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Instead of merely adding a socially popular mission to its existing business goals, Tesla’s CEO Elon Musk has innovated its operations by working backwards from its mission of saving the planet by making and selling a vast number of electric cars in order to help remove a principal cause of an approaching global environmental disaster.Design/methodology/approachWhen Elon Musk became CEO in 2008, Tesla’s mission of saving the planet by replacing gasoline-driven cars with electric cars seemed a preposterous overreach.FindingsTesla is not only making extraordinary progress towards the accomplishment of its mission, but the mission serves as an accelerator of its business generally and its innovations in particular.Practical implicationsThe example of CEO Musk showing up on the factory floor, and working shoulder to shoulder with the staff in teams and mobs to solve urgent bottleneck issues sets the tone of Tesla’s workplace. The overriding preoccupation with accelerating innovation is enabled by modularity in design.Originality/valueA unique study of Tesla’s post-Agile management innovations by an expert on Agile teams and practices.
Kim, W. Chan; Mauborgne, Renée
To present a holistic picture of the three paths to new market creation, what leads to one form of market creation over another, and how each path triggers a different balance between disruptive and nondisruptive growth.Design/methodology/approachThe authors present “A Growth Model of Market-Creating Innovation Strategy” based on their three decades long research journey from blue ocean strategy to what Kim and Mauborgne have come to call “nondisruptive creation,” creation without destruction or disruption.FindingsThe authors’ found that what triggers one type of market-creating innovation over another comes down to the type of problem or opportunity an organization sets out to address. Offering a breakthrough solution to an industry’s existing problem is the path to disruptive creation and disruptive growth. Identifying and solving a brand-new problem or seizing a brand-new opportunity outside existing industry boundaries sets you on the path to “nondisruptive creation” and nondisruptive growth. Between these two ends of the market-innovation spectrum is redefining an existing industry problem and then solving the redefined problem. This is the essence of blue ocean strategy, which generates a more balanced blend of disruptive and nondisruptive growth.Practical implicationsLeaders can be more intentional and move beyond chance to consciously direct their efforts to the type of market innovation they choose to nurture, and deliberately put their resources behind it. Leaders learn the path to nondisruptive creation where their current business is not disrupted by the initiative and where economic growth and social good are not trade-offs.Originality/valueThe article offers a unique overview of the three dominant paths to market-creating innovation – disruption, blue ocean strategy, and nondisruptive creation – and their different impacts on growth.
With ever increasing crises situations, the organizations need nonconventional leaders to solve new problems at workplace while successfully leading millennials and Gen Z employees. The author offers a solution to this by presenting a process to transform managers into inclusive leaders. This involves development of six key attributes in managers and utilizing tactics to internalize these attributes in managers’ behavior.Design/methodology/approachThe paper describes six key behavioral traits and tactics to transform managers into inclusive leaders by reviewing existing literature in the field of inclusive leadership.FindingsThe paper finds that preparing inclusive leaders is a process that can be achieved through organization-wide programs and initiatives. Preparing such leaders involves development of six signature traits namely, curiosity, cognizance of bias, courage, cultural intelligence, collaboration and commitment. Once these traits are learned by managers, several tactics can be used for internalization of these traits managers’ behavior.Practical implicationsLeading through conventional leadership styles in this era of unprecedented work settings will not solve the new-age complex problems arising at work. This calls for building leaders who are able to lead with empathy and cultural intelligence.Originality/valueDespite a plethora of literature on various leadership styles, many uphill challenges being faced by organizations could only be solved by building inclusive leaders. To answer this problem, this study demonstrates six key traits to be developed in managers followed by application of the right tactics to help managers internalize these traits and become successful at practicing the art of “Inclusive Leadership.”
