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How Stella Saved the Farm

How Stella Saved the Farm is a simple and logical book based on a story which narrates the learning process about making innovation happen. The book is divided in two parts and consists of total nineteen chapters. First part carries nine chapters and remaining are under the second part, which explains the conversion of idea into innovation and then great success. The story is about the competition of two farms one run and managed by animals (Windsor farm) and another by human beings (McGillicuddys farm). Windsor farm is working through change and innovation where the status quo is no longer good enough. Interestingly, in view of poor performance of Windsor farm McGillicuddy is hoping to take over the Windsor farm, but due to the innovations, Windsor farm crosses all hurdles and gets a remarkable status in the business.

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How Stella Saved the Farm

  1. 1. Some Impressionistic takes from the book of Vijay Govindarajan & Chris Trimble “How Stella Saved the Farm “ A Tale about Making Innovation Happen by Ramki ramaddster@gmail.com
  2. 2. About the Authors  Recently named #3 on the esteemed Thinkers50 List by Harvard, V. G. is the Earl C. Daum 1924 Professor of International Business and the founding director of Tuck’s Center for Global Leadership. He was the first professor in residence and chief innovation consultant at General Electric.  V. G. has earned such distinctions as:  Outstanding Faculty (BusinessWeek, in its “Guide to the Best B-Schools”)  Top Ten Business School Professor in Corporate Executive Education (BusinessWeek)  “Superstar” Management Thinker from India (BusinessWeek)  Top Five Most Respected Executive Coach on Strategy (Forbes)  Top 50 Management Thinker (The London Times)  Outstanding Teacher of the Year (MBA students)  V. G. has worked directly with 25 percent of the Fortune 500 corporations including Boeing, Coca-Cola, Colgate, Deere, FedEx, Hewlett-Packard, IBM, J.P. Morgan Chase, Johnson & Johnson, New York Times, Procter & Gamble, Sony, and Walmart. He is a regular keynote speaker in CEO Forums and major conferences including the World Innovation Forum and BusinessWeek CEO Forum.  V. G. received his doctorate and his MBA, with distinction, from the Harvard Business School.
  3. 3. About the Authors CHRIS’S career mixes rigorous academic research with hard-nosed practical experience. His interest in innovation within large organizations developed early in his career, when he was a submarine officer in the U.S. Navy. His article “Stop the Innovation Wars”, coauthored with Vijay Govindarajan, won a McKinsey Award, which was recognizes the best articles in the Harvard Business Review each year. Chris is a frequent speaker on the topic of innovation and has spoken all over the world. He has also advised dozens of top corporations on their innovation challenges. Chris holds an MBA degree with distinction from the Tuck School and a bachelor of science degree with highest distinction from the University of Virginia.
  4. 4. Prelude  How Stella Saved the Farm is a simple parable about making innovation happen, written by the authors of the New York Times bestselling Reverse Innovation: Create Far From Home, Win Everywhere, Vijay Govindarajan and Chris Trimble.  This story resonates in organizations of all types—public sector, private sector, and social sector, from mammoth corporations to small organizations employing just a few dozen people.  The parable is about a farm in trouble. Bankruptcy, or the grim prospect of being acquired by a hostile competitor, threaten. The farm succeeds only if the team pulls together and innovates.
  5. 5. Prelude  The main characters in the story—Stella, Deirdre, Bull, Mav, Einstein, Rambo, Maisie, and Andrea—are all like people you know, maybe even yourself.  The tale includes an unexpected leadership challenge, an ambitious call to action, a bold idea, countless internal obstacles and conflicts, fears, joys, triumphs, and even a love interest.  It's a story that can be enjoyed by anyone. How Stella Saved the Farm delivers eight simple lessons to guide innovation initiatives to success. It prepares business leaders to avoid some of innovation's most toxic myths, teaches how to build the right kind of team, and shows how to learn quickly from experience.
