Interview | Strategy Tools Platform https://www.strategytools.io Changing the way you work on strategy Sat, 13 Sep 2025 11:54:56 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 https://www.strategytools.io/wp-content/uploads/2023/03/cropped-ST-Blue-Logo-32x32.png Interview | Strategy Tools Platform https://www.strategytools.io 32 32 De la Investigación a la Acción: Transformando Programas Nacionales de Clústeres – Una entrevista con Roberto Chaverri https://www.strategytools.io/blog/transformando-programas-nacionales-de-clusteres/ https://www.strategytools.io/blog/transformando-programas-nacionales-de-clusteres/#respond Wed, 15 Nov 2023 11:55:50 +0000 https://www.strategytools.io/?p=272832

La siguiente entrevista se basa en los hallazgos del informe “Programas Nacionales de Clústeres: Una Perspectiva Global ” escrito para Innovation, Science and Economic Development Canada (ISED). Puede descargar una copia aquí.

También llevaremos a cabo un webinar el 21 de noviembre de 2023 a las 9:00 a.m. México. Regístrese aquí

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Este reporte fue escrito para Departamento de Innovación, Ciencia y Desarrollo Económico (ISED, por sus siglas en inglés) – ¿podría proporcionar un poco de información sobre lo que impulsó esta investigación en programas nacionales de clústeres?

 

En 2017, se lanzó el Programa Nacional de Superclústeres de Innovación de Canadá con un objetivo ambicioso: establecer cinco superclústeres de innovación que posicionaran a Canadá como una potencia mundial. Estos superclústeres trabajarían en industrias en las que Canadá ya cuenta con ventajas competitivas o que podrían desarrollarlas en el corto y mediano plazo.  La ambición es convertirse en un actor importante en estas industrias a nivel local. El enfoque del programa abarcó tecnologías digitales, inteligencia artificial (IA), manufactura avanzada, economía del océano, y alimentos, con un énfasis específico en las proteínas.

Bajo el liderazgo del ministro de innovación, el gobierno canadiense propició con mucho éxito la colaboración con el sector privado, para crear un modelo de Asociación Público-Privada (APP) que respaldara la creación y el desarrollo de estos cinco superclústeres. A través de este modelo, el gobierno se comprometió a igualar cada dólar invertido por el sector privado en los superclústeres de innovación.

Al cumplir cinco años de haber iniciado el programa de superclústeres, el ISED condujo una evaluación del del mismo. Esta evaluación sería un insumo clave para el diseño de estrategia para un segundo ciclo de implementación. Los resultados de esta evaluación propiciaron esta investigación, ya que el equipo de ISED deseaba trabajar en la estrategia usando como referencia las mejores prácticas y casos de estudio de otros programas nacionales de clústeres.  También deseaban entender cómo programas nacionales de clústeres emergentes estaban abordando su diseño considerando el entorno dinámico en el que operan.

¿Cuáles fueron los descubrimientos más emocionantes de esta investigación de más de 30 programas de clústeres en todo el mundo?

 

Después de entrevistar a líderes y profesionales clave que trabajan e impulsan más de 30 programas nacionales de clústeres y una extensa investigación, hubo tres hallazgos clave que destacaría:

El primero, no hay una única mejor práctica, pero hay grandes ejemplos como Dinamarca, Noruega, Francia o Corea del Sur. El contexto es muy importante y los países deben entenderlo muy bien a la hora de diseñar su propio programa nacional de clústeres

Segundo. La velocidad del cambio y el contexto general significan que los países se enfrentan a un panorama muy dinámico, lo que también significa que los programas nacionales de clústeres deben tener en cuenta prácticas dinámicas a la hora de diseñar nuevos programas o la próxima iteración de los ya existentes.

Probablemente, el hallazgo más relevante – y la mayor contribución – de este informe es una comprensión clara de las diferentes palancas a nivel de política pública que los países deben tener en cuenta a la hora de diseñar o rediseñar un programa nacional de clústeres. Producto de esta investigación identificamos 16 palancas de política pública y creamos una herramienta, el Lienzo de las Palancas de Política de Clústeres (The Policy Levers Canvas en inglés), que los responsables de la formulación de políticas públicas y los líderes de los programas nacionales de clústeres pueden utilizar como un “panel de navegación”. Esta herramienta les permite crear múltiples configuraciones de programas, visualizarlas individualmente o de manera integrada.

En las entrevistas e investigaciones con más de 30 programas de clústeres en todo el mundo, ¿identificó algún desafío u obstáculo específico que enfrenten comúnmente estos programas? ¿Cómo están abordando estos desafíos?

Su pregunta es excelente, y la profundidad de este tema podría llenar fácilmente un libro o una serie de artículo.

El principal desafío consiste en establecer un entendimiento compartido entre las partes interesadas clave de lo que define a un clúster, en particular un superclúster de innovación, y cómo se distingue de otros programas e iniciativas destinados a fomentar el crecimiento económico, la competitividad nacional y la innovación.

El segundo es entender las diferencias entre un clúster de innovación y un programa de transformación país, que requiere una financiación significativa, una visión de muy largo plazo, y cuando digo muy largo plazo me refiero a décadas, no a años, y por lo general este tipo de programas requiere una vasta infraestructura a lo largo del país. Esperamos que reportes como éste ayuden a lograr este entendimiento común de las características de estos dos tipos de iniciativas.

Otros desafíos que podría mencionar están relacionados con el financiamiento del programa, el mantenimiento del apoyo político más allá de los ciclos electorales de corto plazo, la garantía de una fuerza laboral adecuada, y la realización de evaluaciones exhaustivas del impacto del programa.

Para hacer frente a estos desafíos, los países buscan aprender de los errores del pasado e inspirarse en estudios de casos de éxito como Dinamarca, España, en particular los programas regionales de clústeres, y algunas naciones asiáticas como Corea del Sur y China-También han reconocido la importancia de involucrar a todas las partes interesadas clave en el proceso de diseño del programa.

Los modelos de financiamiento de los superclústeres son un aspecto fundamental de su sostenibilidad. ¿Podría arrojar algo de luz sobre los modelos de financiación más innovadores y efectivos que encontró durante su investigación?

Creemos firmemente que los programas nacionales de clústeres deben ser financiados por los gobiernos con una perspectiva mínima de diez años. Esto le da continuidad al programa. Si se adopta esta perspectiva de largo plazo, entonces la discusión pasa a cómo debería hacerse la asignación de fondos a los superclústeres o clústeres que hacen parte del programa. Las 16 palancas que identificamos proporcionan un marco integral para evaluar diferentes modelos de asignación de fondos. Una vez más, el contexto es importante a la hora de decidir qué podría funcionar mejor.

Dicho esto, en 2021 publicamos otro reporte Modelos de Negocios de Clústeres: Explorando Modelos de Negocio en Clústeres de Innovación Globales, donde exploramos en detalle diferentes modelos de financiamiento que un superclúster podría adoptar. En pocas palabras, encontramos que los clústeres sostenibles tienden a ser financiados, en su mayor parte, con fondos privados, incluyendo fondos generados por el mismo clúster.

Ahora, la pregunta clave para los líderes de los programas nacionales de clústeres es decidir cuánto, si es que lo hace, financiará el programa a los clústeres y en qué condiciones. ¿Por cuánto tiempo? ¿En qué tipo de gastos deberá el clúster utilizar estos fondos? ¿Si el sector privado debe hacer una inversión equivalente y en qué proporción? Estas son algunas preguntas para responder. El Lienzo de las Palancas de Política de Clústeres les ayudará a guiar estas discusiones y a tomar decisiones.

Pero lo más importante es que el programa nacional de clústeres ayude a los clústeres a un modelo de financiamiento basado en fondos públicos a un modelo de financiamiento basado en fondos privados y en fondos generados por el clúster mismo.

¿Podría ofrecer un adelanto de lo que los asistentes pueden esperar aprender o discutir durante el seminario web?

Nuestra ambición con este webinar es visibilizar algunos de los elementos clave que los involucrados en el diseño de programas nacionales de clústeres y la comunidad extendida de clústeres deben considerar a la hora de diseñar o rediseñar un programa nacional de clústeres. Con esto en mente, discutiremos por qué los países necesitan programas nacionales de clústeres, los diferentes modelos de programas nacionales de clústeres y mostraremos estudios de casos globales y mejores prácticas en el diseño de programas nacionales de clústeres. Muy importante, centraremos la discusión en el contexto de América Latina.

¿Qué tipo de audiencia se beneficiaría de unirse a esta conversación?

