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When an entrepreneur dreams up a new product opportunity and launches their start-up, they are surrounded with advice on the steps to follow:
- Define the customer problem or job to be done
- Develop a minimum viable product as a solution
- Prove product-market fit by winning customer support
- Validate scalability, unit economics, etc…
While these steps are relevant and useful, they can create an unduly linear view of the path to success.
Success is never a simple straight line.
Discussing start-up and new product success in this way creates the impression that the path to market looks a little like this:
A relatively direct relationship between product and market might work for some simple product solutions, particularly those involved in offering a new product direct to consumers. However, lean start-up has reminded us that success takes loops of learning and iteration to find that match between product and market.
Help customers embrace change (despite resistance).
When you start to work on more complex solutions that involve systemic change or large changes in buyer behaviour, buyers can acknowledge the need and the value of the solution but still offer resistance. These buyers cannot simply buy the product. They must also decide to embrace disruptive change to long established ways of working. Disruptive business-to-business products require changes to systems, processes or jobs and have other implications for their target customers. Strong institutional forces will exist that are opposed to change. To realise the benefits, the customer needs to be prepared for a wider and more significant change.
Declining systems give way to new ways of working.
The Berkana Institute has a theory of change in large scale systems highlighting resistance will prevent straight-line adoption of new change. If the change threatens the current way things work, you won’t get direct adoption. Change under this approach may happen when the current system declines, giving way to a better system that will replace it. That new, better system is developed outside the current system as a small group of innovators name the need for change, connect in networks, nourish the new change and bring it forward as a new approach.
Disruption brings change and creates new markets.
The Berkana Two Loops model of change gives us a new way to look at the path for disruptive products that bring about major changes in organisational systems. If we consider the introduction of cloud computing technologies as the introduction of an alternative systemic approach to technology, we can map it against this model.
- At first, traditional technology organisations saw cloud services as a threat to their traditional model and particularly the end-to-end control of infrastructure.
- Cloud services grew with new and innovative organisations, in grey market IT and at the edges of organisations. This gave the new cloud services time to clarify the problems and use cases, develop the new approaches and connect the first customers. The communities of early customers helped the solutions to mature and foster the underpinning systems of delivery, management and support. Communities of practice grew up around these technologies and created a range of tools and processes that helped cloud computing become enterprise-ready.
- Eventually, a wide range of organisations are prepared to ‘leap the chasm’, seeing potential to migrate to these new cloud systems and embrace a very different way of working.
This approach of creating a new market for a new solution is why we commonly see disruptive technologies suddenly race into prominence. They have been long fostered by the communities of early innovators and have built the networks of partners, ecosystems and systems to propel rapid growth. They are examples of ‘seven-year overnight successes’.
Build a strong ‘ecosystem of relationships’ to bring about change.
At LanternPay, we have seen this scenario playing out. We have had strong support from our work with innovative early customers in plan management in the NDIS and in government payments with the Transport Accident Commission of Victoria and Lifetime Support Authority of South Australia. These relationships have helped us to develop strong growth in provider partnerships. Importantly, we have focused all along on the potential of an ecosystem of relationships to accelerate innovative change well beyond payments in our target systems of health care, aged care and disability. This approach has delivered us a rapidly growing pipeline of new payer relationships, a growing suite of integrations and a product roadmap across all our target markets. Each element helps make the change decision for a provider or a payer that much easier to make.
Simon Terry is consultant, speaker and start-up advisor who focuses on developing the strategy, leadership and collaboration to deliver complex innovation in organisations. He also puts these skills into practice delivering growth strategy for LanternPay, a claim payment platform for health care, aged care, disability and government payments.
As the end of November approaches, that time has come again when we must consider whether we have the right initiatives in place for ourselves and our organisations as we get ready for 2017. How are you transforming the capabilities and work practices in your organisation to make sure that your teams are more effective in their work?
Why is Work Changing?
The way we work is fundamentally changing under the influence of five main drivers:
- Pervasive Global connection: As internet connectivity has gone mobile, we now have the ability to connect with, to converse with and to see the whole system of our stakeholders any time anywhere.
- Automation: Digital technology has enabled us to automate simple tasks and string together increasingly complex processes and systems.
- Data and Analytics: As digital connection and digital automation expands so does our ability to gather data and analyse that data to provide insight and run complex algorithmic processes.
- Changing Consumer Expectations: As consumers are exposed to the potential of digital through consumer technology and consumer services, the businesses must meet disruptive and exacting standards for convenience, service, value and speed.
- Accelerating Pace of Change: Disruption, greater responsiveness to change and ever-shortening cycles of feedback are the new norm for business and our work practices must adapt to enable our businesses to keep up.
We have already seen great change in digital transformation.
Further dramatic changes in the nature of work are here but ‘not yet widely distributed’ to borrow the phrase of William Gibson..
2017 Future of Work Recommendations
With these pressures on the way we work, every business should have a focus on how it is changing the way its people work and the practices that will support ongoing transformation of work. Here are my recommendations on what work you should have on your backlog for the new year:
These five are in place in your organisation today. However, they may not be well understood, managed or serving your purpose. As you look to 2017 it is always worthwhile to ensure that the foundations are sound and well aligned.
Purpose: Be clear on your personal purpose. Look for that purpose in the work you do. Clarify the shared purpose in your organisation. Don’t impose a purpose designed around the leadership table. Discover the purpose through the stories and the work that bring your organisation together.
Strategic Value: What value are you trying to create to fulfil your purpose? What kinds of value matter most to your stakeholders? When do they know you are creating value? What measures tell you that you are achieving your goals?