  6. 6. Main Characters
  7. 7. Chapter -1
  8. 8. Chapter -1  The first chapter starts with the introduction of Deirdre, the upcoming president of Windsor farm under the leadership of Deirdre‘s father Marcus. Marcus leaves and the whole responsibility lies on Deirdre. Marcus is apprehensive about the fact that someday there will be no choice other than to sell Windsor Farm to McGillicuddy, the owner of the neighboring farm. McGillicuddy does not respect animals and would not treat them well, which highlights the inimical behavior of humans towards animals bringing out the yet another but brave side of reality.  Deirdre Will Be Next to Lead Windsor Farm Marcus tells Deirdre he wants her to take over as the farm’s leader. Deirdre doesn’t feel ready, but she cannot refuse her father.  The other animals on the farm had expected that Bull would be the next leader, but Marcus is worried that Bull will “run the farm just like he did.” The problem is that even if Windsor is run with perfect efficiency, it can’t match the scale of gigantic human-run farms and their enormous machines.  Marcus is scared that someday there will be no choice but to sell Windsor Farm to McGillicuddy, the owner of the neighboring farm. McGillicuddy runs a big, impersonal operation, not a family farm. He does not respect animals and would not treat them well
  9. 9. Chapter -1- Question for Review What advantages do human-run farms have over animal-run farms like Windsor? Why does Marcus believe the farm needs a new kind of leader?.
  10. 10. Chapter -2
  11. 11. Chapter -2  When a person doesn’t get promotion and recognition on time, motivation level of concerned could decrease and may be a problem for the whole organization. This is discussed in the second chapter. Same happened with Bull, he was the successor of the farm but he didn’t get the president’s post which created a lot of misunderstanding between Deirdre and Bull. After getting the news of relieving of Marcus, Bullwas very angry, even after Deirdre offers to create a new role for him as chief operating officer. Bull is Angry and Unsure of his Future.  Marcus and Deirdre break the news to Bull. He is very angry, even after Deirdre offers to create a new role for him as chief operating officer.  Bull’s motto is “faster, stronger, more efficient.” He wrote it on the barn wall. Bull does not warm to the idea of working for Deirdre, even as a chief operating officer.
  12. 12. Chapter -2- Question for Review How would Bull run Windsor Farm if he were in charge? What offer does Deirdre make to Bull to keep him on the farm?
  13. 13. Chapter -3
  14. 14. Chapter -3  The third chapter being more elaborate elucidates the history of the Windsor farm that how Marcus’s grandfather converted this farm into animal run farm successfully.  Most of the organizations are spending lots of fund on research and developments activities for innovation.  But Windsor farm didn’t adopt it due to the involvement of animals. Currently, farm is in problem due to the increasing cost of production, but still they are earning profit  The Noteworthy History of Windsor Farm -Marcus dies, and Deirdre is on her own. Windsor Farm has a rich history. It was the site of the revolution that first led to animals running their own farms generations earlier
  15. 15. Chapter -3- Question for Review What is special about Windsor’s history?
  16. 16. Chapter -4
  17. 17. Chapter -4  The fourth chapter articulates that there are three major business units in the farm: Ovine ops, Bovine ops, and Crops.  The farm was operating as efficiently as ever. But the prices for the farm’s products were dropping across the board and squeezing profits. If the current trend continued, Windsor could be forced out of business in just a few years.  Now Deirdre discusses the farm’s declining performance with Bull, Rambo, Rex, and Rob. Rambo suggests a plan to increase yarn-making capacity through better scheduling. But, Rex recommends about new feed for the cows that promised to increase milk production and Rob suggests that rotation crop method. Deirdre Under Pressure  Deirdre faces early trouble. Hail. Bugs. Sheep walking off the farm. She asks for advice on how to improve performance. Bull responds: “I will work harder.” Other animals respond with good ideas, but Deirdre feels that they are insufficient. Deirdre sees McGillicuddy driving by in a gigantic, brand-new tractor, and later dreams that McGillicuddy runs her over with it.
  18. 18. Chapter -4- Question for Review What are the trends in Windsor’s finances? When Deirdre discusses the farm’s declining performance with Bull and the Three Little Bulls, what do they propose?
