Box 1: Manage the Present
Box 2: Selectively Forget the Past
Box 3: Create the future
Managers focus mostly on Box One and must now instead equally distribute their attention to all three boxes.
Old focus, Box 1: Existing customers, obsession with today’s rivals, leveraging on existing competencies (short term view)
Add the New focus on Box 2 and 3:
Focus on emergent customers, develop an obsession with potential entrants, how are you proactively building new competencies (long term view)
First focus on Box 2 in order to achieve Box 3
“Before you can create, you must forget” – V.Govindarajan & C. Trimble
Box 2 is not just changing processes, procedures and capabilities, it is even more critically about changing mindsets, cultures and beliefs.
Drive multiple Box 3 strategy processes:
1. Engaging a subset of clients to challenge the company’s long range assumptions
2. “30/30” rule of 30% of participants in any strategy discussion should be younger than age 30 because they are not wedded in the past
3. Explore mechanisms like Strategy Graffiti Wall, Knowledge Cafes, Jam Session (i.e. fast paced round table sessions with one minute response time), speed-geeking to attract young employees to the process
Accountability: Shift from holding individuals accountable for results to one that allows for conjectures/speculations about potential nonlinear shifts. i.e. rewarding the learning process of experimentation and ideas rather than just focusing on the end results.
Organisational design: New specialized teams are needed as existing ones are geared for Box One. The first step in building these specialized teams is a Box Two action of dropping standard organizational practices.
Prioritizing for the Long Term: Be prepared to change business models, processes, customers, products; that undermine the company’s future and long term brand.
Find your new balance amongst the forces of preservation, destruction and creation.