leadership in business development (utrecht business school)
TRANSCRIPT
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Leadership in Business
Development
Agenda
✓Strategy & Direction✓Innovation Culture✓Designing an Innovation Organization Structure✓Innovation Process / Way of WorkingInnovationToolkit
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STRATEGY & DIRECTION
Oliver & Wilbur Wright
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Started in garage
And weren’t takenseriously
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No passengers,no freight
A few yearslater…
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Innovation is a continuousprocess…
Disrupt or be disrupted
Opening for Killer Applications
Progression of Technology
Incremental Business Change
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Virtual: New RulesUber The world’s largest
Taxi company, ownsNo vehicles
The world’s mostPopular media owner
Creates no content
Alibaba The most valuableRetailer, has no inventory
The world’s largestAccommodation provider
Owns no real estate
Airbnb
Something interesting is happening.
Start-up mentality = Survival
No longer exist… No one can live without…
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Unbundling Rabobank (personal)
Insurance
Investing andRetirement
WealthManagement
Loan and Credit
Home Lending
Going to College
Borrowing and Credit
Payments
Unbundling iOSMessages Calendar Photos Camera
Notes Videos
Newsstand
Maps
ApplePay
FaceTime
iBooks
Stocks
HealthMail
Apple Watch SafariMusic
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Unbundling healthcare *created by www.CBInsights.com
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Innovation CharterWhat’s needed to be able to innovate?
• Your MTP• Innovation Culture• Innovation Strategy• Innovation Structure• Innovation Processes• Innovation Toolkits
MTP
Maximum Transferable Purpose
Source: Exponential Organizations, Salim Ismail
The Massive Transformative Purpose is the higher, aspirationalpurpose of the organization, capturing thehearts andmindsof those insided and (especially) outside of the organization.
Source: Exponential Organizations,
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ExO’s
Source: Exponential Organizations,
INNOVATION CULTURE
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*: Nathalie Baugartner
Understand what culture really is
Don’t ask youremployees what yourculture is
Culture is howyou do things in your company
Actual culture: how your people
are wired
Aspirational culture: what youwrite on your walls, your
website There is no single right culture
Allign yourculture with
everything youdo
Identify youremployees core
values (core valuesare very personal)
Use your own tools to hire peoplewho fit in the culture
Use culture todevelop yourpeople
Your culture drives engagement
Actively managing yourculture lets people betheir best
Freedom of Thought
Freedom toAct
Space & Focus
Passion & Energy
People
Openness & Transparency
Enabling conditions
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Types of Innovation Culture
Entrepreneurial CulturesFormulaic Cultures
Formulaic Cultures
• At BMW, the creation of a new car concept is a wonderful orchestration. Every detail, from engine size to how a door closes and to how an engine should sound, is carefully planned. Any new technology, such as a rear-view camera, is prototyped, integrated into the design, endlessly tested, and weighed to the gram. To accomplish allof this requires the coordination of multiple departments—materialsscience, styling, power train, ergonomics, and manufacturing.
• Looking to speed communication and promote idea-sharing across divisions, executives have brought all of the critical functions together under one roof. The headquarters building in Munich uses a hub-and-spoke model with a centralcore connected to each of the floors that house the product groups. No matter whereyou are in the complex, you’re within easy walking distance of any of the expertise centers—electronics, safety, environment, drive train, etc. As you spiral down into thebuilding, you can experience firsthand how even the most mundane task is stillconnected to the overall vision of the BMW experience.
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Entrepreneurial Cultures
• Despite the outsize attention they often garner, true entrepreneurial cultures are rare in large companies. One of their hallmarks, at least in their early days, is that they oftenfeature a single, rogue innovator, a leader who by timing or luck finds himselforchestrating a maelstrom of technology disruption. Think Steve Jobs, Mark Zuckerberg, Carroll Shelby, Stephen Elop, Sergey Brin, or, long ago, Edwin Land at Polaroid. In keeping with the bold personalities that run them, the companies are usually willing totake risks that normal companies would consider off the charts.
• Cultures that form in response to these leaders are almost never satisfied withincremental growth but rather strive for major disruption. Like sharks, they target andattack mature companies where they are weakest—in their business models. They preyon lethargic industries with outdated practices that can be completely disintermediated. They use the power of emerging and disruptive technologies to reinvent the way products and services are used.