  19. 19. Chapter -5
  20. 20. Chapter -5  An appeal for bold ideas to be taken takes shape in the fifth chapter demonstrating that new ideas, innovative thinking, and suggestions for improvement are needed in every organization especially for Windsor like poorly performing organizations.  The animals are very afraid of the possibility that in case of continuous poor performance of Windsor farm, McGillicuddy may take over the Windsor farm. Deirdre Asks for Bold Ideas  At a farm-wide meeting, Deirdre shares her dream about McGillicuddy’s gigantic tractor. The animals are very afraid of the possibility that McGillicuddy will take over. Deirdre makes an appeal for bigger and bolder ideas. She announces a “big idea hunt.”
  21. 21. Chapter -5- Question for Review How do Bull and the Three Little Bulls react to Deirdre’s Big Idea Hunt?
  22. 22. Chapter -6
  23. 23. Chapter -6  The Sixth chapter informs that coincidentally Stella returns from Peru with the idea of a new luxury wool business for the revival of Windsor farm. Stella Returns with a Big Idea  The Big Idea Hunt generates a handful of promising ideas. Coincidentally, Stella returns from Peru just in time to present an idea of her own: a new luxury wool business
  24. 24. Chapter -6- Question for Review What are the positive attributes of Stella’s idea, the luxury wool business?
  25. 25. Chapter -7
  26. 26. Chapter -7  Further, seventh chapter depicts that Deirdre and Bull predicted that luxury wool is the best idea. They have organized a big celebration to announce the name of Stella as a winner of the big idea hunt. Deirdre Commits to Luxury Wool Business  Deirdre and Bull decide that luxury wool is the best idea that they have. They plan a big celebration to announce the winner of the Big Idea Hunt. Stella is thrilled and comments, “It just shows that you never know where your next crazy idea will come from.” And then… the party was over. It dawns on Deirdre that she hasn’t really thought carefully about next steps.
  27. 27. Chapter -7- Question for Review Why is Bull resistant to the idea of moving quickly into luxury wool? What is Deirdre’s opposing point view? What occurs to Deirdre just after celebration of farm’s commitment to luxury wool ?
  28. 28. Chapter -8
  29. 29. Chapter -8 The eighth chapter portrays that Deirdre and Bull selected Mav to lead luxury wool business. Deirdre instructed Mav to report to Rambo, since luxury wool is most closely tied to ovine ops. According to the Stella’s estimations the luxury wool business would consume only one-third of the farm’s savings before it reached to the profitability, but situation was worse than anticipated. Deirdre was worried about the poor economic position of the farm, same day McGillicuddy offered fair price to her in lieu of the sale of Windsor’s farm. But, Deirdre rejected his offer straightway. Mav Will Lead Luxury Wool Deirdre and Bull select Mav to lead luxury wool. They could have selected someone more senior, but that would have meant taking someone out of a critical job running the existing business. Deirdre has Mav report to Rambo, since luxury wool seems most like the existing sheep wool business. At a farm-wide meeting, Mav is introduced as the leader of luxury wool. The animals are excited, and Mav lets the animals know he will be looking for volunteers to help him. Then, Bull reminds the animals that they must work harder at the existing business
  30. 30. Chapter -8- Question for Review Is Mav the best choice for running luxury wool? Should Mav accept the job of leading luxury wool? Would you? How can Rambo, Mav’s new boss, help ensure the success of luxury wool? Should Bull be emphasizing We Must Work Harder at a time like this?
  31. 31. Chapter -9
  32. 32. Chapter -9 In the ninth chapter, Mav learns how hard it is to push a new idea in an established business. There are few rules that make sense for the core business but same rules are hurdles in Mav’s way, such as tight standards for bringing new animals in the farm, compensation standards, and spending guidelines. Further, nobody seems to have enough free time to help Mav. Deirdre is very angry about the poor performance of luxury wool business lead by Mav. Mav is Confronted by “The System.” Mav learns how hard it is to push a new idea forward inside an established business. There are “rules” that make sense for the core business that get in Mav’s way, such as tight standards for bringing new animals on the farm, compensation standards, and spending guidelines. And, nobody seems to have much free time to help Mav. Bull is keeping all of the animals extremely busy. Rambo also seems to be unable to help. Deirdre is very angry about the lack of progress. Hadn’t she made it very clear that the future of the farm depended on luxury wool?