Creemos que esta es una conversación que debe reunir a todos los actores clave involucrados en el desarrollo económico, la competitividad nacional, el impulso de la innovación a nivel sistémico, y aquellos que trabajan arduamente en desarrollar clústeres de innovación fuertes y exitosos. Por lo tanto, esperamos ver una amplia audiencia proveniente de toda América Latina que incluya a los líderes actuales de los programas nacionales de clústeres, los responsables por el diseño de políticas públicas, políticos, miembros de las juntas directivas de clústeres, gerentes de clústeres, líderes de las empresas que participan en clústeres, representantes de la academia, los grandes campeones que impulsan la innovación, agencias nacionales y los héroes de la transformación nacional. Como puede ver, esperamos una audiencia muy amplia y variada que enriquezca la conversación. Los esperamos el martes 21 de noviembre a las 9 am hora de México

Regístrese ahora: Webinar Cómo compiten las Naciones

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From Research to Action: Transforming National Cluster Programs Globally – An Interview with Roberto Chaverri https://www.strategytools.io/blog/from-research-to-action-transforming-national-cluster-programs-globally-an-interview-with-roberto-chaverri/ https://www.strategytools.io/blog/from-research-to-action-transforming-national-cluster-programs-globally-an-interview-with-roberto-chaverri/#respond Mon, 23 Oct 2023 08:20:54 +0000 https://www.strategytools.io/?p=272720

The interview below is based on the findings in the report “National Cluster Programs: A Global Perspective” written for the Innovation, Science and Economic Development Canada (ISED). You can download a copy here.

We also have a webinar happening on the 23rd of October, 2023 (Monday) at 13:00 CET. Sign up to join us here.

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This report was written for Innovation, Science and Economic Development Canada (ISED) – could you provide a bit of background on what prompted the research on the global perspective of cluster programs?


In 2017, the Canadian National Innovation Supercluster Program was launched with an ambitious goal: to establish five innovation superclusters that would position Canada as a global powerhouse. These superclusters would operate within industries where Canada already held or had the potential to develop competitive advantages, aiming to become a major player on the international stage. The program’s focus encompassed Digital, Artificial Intelligence (AI), Maritime, and Food, with a specific emphasis on protein.

Under the leadership of the Minister of Innovation, the Canadian government successfully fostered collaboration with the private sector, creating a Public-Private Partnership (PPP) model. Through this model, the government pledged to match every dollar invested by the private sector in the innovation superclusters.

As the initial three-year timeline set by the government to achieve program goals drew to a close, the Innovation, Science, and Economic Development (ISED) recognized the need to assess the results and plan for the next iteration of the national innovation supercluster program. This realization led to a profound exploration of how other countries had effectively established and cultivated their own national cluster programs, as well as how emerging programs were approaching this dynamic landscape.

In the research of over 30 cluster programs worldwide for the report – what were the most exciting discoveries you made?

After interviewing key leaders and practitioners working and driving 30+ national cluster programs and an extensive research, there were three key findings I would highlight:

  1. There are no single best practices, but there are great examples like Denmark, Norway, France or South Korea. Context is very important and countries should understand it very well when designing their own national cluster program
  2. The speed of change and overall context means that countries face a very dynamic landscape, which also means that national cluster programs should look at dynamic practices when designing new programs or the next iteration of the existing program.
  3. Probably, the most relevant finding – and contribution – of this report, is a clear understanding of the different policy levers countries should be aware of when designing or re-designing a national cluster program. We identified 16 policy levers and created a tool, the Cluster Policy Levers Canvas, that policy makers and national cluster program leaders can use as a “navigation panel”. It allows them to see multiple program configurations depending on how they move those levers.

In the interviews and research with over 30 cluster programs worldwide, did you identify any specific challenges or obstacles commonly faced by these programs? How are they addressing these challenges?

Your question is excellent, and the depth of this topic could easily fill a book or a series of blog posts.

The primary challenge involves establishing a shared understanding among key stakeholders of what defines a cluster, particularly an innovation supercluster, and how it distinguishes itself from other programs and initiatives aimed at fostering economic growth, national competitiveness, and innovation.

The second one is understanding differentiating an innovation cluster from a nation-shaping program, which requires significant funding, a really long-term view, and I mean decades not years, and usually a vast infrastructure throughout the country. Reports like this one is a very good step to create this common understanding.

Additionally, challenges encompass aspects like securing funding, maintaining political support beyond short-term cycles, ensuring an adequate workforce, and conducting thorough evaluations of program impact. To address these challenges, countries are looking to learn from past mistakes and draw inspiration from successful case studies, such as Denmark, Spain, particularly regional cluster programs, and some Asian nations like South Korea and China. They are also emphasizing the importance of involving all key stakeholders in the program’s design process.

Financing models for superclusters are a critical aspect of their sustainability. Could you shed some light on the most innovative and effective financing models you encountered during your research?

We strongly believe that national cluster programs should be funded by governments with a minimum perspective of ten years. This provides continuity to the program. The key discussion then shifts to the allocation of these funds. The 16 levers we identified provide a comprehensive framework to assess different models. Again, context is important when deciding what could work best.

Having said that, in 2021 we published another report Cluster Business Models: Exploring Business Models in Global Innovation Clusters, where we explored in detail the different financing models out there. In a nutshell, we find that sustainable clusters tend to be more privately funded, including self-generated revenue streams.

Now, the key question for national cluster program leaders is to decide how much, if at all, the program will fund clusters. For how long, for what should the clusters use these funds, if the private sector should make an equivalent investment and in what proportion, among other criteria. But most importantly, it needs to help clusters transition from public-skewed financing models to private and self-generated financing models.

Could you offer a teaser of what attendees can expect to learn or discuss during the webinar?

Our ambition with this webinar is to shed light on some of the key elements that those involved in the design of national cluster programs and the extended cluster community should consider when designing or re-designing a national cluster program. With that in mind, we will discuss why countries need national cluster programs, the different models of national cluster programs, and showcase global case studies and best practices in designing national cluster programs. Super fun!!!

What kind of audience would benefit from joining this conversation?

We believe that this is a conversation that should bring together all the key actors involved in economic development, national competitiveness, in driving innovation at a system level, and those working hard to develop strong and successful innovation clusters. So, we hope to see a broad global audience including current leaders of national cluster programs, policymakers, politicians, cluster boards, cluster leaders, companies participating in clusters, academic faculty, innovation leaders, national agencies, and national transformation heroes. We are looking forward to having you all join the conversation.

Sign up to join the webinar here.

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Strategy Tools Welcomes Henrik Amstutz to the Team! https://www.strategytools.io/blog/strategy-tools-welcomes-henrik-amstutz/ https://www.strategytools.io/blog/strategy-tools-welcomes-henrik-amstutz/#respond Wed, 07 Jun 2023 05:15:27 +0000 https://www.strategytools.io/?p=272419 Q: Tell us a little bit about your background

I was born and raised in Switzerland, and after completing my military service in the Swiss Air Force, I pursued my Bachelor’s degree at the University of Exeter in the UK. Following that, I delved into the world of investment banking in London.

Q: Could you share a bit about the most interesting projects you’ve worked on recently prior to joining Strategy Tools?

One of the most significant projects I had the opportunity to be a part of involved advising our client in acquiring a 50% stake in Hornsea II, the world’s largest offshore wind farm. It was a fast-paced and dynamic project that left a lasting impact, contributing to the positive momentum in our energy transition.

Q: Henrik, tell us a bit more about the work you will be doing at Strategy Tools

At Strategy Tools, I will largely be supporting the team in the wider scope of teaching start-ups, accelerators, founders and early-stage investors on what a successful fundraising looks like through the eyes of the Scale-Up! Sim and many other tools.

Q: ST has a rich number of tools to shape strategy around the world. What have you seen in your first few days of working so far?

The amount of tools, content, canvases, videos, use cases and Miro boards I have seen so far has been impressive (and slightly overwhelming in the best of ways!). It is fantastic to see the thought that has gone behind the work of the Scale-Up! Sim or the fundraising bootcamps. Putting such complex, multi-faceted scenarios and situations in simple terms is vastly difficult and when reading a “Long-term funding roadmap” canvas, it could not be laid out any simpler!

Q: Strategy Tools is developing a rich body of content and tools around VC/PE. Over the next couple of years this will be a growing business area for ST. How do you see yourself working with global fund managers, ecosystems and faculty with the VC materials?

Strategy Tools has excellent tools and content already, from the very first ideas of your start-up or if you are already running an SME to shape your corporate strategy. That, fortunately for me, makes my job significantly easier!

Now it is all about introducing key stakeholders to what ST does, and why it works (and all of our success stories) – whether it is running introduction calls, multi-day sessions across the globe or virtually, or simply acting as a sounding board.

Q: What’s your superpower?

Even in intense situations, I manage to excel at multi-tasking and managing workstreams simultaneously – all while making sure I remain positive and motivating others.

Q: What do you enjoy doing outside of work?

Like many here in Stavanger, I relish spending time outdoors, immersing myself in nature, and engaging in various sports activities, ranging from football to winter sports. Additionally, I enjoy discovering new captivating TV shows and movies.

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Who Starts the Transformation? https://www.strategytools.io/blog/who-starts-the-transformation/ https://www.strategytools.io/blog/who-starts-the-transformation/#respond Thu, 10 Jun 2021 13:10:13 +0000 https://www.strategytools.io/?p=269283 I remember the first time I got the question, “Who starts the Transformation?”.  

