|
Component
|
Element
|
Requires attention
|
On the way
|
Desired state
|
|
Growth blueprint
|
|
Growth types
|
No definition of growth types
|
Defined growth types, at least one of which is noncore; nonspecific classification criterion
|
Defined growth types with simple, agreed-upon classification criteria
|
|
|
|
Growth goals and guidelines
|
No clear vision
|
Directional vision lacking key specifics
|
Codified and shared growth targets with detailed on- and off-the-table strategic options
|
|
Productionsystems
|
|
Robust innovation processes
|
Innovation treated randomly
|
Innovation process defined, occasionally followed
|
Robust, learning-based process to conceive of and commercialize ideas routinely followed
|
|
|
|
Idea supply chain
|
No systematic mechanisms to source innovative ideas
|
Mechanisms to source internal or external ideas
|
Mechanisms to source internal and external ideas at or beyond the fringes of the company and industry
|
|
|
|
New-growth groups
|
No safe spaces for incubation
|
Informal mechanisms to shelter new ideas
|
Formal mechanisms serve as safe spaces for new ideas
|
|
|
|
Little bets labs
|
No mechanism to design and execute strategic learning experiments
|
Mechanism to run single-variable experiments (e.g., product prototype)
|
Structured ways to rapidly and affordably run multivariable experiments (e.g., transaction test)
|
|
|
|
M&A and partnership engines
|
No formal approach to acquisitions or partnerships
|
Acquisitions and partnerships occasionally made and in an ad hoc way
|
Robust process to acquire and partner with promising ventures
|
|
Governanceand controls
|
|
Idea governance systems
|
No disciplined approach to manage innovation
|
A single process to manage all types of ideas
|
Distinct measurement and management approaches for different types of ideas
|
|
|
|
Portfolio tracking systems
|
No tracking system
|
Ad hoc tracking system
|
Formal systems produce regular snapshot report that is the basis of leadership discussion
|
|
|
|
Resource allocation systems
|
“Find it when we need it” mentality
|
Dedicated pool of human and financial resources for innovation, with allocations reviewed episodically
|
Dedicated pool of human and financial resources for innovation, with allocations reviewed regularly
|
|
|
|
Continuous improvement systems
|
No continuous improvement systems
|
Occasional SWAT teams to address identified issues
|
Individual or small team that “innovates the innovation systems”—specifically spotting and removing bottlenecks
|
|
Leadership, talent,and culture
|
|
Lean-forward leaders
|
No role modeling by leaders
|
Desired cultural changes identified; inconsistent role modeling by leaders
|
Leaders regularly role-model desired behaviors and intervene to shape the corporate culture
|
|
|
|
Innovation talent
|
Growth efforts led by “usual suspects”
|
Identified talent plan with detailed description of desired language and skills
|
Established, skilled team supported by enabling language
|
|
|
|
Measurement and reward systems
|
Working on new-growth efforts can negatively impact career
|
Working on new-growth efforts has neutral impact on career
|
Dual systems that reward operational excellence and innovation appropriately
|
|
|
|
Development programs
|
No formal training mechanisms
|
Episodic, not systematic, training efforts
|
Formal mechanisms to teach key mind-sets and spread enabling language
|
The June 2011 issue of Harvard Business Review detailed P&G’s effort to systematize the pursuit of growth (“How P&G Tripled Its Innovation Success Rate”). The story begins in the year 2000, when P&G found its revenue shrinking despite a robust economy
