Category Archives: Launch Decade

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Strategies for the Launch Decade

Category:Crisis,Launch Decade,Opportunity,Strategy

Several months ago, I wrote a blog post celebrating the beginning of a new decade – I called it the Launch Decade. This was just as the current COVID-19 pandemic was beginning to surface in Wuhan, China. As an optimist, I view global crises like this one as a launchpad to drive significant positive change.

But that certainly won’t happen on its own. We need to adopt approaches that will help us to navigate through these trying times and target the significant opportunities that lie ahead. For a long time, I’ve been a proponent of three approaches that become even more compelling in times of great change – zoom out/zoom in strategies, shaping strategies and leveraged growth.

Zoom out/zoom in strategies

This is an approach to strategy that has been pursued by some of the most successful tech companies in Silicon Valley, as I have written about here. This strategy focuses on two time horizons.

The Zoom Out time horizon is 10-20 years and the two questions on this horizon are: What will relevant markets or industries look like 10-20 years from now? What are the implications for the kind of business or company we will need to become in order to thrive in this market or industry?

The Zoom In time horizon is very different – it’s 6-12 months. On this time horizon the key questions are: What are the 2-3 initiatives (no more) that we could pursue in the next 6-12 months that would have the greatest ability to accelerate our movement towards the longer-term opportunity we have identified? Do we have a critical mass of resources committed in the next 6-12 months to these 2-3 initiatives? How would we measure success – what are the metrics that matter?

This approach to strategy becomes even more compelling in times of great pressure like today, where there is a strong urge to shrink our time horizons and just sense and respond as quickly as we can to whatever is going on. While understandable, a reactive approach risks spreading ourselves too thin as we try to sense and respond to everything.

The zoom out/zoom in approach to strategy helps us to focus on a very big, long-term opportunity so that we can prioritize our near-term actions for the greatest long-term impact and avoid the risk that we incrementalize our way into oblivion. At the same time, this approach to strategy also emphasizes the need for aggressive short-term action and the opportunity to learn from that action. At a time when all our institutions are going to be coping with the challenge of limited resources, this approach can help to focus those scarce resources to move quickly and target significant emerging opportunities.

Shaping strategies

Crises like the one we are in can be catalysts for significant restructuring of markets and industries. Those who move forward assuming their market or industry will continue in its current form are likely to be in for a big surprise.

In this environment, there’s a significant opportunity to pursue shaping strategies, which I’ve written about in more depth here. Rather than passively trying to anticipate what the future might look like, shaping strategies seek to restructure markets and industries in ways that put the shaper in a privileged position.

Without going into too much detail here, shaping strategies consist of three components. First, they begin with a long-term shaping vision of what the industry or market could look like 10-20 years from now (note the intersection with zoom out/zoom in strategies) and they frame this vision in a way that highlights significant opportunities for a large number of other participants, and not just for the shaper. The goal here is to motivate many third parties to come together and invest to support the shaping strategy.

Second, shaping strategies deploy a shaping platform with the explicit goal of improving the economics of participation for these third parties. These platforms are designed to reduce the investment required to participate and to accelerate the ability to earn returns on investments made.

Third, shaping strategies involve a set of initiatives designed to overcome the potential skepticism of third parties by demonstrating the commitment of the shaper to the strategy and the ability of the shaper to successfully pursue the strategy. This could involve making a bold move on its own or potentially announcing partnerships with large players that would give the shaper access to key resources.

Shaping strategies are especially powerful in times of crises. Crises tend to challenge our current approaches to markets or industries and make participants more open to new approaches than they might be when the market or industry is doing well. By emphasizing the need to mobilize investment from a large number of third parties, shaping strategies also help the shaper to significantly increase impact, even when faced with the challenge of limited resources in the short-term.

Not all companies will choose to be shapers, but the choice is to shape or be shaped. If we choose not to be shapers, then we need to recognize that, in times of rapid change, other companies will emerge as shapers of our relevant markets or industries. We need to anticipate who those companies might be and find ways to participate effectively in the markets or industries they will restructure.

Leveraged growth

When companies address the need for growth, they tend to focus on two options – make or buy. We can grow either through internal investment and organic growth or by going out and making a major acquisition. In either case, growth requires significant resources – something that can be especially challenging as we come out of an economic downturn.

But the good news is that there’s a third option that is rarely considered, much less actively pursued. It’s what I call leveraged growth, an approach that I’ve written about here. This approach involves connecting with and mobilizing a growing number of third parties who can deliver value to your customers and capturing some of that value for ourselves. This approach to growth has been pioneered by companies in Asia and there’s a lot that Western companies can learn from their experience.

Think about the implications of this approach as we emerge from the current crisis. Companies that can show significant growth without a major commitment of resources are likely to be richly rewarded.

Beyond companies

So far, I’ve been framing these approaches in the context of companies. I hasten to suggest that these approaches are not just relevant for companies. They apply to all our institutions that are wrestling with the challenges of the current crisis – governments, schools, community organizations, NGO’s, etc.

But, there’s more. They also apply to us as individuals. Now, more than ever, we need to zoom out and zoom in to bring more focus into our lives so that we can achieve more impact that’s really meaningful to us. We need to find more creative ways to shape our context so that we can achieve even more impact. And our personal success will hinge on our ability to mobilize others who can provide value to those who matter to us, so that we’re not trying to do it all ourselves.