The person asking this was a senior director at a large family-owned company in Saudi Arabia. She had been trying to get a company-wide transformation done for the better part of a year, but just could not get it off the ground. Her intuition was that there were a lot of talks, positive interest, and polite support, but was not enough traction to get the whole thing started.  

“Who starts it? How does the transformation get started?”, she asked.  

At the time, it struck me that we, at Strategy Tools, did not really have an answer to her question. Sure, we had some anecdotal cases and personal experiences, but did not have a research-grounded approach to give her a solid answer. In our terms, we could not provide a good explanation, nor did we have the tools to guide that part of the process.  

So, we went back to our research, case studies, and interviews. We dug into our data, analyzed well-known cases, sketched out early designs for tools, and tested them. Eventually, we arrived at the Transformation Starters Map. What we found surprised us!

We identified nine unique starting points where a transformation could possibly take place. 

The Transformation Starters Map is a visual overview of who starts the company’s transformation journey. On the top of the list is the first category called Internal Drivers. This indicates that the beginning of the process is often conversational, social, and bottom-up. Under this category are the first three starting points which include:

  • Bubbling Up Organizational Conversations
  • Strategy Function
  • Management Team

The second category, on the other hand, is a bit more management-led, organised, and structured. It is called Strategy Review. Transformation can originate from any of these points:

  • The Management Team
  • CFO
  • CEO
  • Board of Directors

 

Moving on, there is Management Change, which potentially causes many disruptions and is the outcome of a strategic review. The company either selects:

  • A new CEO (Internal)
  • A new CEO (external)

 

 

 

 

And finally, the last category is all about Outside Pressure. These are the significant noises and pressures from the outside that may cause a potential transformation to initiate. This is what we call “Activist Investors”.

If you are interested in learning more about the Transformation Starters Map, take a deep dive into the Building the Transformational Company program. You can also download and read our exclusive report Building the Transformational Company here.

 

 

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Rita McGrath on Strategy Tools in Action https://www.strategytools.io/blog/rita-mcgrath-on-strategy-tools-in-action/ https://www.strategytools.io/blog/rita-mcgrath-on-strategy-tools-in-action/#respond Thu, 08 Apr 2021 12:19:19 +0000 https://www.strategytools.io/?p=268672 Imagine enrolling in a traditional course on strategic management, because you need to or want to understand something about the topic. You hope the course will help land you a job in an exciting industry – perhaps high tech, advanced materials or consulting or other professional services. You’re excited about learning to cut through the strategy fog and discover tools and frameworks that will illuminate the choices you know you’ll need to make.

So what do you find as you scan the syllabus for this exciting course?

You’ll start with Gillette’s launch of the Sensor razor from 1990, a session that never gets as far as the 2010 founding of Dollar Shave Club and the direct-to-consumer revolution in retail. Then you’ll move on to a famous case from 1992 about airline pricing wars, ignoring the mergers that consolidated the industry and allowed the top 6 airlines to spend 96% of their free cash flow (some $47 billion dollars) on stock buybacks in the decade leading up to 2019. Next up is a 1998 case about Anheuser Busch and the U.S. Brewing industry, which proceeds in blissful ignorance of the later 2008 acquisition by Belgium’s InBev which preceded drastic cost-cutting, and a retreat by the whole beer category in light of more skillful strategic thinking by spirits
companies.

Then, let’s talk pricing, which you will approach by examining the 1990 price war between Maxwell House and Folgers. At the time, Starbucks had just 84 stores, but its growth trajectory was already noticeable. You’ll move on to a year 2000 case about Airbus’ decision to build the world’s largest commercial jet. Then, it’s Minnetonka (the moccasin people?) getting into SoftSoap in 1988 and toothpaste, followed by an in-depth discussion of decisions surrounding innovation in 16-bit video games.

And it goes on, with strategy apparently frozen in time. Lest you think I am exaggerating, these are actual cases taken from this year’s syllabus for an undergraduate strategy class at a top-drawer school.

This is but a symptom of a much larger problem. Strategy as a field has not itself adapted to an interconnected, digitized world in which barriers to entry have changed, capital is abundant and information and knowledge, rather than raw materials, are the inputs in scarcest supply. The use of outdated tools, and the outdated assumptions they rest on, perhaps help explain why there is so much disappointment with the strategy process.

This is one of the reasons I am delighted to be working with the team at Strategy Tools to update the essential tools of strategy into modern use. Let’s understand what these tools help you to do.

Make strategy choices tangible

At the end of the day, the reason one needs a strategy is because we have to make choices under conditions of competition and limited resources – if you had no competition and unlimited resources, just try everything and see what works. For most of us, unfortunately, we’re not in such a benevolent position.

The difficulty is that strategic clarity, in the sense of what we will and will not consider doing, is hard to create. It’s even harder to be clear with others as you widen the circle of people who need to make choices at their own levels. By the time you get to the “edges” of the organization, where big strategic shifts first make themselves felt, it is highly likely that the level of clarity that seemed so obvious in the boardroom has eroded completely. Instead, we see that strategies are still being informed by old assumptions, new strategies are trying to be crammed into old structures, and the incentive system in the organization has not been redesigned to bring people into alignment.

Part of the problem is that strategy can seem like a very intangible thing that few people in the organization actually “touch.” By using the Strategy Tools toolkits, the strategy of any organization can be made very concrete and people can build their confidence in making strategic choices without having to take huge amounts of time or risk.

Creating critical mass quickly

In an organization of any complexity, getting the majority of stakeholders on board with a new strategic direction is a daunting challenge that can, if the transformation is big enough, take years. Well, guess what – we can’t be thinking about years of implementation in a world that is moving at a pace of weeks – or even days. What the toolkit helps to do is bring a critical mass of people, quickly, to an understanding of the situation the organization is in and to a grasp of what needs to be done considering those circumstances.

Linking decisions to outcomes

The real world can be a harsh teacher. It is entirely possible to follow best practices, use good processes and do the right thing and then to find out that an external force beyond your control is decimating your business. That has, in fact, happened with any number of sectors that depend people being in close contact with strangers. Conversely, you can do everything wrong and be in the right place at the right time. There is, in other words, a lot of noise in the system around what actions lead to what results.

With the simulations, on the other hand, people can experiment and see the outcomes of their decisions immediately. They can experiment with multiple decision frameworks and learn quickly, without making the big bets in the real world.

Making an impact

In this report, you’ll be learning from strategy practitioners – people working in or with companies that need to reconsider their strategic directions. They’ll share which tools they used and why, how the experience went and what the results are. Along the way, you’ll see how the old world of strategy has given way to the new. And as we work our way through the aftermath of a global pandemic and economic disaster, these tools will be even more valuable.

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Transform! Turns Two: An Interview with the Mind Behind Transform!, Christian Rangen https://www.strategytools.io/blog/transform-turns-two-an-interview-with-the-mind-behind-transform-christian-rangen/ https://www.strategytools.io/blog/transform-turns-two-an-interview-with-the-mind-behind-transform-christian-rangen/#respond Wed, 16 Dec 2020 15:47:55 +0000 https://www.strategytools.io/?p=267959 Chris, what can you tell us about the background and the big idea behind Transform!?

You know, that’s a great question. Transform! was conceived exactly two years ago, and it was designed to solve one very specific problem – how do we train leaders and managers and students, decision makers? How do we teach them the basics and the complexities of a successful transformation? Transform! was really designed with one very clear purpose in mind, and that was enabling people to successfully lead transformation at scale.

How did you come up with the format and the idea behind Transform! ?

Transform! followed closely on the steps of Scale Up!, the first simulation that we developed. Scale Up! was basically a crash course in entrepreneurship and company building designed for the Norwegian Innovation Agency and the Norwegian Cluster Program. Once we saw the success and the impact, engagement and enthusiasm of many, many types of executives, we said, wow, we shouldn’t limit our work to just to Scale Up!. We should see if we can develop more such simulations. And that led to the early ideas behind behind Transform!

What can you tell us about the actual development and how you work to develop such a simulation?

Not a lot of people know this, but Transform! was actually designed on an airplane flying from Oslo, Norway, to Istanbul, Turkey, middle of December 2018. I basically sketched out the whole concept – the ideas, the board and the cards and all the sort of interconnectivities on the flight down. So when we arrived in Istanbul, I was working with one of our startups, we drove to the hotel, it was pretty late and I sat down for a couple of hours in the hotel and basically finished the creation of Transform! that evening.

I could tell you we put a lot of work into it, but the reality is that the actual creation and the shaping and the design happened in a few short months from middle of December 2018 to early spring, 2019. So the reality is that Transform! was really designed in a couple of weeks. But it all started on that flight down to Istanbul two years ago.

Of course, there is a lot more to it than that.

Transform! is really built on my experiences over the last two decades, and notably a lot of my experiences helping companies transform over the last ten years. In Transform! we have modelled the genuine, real-life situation and challenges that face a new CEO and a new management as they step into the role as management of this new company. This may sound strange, but in my experience, a lot of new CEOs don’t really know what they are getting into. They may be great executives, but walking into a new company, with a new culture, structures, business models and innovation strategies – they all grapple through the initial ‘fog’. This ‘fog’, the early complexities, are a big driver and have been modelled into the creation of Transform!