  33. 33. Chapter -9- Question for Review What are the motivations affecting the characters that create difficulties for Mav? Why couldn’t Rambo help?
  34. 34. Chapter -10
  35. 35. Chapter -10 The idea is only the beginning in any great innovation story which is best depicted in the tenth chapter. Deirdre realized that expecting one leader to just go and make it happen was a woefully inadequate approach for moving an innovative idea forward. So, she decides to give more powers to Mav, like Mav should report directly to her and she gives a dedicated team of three workers to Mav namely Maisie (marketing), Matt (sales), and Max (manufacturing). Bull is angry after losing three talented people of his team but Deirdre managed to convince Bull. Mav Gets a Dedicated Team Deirdre recognizes that in the contest between innovation and ongoing operations, between Mav and Bull, Bull was going to win every time. Bull was working the animals very hard. They were running the core business as best possible, and this left little time for anything else. Deirdre decides that Mav should report directly to her so that she can act as his sponsor. Rambo is relieved that he can focus just on meeting Bull’s demands. Deirdre gives Mav a dedicated team of three: Maisie (marketing), Matt (sales), and Max (ops). Bull is angry to be losing three talented people. How was he going to do his job without them?
  36. 36. Chapter -10- Question for Review Is it appropriate for Deirdre to take good workers out of the core business to help Mav? What other options did she have, if any?
  37. 37. Chapter -11
  38. 38. Chapter -11 The eleventh chapter demonstrates that Deirdre called the farm- wide meeting and stressed for giving sufficient freedom to luxury wool business. But, Bull informed that he doesn’t expect any better from luxury wool business. But, he was not able to come up with a good answer for Deirdre’s argument that doing nothing is the biggest risk of all. The Animals React Poorly to Mav’s “Special Treatment” The animals, because they are working so hard to please Bull, are as angry as Bull about the loss of three people to Mav’s team. Deirdre insists that “we must find a way to do two very different things at the same time. We have to sustain excellence in the existing business and build a new and uncertain one. Nobody said that it was going to be easy.” The animals react poorly. They want to know: Why is Mav getting special treatment? Why does he get a dedicated team?
  39. 39. Chapter -11- Question for Review Is Mav really getting special treatment? Are the other animals being treated unfairly? Should Mav and Deirdre try to mitigate the ill will? If so, how? Deirdre insists that “We have to find a way to do two very different things at the same time. We have to sustain excellence in the existing business and build a new and uncertain one.” Is doing both simultaneously even possible for one company?
  40. 40. Chapter -12
  41. 41. Chapter -12 Chapter twelve reveals that Deirdre knew that Stella had been disappointed about not being involved in the luxury wool business, because this business is the result of her idea. In view of that, Deirdre has decided to transfer Stella from crops to ovine operations. The foremost responsibility will be to support Rambo, according to Deirdre. Mav and Rambo Combine Animal Care and Yarn Making Ops The alpaca arrive. The sheep feel like the farm has been invaded by aliens, and they wonder “are these strange creatures really the future of the farm?” Stella works hard to bring them together. Mav is unable to persuade Rambo to let the alpaca graze on the same land as the sheep. As a result, the alpaca are sent to “The Back Forty,” where they suffer. They need better grazing land to be healthy. Meanwhile, Mav wants to use Rambo’s yarn making equipment to produce the first few batches of alpaca yarn. Rambo resists. Deirdre decides that the dedicated team cannot operate independently. She insists that Rambo combine both animal care and yarn making ops with Mav.
  42. 42. Chapter -12- Question for Review Why do you imagine the sheep are so uncomfortable with the alpaca? Why does Rambo insist that the alpaca live on The Back Forty? Is Mav likely to succeed if he and his team operate in isolation from the rest of the farm? How does Rambo feel about Deirdre’s decision to combine animal care and yarn making? Why?