Bottom line

Crises can be launchpads for significant positive change. But that change will not happen on its own. It’s up to us to overcome our fear and to take action. And we’ll have a lot more impact if we come together with others, inspired by shared opportunities. If we do this right, we have an opportunity to unleash the exponential potential that resides within all of us and that is hungering to be drawn out.


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Leaping into the Launch Decade

Category:Creation Spaces,Launch Decade,Workgroups

As we celebrate a leap day in a leap year and the beginning of a new decade that I’ve called the “launch decade,” I couldn’t resist taking the occasion to reflect on the importance of leaps.

I’ve recently been writing about the importance of small groups in driving change and accelerating performance improvement. I’ve also been emphasizing the theme of “small moves, smartly made, can set big things in motion.”

When people see me talk about small groups and small moves, there’s a natural tendency to think that I am a fan of incrementalism. Far from it. Incrementalism will edge us over the cliff.

We need to resist the temptation to be incremental, and instead embrace the need to leap forward in an effort to capture opportunities that are expanding more rapidly than ever before.

Let’s start by exploring what it means to leap. While definitions differ, leaping is generally about moving quickly and with great force across a great distance, driven by some explicit and bold objective. It is the opposite of incremental movements, which tend to be pursued more slowly and are shaped by more modest objectives.

Smartly made small moves

When I talk about “small moves, smartly made,”  my focus is on “smartly made” and I devoted a blog post to exploring what I really mean by that term. While there are many dimensions to smartly made, for the purpose of this post, let me highlight three of the dimensions that I mentioned: to have a clear and ambitious sense of destination by “zooming out,” to move quickly to action and to commit to rapidly scaling impact.

Doesn’t that begin to sound like a leap? So, why do I call them “small moves”?

Small groups

They’re small moves because, in the early stages, they involve only a few people. That’s where my perspective on the power of small groups comes in.

Imagine, for a moment, what your success rate might be if you try to convince everyone in your large organization to make a leap at the same time. Good luck. Most would likely hold back and many would even try to undermine the effort to make a leap because of a fear of the consequences – never under-estimate the immune system!

Even if you could convince everyone to line up and make the leap together, the leap would likely be an uncoordinated mess, with many leapers colliding with, or tripping over, other leapers. Without any experience, the leaps would quickly fall apart, leading those who were brave enough to participate in the first round to hold back on the next round. Lesson learned, these leaps are dangerous.

Now, think about what might be possible if you focus initially on mobilizing a small group of participants (I’m talking about 3 – 15 people at most) who are deeply passionate about the opportunity to make a big difference in a short period of time. Properly coached, members in this small group could form deep, trust-based relationships with each other and provide each other with encouragement, while at the same time holding each other accountable for making the leap together.

They would likely be able to successfully leap far greater distances than any individual might be able to accomplish on their own. Their accomplishment together would encourage others to step forward and become excited about the opportunity to make one of the next leaps. There would still be fear (leaps are very scary), but the knowledge that they will make the leap with a small group of people they trust, would help to overcome that fear.

Balancing short and long horizons

And there’s more. These are also small moves because they focus on reaching some tangible destination within a short period of time – 6-12 months at most. That also helps to overcome fear because the small group will not be up in the air for an extended period of time – they have an opportunity to quickly reach their destination and to learn quickly from the experience. That’s very different from “big moves” that often require 5-10 years before the results become apparent – that’s a long time to be up in the air, taking great risk, without any sense of achieving what was intended.

As the initial leap plays out and the participants learn from their experience, later leaps can become much bolder in terms of defining the distance that will be traveled over the next short horizon. We’re not just going to make the same leap over and over. We’re going to seek to expand the scope of the leap, accelerating our ability to reach more and more distant destinations in each 6-12 month leap cycle.

The key here is to frame the short-term destinations in the context of a much longer-term view of an inspiring opportunity that is very different from anything that has been achieved to date. It’s that longer-term view that helps to pick a short-term destination that has the greatest potential in accelerating movement towards the longer-term opportunity. Without that context, we run a significant risk of becoming too incremental in our approach, rather than challenging ourselves to make a really bold leap. The balance between longer-term opportunity and short-term destinations is the essence of the  zoom out, zoom in approach to strategy that I’ve written about here.

The role of platforms

If we’re serious about leaping – moving quickly and with great force across a great distance – that also will increase our focus on platforms. People who leap from the right kinds of platforms are likely to travel much greater distances than those who just try to leap on their own.

In this context, platforms involve ways to leverage the resources and expertise of a growing number of third parties who participate on the platform. The small groups that I’ve been talking about don’t operate in isolation. They’re constantly looking for ways to leverage their efforts by connecting with others and scaling their efforts through creation spaces. With increasingly powerful and pervasive digital infrastructures, the ability to connect with a growing number of others becomes easier and easier and can significantly accelerate progress. Network effects are a powerful accelerator.

Small groups that harness the power of platforms are constantly asking where and how they can leverage the resources and expertise of others to come up with better approaches to the next leap, so that they can travel much greater distances much more quickly. That’s what helps them to maintain their small groups while at the same time accelerating their progress.

Bottom line

Leaps are a powerful way to launch us on the path to finally harnessing the exponentially expanding opportunities created by the Big Shift. As we move into the launch decade, we need to find ways to make smart leaps that can help us to learn faster together. Let’s greet this new decade by exploring the leaps that could have the greatest impact in a short period of time.

 


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