Second, we should really also mention the role of the design. Our team – led by Jolene – has really put a significant amount of time and creative energy into the visual design. That has of course taken time, but the visuals make up an incredibly important part of the user experience.

Transform! being used in Copenhagen Business School in 2019 with a group of Masters students

You’ve now been running simulation sessions over the last two years. What are some of the big takeaways you have from working with Transform! and using Transform! in action?

We originally designed Transform! as a physical, paper-based face-to-face format. People were supposed to sit around the table. People were supposed to chit chat and work in small groups and compete with the other teams around the table. But, of course, COVID-19 accelerated something that we had been working on for a long time, which was how do we build the simulations in a digital environment? So over the last two years, we have run, on the last count, around 100 – 130 various simulations, big and small.

And it has just exceeded our expectations by tenfold or more.

People learn. So there’s been a number of big takeaways for us. Point number one – people learn. People learn so much more in this format, you can pack an MBA in a box and they’ll take it in in just a few days.

So the number one key point for me personally and what we have observed is just an amazing learning uptake. It doesn’t matter if you’re a board member, an executive, MBA student. Across the board, people just soak it in.

Point number two is it’s really, really, really complicated to successfully lead a transformation.

One of the things that we found over the last two years is that a lot of companies and a lot of executives will tell you that “we know transformation. We have a transformation roadmap in place even”.

But what they have is actually bits and pieces, it’s a little bit like you’re building a car and you only have two and a half wheels and half an engine. I mean, you can still drive it, but it’s not going to drive really well. A lot of people have said, “wow, this exercise, working with Transform! in action has really given us a much better understanding of what we’re missing. We thought we had a good roadmap in place. We realized we didn’t.”

So the first is learning. The second is the holistic view that people get. The third is really how impressed we’ve been with the larger partner community. Of course, Strategy Tools has about 80 some partners around the world. And it’s just been, you know, deeply enjoyable and really a privilege to see how partners have been able to pick up and absorb Transform! in action. And I mean, they’ve used it in Latin America with MBA programs, in Europe, with large industrial companies. There’s been sessions in Italy for education purposes. I mean, there’s just been more than I’m able to count.

This was not something we planned for. We didn’t plan explicitly for having partners go out and use these. Sure, we hoped for. But the whole idea of a partner-based network and distribution came later.

So those were the top three takeaways. Massive learning. Greater understanding of the missing pieces and finally, we’ve been so impressed with the partner network.

trans

So you’ve been developing and naturally running a lot of digital sessions. What is the number one or two things that you see in the digital sessions that you run for Transform!?

We’ve now been testing out a variety of digital solutions, formats and platforms, and we do have a very, very ambitious long term vision for the digital simulations. I’m not quite going to share everything with you just yet, but what I can tell you is that we have a really, really interesting vision and roadmap for what the digital simulations is going to look like. Right now, I think we’re like we’re in level one or two.

We have a really good working solution. We have run and we still run various sessions around the world almost on a weekly basis. I see the digital simulation being an absolute pillar of what we do over the next 10 years. It it allows us to remove time and place. It allows us to work very, very interactively on a very time-efficient format. And as a facilitator, you can just take the conversation and process in so many different ways. You can expect to see a lot of development and a lot of news around the digital simulations in the coming years.

You briefly touched on it when you’re looking ahead, what do you sort of see as the as the future of Transform! for the next two years?

Yes, that’s that’s another great question that we ponder quite a bit, I would say that there’s really three things that matter to Transform! over the next two years. Number one, we’re going to get a lot more of our partners trained and certified both in the physical and the digital format, because we really, really believe now in the power of the partner network and how partners can build and expand their own business using Transform! as one of their solutions to take to market. So the number one thing is going to be expanding the training of partners.

The second thing is working with business schools. I’ve grown more and more excited about the potential that we see for working with business schools. We’re already working with some of the top business schools in Europe, the US, and Latin America. And we’re now looking at several different programs and formats and ways to roll out Transform! in 2021. If I look back to that that flight I mentioned going down to Istanbul two years ago, we never imagined we’d be in this position working with top notch business schools.

So the first is the partner network that we’re going to expand, train and certify. The second is the business schools. And the third is, of course, the upcoming book.

We’re currently writing the book for Building a Transformational Company. It’s going to fit perfectly with everything that we put into Transform! over the last two years. So I’m super excited about the partners. I’m super excited about the business schools, and I’m absolutely super excited about the the book and how it sort of brings all this together. Everything we’ve been working with and working on comes together in that book.

Final question, if you’re going to say one thing that’s really surprised you when you look back over the last two years, what would that be?

That’s a great closing question. I would probably say that the thing that surprised me the most was the complexity that is embedded in Transform!. We didn’t plan for this. I mean, we we built Transform! as closely as we could to the real life challenges, the real life work, the real life CEO projects that I’ve been working on over the last decade plus. And once we created that, we didn’t think much of it. It was just, you know, this is what it’s like and this is what it takes.

Number one feedback we’ve been getting from a lot of participants is, wow, this is complex and this is complicated. And our response initially was just like, yeah, it is. But the more we think about it, the more we reflect on it, we recognized that, you know, having that top management role successfully leading and driving through a successful transformation, it is incredibly complex. And we just have to train for it.

We have to recognize and develop the patterns and the tools and the visual concepts that allow us to successfully transform companies much better than we did in the past.

Just on a final note, I’m extremely grateful to everyone that’s been involved in that early design process, from our team, our early users, to our clients. It was Innovation Norway and the Norwegian Innovation Cluster program that really shaped some of those early, early formats, but then everyone on our team and all of our partners and business schools and clients and executives have also had a role, big or small, in shaping it. I’m extremely grateful.

And finally, I’m just really excited, excited about what is going to look like in two or three years time. But right now, we’re celebrating the second anniversary. And wow, you know, I think two years, even three years ahead, what is the fifth anniversary going to look like? I think that’s super exciting.

Thank you very much.

_________________________

Explore Transform! in a digital format 

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From Global Disruption to Innovating in the Upturn: Post session Q&A https://www.strategytools.io/blog/from-global-disruption-to-innovating-in-the-upturn-post-session-qa/ https://www.strategytools.io/blog/from-global-disruption-to-innovating-in-the-upturn-post-session-qa/#respond Fri, 17 Apr 2020 09:47:32 +0000 https://www.strategytools.io/?p=250558

The world is facing an unprecedented pandemic with far-reaching consequences. We invited Scott D. Anthony, one of the world’s leading experts on disruption and finding new growth to a conversation on how executives should start thinking about the coming upturn.

Webinar

Publish Date: 1st April 2020, 10 AM CEST

 About Scott

Scott D. Anthony | Innosight

Scott D. Anthony is a Senior Partner and former Managing Partner at Innosight. In his more than a decade with Innosight, Scott has advised senior leaders in some of the world’s leading companies such as Procter & Gamble, Johnson & Johnson, LG, etc on topics of growth and innovation. In 2019, Scott was recognized as the #9 most influential management thinker by Thinkers50, a biannual ranking of global business thinkers. In 2017, he was awarded the Thinkers50 Innovation Award, which recognizes the world’s leading thinker on innovation. Scott is also one of Harvard Business Review’s most prolific contributors.

 

Post-Session Q&A

How do you keep innovation relevant to senior executives at this difficult time?

 

Scott D. Anthony: Too many companies view innovation as a nicety that can be dialled up and down depending on business conditions. It isn’t. Innovation is a necessity, regardless of the conditions. Remember, a leader has two jobs. They have to deliver today, and they have to create the future. Innovation is vital to both of those jobs.

That said, innovation leaders need to do three things to maximize their relevance in this difficult time.

First, they need to be focused. Take a hard look at what you are currently doing. Cut down your portfolio, even if no one has asked you to.

Second, they need to have a clear narrative that connects innovation to short- and longer-term priorities. Zoom out to show how innovation helps to create the future. Zoom in to show the near-term actions that have material impact. Connect the two.

Third, they need to be frugal. Remember, innovation success almost always traces back to trial-and-error experimentation. Find smart ways to experiment without requiring big budgets. Share the innovation load with partners, start-ups and customers.

Another important thing to remind executives of is the relationship between risk and innovation. Innovation is perceived to be risky.  Is it? Think about the biggest commercial flops of the past couple of decades. Maybe Google’s glasses come to mind, or Amazon.com’s failed effort to get into the mobile phone business. These flops weren’t good for the respective companies behind them, but they didn’t materially threaten those companies either. Put another way, when you innovate, your downside is capped at the amount you invest, and your upside is boundless. If you don’t innovate, you get no upside, and you run the risk of decreasing relevance at best, and bankruptcy at worst.

Innovation is not risky.

Not innovating is risk.

Which industries and verticals are going to be disrupted the most?