• Such companies and their cultures can accomplish historic things. They are the veryembodiment of the go-big-or-go-home mentality.
Entrepreneurial Cultures
• The challenge with entrepreneurial cultures is that they can rely too heavily on thegenius and charisma of the central innovator. His (or her) singular vision can overshadoweverything, often devaluing the ideas of others and fostering an atmosphere of suppression and fear. In fact, the leader can be so difficult to handle that the company grows weary of the struggle and forces him out. One of the more stunning images in Silicon Valley history is that of ousted disk drive legend Al Shugart driving each morningpast the company bearing his name. And of course, Steve Jobs became the poster childfor fired icons after being booted from the first iteration of Apple under John Sculley.
• The antidote for this kind of lopsided culture is to empower others. Designateintrapreneurs. Create models and practices that don’t just encourage novel thinking but also offer channels and forums to openly challenge leadership. Steve Jobs did thisbrilliantly in his second term at Apple.
• Sergey Brin, the co-founder of Google, may have started as a maverick, but he has settled into being the kind of visionary leader it takes to create and nurture a culture friendly to other entrepreneurs. Google revealed its 9 Principles of Innovation last year, and they’re worth studying. Like BMW, Brin and his team deliberately establishedprocesses to provide the necessary protection for risk takers.
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Google’s 9 principles of Innovation• Innovation comes from everywhere• Focus on the user• Think 10x, not 10%• Bet on technical insights• Ship & iterate• 20% rule• Default to open• Fail well• Have a mission that matters
General views• Know Thyself
There’s no singular method to creating a culture of innovation. Establishing one, and making it stick, depends on understanding the climate.
• Innovation is business as usualInnovation isn’t just a pet project. From R&D to human resources, customer service to financial operations, success relies on a constant evaluationof creativity—it’s everyone’s job, all the time.
• Just do itYou want to move quickly when innovating. Moving too slowly can be the death knell of new ideas.
• Knock failure off its pedestalInstead of glorifying failure, these companies knock it off its pedestal, disempower it, and move on.
• Lead infectuouslyStrong leaders don’t just maintain control. They communicate their vision clearly, which enables others to think expansively.
• Innovation is a human conditionInnovation is not a rare quality inherent in a lucky few—it’s a way of thinking and behaving that comes naturally. An organization’s job is to fosterthe right climate to unleash its employees’ innate innovative tendencies.
• Measure what’s meaningful
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Leadership styles
The pacesetting leaderPhoto: Flickr user Susanne Nilsson
The authoritative leader Photo: Flickr user Kevin Dooley
The affiliative leaderPhoto: Flickr user Foxcroft Academy
The coaching leaderPhoto: Flickr user Holly Occhipinti The coercive leader
Photo: Flickr user Feans
The democratic leaderPhoto: Flickr user Vox Efx
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6 Leadership Styles, And When You Should Use Them
Taking a team from ordinary to extraordinary means understanding and embracing the difference between management and leadership. According to writer andconsultant Peter Drucker, "Management is doing things right; leadership is doing the right things."Manager and leader are two completely different roles, although we often use the terms interchangeably. Managers are facilitators of their team members’ success. Theyensure that their people have everything they need to be productive and successful; that they’re well trained, happy and have minimal roadblocks in their path; that they’rebeing groomed for the next level; that they are recognized for great performance and coached through their challenges.Conversely, a leader can be anyone on the team who has a particular talent, who is creatively thinking out of the box and has a great idea, who has experience in a certainaspect of the business or project that can prove useful to the manager and the team. A leader leads based on strengths, not titles.The best managers consistently allow different leaders to emerge and inspire their teammates (and themselves!) to the next level. When you’re dealing with ongoing challenges and changes, and you’re in uncharted territory with no means of knowing what comes next, no one can be expected to have all the answers or rule the team with an iron fist based solely on the title on their business card. It just doesn’t work for day-to-day operations. Sometimes a project is a long series of obstacles and opportunities coming at you at high speed, and you need every ounce of your collective hearts and minds and skill sets to get through it.This is why the military style of top-down leadership is never effective in the fast-paced world of adventure racing or, for that matter, our daily lives (which is really one big, long adventure, hopefully!). I truly believe in Tom Peters’s observation that the best leaders don’t create followers; they create more leaders. When we share leadership, we’re all a heck of a lot smarter, more nimble and more capable in the long run, especially when that long run is fraught with unknown and unforeseen challenges.