  43. 43. Chapter -13
  44. 44. Chapter -13 Chapter thirteen narrates that due to the efforts of Stella, Sheep and Alpaca were living together peacefully. Resulting, Rambo admitted that combined care of Sheep and Alpaca proved much easier than he had expected. After hot discussion with Rambo, Mav made a proposal to Deirdre for a separate manufacturing facility for luxury wool business instead of combined yarn making operations. Combining Yarn Making Ops Proves a Disaster Stella proves an able peacemaker. She helps the sheep and alpaca get along. Once the sheep and alpaca learn to share the same land, combining animal care operations proves easy. However, combining yarn making just doesn’t work at all because the processes for luxury and commodity wool are very different. Deirdre and Mav decide to set up a separate yarn- making operation for luxury wool after all.
  45. 45. Chapter -13- Question for Review What do you think of the decision to spend the money needed to create a separate yarn-making operation for luxury wool?
  46. 46. Chapter -14
  47. 47. Chapter -14 In chapter fourteen, Stella observed the picture of Andrea in an article, elegantly dressed Alpaca with a rather haughty expression and the award winner of luxury wool marketer of the year. After deliberations Mav and Stella decided to hire Andrea in a management team for luxury wool business. Later on, Andrea joined the Windsor farm. Maisie, Marketing Wizard? In an important customer visit, Maisie proves out of her depth. The customer wants to talk about operations; Maisie wants to talk about fashion. Mav recognizes that while Maisie was the best person on the farm for the job, that did not mean she was the best person available for the job. Mav finds Andrea, an alpaca wool marketing expert from Peru. Though Deirdre is uncomfortable about hiring Andrea, she decides to “let go.” She can’t simply try to force the new business into the mold that was most familiar to her. Andrea insists on some important changes. Mostly, she elevates the importance of “delivering what the customer wants” over “keeping costs low.” Mav’s team initially resists, but Mav formally empowers Andrea to make some critical decisions.
  48. 48. Chapter -14- Question for Review How do you imagine Bull, Rambo, or the Count would react to Andrea’s redirection of priorities? Should Mav and Deirdre have given Andrea so much power to make critical decisions? How do you imagine the rest of Mav’s team is feeling now that Andrea has so much authority?
  49. 49. Chapter -15
  50. 50. Chapter -15 Chapter fifteen informs that six months later Windsor farm was shipping alpaca yarn every day. To keep up with demand, Mav was hiring more and more Alpaca. On the other side, Alpaca starts to feel their importance and irritating the others. There was almost a fight between the sheep and alpaca. Mav and Rambo shout at each other during a meeting with Deirdre, who decides to solve the problem by hiring another farm to care for some of the sheep. A Near Brawl on the Farm When luxury wool orders start to roll in, Deirdre shifts her focus to other priorities. Soon, however, it is clear that conflicts on the farm are once again on the rise. The alpaca start to feel Very Important and let their success go to their heads, irritating the sheep. Also, Mav keeps bringing more and more alpaca to the farm. It’s getting pretty crowded. There was almost a fight between the sheep and alpaca. Making matters worse, the team that cared for the animals is very busy, barely able to keep up. Mav and Rambo yell at each other during a meeting with Deirdre, who decides to solve the problem by hiring another farm to care for some of the sheep. Later, she gives a rallying “We must all work together as a family” speech.
  51. 51. Chapter -15- Question for Review The luxury wool business is doing well. That would seem to be cause for celebration, but the tension between sheep and alpaca is worse than ever. What is going on? Should Deirdre be mediating squabbles between alpaca and sheep? Shouldn’t Mav and Rambo be able to work it out on their own? What do you think of Deirdre’s temporary solution of getting help from Chelsea Farms?
  52. 52. Chapter -16
  53. 53. Chapter -16 Chapter sixteen illustrates that after review Deirdre found luxury wool business was far away behind its projections, Deirdre decided to take the advice of an analytical person like Einstein. Einstein suggested that put learning first, learning through disciplined experimentation, then you will make better decisions and the business will earn profit soon. Einstein Insists that the Luxury Wool is an Experiment Mav and Deirdre are trying to evaluate the progress of the luxury wool business. Mav has not really been keeping his plans up to date. Einstein insists that the business should be treated as a disciplined experiment. The first priority is to learn from the experiment. Learning leads to better results.