 

Scott D. Anthony: There are two ways to look at this. The first is to look at industries where disruption was underway, where the Covid-19 shock will accelerate underlying trends. Our 2017 book Dual Transformation highlighted five industries where we could see clear signs of looming disruptive change:

  1. Consumer banking: “The cornerstone of many local towns risks being ripped apart by a range of seemingly disruptive developments.”
  2. Shipping: “Three broad disruptive trends—additive manufacturing (or 3-D printing), drone-based delivery, and smart, connected devices—promise to change the face of the industry.”
  3. Medical devices: “Instead of an industry focused on treatment, there will be booming businesses related to monitoring and prevention.”
  4. Automobile manufacturing: “Automotive companies will need to deal with the reality that their core business is likely to contract, and they need to make sure they reconstruct their business model appropriately.”
  5. Professional Services: “Democratized knowledge, platforms, software-based solutions and artificial intelligence promise to have significant impact on professional services.”

The other thing to look at are industries where the fundamental problem the industry solves, what we call the customer “job to be done,” will be dislocated beyond the current crisis because of customer behavior change or because of new system-wide barriers. It’s hard to know for sure what these industries are now, but it isn’t hard to think about things like conference organizers and cruise ships. For the former, my suspicion is people will come out of the crisis saying that video conferencing actually works well enough to obviate travel for many reasons. For the latter, I suspect regulatory changes will make life difficult for the cruise industry.

Time will tell, of course.

What do the first 90 days look like as a head of innovation in current times? Especially if you are new to the company.

What are the key priorities?

How do you deliver quick wins when you don’t have the attention of other business leaders caught up in responding to crisis?

 

Scott D. Anthony: The advice in the first question about focusing, connecting innovation to existing priorities and being frugal certainly applies to newly appointed heads of innovation. My one other piece of advice is to think about thoughtful ways you can consciously push boundaries in ways people will thank you for later.

In other words, consider how people being distracted can be an advantage! Keep the frugal advice in mind, and think about smart focused experiments you can run, or creative investments you might be able to make in startups that could be increasingly desperate for lifelines.

It is a great time to be bold, without being reckless.

Strategy Tools Speaker Series

Scott d. Anthony, Rita McGrath, Alexander Osterwalder, Bill Fischer, Rick Rasmussen, Simon Torrance – Join Christian Rangen in discussing with top strategy leaders discuss how we can survive and thrive in times of crisis.

How do you get regulators to innovate to allow for new solutions in telemedicine to thrive. Currently regulators are slow to move to adapt new technologies and opportunities.

 

Scott D. Anthony: I have three suggestions to consider.

First, consider the example of the Monetary Authority of Singapore (Singapore’s central bank). A few years ago, it created a sandbox where startups and existing companies could experiment with new fintech solutions. The idea was to create a space that wouldn’t create system-wide risk to encourage experimentation.

Second, more broadly, encourage collaboration and learning from other countries and other industries. There’s almost always an answer in plain sight if you know where to look.

Finally, consider some of the ideas in our recent Harvard Business Review article “Breaking Down the Barriers to Innovation.” The basic idea in the article is the biggest barrier to innovation inside many organizations is institutionalized inertia, which you can fight by ripping a page out of the habit change literature and launching a well-constructed “BEAN” that combines a behavior enabler (i.e., a checklist) that details the desired new behavior, an artifact (i.e., a trophy or desktop object) that reinforces the new behavior and a nudge (i.e., a leaderboard) that invisibly encourages the behavior change.

Some companies have BEANs that encourage employees to take prudent risks and run experiments. Tata Sons, India’s largest conglomerate, offers a prize called “Dare to Try” that celebrates noble failure. Adobe offers a Kickbox program where participants receive a do-it-yourself experimentation kit with a prepaid $1,000 debit card that they can spend without asking for anyone’s approval. Australian software company Atlassian runs a premortem, where teams discuss what would happen that would lead their projects to fail, helping to anticipate issues before they happen.

These are just a few BEANs that can help organizations to overcome the perceived stigma of failure and be more adept in ambiguity.

What is the key message from CEO to its organization that would balance the urgent response vs. the strategic thinking that a CEO should always have a in mind?

 

Scott D. Anthony: In Alice in Wonderland, Alice asks the Cheshire Cat for directions. The mischievous cat asks where she is going. She says she doesn’t know. The cat responds by saying, “If you don’t know where you are going, any road can take you there.”

Of course, CEOs must make sure they preserve the present, and ensure their employees are safe, their operations are effective and they can manage their cash flow. But it is even more important in uncertain times to have a clear and compelling vision of the future.

A clear vision will highlight once-in-a-lifetime opportunities to double-down on growth strategies while competitors are on their heels, to acquire assets that would otherwise be unaffordable or avoidable or to aggressively move in new directions.

History shows clearly that there are opportunities no matter how dark the times.

Also, some simple math helps. Imagine your company has 5,000 employees. Does it make sense to have 0.1% (five people) focus on the future? That’s again 4,995 focused on the present. That seems like relatively easy math, and an advantage that larger, more established companies should leverage in today’s times.

You talk about leaders being bold and having the courage to seize the opportunity. Any thoughts on how they can best push those opportunities through when their stakeholders may not be on their page and may try to block new ideas.     

       

Scott D. Anthony: There are three things to think about here.

The first is to remember a key point in the book Switch by Chip and Dan Heath: what looks like resistance is often just a lack of clarity. It is important to have a clear and compelling story that connects the specific opportunity with the broader corporate mission and vision. A failure to connect those dots often leads to resistance.

The second is to think about how to condition stakeholders to be more accepting of new thinking. For example, when Singtel, Southeast Asia’s largest communications company, was setting its transformation strategy, its CEO Chua Sock Koong consciously held Board meetings in places like Beijing, Tel Aviv and Silicon Valley to give Board members first-hand experiences with global entrepreneurial ecosystems. While travel restrictions inhibit doing the exact same thing today, there are plenty of other ways to get stakeholders in a more receptive mindset.

The final, and perhaps most challenging thing to do, is to consider changing stakeholders. For example, research shows that publicly companies can consciously change their shareholders by how they report information. The more they report information, the more they get fickle “hot” money that is trying to find short-term opportunities.

Less frequent (but perhaps more thoughtful) information sharing draws in longer-term investors more conditioned to hear about longer-term opportunities.

How can you perform effective M&A activity if you are restricted from traveling and meeting with people? Buying a company is not just about material equipment and IP, but first and foremost about adding good people.

How can you evaluate and integrate them effectively under present circumstances?

 

Scott D. Anthony: That’s certainly true. I would suggest two things.

First, in today’s world, companies leave a lot of digital breadcrumbs. What are people saying on Glassdoor? Where did top executives come from? What kinds of cultures are they likely to have brought based on their past experiences? What do customers and stakeholders say about them? Even without a physical visit, the right kind of focused due diligence can teach you a lot.

Second, you don’t have to go all the way to a full acquisition immediately. You can look for focused ways to collaborate first, because there’s no better way to learn about an organization than to actually work with them!

I think we are going to learn in the current circumstance that a lot of the stuff that we assumed we had to do physically can in fact be done perfectly adequately digitally.

 About the Host

Christian Rangen | Strategy Tools

Christian Rangen is a serial entrepreneur, strategy expert, business school faculty, speaker, author – and most recently founder and CEO of Strategy Tools. Since 2011, Strategy Tools has been used with 1000’s of companies around the world. Over the past 18 years, he has advised companies and governments globally on strategy, innovation, transformation and developing ecosystems.
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Why Superclusters Matter https://www.strategytools.io/blog/why-superclusters-matter/ https://www.strategytools.io/blog/why-superclusters-matter/#respond Fri, 20 Sep 2019 19:13:02 +0000 https://www.strategytools.io/?p=240206

In recent months, Innovation Superclusters has become a more frequent topic. Recent keynotes have brought up the need for European Superclusters. Several conferences, including the upcoming Global Peter Drucker Forum is now running special tracks on Innovation Superclusters.

Just returning from the Transylvanian Cluster Conference, we caught up with author of Building Innovation Superclusters, Mr. Christian Rangen, for a short update.

Chris, you have become a vocal advocate for what you call Innovation Superclusters. Perhaps you can shed some light on why you think we need these Superclusters?

CHRISTIAN RANGEN

Yes, of course. So the answer is really simple; Europe is falling behind – and we need to catch up. I deeply believe Superclusters is a big part of that solution in the coming years.

Let us look at US, China and Europe, arguably the top three economic blocks. Across many key metrics, Europe is already lagging and falling further and further behind. Take the 25 largest tech companies in the world, none of these are European. Not one.

Let’s look at high-growth companies; China has 125, the US has 191, Europe has 41. Company valuations, access to early-stage and growth capital, maturity and quality of entrepreneurial ecosystems, spending on research & development, new patents in key fields like AI, access to data, value capture for investors; Europe is falling behind in all of these. Now, it is not that Europe isn’t innovating; of course it is. It is just that our competition is innovating so much faster. If that trend continues over the next decade, we are going to have a massive problem on our hands, or perhaps we already have?

