Building a Growth Factory

Building a Growth Factory
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Introducing the Four Components That Make Innovation RepeatableEven the best-performing companies eventually stall. Sustaining momentum—and remaining a great growth company—takes a system.Scott Anthony and David Duncan call this system a “Growth Factory.” They’ve seen it work in a small set of elite companies that have created environments where innovation is both repeatable and reliable, not relegated to an off-site or isolated division that has no real connection to the organization’s future.In this HBR Single, Anthony and Duncan draw on their extensive experience working with these growth factory organizations—most notably Procter & Gamble and Citigroup. They highlight the four main components that make innovation repeatable and reliable, citing real examples of what P&G, Citi, and even their own firm, Innosight, have gone through to stay firmly on a path toward growth despite huge challenges. They offer practical advice on how you can put their system into action in your own company—whether it’s a large multinational or a small start-up.HBR Singles provide brief yet potent business ideas for today’s thinking professional. They are available digitally at HBR.org and through the Kindle Store, the iBookstore, and other ebooksellers.

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David S. Duncan. Building a Growth Factory

Solving the Challenge: The Growth Factory

P&G and Citi

1a. Growth Types. Clear Definitions of the Types of Growth Strategies the Company Will Pursue

1b. Growth Goals and Guidelines. Specific, Shared Targets and Clear Definitions of Tactics That Are On and Off the Table

Growth Goals

Growth Guidelines

2a. Robust Innovation Processes. An Explicit Set of Steps for Reliably Conceiving and Commercializing Ideas

2b. Idea Supply Chain “Raw Material” for Growth Sourced at or Beyond the Fringes of the Company and the Industry

Hunting at the Periphery

Crowdsourcing and Collaboration Tools

2c. New-Growth Groups. Dedicated Resources and Safe Spaces to Incubate Higher-Risk Ideas

2d. Little Bets Labs. Structured Ways to Rapidly and Affordably Prototype and Test Ideas

2e. M&A and Partnership Engines. Formal Means to Identify and Form Relationships with Outside Companies

3a. Idea Governance Systems. Distinct Measurement and Management Approaches for Different Types of Ideas

3b. Portfolio Tracking Systems. Mechanisms to Measure and Track the Full Growth Pipeline

3c. Resource Allocation Systems. Means to Allocate Human and Financial Resources Between Specific Projects and Broader Growth Types

3d. Continuous Improvement Systems. Systematic Approaches to Spot and Remove Critical Innovation Bottlenecks

4a. Lean-Forward Leaders. Role-Modeling of Desired Behaviors and Thoughtful Intervention to Shape the Corporate Culture

1. Personally Spend Time on Growth and Innovation

2. Break Processes When Required

3. Shape the Corporate Control Systems

4. Instill Purpose in Innovation Activities

5. Visibly Celebrate the Right Kind of Learning

4b. Innovation Talent. The Right “Schools of Experience” in the Right Roles

Forming the Right Work Teams

4c. Measurement and Reward Systems. Ways to Support Prudent Risk Taking

Unique Career Opportunities

Public Recognition

4d. Development Programs. Formal Mechanisms to Teach Key Mind-Sets and Spread Enabling Language

Building a Common Language

Teaching Enabling Mind-Sets

Providing Practical Tools

Offering Ongoing Coaching

Three Ways to Get Started

Final Advice for Leaders

Procter & Gamble

Citi

Innosight

Отрывок из книги

INTRODUCTION: STARING DOWN THE GROWTH CHALLENGE

Solving the Challenge: The Growth Factory

.....

4a. Lean-Forward Leaders

4b. Innovation Talent

.....

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