  54. 54. Chapter -16- Question for Review Why is Deirdre struggling to evaluate the progress of luxury wool? Why do you imagine Mav hasn’t been paying much attention to his original plans for the business? Is it only because Mav has somuch keeping him busy? Is it possible to manage a new business like a disciplined scientific experiment?
  55. 55. Chapter -17
  56. 56. Chapter -17 Chapter seventeen proves that Mav and Einstein are working together to follow a disciplined process of managing an experiment. Andrea wants to invest in marketing through social networking websites. Einstein notes that Andrea’s idea is itself an experiment – an experiment within the bigger experiment, the luxury wool business. Deirdre approves the investment. Experiments Within Experiments Mav and Einstein work together to follow a disciplined process for managing an experiment. Andrea wants to invest in marketing through social networking websites. Einstein notes that Andrea’s idea is itself an experiment – an experiment within the bigger experiment, the luxury wool business. Deirdre approves the investment.
  57. 57. Chapter -17 Mav promises only that he’ll test the possibility as quickly and cheaply as possible. Should that be sufficient for Deirdre?
  58. 58. Chapter -18
  59. 59. Chapter -18 In chapter eighteen, it was the time for the annual performance review of all the departments. But, after formally revising twice his plan Mav missed his plan by a mile. Deirdre was holding Mav accountable for not generating profits but Einstein convinced Deidre, that it’s not the correct time to judge the business and Mav. So they postpone the review for few months. Time for Performance Reviews  Deirdre doesn’t know how to evaluate Mav’s performance. He has missed the plan by a mile. She recalls that Marcus was unflinching in holding managers accountable for poor performance. Bull was the same way.  Deirdre had an instinct that Mav should be evaluated by different standards because he managed a new business. But what standards?  Einstein persuades Deirdre that Mav can be evaluated on the basis of how well he managed a disciplined experiment. Deirdre delays Mav’s review, but rattles him by setting very specific expectations that lay out what “managing a disciplined experiment” really means.
  60. 60. Chapter -18 Has Mav failed? What do you think would happen to Mav at this point if Bull were in charge of the farm?
  61. 61. Chapter -19
  62. 62. Chapter -19  This chapter reflects that several months later with the support of Einstein and others luxury wool business was on the top and earning handsome amount of profit.  Now they had no need to sell Windsor farm to McGillicuddy, because Mav and his team had tested and resolved all major uncertainties related to luxury wool business.  In Deirdre’s view, “it was innovation that made us great in the first place and it is only through innovation that we can remain great”.  The book vividly focuses on a handful of the most fundamental principles for managing an innovation initiative, not to thoroughly scrutinize the subject.  The book thus is short, easy- to-read book that easily and gradually makes one to comprehend effective management style of an innovation plan.
  63. 63. Chapter -19  The realistic approach to the book is deteriorated as characters are the farm animals with unoriginal roles which in turn reduce the value of the story.  Mav is excited to receive a favorable performance review. However, luxury wool is still draining resources. Money is tight; tensions are high.  Bull asks the animals to work harder still, and the animals start to revolt.  They can’t take it anymore. Einstein explains his analysis … that if the farm can just hold on for three months longer, all will be fine. Deirdre gives another inspiring speech.
  64. 64. Chapter -19 Was Einstein the best animal to explain that luxury wool was on a clear trajectory to success? Why? What could Mav have done differently to keep the animals on his side, even during the periods of greatest stress?
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  66. 66. Learning’s for Application  Getting Started  In any great innovation story, the idea is only the beginning.  Asking one leader to “just go make it happen” is a woefully inadequate approach to moving an innovative idea forward  Building the Team  Assign to a dedicated team any activities that are beyond the narrow, specialized capabilities of your existing organization.  Build the dedicated team as though you are building a new and different company from the ground up.  Conflicts between the dedicated team and the existing organization are inevitable. Nonetheless, you must nurture a healthy partnership between the two.  Planning and Assessing Progress  Put learning first—learning through disciplined experimentation. If you do, you’ll make better decisions and you’ll get to profitability sooner.  Gather evidence to validate each major expenditure.  Evaluate the innovation leader based on whether he or she executed a disciplined experiment..
  67. 67. Mail your comments to ramaddster&gmail.com