Download - GE’s Ambidextrous Growth Strategy: 3 Simple Tools for Accelerating FastWorks Projects

GE’s Ambidextrous Growth Strategy: 3 Simple Tools for Accelera>ng FastWorks Projects

BUSINESS MODEL STORYTELLING & ECONGINEERING

GE’s Ambidextrous Growth Strategy Ambidextrous Organizer Framework for Sustainably Managing Transient Compe>>ve Advantage

Chasm (Transi8on)

AMBIDEXTROUS GROWTH STRATEGY

CHANGE MANAGEMENT

STABILITY MANAGEMENT

Job To Get Done

Changing Environment Stable Environment

FASTWORKS – Innova>on Program

(EXPLORATION CULTURE)

SIX SIGMA – Improvement Program (EXPLOITATION CULTURE)

World-‐class Coaching on Business Model Storytelling & Econgineering for Less Than $10/Month: hWp://businessmodels.ning.com Ambidextrous Growth Strategist. Dr. Rod King. [email protected] & hTp://businessmodels.ning.com & @rodKuhnKing

FastWorks refers to General Electric (GE)’s Framework

For Con>nuous and Rapid Innova>on

which is based on Eric Ries’s Lean Startup Method

Why FastWorks?

7 Reasons Why GE is Deploying FastWorks Projects Everywhere

Shorten >me to market for innova>ve products/services/projects: “speed and agility as compe>>ve advantage”

More closely align product features with customer needs and aspira>ons

Rapidly deliver products that customers love and buy at low cost or premium price

Facilitate a culture of con>nuous itera>on as well as rapid scien>fic problem solving and decision-‐making

Rapidly develop highly innova>ve and profitable business models as well as pla`orms for innova>ve products

Significantly reduce investment risks as well as learning cost for disrup>ve innova>ons

Rapidly increase revenue, profit, and market share especially in emerging markets

1

2

3

4

5

6

7


What Environment?

In Today’s World of Globaliza8on, Organiza>ons Are Living in an Ambidextrous Environment: A Global Environment That is

Stable and Rapidly Changing

(Vola>le, Uncertain, Complex, and Ambiguous) in

Space and Time

ORGANIZATION

Ambidextrous Environment

Choose the Right Customer Segment for the Right Stage of Product in the Right Environment

Changing Environment

Stable Environment


Low Uncertainty/ Risk

ORGANIZATION




Stable Environment



ORGANIZATION

Rou8ne Problems Con>nuous Improvement Culture/Habit




Stable Environment



Stable Environment


ORGANIZATION


O.T.H.E.R. Loop Plan & Execute

(Six Sigma/Planning Project)





Extreme Uncertainty/ Risk

ORGANIZATION







Stable Environment




Novel Problems Con>nuous Innova5on Culture/Habit


ORGANIZATION






Stable Environment






ORGANIZATION

O.T.H.E.R. Loop

Hypothesize & Experiment (Lean Startup/Effectua>on Project)

Plan & Execute (Six Sigma/Planning Project)




Stable Environment






ORGANIZATION

O.T.H.E.R. Loop



MAPPING PLANNING




Stable Environment


ORGANIZATION Low Uncertainty/ Risk


Ambidextrous Environment Evolu>on of Strategy

Choose the Right Strategy for the Right Stage of Product/Business Model in the Right Environment



O.T.H.E.R. Loop



MAPPING PLANNING

COMPANY

STARTUP


Stable Environment








O.T.H.E.R. Loop



MAPPING PLANNING

STARTUP (Minimum

Viable Product/ Business Model)

COMPANY


Stable Environment








O.T.H.E.R. Loop



MAPPING PLANNING

STARTUP (Minimum


COMPANY (Maximum

Awesome Product/ Business Model)


Stable Environment


World-‐class Coaching on Lean Startup & Customer Growth Hacking for Less Than $10/Month: hWp://businessmodels.ning.com Business Strategy Coach. Dr. Rod King. [email protected] & hTp://businessmodels.ning.com & hTp://twiTer.com/RodKuhnKing