Dencik, Jacob; Fisher, Lisa-Giane; Higgins, Lisa; Lipp, Anthony; Marshall, Anthony; Palmer, Kirsten
Four management capabilities for successfully operationalizing open innovation are: strategy and culture, ecosystem capability, internal capability and technology enablement. Surveying more than 1,000 executives on current open innovation practices and capabilities, IBM IBV was able to identify how the different operating model capabilities interact and complement each other to drive better innovation and business performance.Design/methodology/approachTo help organizations build and improve their open innovation capabilities, the IBM Institute for Business Value (IBV) partnered with APQC to develop the Ecosystem-Enabled Innovation Maturity Model (EEIMM) - an open standards model encompassing four domain competencies required for successful open innovation. To assess the maturity and benchmark the performance of organizations’ open innovation capabilities, the IBV, in collaboration with Oxford Economics, used the EEIMM to survey over 1000 leaders responsible for open innovation at their organizations.FindingsFour management capabilities for successfully operationalizing open innovation are: strategy and culture, ecosystem capability, internal capability and technology enablement. IBV analysis found that organizations that are more advanced in developing the four building blocks see significantly better performance across key financial and innovation metrics.Practical implicationsFor every dollar of investment, the proportion of direct revenue attributed to open innovation is four times higher than for traditional innovation.Originality/valueLeading organizations are embracing open innovation as a critical component of innovation strategy and investment. They recognize that adopting open innovation yields far greater returns than traditional innovation can. Recent research by the IBM Institute for Business Value (IBM IBV) reveals, for example, that as many as 84 percent of executives now view open innovation as important for their organization’s future growth.
The purpose of this article is to examine the interaction of strategy formulation with the intelligence variation of the Johari window. Formulating firm strategy with an understanding of these four knowledge-awareness areas can help a company understand their own strengths and weakness in relation to the dynamics of the industry in which they operate while also developing a greater awareness and understanding of their competition, environmental considerations, and future implications. Through this interaction, a firm can identify factors impacting the organization's future success and can develop a comprehensive strategic plan that adapts to changes and uncertainties in the environment.Design/methodology/approachExtant literature and available tools are explored to develop a usable framework in conducting an extensive SWOT analysis as related to the four knowledge-awareness areas, known knowns, known unknowns, unknown knowns, and unknown unknowns.FindingsIt is crucial for businesses to acknowledge the significance of integrating all four categories of knowledge-awareness, known knowns, known unknowns, unknown knowns, and unknown unknowns, into their strategic formulation, as this can facilitate the development of adaptable and effective strategic plans that consider the constantly evolving business landscape. This approach can equip organizations with the necessary tools to thrive over the long term, even with unforeseen obstacles and uncertainties. It is imperative that businesses do not overlook the importance of considering all four categories during analysis to enable them to achieve strategic planning that is both effective and adaptable.Originality/valueFocusing only on the knowns that are already identified, while disregarding the unknowns that have not been discovered, can lead to blind spots and oversights that can be detrimental to the organization's growth and sustainability. By being aware of all four categories of knowledge, an organization can adapt to changes and uncertainties in the business environment, and make informed decisions based on a fuller picture of the situation.
The purpose of the paper is to address customer alienation risk in the context of Marvel's recent (as of June 2023) under-performance and its contribution to Disney's stock's 50 percent-plus decline.Design/methodology/approachResearch followed recent developments at Disney/Marvel, as well as the Bud Light customer alienation, and reconciled those developments to core brand and strategic risk management resources to derive practical suggestions to mitigate customer alienation risk across industries.FindingsMarvel’s experience offers lessons that have relevance across industries inasmuch as a super hero paradigm is effectively a brand. The stronger the bond between customers and a brand, the more customers will maintain or extend their buying patterns over time. And the more customers personally identify with a brand, the greater the likelihood a customer alienation will occur if a firm disrespects that bond. Four practical suggestions are presented that will help to ensure the integrity of brands.Originality/valueWhile the under-performance of Disney/Marvel has been (and is) covered in the press, this is the first paper that we are aware of that links that under-performance to customer alienation risk.