Networks: To compete in the network era, your organisation must be networked. How are you bringing people together to connect, to share, to solve problems and to respond to the networks around your organisation? The technology matters less than the connection, the behaviours and the shared purpose. Are you clear on the strategic value of your communities, are they well supported with sponsorship, investment and community management so as to accelerate their value creation?
Culture: Move beyond words on a poster. Move beyond generic platitudes. Move beyond an agglomeration of individual team cultures. What specific values are shared across your organisation? Why do these help fulfil your purpose? How do those values translate to expectations about behaviours in and across your teams? Is the culture in your organisation effective for your purpose and the value you are seeking to create? How do you personal role model the behaviours you expect from others?
Employee Experience: Are you working somewhere that values the employee experience and is adapting it to changing work and changing roles in the organisation? How have you aligned your employee experience to your desired customer experience? Does your workplace create rich value for employees and enable them to express their potential in fulfilment of purpose? Does your employee experience work as well for the one-hour temporary contract worker as the long term employee? Does it work equally well for all levels of the hierarchy and all corners of your network?
Personal Effectiveness: Four Key Future of Work Practices
These four personal practices are enablers of the future of work. They enable an individual employee to deliver greater value in their work by responding to the opportunities and information in their environment. Agile and adaptive they empower employees to continuously improve and innovate.
Working Out Loud: Sharing work in progress in a purposeful way with relevant communities will accelerate learning, sharing and feedback cycles. Start working out loud now.
Personal Knowledge Management: Learn how to turn the personal information flood into effective sense making, learning and sharing. A critical skill to make sense of complexity and to leverage networks for learning.
Adaptive Leadership: Enabling the rebel and the change agent to lead more effectively in any system. Improving understanding, influence and the increasing the breadth of leadership techniques to create collective change in any system.
Experimentation: Move beyond the limits of your expertise. Learn by doing. Resolve uncertainty through action. Shorten cycles of decision making and feedback to increase personal effectiveness.
Organisational Effectiveness: Scaling & Accelerating Change
Organisations are made up individuals. These four practices of organisational effectiveness scale and accelerate the personal practices through a focus on design of systems for connection, learning and adaptation.
Open Collaborative Management: Middle managers are often those who find a change to digital ways of working most threatening and disrupting. Open up the work of management. Move management from planning, allocation and control to facilitation, alignment and coaching. Shorten cycles and improve the performance value of feedback. Foster the role of managers as network navigators and brokers. Management can be a critical point of leverage in achieving more open, more collaborative and more effective work.
Scalable Capability Development: Turn each employee’s learning into a contribution to scalable system for delivering strategic value. Create Big Learning systems that scale learning around strategic capabilities for the organisation’s success. Coordinate your learning agenda as an agile change program. Curate the capability building of your teams, leveraging learning from peer communities and leverage social learning to bring 70:20:10 and a performance-oriented approach to learning to life at scale and in the workplace.
Effective Networked Organisations: Take advantage of the networks in and around your organisation to rethink your business model and organisational design choices. Break the centralised/decentralised binary and move beyond hierarchy. Enable autonomy, foster alignment and improve effectiveness for purpose. Skill your teams to achieve effectiveness in the wirearchy. You don’t need to purchase a new management system. You need to adapt your approach to managing knowledge, trust, credibility and results to your purpose, culture and community.
Agile Innovation & Change: Adapt to the changing needs of the environment and stakeholders to deliver new value. Accelerate innovation and change through new approaches and by putting in place the systemic support for employee-led innovation, change and transformation to a more responsive organisation.
Simon Terry provides consulting, advice, speaking and thought leadership to global clients through his own consulting practice, and as a Charter Member of Change Agents Worldwide, a network of progressive and passionate professionals, specializing in Future of Work technologies and practices. The focus of Simon’s practice is assisting organizations to transform innovation, collaboration, learning and leadership.
Collaboration and other future work practices require investment from organisations to foster community and support the changes in practices. The potential value from this investment is better work organisation-wide.
Speaking at Intranets2016, I had the opportunity to see a showcase of presentations from organisations large and small on how they have leveraged value from new ways of working, better communication and collaboration with employees. I also got a chance to speak to many of the people attending the event and discuss their challenges and concerns.
Reflecting after the event one thing was striking: Each of the case studies had invested time and resources into helping their organisation get the most out of collaboration and community. They had spent time and money on strategy, on design work, on employee engagement, on training and community management. They had ongoing resources devoted to realising the value of community. When I spoke to many members of the audience winning the support of their organisation to invest in these elements was a major challenge. The success stories were successes because their organisations supported their team to realise the value of changing work.
Many organisations have not yet realised that the potential value creation from their new intranet, their new productivity tools or their new collaboration software far exceeds the investment they need to make to support change and adoption. These tool are part of the furniture in an organisation and while from time to time we invest in the latest version to stay effective, not much more is expected from their use.
Organisations that invest in community and collaboration know the value creation opportunity is far greater than a more effective tool. The value creation opportunity goes to the heart of their organisation by making work better, more productive and more effective. What little resource they choose to invest will deliver benefits that are multiplied by all the work that they do in the organisation. Scrimping or not investing at all in this capability leaves the tools to miss their potential and the community of users to miss the benefits.
Champions of social collaboration and new productivity solutions need to do more than fund the technology. They need to help the organisation see the strategic value of the new tool in new ways of working. When that value is clear then the business case for ongoing investment and in community and change is much more obvious.