How to be future proof
Adopt continuous change, remain relevant, survive and thrive…
Abstract
Fast “Scientific Explorations on steroids” have to become the new norm to anticipate opportunities and disruptions. The world is evolving faster than ever, surviving requires new skills.
This guide is aimed at large organisations but may be useful for small and medium-sized groups too.
Exploration VS exploitation
Let’s say McDonald’s wants to launch a healthy option to their menu. The team gather, brainstorm and here it is: introducing the new “broccoli nugget”… It would be mad to simply start the production, distribute world wide and spend a fortune in marketing, right?
That’s what we do with digital products… everyday day! Improving on existing products (e.g. launching a new burger while changing one ingredient) is not the same as launching a whole new service (e.g. healthy options for a fast food chain).
New inventions — aka the “liquid state”
- Activities: Search, design and evaluate
- Characteristics: High level of risk & unknown target audience
- Keystone: Proactive bets on the future
- Leitmotiv: Test early and often to mitigate risk
Improvements — aka “incremental innovations”
- Activities: Improve, plan and execute
- Characteristics: low level of risk & some understanding of audience
- Keystone: Maintaining the existing
- Leitmotiv: Test early and often to mitigate risk
Finding success is hard work!
The vast majority of new business ventures fail. Both corporate and start-ups launch untested products that nobody wants. Innovation is a “bucket word” symbol of the great ubiquitous misunderstanding in this space. The only success metric should be those which measure impact (with the user, i.e. how do you create value for them?).
Rules of the road:
- There is no such thing as a “one good idea”
Out of 200 new ideas only a fifth will show some potential and 1% will survive first tests - Lower the cost of failure
Testing early and often is essential to evaluate new concept and discard the most risky ones before investment - Prototype and iterate — a lot!
The faster you learn, the more you know your audience, the better you design your products, the more you increase your chances of success - Separate risky and uncertain Exploration from core activities
Exploration tracks feed Exploitation but are not the same thing!
How to do it:
- Rock solid foundations: Small, autonomous, knowledge thirsty teams
- Empowering mechanisms: clear OKRs, transparent culture, adapted tools
- Actionable goal: innovation portfolio for balanced present and future wins
New role needed — Head of Exploration
Ideas are only as good as their execution! The risk is high when allowing multiple teams to take care of “innovation”. High bests are put on untested services which embed assumptions not data. Teams get attached to their ideas in silos. Business plans replace experiments. Value drowns and users leave.
New adaptive strategies need to be pro-actively implemented to allow some of a group’s DNA to mutate ahead of the core to find the best path to success. A few workshops, hackathons or other smoke mirrors will not ensure survival. Innovation theatre will not beat competition.
A dedicated conductor needs to guarantee that the overall process generates valuable output — similar to an orchestra where the conductor aims to ensure that individuals collectively produce a harmonious sound and remain aligned.
Key CXO responsibilities:
- Strategy: Process, tools & KPIs
Consolidate innovation strategy and build coherent story - Product: Design, Research & Explorations
Regularly adapt internal mechanisms for best efficiency - Culture: Communication, Knowledge Management & training
Manage knowledge & actively liaise with teams to make it happen
Covid 19 — Now is the time
Now is the time to think about inventing solutions for today and tomorrow. Stress makes us naturally lose sight of the big picture but successful companies must allocate resources to set up the right infrastructure and culture to make exploration a true part of their DNA.
This can not be left to chance and setting up “Innovation Teams” is simply not good enough.
Change your DNA, be a survivor, lead the game.