Change leadership stylesNot only do the greatest teammates allow different leaders to consistently emerge based on their strengths, but also they realize that leadership can and should besituational, depending on the needs of the team. Sometimes a teammate needs a warm hug. Sometimes the team needs a visionary, a new style of coaching, someone tolead the way or even, on occasion, a kick in the bike shorts. For that reason, great leaders choose their leadership style like a golfer chooses his or her club, with a calculated analysis of the matter at hand, the end goal and the best tool for the job.My favorite study on the subject of kinetic leadership is Daniel Goleman’s Leadership That Gets Results, a landmark 2000 Harvard Business Review study. Goleman andhis team completed a three-year study with over 3,000 middle-level managers. Their goal was to uncover specific leadership behaviors and determine their effect on thecorporate climate and each leadership style’s effect on bottom-line profitability.The research discovered that a manager’s leadership style was responsible for 30% of the company’s bottom-line profitability! That’s far too much to ignore. Imagine howmuch money and effort a company spends on new processes, efficiencies, and cost-cutting methods in an effort to add even one percent to bottom-line profitability, andcompare that to simply inspiring managers to be more kinetic with their leadership styles. It’s a no-brainer.Here are the six leadership styles Goleman uncovered among the managers he studied, as well as a brief analysis of the effects of each style on the corporate climate:
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Top 10 Lessons from Startups
1. Start from scratch2. Fund to scale3. Ask for help4. Export5. Think Social
6. Think Big7. Use Technology8. Promote from within9. Form Partnerships10.Be fun
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DESIGNING AN INNOVATION ORGANIZATION STRUCTURE
Structure in GeneralHow to innovate yourself?
• R&D• Corporate Venturing / Incubation• Define product-based innovation broadly– packaging, engineering, market research, technology,
know-how, etc• Product / Service, any value proposition• Design innovation in all you do• Commercial innovation including go-to-
market• Business model and cost innovation
improvements in all processes• Connect & Develop; Greater than 50% of
innovation coming from outside the company
How to obtain innovation?
• M&A• Minority Stakes• Venturing Fund / Fund of Funds• Partnerships & JV’s• Licensing• Open Innovation
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Designing an organization structure
Micro
Macro
Individuals: Organizing via crowdsourcing for idea generation
Teams: Selecting the right teams structure for idea generation and implementation
Processes: Stage gate process at the project and organizational levels.
Organizational Structure: Designing an organization structure for innovation challenges
INNOVATION PROCESS / WAY OF WORKING
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Business Creation
Consumer andMarket Intel
Business Programming
Strategy Management review
Value Propositionand FunctionCreation
IntegreatedProduct
Development
LocalMarket Activation
Business Realization
Consumer Care Realization
Supply Chain Management
Sales
Custom
er & Con
sumer
Safety Operations HRM Sustainability
F&A
Regulatory Project Management Procurement CRM Legal
Compliance Quality Assurance Design Digital Marketing
Information Services
Custom
er, C
onsumer, M
arket
andSupp
lierEnviro
nment
Innovation Board
Strategic Market Plan (PMF)Process Overview
UpdatePL Execution Plans
4.