It is against this backdrop I believe we need to develop an entirely new paradigm around our cluster thinking. It really is a paradigm shift. Today we have around 3000 clusters in Europe. I am not convinced this is the best path to continue on. Rather, I would hope to see visionary leaders – government, industry or entrepreneurial – come together and lay out a roadmap for a few top, truly elite Superclusters. We frequently talk about elite or leading universities, let’s do the same thing for clusters. Let’s decide to lead in a number of key future industries, not only through research, but through company building, talent development, new venture vehicles, corporate transformations and bold leadership. These are the tasks of clusters. Let’s upgrade them, get more visionary leaders in place and start building the clusters that will become Europe’s key engines of future economic growth. It can be done. We know how to do it.

At some levels, the movement is already happening. The movement around Clusters of Change is building, running the world’s first Cluster Accelerator Program in Frankfurt. This is a superb contribution to changing how we think, plan and build clusters in Europe and beyond.

Right, so in your definition, what are Innovation Superclusters?

CHRISTIAN RANGEN

In our recent report, we lay out the Three Types of Clusters we see. These are Emerging Cluster, Growth Cluster and Supercluster. There are several distinct traits that make a Supercluster stand out.

First of all, they stretch beyond any one local region. Easily, they have roots and members in various regions or countries. Second, they are large in terms of members, programs and impact. Third, they have access to funding and business models that allow for a financially sustainable cluster. Forth, and that is really the key, they go beyond the Triple Helix and connect startups, scale-ups, accelerators, investors, angels and VC funds deeply into the network and community of a cluster. Finally, true Superclusters really become magnets, drawing in the very best talent, capital and companies in the world, because this is really where it is happening.

Now, if we simplify things, a Supercluster is really all about impact and value creation. That’s it.

In a recent interview, I believe you said “Superclusters is nothing new”. This caught some attention. Perhaps you could expand on this?

CHRISTIAN RANGEN

That is correct, I did mention that. So this is an interesting misunderstanding perhaps.
The term Supercluster has been around in the research, in the literature for at least 20 years, quite possibly far longer. You can go back to some of the original cluster research, and you will see the term being used quite naturally.

For some reasons, it did not catch on or simply remained dormant.

Today, you can find very interesting research sources both mentioning and discussing Superclusters. I think it is very important for us to connect the past to the present and future initiatives on building Innovation Superclusters.

Based on your recent work and research, what is your outlook for Superclusters in the coming decades?

CHRISTIAN RANGEN

Yeah, so that is a great question. In the report we do write that we will see a number of new Supercluster initiatives toward 2030. Today, I believe we will see even more than I was first predicting.

I think developing economies see the attraction and value in ecosystems like San Francisco, Tel Aviv and London. But rather than developing ecosystems, which by their very nature and definition is very hard to develop, many of these governments and leaders will say, “wait a minute. What we need next is a massive cluster or even Supercluster initiative”. I hear many if these conversations and we expect to hear many more.

For Europe, I think there are already early conversations underway, I would really hope and expect that these lead to a series of EU-based Supercluster initiatives.

You just returned from the Transylvanian Cluster Conference, what were some of your observations?

CHRISTIAN RANGEN

First of all, the conference itself was very well organized and run. There were some fantastic people and very warm and inclusive culture. It was my first time in Cluj, and I really appreciated that.

My biggest observation was probably the “heroes” I met. Cluster managers and formal cluster leaders described a large set of challenges, financially, culturally, competencies, around clusters. I really see these guys, building successful clusters on a daily basis as heroes.

Second, I see exactly the same challenges in the Romanian clusters as in most places I work with around the world. A need for more success stories, better cluster alignment, the incredible importance of the right leadership.

What I also observed was a shift in conversations and mindset. Several cluster leaders approached me to discuss, “what’s next?”. They had built an early growth cluster, with 80 – 120 members, had staff, ran projects, but they were looking for new ideas, new aspirations, and new ambitions.
For some, I suggested writing a Future Vision 2030 story. For others, I urged them to go beyond the local ecosystem and bring in more international members, partners, scale-ups and simply connect better to international markets.

For some of the clusters I spoke with, I would also urge them to rethink the strong R&D focus and scientific mindset to cluster management. Let’s try a more entrepreneurial mindset for our cluster development, also in Northern Transylvania. Based on the talks I had, I absolutely believe that is going to happen.

Just to build on that, while in Transylvania, what were some of the questions you got that stuck with you?

CHRISTIAN RANGEN

Yeah, so just building on that, I did get a lot of questions from ecosystem people in the digital and IT space. Their questions were largely on ecosystem development, new venture building programs, accelerators and connecting to investors.

Speaking of investors, that was a big topic with many of the cluster managers I met. There was a lot of questions, but also a lot of uncertainties on how to find, how to work with and really how to be relevant to investors as an entirely new group of cluster members. These were deeply interesting and insightful conversations.

We are drawing nearer to the annual TCI event, this year in Antwerp. What are you most looking forward to and how to you think the TCI event will drive a larger conversation on Europe’s Innovation Superclusters?

CHRISTIAN RANGEN

Again, thank you for a great question. I have actually never been to a TCI event previously, this will be my first. So, naturally, I am looking forward to meeting like-minded people, connect to new cluster leaders and engage in deep conversations on building future-fit Innovation Superclusters. I am already meeting with a large number of European and Latin American leaders, hopefully, this will drive new mind-sets and we can all combine to drive even more visionary leadership in the global cluster space.

Specifically for building Europe’s Innovation Superclusters, I am looking forward to learning more about the on-going activities, what current leaders are already doing and who the key people are in shaping a new cluster paradigm. So, yes, I am quite excited about the upcoming TCI conference.

The annual TCI Conference takes place in Antwerp, Belgium October 8th – 10th. Learn more and sign up at the official event site.

ABOUT CHRISTIAN RANGEN

Over the past 18 years, Chris has advised companies and governments globally on strategy, innovation, transformation and developing ecosystems. Over the past five years, he has worked extensively on Innovation Superclusters, working closely with the Malaysian and Norwegian Governments to support their national innovation programs. Chris has led multiple National Transformation Projects, including launching new accelerator programs, venture builders and early-stage VC funds. He is an active angel investor in disruptive technology firms.

Chris is also business school faculty, teaching strategy, transformation and the clean energy revolution at BI – Norwegian Business School (Norway) and Zigurat (Spain). He is an active public speaker and presents frequently at international innovation and strategy conferences

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Clusters of Change – Europe’s First Cluster Accelerator Program – An Interview with Bianca Dragomir https://www.strategytools.io/blog/clusters-of-change-cap/ https://www.strategytools.io/blog/clusters-of-change-cap/#respond Thu, 12 Sep 2019 13:23:26 +0000 https://www.strategytools.io/?p=239912

The new European Cluster Accelerator Programme is a 4-day event is funded by EIT Climate-KIC, a body of the European Union.

During the event, participants will get to work on their own cluster challenges in a workshop style learning setting. At the end of the programme, they will have learnt the crucial keys to cluster management, how to build innovation ecosystems for systemic change, and how to apply practical tools and innovative methods to specific cluster/ecosystem needs.

The program fits anyone who is focused on turning their regional ecosystem into a hotspot for entrepreneurship, innovation and sustainable development.

CHRISTIAN RANGEN

We are here with Bianca Dragomir, European Cluster Manager of the Year. Bianca, what is the the CAP?

BIANCA DRAGOMIR

The CAP is the first European Cluster Accelerator Program, launched in partnership with EIT (European Innovation Technology Institute) Climate – KIC, which is the  Knowledge Innovation Community that specialises on climate change-related innovation. Another partner is Provadis Business School, based in Frankfurt.

The program is based on the market intelligence I’ve gathered as the European Cluster Manager of the Year since 2016; from working with regional governments & agencies from all over Europe, and my work as a Cluster Manager at AVAESEN – the Valencian Cleantech Cluster, in Spain. This is also based on the work that I’ve done advising the Commissioner for Industry and the Vice President of the Commission for the past two years.

Through my interviews and discussions, formal and informal, with cluster managers, practitioners, innovation leaders and governments, I have detected the need to take European clusters to the next level. There is a huge, exponential, technological change coming. Clusters need to adapt in order to be be able to work fast, with focus and at scale. Currently, there are more than 2000 European clusters, in different shapes or forms. This is a critical mass that needs to adapt and scale up massive innovation for the future of industry in Europe.

And that leads us to clusters of change, which is the main focus of the CAP Bootcamp this year. I am very excited to launch this initiative and I am cherry picking a limited number of top experts across Europe to work with, and to bring value to the clusters from different angles. The main point is to launch the first European generation of Clusters of Change.

CHRISTIAN RANGEN

What is the long-term goal? Looking a few years ahead?

BIANCA DRAGOMIR

I’ve done the Industry 2030 exercise and I’ve looked in-depth at how the value creation networks in Europe are looking at the moment. Whether we speak about innovation ecosystems, clusters, or other evolution stages, we have one decade to really be bold. The clusters play a crucial role – they can be the engines of growth for Europe. My view is that clusters hold the missing keys for the European industry to punch above its weight and lead globally, if they act at speed and scale.