O.T.H.E.R. Loop



MAPPING PLANNING

STARTUP (Minimum


COMPANY (Maximum


Problem-‐Solu>on Fit

Business Model Fit/ Scaling

Product-‐Market Fit


Stable Environment






Shaping Strategy

Adap>ve Strategy

Visionary Strategy

Classic Strategy

RenewalStrategy





O.T.H.E.R. Loop



MAPPING PLANNING

STARTUP (Minimum


COMPANY (Maximum



Stable Environment







EARLY Adopters

Innovators (“EARLY-‐

VANGELISTS”)

EARLY Majority

LATE Majority

CHASM

O.T.H.E.R. Loop





STARTUP (Minimum


COMPANY (Maximum


MAPPING PLANNING

Ambidextrous Environment Evolu>on of Customer Segment

Choose the Right Customer Segment for the Right Stage of Product/Business Model in the Right Environment


Stable Environment







Shaping (Prototype) Product

Adap>ve (Pretotype) Product

Visionary (Pilot)

Product

Classic (Full-‐scale) Product

O.T.H.E.R. Loop





Ambidextrous Environment Evolu>on of a Scalable Product

Choose the Right Product for the Right Stage of Business Model in the Right Environment

STARTUP (Minimum


COMPANY (Maximum


MAPPING PLANNING

CHASM


Stable Environment







Shaping Project Plan

Adap>ve Project Plan

Visionary Project Plan

Classic Project Plan

Renewal Project Plan

O.T.H.E.R. Loop





Ambidextrous Environment Evolu>on of Project Plan

Choose the Right Project Plan for the Right Stage of Product/Business Model in the Right Environment

STARTUP (Minimum


COMPANY (Maximum


MAPPING PLANNING


Stable Environment


Explore

GE’s Ambidextrous Growth Strategy Ambidextrous Organizer Framework for Sustainably Managing Transient Compe>>ve Advantage

Source of 8 Tac>cs: Mainly Based on Rita Gunther McGrath’s book, “The End of Compe>>ve Advantage”

Chasm (Transi8on)

RED OCEAN STRATEGY IMPROVED PRODUCTS/SERVICES/BUS. MODELS: Defend and Extend Core or Commodi>zed Products/Services

BLUE OCEAN STRATEGY INNOVATIVE PRODUCTS/ SERVICES/BUS. MODELS: Build Blue Ocean/ Disrup>ve Products: Lean Startups

“Stability” Sustaining Innova>on (Evolu>on: Improve; Preserve the Core: Values; Purpose)

“Change (Agility)” Disrup>ve Innova>on (Revolu>on: Invent; S>mulate Progress: Vision; Goals)

Ramp up

Reconfigure

Pretotype

Prototype

FASTWORKS – Innova>on Program

(EXPLORATION CULTURE: Minimum Value Prop./

Viable Product/ Business Model/

Resources)

AMBIDEXTROUS GROWTH STRATEGY

Exploit

SIX SIGMA – Improvement Program (EXPLOITATION CULTURE: Maximum Value Prop./ Awesome Product/ Business Model/

Resources)

Posi5oning/Scou5ng Op5ons Core Enhancements

Stepping Stones PlaOorm Launches

CHANGE MANAGEMENT

STABILITY MANAGEMENT

Job To Get Done

Changing Environment Stable Environment


How to Execute Ambidextrous Growth Strategy?

FastWorks Wheel

TOOL

Source: hTps://www.ge.com/sites/default/files/ge_webcast_presenta8on_09152014_0.pdf

Source: Based on hTps://www.ge.com/sites/default/files/ge_webcast_presenta8on_09152014_0.pdf

FastWorks Wheel Rapidly Discover and Solve Problems Everywhere

1

2

34

5


PROBLEM/ CUSTOMER


1

2

34

5


PROBLEM/ CUSTOMER

VISION

(Leap of Faith; Key Assump8ons)


1

2

34

5


PROBLEM/ CUSTOMER

PRODUCT (Minimum Viable

Product/ Business Model)


1

34

5 VISION


2


PROBLEM/ CUSTOMER

LEARNING METRICS


1

4

5



3

VISION


2


STRATEGY

(Pivot or Persevere)

PROBLEM/ CUSTOMER

LEARNING METRICS


1

4

5



3

VISION


2


STRATEGY


PROBLEM/ CUSTOMER

LEARNING METRICS


1

4

5

D: Define M: Measure A: Analyze

I: Improve (Build)

C: Control (Measure)



