asp talk 1/9/2015

INNODYNBusiness Growth Development

®

Balancing Planned Growth and Dynamic Growth

Why Do Companies Fail 2014 Survey Results

Top Three Reasons Why Established Companies Fail:

Management continued with a strategy that was no longer working for the company.

(54.6%)

#1 Reason

Management focus was on executing a long-term strategic plan.

Company lost touch with the market and their customers.

(51.5%)

#2 Reason

Management underestimated changes in the market and did not adapt to them appropriately.

Company had no entrepreneurial vision and no entrepreneurial capabilities.

(51.4%)

#3 Reason

The workforce focus was primarily on executing a strategic plan.

45.41%

Internal Crisis Factors

External Crisis Factors

Strategic Planning: Recent Headlines

What would the “fathers” strategic planning have to say?

Igor AnsoffKenneth Andrews

An Inconvenient Truth:

Under conditions of high uncertainty, traditional strategic planning becomes less effective

Why?

Uncertain

ty

High

Uncertainty

timeline nowthen

lowhig

hcomplexity

speed of

business

Low

[ Try to find the best match between a firm’s resources and capabilities (it’s strengths) and the market opportunities. Defend against threats by fortifying weaknesses. ]

Premise of Strategy Formulation & Planning (for Growth):

Find a way to exploit opportunities better than competitors.

Create a strategic plan to effectively execute the strategy.

But what exactly constitutes a market “opportunity”?

For years opportunities have been defined within the context of industry analysis - supply side economics.

The basis of competition has shifted to individual value propositions and business models - demand side economics.

This means that “opportunities” now reside within the business realities that can that can signal possibilities for improving, extending or innovating value propositions and business models.

....or in other words,

Demand Creation

The strategy formulation and planning process is still largely conducted by a small group of senior managers.

Burden of the Past: Legacy Behaviors

They use SWOT, PESTEL and Competitive Intelligence to “identify” the best growth opportunities.

They are most often wrong.

But, where there is a lot of uncertainty in the business environment, there is a high assumption-to-knowledge ratio

High assumptions / low knowledge

Under conditions of high uncertainty, the best opportunities cannot be identified by passive analysis of reality.

Rather, opportunities must be discovered by enacting on business realities.

Inquiry, observation, collaboration, experimentation, etc.

Further, business realities are continually presenting companies with a steady stream of potential opportunities and some threats.

Under conditions of high uncertainty, achieving the best match must be a dynamic process happening all the time.

The Opportunity Stream

Proactively improving and innovation business models, offerings and strategies in timely response to changes in the business environment with the aim of maximizing profitable revenue.

The Need for Dynamic Growth

The workforce must have an entrepreneurial mindset in order to discover highly profitable opportunities hidden in plain site.

But what is an Entrepreneurial Mindset?

An entrepreneurial mindset is the ability to look at business realities from the perspective of demand creation possibilities.

The Enlightened Will See

The Dynamic Growth System

Satisfy unmet customer needs with

a new offering

Create value, deliver value and/or capture revenue in new ways

Provide a better customer experience

via an existing offering

Satisfy related unmet customer needs with an existing offering

Improve value creation, value delivery, and/or

revenue capture

Elevate the value proposition of an existing offering

Improve Extend Innovate

Offerin

gB

usin

ess M

od

el

Value Enhancement Value Innovation

[ Six Levers of Demand Creation ]

Business Realities Potential for Demand Creation?

[ Entrepreneurial Insight Generator ]

Opportunity & Threat Discovery

ValueEnhancement

ValueInnovation

Entrepreneurial Insight

Demand Creation

Opportunity / Threat Discovery

Entrepreneurial Mindset

[ Dynamic Growth System ]

Uncertainty is not turbulence. It is opportunity!

Reframe:

Uncertainty is not something to be avoided. It is something to be exploited.

Balancing Planned Growth and Dynamic Growth

What does it look like?

Dynamic strategic planning results in a more strategically agile and entrepreneurial organization that is able to move with the speed of business to continually discover and exploit the best growth opportunities and effectively respond to formidable threats.

INNODYNBusiness Growth Development

®