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Ten Rules For Strategic Innovators

            Vijay Govindarajan
     Tuck School of Business at Dartmouth
             VG@dartmouth.edu
              www.vg‐tuck.com



           World Innovation Forum
                May 5, 2009
Box 1                            Box 2                                                   Box 3
Manage                          Selectively                                              Create
  the                             forget                                                   the
present                          the past                                                future




      William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
Growth Playbook



   Core                               Adjacent                                   Entirely New
 Business                              Space                                        Space



Horizon 1                          Horizon 2                                      Horizon 3




       William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
Box 1                            Box 2                                                   Box 3
Manage                          Selectively                                              Create
  the                             forget                                                   the
present                          the past                                                future




      William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
Olympic Gold Medal Winners in High Jump 
 2.6
                                                                                                   Fosbury
                                                                                                     Flop
 2.4



 2.2                                                             Straddle
                                  Western
         Scissors                  Roll
  2



 1.8



 1.6   1900                     1920                    1940                    1960                 1980
                 William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
                                                                                                             Source: Pascale
Olympic Gold Medal Winners in High Jump 
 2.6



 2.4



 2.2



  2      Scissors


 1.8



 1.6   1900                     1920                    1940                    1960                 1980
                 William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
                                                                                                            Source: Pascale
Olympic Gold Medal Winners in High Jump 
 2.6



 2.4



 2.2
                                  Western
         Scissors                  Roll
  2



 1.8



 1.6   1900                     1920                    1940                    1960                 1980
                 William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
                                                                                                            Source: Pascale
Olympic Gold Medal Winners in High Jump 
 2.6



 2.4



 2.2                                                             Straddle
                                  Western
         Scissors                  Roll
  2



 1.8



 1.6   1900                     1920                    1940                    1960                 1980
                 William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
                                                                                                            Source: Pascale
Olympic Gold Medal Winners in High Jump 
 2.6
                                                                                                   Fosbury
                                                                                                     Flop
 2.4



 2.2                                                             Straddle
                                  Western
         Scissors                  Roll
  2



 1.8



 1.6   1900                     1920                    1940                    1960                 1980
                 William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
                                                                                                             Source: Pascale
Strategic Balance
      Box 1                                               Box 2 and Box 3

  Competition                                                   Competition 
    for the                                                       for the
    present                                                       future



Performance Gap                                            Opportunity Gap


 Restructuring                                                       Renewal


   William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
Strategy Architecture

Non‐linear shifts
Strategic intent
Current core competencies
Growth Playbook




    William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
Growth Playbook



   Core                               Adjacent                                   Entirely New
 Business                              Space                                        Space



Horizon 1                          Horizon 2                                      Horizon 3




       William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
Strategy Architecture

Non‐linear shifts
Strategic intent
Current core competencies
Growth Playbook
New core competencies




    William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
Mission Statement



                                         ≠


                   Strategic Intent



William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
Criteria For Strategic Intent


                             Direction



                           Motivation



                             Challenge

William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
The Apollo Program
“We will put a man on the moon and bring him 
“We will put a man on the moon and bring him 
back before the end of this decade.”
back before the end of this decade.”
John F. Kennedy




           William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
M




E                                                                                          X
                                                                                       Apollo 13




William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
Think


                         Make Sure


                                    Do



William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
Payoffs From A Bold Intent

                                                A                                                   B

Resources          Very                                                           Very Limited
High

                                         Slack                                            Stretch


Ambition                            Limited                                         Very Large
         William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
Xerox’s Rules of the Game


Target corporate users
Direct sales force
Central copying
24 hour service
Package pricing
Leasing


    William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
Xerox’s Bullet‐Proof Castle




Patents Direct                         Service                 Lease                 Brand 
        Sales                          Organ­                  Base                  Name
        Force                          ization




   William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
Xerox’s Bullet‐Proof Castle




   Patents Direct                           Service                 Lease                 Brand 
           Sales                            Organ­                  Base                  Name
           Force                            ization




      IBM
     IBM
Kodak
Kodak
        William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
Xerox’s Bullet‐Proof Castle




         Patents Direct                              Service                 Lease                 Brand 
                 Sales                               Organ­                  Base                  Name
                 Force                               ization




R.I.P.   R.I.P

IBM      Kodak
                 William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth
Marathon Race




                                                                                                    Mile 26
                                                                             rs                     Mile 26
 400 Meters                                                               ete s
400 Meters                                                              M ter
                       40400
                         0 MM                                         00Me
                                                                     40
WE ARE HERE
WE ARE HERE                    e
                             ete ters                               40
                                rs

         William F. Achtmeyer Center for Global Leadership - Tuck School of Business at Dartmouth
The Top 11 Things You Can Do 
            With a Dead Horse
11.  Whip the horse a little harder.
10.  Change the rider.
 9.  Harness several dead horses together for 
      increased speed.
 8.  Emulate the best practices of companies riding 
      dead horses.
 7.  Proclaim that it’s cheaper to feed a dead horse.
 6.  Shorten the track.
                  SOURCE: Net Ready, Hartman & Sifonis with Kador
The Top 11 Things You Can Do 
            With a Dead Horse
5.  Affirm that “This is the way we have always 
     ridden this horse.”
4.  Declare that “This horse is not dead.”
3.  Have the lawyers bring suit against the horse 
     manufacturer.
2.  Engage a consultant to study the dead horse.
1.  Promote the dead horse to a senior management 
     position.    
                   SOURCE: Net Ready, Hartman & Sifonis with Kador
By:
                         C hr
                              is T
                                  rim
                                      b le




William F. Achtmeyer Center for Global Leadership ‐ Tuck School of Business at Dartmouth

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