3

VISION


2


STRATEGY


PROBLEM/ CUSTOMER

LEARNING METRICS


1

4

5


G: Generate

I: Improve (Build)


-‐ Decide (Learn)



3

VISION


2


STRATEGY


PROBLEM/ CUSTOMER

LEARNING METRICS

Successful FastWorks Wheel Rapidly Discover and Solve Problems Everywhere

1

4

5


G: Generate

I: Improve (Build)


-‐ Decide (Learn)

OTHER Loop



3

VISION


2

OTHER Loop

TOOL

Reflect

Observe

Think

Hypothesize Experiment

OTHER Loop Rapidly Discover and Solve Problems Everywhere

O

T

HE

R OTHER Loop for Scien8fic Problem Solving O: Observe T: Think H: Hypothesize E: Experiment (Build; Measure) R: Reflect (Learn)

Reflect (Learn)

Observe

Think

Hypothesize

Experiment (Build;

Measure)


O

T

HE


Reflect (Learn)

Observe

Think (Orient)

Hypothesize (Decide)

Experiment (Build;

Measure)


O

T

HE



O

T

HE


OTHER Loop Mother Of All Tools (MOAT) for Problem Discovery and Solving

Rapidly Translate Vision into Reality

OTHER Loop (Universal Problem Solving)

Problem Solving Cycle (Gap-‐Elimina>on Heuris>cs: Con>nuous Itera>on)

OODA Loop (John Boyd)

BML Cycle (Eric Ries)

HETI Loop (Steve Blank)

FastWorks Cycle (General Electric)

DMAIC Cycle (Motorola)

O: Observe O: Observe Problem (Customer)

D: Define M: Measure

T: Think O: Orient A: Analyze

H: Hypothesize D: Decide

H: Hypothesis Leap of Faith (Vision)

E: Experiment A: Act

B: Build M: Measure

E: Experiment T: Test

Minimum Viable Product (MVP); Learning Metrics

I : Improve

R: Reflect

L: Learn I: Insight Pivot or Persevere C: Control

Sheet 1 of 2


OTHER Loop Mother Of All Tools (MOAT) for Problem Discovery and Solving

Rapidly Translate Vision into Reality

OTHER Loop (Universal Problem Solving)

Problem Solving Cycle (Gap-‐Elimina>on Heuris>cs: Con>nuous Itera>on) Crea>ve Web (Rod King)

Scien>fic Method (Francis Bacon)

DMADV Cycle

PDCA Cycle (Deming)

Design Thinking Process (Stanford Uni)

O: Observe

PROBLEM Space Iden8fy or Define Exis8ng Problem/Situa8on (Bus Model)

D: Define M: Measure

P: Plan

Empathize Define

T: Think

METHOD Space Explore/Make Sense/ Ques8on/Categorize: Root-‐cause Analysis

A: Analyze

H: Hypothesize SOLUTION Space Theorize: Solu8ons/Assump8ons/ Predic8ons

D: Design Ideate

E: Experiment IMPLEMENTATION Space

Collect, Analyze, and Present Data Using Specimens/Samples (Min. Viable System)

V: Verify D: Do C: Check A: Act

Prototype Test

R: Reflect

CREATIVE LIFESPACE (Env.)

Conclude: Validate/Reject Hypotheses; To Do or Not To Do

Sheet 2 of 2


A Holis8c Way to Rapidly Discover and Solve Problems

Especially in Environment of Extreme Uncertainty

4Q-‐BUSINESS MODEL STRIP

TOOL

4Q-‐Business Model Strip Universal Problem Solving (UPS) Stack

Rapidly Discover and Solve Problems Everywhere

Prob

lem

Solving

Opera>o

nal

Level

Strategic

Level

Conceptual

Level




Prob

lem

Solving

Busine

ss M

odeling

Strategy

Strategic

Level

Conceptual

Level

Opera>o

nal

Level

Performan

ce

Man

agem

ent


Prob

lem

Solving

Busine

ss M

odeling

Strategy



Strategic

Level

Conceptual

Level

Opera>o

nal

Level

Performan

ce

Man

agem

ent




Prob

lem

Solving

Busine

ss M

odeling

Strategy

Strategic

Level

Conceptual

Level

Opera>o

nal

Level

Performan

ce

Man

agem

ent




Strategic

Strip

Co

nceptual

Strip

Opera>o

nal

Strip


From 4Q-‐Business Model Strip To GE-‐Business Model Strip

GE-‐Business Model Strip Based on GE’s Fastworks Cycle


Prob

lem

Solving

Busin

ess M

odeling

Strategy

Performance

Managem

ent




VISION (Leap of Faith)

