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Innovation Prowess: Leadership Strategies for Accelerating Growth

Book Description

A framework for achieving superior rates of organic growth

Achieving superior growth through innovation is a top strategic priority for all companies. Yet most management teams struggle to reach their firm's ambitious growth targets and suffer slow growth. What distinguishes these growth laggards from growth leaders like IBM, Nike, LEGO, American Express, Amazon, and Samsung that realize their full potential for growth?

Wharton professor George S. Day shows that growth leaders use their innovation prowess to accelerate their growth at a faster rate. In this essential guide, Day reveals how to build this prowess by combining discipline in growth-seeking activities with an organizational ability to innovate. Day shows managers how to set a growth strategy that is realistic while still stretching the organization; search for the best growth opportunities along the full spectrum of 14 growth pathways; aim their growth-seeking activities toward the creation of new customer value; learn to profit from the uncertainty of innovation by successfully assessing and containing risk; build the organizational muscle to implement an ambitious growth strategy; and move faster from ideas to impact.

With the strategies, processes, and methods discussed in Innovation Prowess, leaders can build a tested and comprehensive strategy for driving organic growth year after year.

Table of Contents

  1. Contents
  2. Preface
  3. Introduction: The Growth Challenge
    1. Growth Laggards vs. Leaders: The Difference Is Innovation Prowess
    2. A Disciplined Process Is the First Step Toward Accelerating Growth
      1. Figure I-1
      2. Innovation Prowess: Discipline + Ability
  4. Chapter One: Set the Growth Strategy
    1. Setting the Growth Objectives: Can We Close the Growth Gap?
      1. Assessing the Growth Gap
        1. Figure 1-1
        2. Analyze the Sources of Organic Growth*
      2. Calibrating the Growth Gap
      3. Closing the Growth Gap
        1. Figure 1-2
        2. Momentum Forecasting and the Growth Gap
      4. Assessing Risk
        1. Figure 1-3
        2. The Innovation Risk Matrix
      5. Growth Potential of the Innovation Portfolio
        1. Figure 1-4
        2. The Innovation Portfolio*
    2. Establishing Scope and Boundaries
      1. The Value of Limits
      2. Start from the Outside In
      3. Inside-Out Thinking
        1. Figure 1-5
        2. Integrating Outside-In and Inside-Out Thinking
      4. Adjacencies: The Sweet Spot for Profitable Growth
    3. Developing a Strategic Posture
      1. Build, Buy, or Both?
        1. Mutually Reinforcing Approaches to Growth
          1. Figure 1-6
          2. The Organic-Inorganic Growth Continuum
      2. Open, Closed, or Blended?
      3. First Mover, Fast Follower, or Imitator?
    4. Allocating Resources
    5. Guidance for Managers: Test Your Growth Strategy
  5. Chapter Two: Expand the Search for Growth Opportunities
    1. Full-Spectrum Innovation
      1. Figure 2-1
      2. Full-Spectrum Innovation: The 14 Growth Pathways
      3. The Customer Value Proposition Growth Pathways
        1. Customer Pathway
        2. Offerings Pathway
        3. Value Profile Pathway
      4. The Business Model Growth Pathways
    2. The 14 Growth Pathways
      1. Pathway 1: Satisfy latent or unmet needs
        1. Figure 2-2
        2. The IDEO Development Process
      2. Pathway 2: Overcome barriers to consumption
      3. Pathway 3: Enter new segments, categories, or geographies
      4. Pathway 4: Improve the customer experience across all touch points
        1. Figure 2-3
        2. Customer Experience Mapping
      5. Pathway 5: Develop innovative new products, services, or platforms
      6. Pathway 6: Provide integrated solutions
      7. Pathway 7: Innovative imitation
      8. Pathway 8: Innovate the value profile
        1. Figure 2-4
        2. The Budget Hotel Market in India
      9. Pathway 9: Enable “sense and respond” capabilities
      10. Pathway 10: Align to a specific segment
      11. Pathway 11: Go to market more effectively
      12. Pathway 12: Shrink the core, expand the network30
      13. Pathway 13: Reconfigure core processes
      14. Pathway 14: Change how the firm makes money
    3. Conclusion
    4. Guidance for Managers: Navigate the Pathways
  6. Chapter Three: Converge on the Best Opportunities
    1. Figure 3-1
    2. Converge on the Best Opportunities: Successively Tighter Filters
    3. Refine the Opportunity Set
      1. Generate Growth Ideas
      2. Filter the Growth Ideas
    4. Screen for Learning38
      1. Figure 3-2
      2. Screening for Success
      3. The Screening Team
      4. Why 3M Embraced R-W-W
    5. Assess and Contain Risk
      1. Challenge the Business Model
        1. Figure 3-3
        2. Prioritizing Assumptions
      2. Keep Your Options Open
    6. Develop and Launch the Best Opportunties
      1. Figure 3-4
      2. The Attrition Curve for Innovation Concepts
    7. Guidance for Managers: Examine Your Current Practices
  7. Chapter Four: Apply Innovation Prowess to Accelerate Growth
    1. Figure 4-1
    2. Diagnosing an Innovation Ability
    3. Innovation Culture
      1. Values and Norms of Innovation Cultures
      2. Leadership and Culture
    4. Innovation Capabilities
      1. Market Learning Capability51
        1. Market Sensing
        2. Sense Making
        3. Applying the Insights
        4. Feedback and Deeper Learning
      2. Open Network Management Capability
        1. Figure 4-2
        2. Innovating in an Open Network
        3. Mapping and Engaging the Ecosystem
        4. Identify and Contain Risks
        5. Relating to Network Partners/Collaborators
      3. Adaptive Development Capability
        1. Figure 4-3
        2. Variations on Stage-Gate Processes
    5. Innovation Configuration
      1. Designing the Organization to Innovate
        1. Growth Inhibitor One: Diffused Accountability
        2. Growth Inhibitor Two: Constrained Thinking/Narrowed Thinking
        3. Growth Inhibitor Three: Square Peg, Round Hole
      2. Metrics and Incentives
        1. Emphasize Learning over Scorekeeping
        2. Customize the Dashboard
    6. Improving and Applying Your Innovation Prowess
    7. Guidance for Managers: Assess Your Innovation Ability
      1. Our Culture?
      2. Our Capabilities?
      3. Our Configuration?
  8. Conclusion
    1. Handrail 1: Focus Relentlessly on Customer Value
    2. Handrail 2: Balance Discipline and Creativity
    3. Handrail 3: Profit from Uncertainty
    4. Handrail 4: Master Ambidexterity
    5. Handrail 5: Mobilize the Entire Organization
  9. Appendix A: Positioning Projects on the Matrix
  10. Appendix B: The Real-Win-Worth It Screen
  11. About the Author
  12. About the Wharton Executive Essentials Series
  13. About Wharton Digital Press
  14. About The Wharton School
  15. Wharton on Strategy
  16. © 2013 by George S. Day
  17. About the Book