We should start as soon as possible. I believe we have very few years to really take the lead globally. Think about China 2025 or what Canada is doing, how global players are positioning themselves. Europe needs to take action.

What I have developed is a number of tools and ‘stepping stones’ needed to take clusters to the next stage and empower them to take the lead for Europe.

CHRISTIAN RANGEN

What can we expect in Frankfurt?

BIANCA DRAGOMIR

You can expect a truly hands-on program with practical tools, practical methods, what works, what doesn’t work. I’ve proved that I can take a cluster as usual (even a declining cluster) and turn it into a cluster of change. This is based on my approach and the market intelligence I have gathered working with many clusters across Europe and beyond. Of course, your experience there will be more than useful, Christian. You can bring bottom up intelligence from clusters globally.

You can, indeed, expect a very practical approach. I want to inspire participants, empower them, send them back home after four days with a clear roadmap of personalized, tailored roadmap for their own cluster so they can really act and take their cluster to the next level.

Very practical and inspirational.

CHRISTIAN RANGEN

Very interesting! One last question, what are the biggest challenges you see for these 2000 Europen clusters ?

BIANCA DRAGOMIR

I believe most clusters in Europe are ‘frozen’ under these regional subsidies’ struggle quests for funding. They are in survival mode. That is already the reality of clusters as we know it – but we need to move beyond that. We all know it’s something there, but I think the focus needs to be in a different area – it needs to be on how we can create value. If you shift focus, the revenue models start to take shape as well. If you’re only looking into how to get money, you just get stuck. I’ve lived this myself.

I have found the missing keys to turn clusters into clusters of change, to find these financial services and  business models. That is something that participating clusters will be able to also shape – to do things differently when they get back home.

CHRISTIAN RANGEN

Fascinating. Thank you for your time and see you soon in Frankfurt!

BIANCA DRAGOMIR

Thank you, Christian. See you there!

Christian Rangen & Strategy Tools will be supporting the CAP and co-faciliating sessions on Day 1 and 2.

The CAP is offering 10 hot seats free of charge (travel and accomodation at the participants expense) for cluster managers, ecosystem builders and practitioners form any of the 28 EU Member States.

To apply, please register on Eventbrite and answer the questions within the registration process.

We look forward to supporting the development of the European Cluster Landscape!

ABOUT BIANCA DRAGOMIR

Bianca Dragomir is passioned by building open, fresh, bold, entrepreneurship-driven ecosystems, inspiring leaders of leaders and generating a new generation of clusters across Europe and beyond.

Bianca is the first woman to be awarded as ‘European Cluster Manager of the Year’ by European Commission (2016).

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Seeing Around Corners – An Interview With Rita McGrath https://www.strategytools.io/blog/seeing-around-corners-an-interview-with-rita-mcgrath/ https://www.strategytools.io/blog/seeing-around-corners-an-interview-with-rita-mcgrath/#respond Thu, 29 Aug 2019 14:39:52 +0000 https://www.strategytools.io/?p=239454
The world of strategy is changing. Inflection points can either create new opportunities or they can lead to devastating consequences.
Read our interview with Columbia Business School Professor, Rita McGrath and Christian Rangen, to find out what inflection points are, what are the consequences, and what is the best way to cope with these changes.
Rita’s book, Seeing Around Corners: How to Spot Inflection Points in Business Before They Happen has just been pre-launched in Norway!

CHRISTIAN RANGEN

We are here with Rita McGrath. Rita, you have a new book coming out on the 3rd of September. Do you want to give us a high-level introduction?

RITA MCGRATH

Sure. My new book is called “Seeing Around Corners: How to Spot Inflection Points in Business Before They Happen”.  The book consists of three main parts: how to see an inflection point coming, how to decide what to do about it, and how to bring the organization with you.
What we’ve seen with inflection points is you can easily make the mistake of not seeing them at all. You can decide to do your own thing, or you can have an organization that’s so resistant to embedding the change that an inflection point requires, that even though you’ve seen it, you can’t really get yourself to do anything about it.
The book is really aimed at trying to attack those three problems.

CHRISTIAN RANGEN

For executives that don’t have any experience with inflection points as a term, how would you describe this to them.

RITA MCGRATH

A strategic inflection point is a change, typically in the environment, that could be caused by technology, social norms or many other different things. The key insight is that an inflection point causes the -taken for granted- assumptions on which your business is based on, to no longer be true.
What I mean by that is as you run a business, you have a set of assumptions about what’s possible, what the limitations are, what the key metrics are, how you’re going to drive things – all those things that are rooted in historical context. When an inflection point occurs suddenly, those constraints are relaxed or changed, and that historical context no longer has relevance to where you are right now.
An inflection point basically makes what you believe no longer true.

CHRISTIAN RANGEN

And this inflection points, Rita, how much are they within management control and how much are they outside of management control?

RITA MCGRATH

I think the core causes for an inflection point are outside management control. There’s something in the environment that’s shifting. What my research suggests is that there are two possible responses. You can see it and take the right action, which causes your business to rise to new heights, or you can miss it, or be too late. That can drag your business down. Sometimes, in the best of cases, you actually cause an inflection point to happen. This means you put others at a disadvantage because you’ve seen it first or you’ve made it happen.

CHRISTIAN RANGEN

Fascinating. What are some great examples and some not so great examples of how companies are understanding and responding to these inflection points?

RITA MCGRATH

An interesting case to me is the case of Adobe. They went through the shift from box software that people owned, to software that was based in the cloud. Some years back, they made what I thought was a very courageous decision at that time. They decided to continue to sell box software, but realised they were missing out; they were going to be left behind if everything moved to the cloud. It was a very difficult transition, mostly because their customers were accustomed to buying software and owning it, as opposed to being, in a way, forced to rent it.
Nevertheless, Adobe made a -burn the bridges- decision to switch completely, and their CEO, among other things, realised the software that’s on the cloud can’t simply be as good as their standalone software, it must be better. They were going to use cloud capabilities to add new functionality and new usability to software that would be otherwise impossible, just sitting on your own desktop.

CHRISTIAN RANGEN

In your research, consulting and teaching with different companies and countries around the world, how good are companies that you meet at understanding, seeing and then reacting to these inflection points.

RITA MCGRATH

I think companies really vary in their desire to take on an inflection point. As you know, I run a monthly newsletter. In that newsletter I cover different sectors of the economy. It’s fascinating how some sectors have really been slow, like the traditional big food companies such as Campbells or Kraft Heinz. They see that the world is moving towards fresher, more natural, less processed food – and yet changing their centre of gravity has proven to be incredibly difficult.
I’ve also written about construction. Construction is fascinating to me. If you wanted to buy a car right now, you wouldn’t hire one person to design it, another person to assemble it, a third person to deal with the architecture and have it delivered, 35% more expensive, six months late. And yet, that’s the norm in construction – it’s fascinating. You have these entire sectors which are pretty slow, I would say.
And then, of course, you get tech and some of the more nimble players out there, that are that are moving very quickly. I think there’s a huge variation in how well sectors and companies within them are adapting to these new post inflection point moments.

CHRISTIAN RANGEN

How about big companies versus smaller companies. Start-ups or scale-ups are rapidly growing companies – for example the Ubers and the WeWorks etc. Do you see any difference between the bigger companies and the smaller ones?

RITA MCGRATH

You can be as stuck in the mud and as set in your ways as a 50-person company as you can with 100.000-person company, unfortunately. I think that really comes down to leadership, ambition and willingness. Many companies have people in them who see an inflection point and try to get the senior leaders informed about what that is. And yet, the senior people either don’t want to hear it or don’t have the appetite for it, or they’re looking at their own careers and they’re saying well, you know, I could listen to this and try to go through all the bother and work of transforming, or I could just see up the next three years, take my gold watch, retire and leave it to the next generation to figure it out.
I don’t think there’s a big/small company distinction. I would say one of my grave concerns with the Ubers and the WeWorks of the world are that they’re being supported by incredible amounts of investor capitalism. They have yet to really face the market and become profitable on their own tests. They haven’t done that yet, so I really think the jury’s out. We don’t know. We don’t know how effectively they’re going to deal with it.
I do have my reservations about Uber’s business model, because there’s no real barrier to competition. If I decided tomorrow that I wanted to be the Uber of Princeton, New Jersey, you know, they’ve already got drivers. I could just go to the drivers, pay 50 cents more an hour, they can stick my sticker on their window instead, and Boom! I’m in business. It’s really no barrier to entry, and when you’re that size and scale, I think that makes things very vulnerable.

CHRISTIAN RANGEN

That’s a really good point. Your book is coming out now on September 3rd. I believe pre-orders are available already?

RITA MCGRATH

Yes. We’re actively promoting the pre-order campaign. For those people that pre-order, we’ve got a whole exclusive toolkit that will be made available for you to download. It’s the opportunity portfolio, which is a tool that you’re pretty familiar with, Christian. What you get as the pre-order is a video explainer, workbook, a couple of tools that you can download yourself and ways to analyse either your own portfolio or group of projects in the portfolio, as well as instructions for a workshop. So it’s pretty interesting stuff.

