Corporate Explorer Fieldbook

ANDREW BINNS is an advisor to business leaders on innovation and change. He is a director of Change Logic, a strategic innovation consultancy, and an award-winning author and speaker. EUGENE IVANOV, PhD, is a former research scientist who specializes in helping organizations use open innovation to solve complex technical and business problems.

• Preface and Acknowledgments xiiiCorporate Exploration: Insights From the Field xvMichael TushmanSection I: Strategic Ambition 1Chapter 1 Strategy Manifesto: Answering the Big “Why” 3Andrew Binns and Andreas BrandstetterA Problem with Strategy Plans 3Components of a Strategy Manifesto 4Creating a Strategy Manifesto 8Influencer Approach 9Application Case Study: UNIQA 3.0 Strategic Manifesto 10Chapter 2 Hunting Zones: Selecting Where to Explore 13Andrew BinnsHunting Zone 13Bounded Diversity 13Defining Hunting Zones 14Application Case Study: AGC 20Chapter 3 Outside- In: Overcoming Toxic Assumptions with Market Insight 23Narendra LaljaniChallenging Toxic Assumptions 24Going Beyond Customer- Led 26Learn Faster 29Application Case Study: The Cigna Story 30Chapter 4 Jobs- to- be- Done: Defining a Market by Customer Outcome 33Tony UlwickMarket Definition 33How Should a Market Be Defined? 34Jobs- to- be- Done Market Definition Canvas 35Application Case Study: Wearable Sleep-Stage Detection, by Ted Thayer 39Chapter 5 From Explorer’s Insight to Opportunity Story 41George GlackinStarting Point 41Explorer’s Insight 41Opportunity Screener 42Opportunity Story 45Application Case Study: Cherrisk 48Section II: Innovation Disciplines 51Chapter 6 Ideation from Within: How to Generate Breakthrough Ideas from Within Large Corporations 53Kaihan KrippendorffIdeation 53Ideas 53Imagine 55Dissect 56Expand 56Analyze 57Overcoming Barriers 59Application Case Study: A Global Media and Entertainment Company 60Chapter 7 Ideation from Outside: A Step- by- Step Guide to Challenge- Driven InnovationBea Schofield and Simon Hill 63Opportunity for Explorers 63Networked Problem Solving 63Open Ideation’s Unique Potential 64Challenge- Driven Innovation 65Five Traits of a “Good” Challenge 66Basics of the CDI Process 67Ideas Matter 72Application Case Study: UK Ministry of Defence Challenge-Driven Innovation, by Stuart Laws 72Chapter 8 Business Model Maturity: Using Customer Evidence to Validate New Ventures 75Michael Nichols and Uwe KirschnerCustomer First 75Maturity Gap 76Closing the Maturity Gap with Evidence 77Indicators of Business Model Maturity 78Assessing the Maturity Gap 81Application Case Study: Bosch Accelerator Program 83Chapter 9 Get Out of the Building: How to Gather Customer Discovery Data with Interviews 85Vanessa Ceia and Sara CarvalhoOutside- In Logic 85Talking to Customers 86Customer Interviews for Ideating, Incubating, and Scaling 86Dos and Don’ts of Customer Interviews 90Application Case Study: Pay-As-You-Own Water Heaters In Kenya 93Chapter 10 Value Propositions: Using Value Flows and Design Criteria Maps to Create Customer Delight 97George GlackinInsight to Delight 97Creating Value Flow and Design Criteria Map 98Application Case Study: P&G’s Swiffer 102Chapter 11 Business Experiments: De- risking Execution Spend Through Experiments 105Sarah Spoto and Vincent DucretInstinct or Data 105De- risking Innovation 106Structured Learning Cycles 106Application Case Study: Building the Durant Guild Platform at General Motors 113Chapter 12 Ecosystems: Building an Ecosystem Playbook for Scaling a New Venture 117Christine Griffin and John GrecoCo- innovation 117Building the Ecosystem Playbook 118Key Success Factors 127Application Case Study: Navigating a Complex Healthcare Ecosystem 127Chapter 13 Validation: Managing the Journey from Concept to Scale 131Ellie Amirnasr and Charles VaillantHunter Strategy 131Venture Maturity 132Growth Validation Process for Corporate Ventures 133Application Case Study: Intelligent Clean Air Management Solution for Commercial Buildings 139Section III: Explore Organization and Leadership 143Chapter 14 Ambidextrous Organization: What It Is, When to Use It 145Michael Tushman and Charles O’ReillySeparating Explore from Core 145Ambidextrous Organization Decision 146Four Success Factors 149Application Case Study: Ambidextrous Organization at AGC 153Chapter 15 Explore Unit: How to Build a Team for Exploration 157Christine Griffin, Erich Kruschitz, and Andrew BinnsRhythm of Explore 157Purpose 158Resource Allocation 158Decision Making 160Team 161Operating Model 163Application Case Study: SanusX 164Chapter 16 Strategic Diversity: Selecting and Developing Corporate Exploration Teams 171Richard RobertsonExplore Teams 171Strategic Diversity 172Growth Curves 172Human Behavior 174Implications for Corporate Explorers 176Application Case Study: Changing Horses Midstream 177Chapter 17 Leading High- Stakes Conversations: Getting the Senior Team Onboard 181Alexander Pett and Kristin von DonopSenior Team Commitment 181Value of Tension 182Create: Getting the Conversation into the Zone of Productive Tension 184Control: Keeping the Conversation in the Zone of Productive Tension 185Closing Tension 187Productive Tension Techniques 188Application Case Study: Story of an international energy company told by the CTO 190Chapter 18 Leadership Movement: Enrolling Others in the Work of Transformation 193Kristin von Donop and Yaniv GartyExplorer as Change Agent 193Build a Movement 193Enroll Membership 194Engaging Community 195Embrace Resistance 197Trigger a Herd Instinct 199Application Case Study: Intel Wireless Communication Services 2013 199Chapter 19 Organizational Culture: The Silent Killer of Exploration 203Charles A. O’reilly iiiCulture and Culture Change 204Creating and Changing Culture 204Using the LEASH Model: Culture Change at Microsoft 207Conclusion 209Implications 211Appendix: Frameworks 213List of Figures and Tables 223Notes 227About the Authors 233Index 239