LEARNING METRICS

PROBLEM (un/known)

Prob

lem

Solving





LEARNING METRICS

PROBLEM (un/known)

Prob

lem

Solving

Busin

ess M

odeling





LEARNING METRICS

PROBLEM (un/known)

Prob

lem

Solving

Busin

ess M

odeling

CUSTOMER PRODUCT SUPPLIER

(Minimum Viable Product)

(Minimum Viable Team)





LEARNING METRICS

PROBLEM (un/known)

Prob

lem

Solving

Busin

ess M

odeling

Strategy

CUSTOMER PRODUCT



SUPPLIER





LEARNING METRICS

PROBLEM (un/known)

Prob

lem

Solving

Busin

ess M

odeling

Strategy

CUSTOMER PRODUCT



STRATEGY

(Pivot/Persevere)

SUPPLIER





LEARNING METRICS

PROBLEM (un/known)

Prob

lem

Solving

Busin

ess M

odeling

Strategy

CUSTOMER PRODUCT



STRATEGY

(Pivot/Persevere)

Performance

Managem

ent

SUPPLIER





LEARNING METRICS

PROBLEM (un/known)

Prob

lem

Solving

Busin

ess M

odeling

Strategy

CUSTOMER PRODUCT



STRATEGY

(Pivot/Persevere)

Performance

Managem

ent

PAIN (Cost/Structure)

VALUE (Profit/Margin)

DELIGHT (Revenue/Streams)

SUPPLIER





LEARNING METRICS

PROBLEM (un/known)

Prob

lem

Solving

Busin

ess M

odeling

Strategy

CUSTOMER PRODUCT



STRATEGY

(Pivot/Persevere)

Opera>o

nal

Level PAIN

(Cost/Structure) VALUE

(Profit/Margin) DELIGHT

(Revenue/Streams)

SUPPLIER

Performance

Managem

ent

Strategic

Level

Conceptual

Level


CUSTOMER PRODUCT







LEARNING METRICS

PROBLEM (un/known)

STRATEGY



(Pivot/Persevere)

SUPPLIER


CUSTOMER PRODUCT







LEARNING METRICS

PROBLEM (un/known)

STRATEGY



(Pivot/Persevere)

SUPPLIER

OTHER Loop O: Observe T: Think H: Hypothesize E: Experiment (Build; Measure) R: Reflect (Learn)


CUSTOMER PRODUCT







LEARNING METRICS

PROBLEM (un/known)

STRATEGY

1

1

2

3

4


5


(Pivot/Persevere)

0 SUPPLIER


CUSTOMER PRODUCT

GE-‐Business Model Strip Minimum Business Model






LEARNING METRICS

PROBLEM (un/known) 1

1

2

3

4

(Pivot/Persevere)

C: Customer

S: Supplier

Channel/ Market

Feedback (Response; Experience)

Value Proposi5on


STRATEGY 5

0

Core Competence

SUPPLIER


CUSTOMER PRODUCT

GE-‐Business Model Strip Performance Management (“EAARRR”) Metrics






LEARNING METRICS

PROBLEM (un/known) 1

1

2

3

4

C: Customer

S: Supplier

STRATEGY 5

0

E: Engagement

A: Acquisi5on A: Ac5va5on

R: Reten5on

R: Revenue

R: Referral

SUPPLIER


CUSTOMER PRODUCT







LEARNING METRICS

PROBLEM (un/known)

STRATEGY

SUPPLIER








LEARNING METRICS

PROBLEM (un/known)


Appendix

CUSTOMER PRODUCT







LEARNING METRICS

PROBLEM (un/known)

STRATEGY

1

1

2

3

4


5


(Pivot/Persevere)

0 SUPPLIER


I: Improve

C: Control


Download - GE’s Ambidextrous Growth Strategy: 3 Simple Tools for Accelerating FastWorks Projects

Top Related