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Govindarajan: Three Box Solution Cheat Sheet by

box     innovation     three     solution

Introd­uction

VG learned from Hindu philosophy about the continuous cycle of creati­on-­pre­ser­vat­ion­-de­str­uction in life that is without beginning or end. In his over 30 years of working with leaders of companies, and resear­ching, he noticed that successful innovation leaders are conscious of this cycle and discip­lined about managing it. He calls it Three-Box leadership and translates this ageless cycle into business practices.

The three-box framework makes leading innovation easier because it gives leaders a simple vocabulary and set of tools for managing and measuring these different sets of behaviors and activities across all levels of the organi­zation.

Box 1 The Present

Manage the present core business at peak efficiency and profit­abi­lity.
Many organi­zations focus mainly or exclus­ively on Box 1. The Box 1 present is their comfort zone, based on activities and ideas that are proven, well unders­tood, and firmly embedded in the business. Most firms’ organi­zat­ional structures were built on the successes of the past, refined over time to support the priorities of the present core business, and focused on maximizing cash flow and profit generated by the core.

Box 2: The Past

Let go of practices that fuel the current business but fail the new one.
Box 2 is the indisp­ensable element of the Three-Box Solution. Most organi­zations ignore Box 2 as they try to innovate their way to a new model. Even as old ideas and practices choke off the new future they’re trying to create, organi­zations find it very difficult to overcome the power of the past. The more attention a company pays to Box 2, the more room there is for the Box 3 to achieve its goals. If Box 3 were an NFL quarte­rback, Box 2 would be the offensive line, providing time and flexib­ility in which to read the defense, execute, and, if necessary, improvise. Without a well-f­unc­tioning Box 2 discip­line, your Box 3 offense will be stagnant and predic­table.

Box 3: The Future

Convert breakt­hrough ideas into new products and busine­sses.

Good Box 3 hedging strategies are important. In a regime of experi­men­tation and learning, not every step along the way will be succes­sful. You need to develop a process for hedging risk. That typically means testing assump­tions through iterative learning stages that, over time, resolve uncert­ainty and either produce growing confidence or reveal the need for a reboot or exit.
 

Three Box Solution

Endless Cycle

Think of the Three-Box Solution as endlessly cyclical. You are always preserving the present, destroying the past, and building the future. In other words, the business models, products, and services you create in Box 3 will at some point become your new Box 1.

The Three-Box Solution requires an ability to think and act simult­ane­ously in multiple time frames. You’re always managing the present, destroying the past, and building the future. At times, you will have to focus on one box more than the others, but if you attend to all three boxes with your teams and others in your organi­zation, you will find that you’re creating the future over time, every single day.

Specific leadership challenges

How to identify the market discon­tin­uities (e.g., fundam­ental shifts in techno­logy, customers, compet­itors, lifest­yle­/de­mog­rap­hics, global­iza­tion, regula­tions, etc.) that could transform our industry?
How to analyze the opport­unities and risks, as a result of our unders­tanding of market discon­tin­uities?
How to create new growth platforms (Box 3) with a view to exploit the market discon­tin­uities?
How to select­ively forget the past (Box 2)?
What new core compet­encies must we build to support growth platforms?
How to allocate resources to support growth?
What kind of organi­zat­ional DNA must we have in order to anticipate and respond to changes on a continual basis?
How to execute breakt­hrough innovation strate­gies?

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Comments

jason.proposch jason.proposch, 04:42 29 Aug 17

Colour version download link does not work

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