BOARD VALUE™ Current members and allies