CHRISTIAN RANGEN

If you’re going to give some basic advice coming off of your research and off of your book to senior management and board of directors, what are some of the key things that they should be focusing on, or maybe even doing, that most companies probably don’t do well?

RITA MCGRATH

I think one of the biggest AHAs from the book is that inflection points don’t happen instantly. They take a long time. The original working title for the book was drawn from Ernest Hemingway’s novel “The Sun Also Rises”. One of the characters asks another: “Well, how did you go bankrupt?” And the response was: “Oh well, gradually and then suddenly.” And that’s how inflection points feel. When they are upon you, they feel as though they’ve emerged from nowhere and they’re just disruptive and difficult. But if you really look at the roots of them, they’ve been coming on for a really long time.
A great example of this is Nike. We all know Nike and how they’re champions through conventional retail channels, but the story that doesn’t get told nearly so much about Nike is that they’ve been very quietly pursuing the direct to consumer channel for well over a decade now. They’ve been really looking at this whole direct to consumer route where you’ve got companies like the Dollar Shave Club and Harry’s disrupting incumbent competitors by going direct to consumer – they’re developing a whole new model around this. Nike would be a perfect example of a company that would be likely to be disrupted if they hadn’t, for the past 10, 15 years, been very quietly pursuing this direct to consumer route. You may remember the Nike pods, where they partnered with Apple to be one of the very first fitness trackers. That also allowed them access directly to runners habits, to what athletes were doing, what people were thinking about, what they were asking for. And it’s really given them a big edge now against the competition which is still selling through conventional retailers. I’m told that just under about a third of Nike sales today come through their direct consumer channel.
Let’s come back to this question of what you tell boards, what you tell senior leaders. I think the first important thing is how well are you getting information from what I call the edges of your organization. There’s a chapter in the book called snow melts from the edges. And what I mean by that is these things don’t present themselves at the conference table in corporate headquarters. They’re out there where small changes are happening, little shifts in behaviour, where new things are becoming possible.
I think the first overarching piece of advice is how to personally get out to the edges of your organization and make sure that you’re getting exposed to where these changes are starting to happen. And if you’re not doing that, then you’re at risk of a blind spot.

CHRISTIAN RANGEN

And how easy or difficult is it for senior management, corporate headquarters, even board of directors to be following that advice.

RITA MCGRATH

It’s hard. It’s hard because it takes time. And the thing about inflection points is that, especially in the early stages, they’re not screaming at you. They’re not saying “Hey, look at me!”. It’s not like that.  They’re very quiet. They’re very subtle.
Take Dollar Shave Club just as an example. I like it a lot. Mike Dubin, their founder, gets fed up with the whole shaving experience – the expense of it, the fact that you have to go to a store where the razors are locked up and you’ve to go find someone to unlock them, and so on. He’s got a whole series of things that he just thinks are broken about the shaving experience. And today you don’t have to do very much to get into the shaving business. He subcontracted a bunch of razors from Korea. He used Amazon Web Services to set up his tech infrastructure. He invests a few thousand dollars in making a high class video that probably goes viral through Facebook and YouTube. And, you know, he’s the sort of prototypical “two guys in a garage” who takes on Gillette with nothing. No resources. I think the people at Gillette were definitely taken by surprise. They lost about 60% market share. It’s a huge impact on their business. And yet, it didn’t require a whole lot of resource to do that.
What we’re seeing is this whole class of new competitors. Another example is a furniture company called Joybird. Again, two guys in a garage. They subcontract manufacturer furniture. They just got bought by La-Z-Boy for some phenomenal amount. You scratch your head and you say – where did these things come from? Well, where they came from was this inflection point that makes it really easy and inexpensive to set up a direct to consumer business.

DID YOU KNOW

Rita’s new book is already featured in Transform! The Strategy & Transformation Simulator.

CHRISTIAN RANGEN

We’ve seen some interesting trends and industry shifts in the automotive space. We have traditional car manufacturers that may have been somewhat slow when it comes to electric vehicles. We also have this whole notion of autonomous vehicles and autonomous capabilities, of self-driving cars or even flying cars with the Uber Air project. How do you see the automotive space reacting to and understanding these inflection points.

RITA MCGRATH

The thing about a big inflection point like autonomous or electric is they go through what the Gartner Group calls the Hype Cycle. It’s what everybody is talking about, the sky is falling and we’ve got to get into this immediately. It’s urgent, urgent, urgent. And we’ve seen this over and over again. In the dot com era for example, everybody had to have a website. And then it all came crashing down, because a lot of the ecosystem wasn’t there yet.
When I think about where the automotive players are now, we’re really looking at a dramatically incomplete ecosystem which is the first problem. Everybody says autonomous vehicles would be great. And yet, I can’t pinpoint one place where it’s going to make enough of a difference that people will invest billions in buying these things, because it is a systemic change. Systemic changes tend to start where there is actually a demonstrated need where somebody really has to have this offer because it solves a problem which cannot be solved in any other way.
My favorite example of this at the moment is the military, which have to run supply trucks to their front lines. Right now, it’s 2 people per truck to drive the truck. Let’s say you need seven trucks, we’ve got 14 people now at risk. They’re not doing other,  more useful things, they’re just sitting there driving a truck. What Northrop Grumman is innovating is a system where you have two people in the front truck, and then the other six just daisy-chain along behind. Autonomous technology is good enough to do that. It can replace the driver in those trucks. There’s a case where you’ve got a real need, there’s a real problem it’s solving. They’ve got a real budget to put against it. The savings are considerable. In other words, there’s a strong business case.
There’s no business case for autonomy to work the way people are talking about it working. I would have to maybe subscribe to an autonomous driving service, but some other provider is going to have to own and maintain the vehicles and manage the programming. We still don’t know who’s going to deal with the risk. We don’t know what the insurance implications are. The ecosystem just isn’t clearly there yet.
If I were a car maker, what I’d be doing is I’d certainly be taking on options. I’d be making small investments, I’d be paying very close attention, but until you have that complete ecosystem where the economic roles and who the money is going to go to sorted out, it’s not going to become the norm.

CHRISTIAN RANGEN

These are very good points, Rita. One last question. I’m really looking forward to getting my hands on the book. If you could pinpoint one thing that you would hope to achieve in terms of impact or conversations -what would you like people to do or take away after having read your book in the years to come?

RITA MCGRATH

I’d really like people to get better at this notion of being adaptive in the transient advantage world. This book, Seeing Around Corners, really builds on my last book which was called The End of Competitive Advantage. In that book I essentially explored the thesis that strategy today is really stuck. We’re stuck in these old paradigms. We are using models from the 1960s that just don’t apply anymore to the way the world works. And here’s the thing. When management messes up and they don’t keep their organizations up to date, worst that can happen to them is they get fired and they go play golf. What I’m much more concerned about are the communities, the people that have given their heart’s blood and their lives to these companies, that through no fault of their own, get into trouble.
I grew up in Rochester which was where Kodak was from. You know that’s sort of everybody’s exhibit A for how this can happen. And it’s not their fault. My hope is that we have organizations that are more humane, more adaptive and longer lived, even as the environment aRound them changes more quickly.

CHRISTIAN RANGEN

Well said Rita. Your book is coming out September 3rd. You will be traveling and doing a lot of speaking and workshops, I presume.

RITA MCGRATH

I will. And there’s a calendar on my website, ritamcgrath.com. If people want to subscribe to the monthly newsletter, those come out monthly. And it’s free. It is a curated reading list and it covers a different sector each month. There’s also archives with all the old ones going back into the past on my website as well. There’s a lot of content there.

CHRISTIAN RANGEN

There is indeed. We can definitely recommend readers previous books including The End of Competitive Advantage. And we’re really excited for the launch and the release of your new book.
Rita, thank you for sharing and thank you for spending this time finalising the book and getting your insights and your research out there. I think this will be a big contribution to the conversation around strategic inflection points and strategic agility.

RITA MCGRATH

I think so too, Christian, and I think it also offers an opening for some of your tools. In some of the things that I’ve been working on, trying to get people to be more competitive and to see the environment around them more intensely, I think I think there’s a great overlap there.

CHRISTIAN RANGEN

I think I should loop that back into a very interesting event. I see a lot of conversations happening around this. You will be at the Drucker Forum later this year, sharing your work.

RITA MCGRATH

I will be indeed. I’ll be at Thinkers50, which is in London in November, and then head off to Vienna for the Drucker Forum.

CHRISTIAN RANGEN

Wonderful. Thank you for your time and all the best on your upcoming travels and tour.

RITA MCGRATH

Thank you so much, Christian. It’s been a pleasure.

ABOUT RITA MCGRATH

Rita Gunther McGrath, a Professor at Columbia Business School, is regarded as one of the world’s top experts on strategy and innovation with particular emphasis on developing sound strategy in uncertain and volatile environments. Her ideas are widely used by leading organizations throughout the world, who describe her thinking as sometimes provocative, but unfailingly stimulating. She fosters a fresh approach to strategy amongst those with whom she works.

www.ritamcgrath.com

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