Product Line Launch Plan (linked to Sector Brand Launch Plan)
Floor care & Small appliances 2009 2010 2011 2012 2013 2014 2015Group Project name Key driving region Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3Dry
Eureka Jumpstart North America22xx Facelift EuropeWoofer PD EuropePriscilla EuropeE5 Mimas EuropeBubble follower EuropeCanister design bagless EuropeGALAXY 2 - bagless Europe23 Super Compact (IDC) EuropeMiranda EuropeGALAXY 1 - bagged EuropeFeather duster on board EuropeEureka UK Albion Facelift North America44B Series Follower (OTS) EuropeCyclonic Miranda EuropeFeather duster on board - Bagless Europe72 Series Follower (OTS) EuropeFutura Europe99 Euro Bagless Price Fighter EuropeNew low end bagged Essential EuropeFutura EuropeBeyond Silence Europe36 Pluto Follower CO Europe12 Series Follower (OTS) Europe72 Sherpa follower EuropeErgospace Replacer EuropeMaximus Replacer EuropeUltraFree Europe
GreenMimas Green EuropePriscilla Green EuropeUltrasaver Europe
WetICE Europe
CP3
CP3
CP3
CP3
CP3
CP3
CP3
CP3
CP3
CP3
CP3
CP3
CP3
CP3
CPCD
CPCD
CP3
CP3
CP3
CPCD
Consumer Opportunity Concept Development Primary Development
Product Development Commercial Launch Completed PD
Sector : Floor care & Small appliances
Product line : Floor care & Small appliances
Product group : DR - Full size
Region : Europe
Generation Plan
2011 2012 2013 2014
Define PL Aspirationsand Strategic Roadmap
3.
Product Line Vision and Targets, including:• Volumes, NS• Market Shares (value, volume)• GP / EBIT• CAPEX• Product mix
Strategic Roadmap How to reach targets
• Priorities and initiatives for the product line short- and long term
Understand Market Dynamics and PL Position
2.
Industry Lens
Price
points
Product typology
Macro, Category, andTechnology Trends
Consumer Lens
0
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6.00 am
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19612001
Four steps to develop the Strategic Market Plan
Collect Strategic, Brand and Other XPL Input
1.
Strategic Input• Corporate Strategy (e.g. Premium & Mass Strategy):
• Sector Strategy (e.g. Sector Vision and Targets)
• Brand Strategy: Brand Portfolio, Brand Identity
Brand Input• Brand Value Proposition• Brand Roadmap• Brand Launch Plan for next 10 years
Other Input• Segmentation• COA• Design Trends
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H3
H2
H1Whe
re to
pla
y
distance from current reality
How to Win (Business/Tech Development)
Use existing product& assets
Add adjacent products and assets
Develop new productsand assets
Serv
e ex
isting
mar
kets
and
cust
omer
sEn
ter a
djac
ent
mar
kets
Serv
e ad
jacen
tCr
eate
new
mar
kets
Targ
et n
ew c
usto
mer
nee
ds
Enhancement projectsOptimizing existing productsfor existing customers
Platform projectsExpanding from existing business into “new to the company” business
Transformational projectsDeveloping breakthroughs andinventing things for markets that don’t yet exist
H3
H2
H1Whe
re to
pla
y
distance from current reality
How to Win (Business/Tech Development)
Use existing product& assets
Add adjacent products and assets
Develop new productsand assets
Serv
e ex
isting
mar
kets
and
cust
omer
sEn
ter a
djac
ent
mar
kets
Serv
e ad
jacen
tCr
eate
new
mar
kets
Targ
et n
ew c
usto
mer
nee
ds
10%Transformational
20%Adjacent
70%Core
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INNOVATION TOOLKIT
Lean Start-up MVPValue Proposition Canvas
Teamcomposition
CustomerDevelopment
Expert mentoring
PitchingOnline collaborationand e-learning tools
Growth hacking
Business model prototyping
Start-up tools for an Accelerator for Corporates
ExperimentDesign
StakeholderManagement
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Eric Ries (2011), The Lean Startup
“”
The only way to win is to iterate faster than the competition!
culture ofrapid experimentation &iteration
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Current Process
Ideas Execution Scaling
CustomerDiscovery
CustomerValidation
CustomerCreation
MarketExpansion> > >
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Customerdiscovery
Pivot
Search Execution
Analy s is
RequirementSpecification
Des ign
Dev elopment
Tes ting and Integration
Implementation/ Deploy ment
Learn
Measure
Build
Learn
Measure
Build
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Business Model
Value Proposition
&
Business Model Prototyping
=
Elaborate planningIntuitionBig design up frontInside the buildingLooking for successWanting confirmationWithin budgetAssumptionsWithin time frame
Traditional vs. Lean Start-upExperimentationCustomer FeedbackIterative DesignOutside the buildingLooking for failureAbout being rightBudget?!?FactsAs quick as possible
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Lean & Agile
A fundamentally different mindsettowards value creation