Corporate Explorer

ANDREW BINNS is Co-Founder of Change Logic, a Boston-based strategic advisory firm. He works with CEOs, boards, and senior teams leading transformational business changes. He is a sought-after speaker and lecturer at companies and business schools. CHARLES OREILLY is the Frank E. Buck Professor of Management at Stanford Graduate School of Business and a Co-Founder of Change Logic. He is Co-Director of Leading Change and Organizational Renewal. MICHAEL TUSHMAN is a Baker Foundation Professor; Paul R Lawrence, MBA Class of 1942 Professor Emeritus; and Charles (Tex) Thornton Chair of the Advanced Management Program (AMP) at the Harvard Business School. He is also Co-Founder of Change Logic.

Preface and Acknowledgments ix Section I Explore Aspiration 1 Chapter 1 Innovation Advantage 3 Beating the Odds 5 Strategic Ambition 7 Innovation Disciplines 10 Ambidextrous Organization 14 Explore Leadership 15 Explorer, Not Entrepreneur 17 Chapter Summary 19 Chapter 2 Corporate Explorers in Action 21 Explorers Insight 22 Purpose Driven 23 Investor Support 27 Manage Uncertainty 30 Chapter Summary 34 Chapter 3 Strategic Ambition 35 Emotion, Logic, Aspiration 36 License to Explore 39 Social Movement 42 Hunting Zones 44 Manifesto 48 Chapter Summary 50 Section II Innovation Disciplines 51 Chapter 4 Ideation: Generating Ideas for New Ventures 53 Idea Addiction 56 Solution Trap 58 Customer Discovery 60 High-Value Customer Problems 64 Idea Generation 67 Chapter Summary 69 Chapter 5 Incubate: How Corporate Explorers Learn Through Experimentation 71 Business Experiments 73 What Needs to Be True? (Hypothesis) 75 Run Experiments (Test) 78 Make Sense of Your Results (Learn) 81 Run a New Experiment (Iterate) 84 Follow the Evidence (Decide) 85 Chapter Summary 86 Chapter 6 Scale: Assembling the Assets to Build a New Venture 89 Combining Assets 92 Customers, Capabilities, Capacity 95 Scaling Paths 98 Trigger Points 102 Chapter Summary 104 Section III Ambidextrous Organization 107 Chapter 7 Explore Organization 109 Structure Options 111 Focused 113 Bottom Up 115 Top Down 118 Structure Decision 121 Chapter Summary 124 Chapter 8 Explore Business System 127 Team Design 129 Sales Team Integration 132 Corporate Functions 133 Resource Allocation 135 Feedforward Management System 137 Executive Attention 140 Chapter Summary 143 Chapter 9 Risk and Reward for the Corporate Explorer 145 Motivation Puzzle 145 Venture Model 147 Shadow Stock 148 Long- Term Incentives 150 Personal Risk 151 Corporate Explorers Motivation 153 Chapter Summary 154 Section IV Explore Leadership 155 Chapter 10 Silent Killers of Exploration 157 Core Business System 159 Preserve Professional Identity 161 Avoid Risk 163 Optimize for Short Term 166 Maximize Comfort 169 Change Leader 171 Chapter Summary 172 Chapter 11 The Double Helix: How Corporate Explorers Lead Innovation and Change 175 Future Organization 177 Storytellers 180 Social Network Leader 183 Insider or Outsider 188 Reputation Manager 191 Chapter Summary 193 Chapter 12 Readiness to Act: Leadership and Scaling a New Venture 195 Competing Commitments 197 Both/And Leadership 199 Productive Tension 202 The Mirror 204 Courage 207 Passion 209 Chapter Summary 210 Appendix: Corporate Explorer Framework 213 List of Figures and Tables 215 Notes 217 About the Authors 225 Index 231