Tag Archives: strategy

"As we well know innovations comes from executives' ability to generate new ideas. But idea generating does not follow a linear path! Studies show that on the average an executive generates 80% of his daily value in 20% of his or her time at work."

The Strategic Role of Human Resources in the New Economy

Posted on February 27, 2010 by Francis

A while back, I published a short article on the strategic role of Human Resources in the new economy. The article: Le rôle stratégique des DRH dans les 10 ans à venir is in French, but since I get so many requests to talk about this issue, I’ve translated it here for you. The main point I’m making is that in today’s disruptive economic climate, HR can and must become a critical differentiator.

The strategic role of Human Resources in the coming years

To generate creative added value is one of the surest ways for companies to win in the global competition today. Innovation is the new imperative. Read More →

"Organizations will have no choice but to follow government regulations and anticipate consumers reactions and merciless communication via ever more powerful social networks aiming at securing a healthy future."

The Deloitte Big Shift Index 2009: What’s Missing?

Posted on July 14, 2009 by Francis

If you have not already read “The Big Shift Index” report from The Deloitte
Center for the Edge led by John Hagel III, John Seely
Brown, and Lang Davison you should do so immediately.

This first release of the Shift Index reveals a startling fact: the return on assets (ROA) for U.S. firms has steadily fallen to almost one-quarter of 1965 levels; at the same time, the researchers found modest improvements in labor productivity.

Grim news, indeed. The report also finds:

– The ROA performance gap between winners and losers has increased over time, with the “winners” barely maintaining previous performance levels, while the losers experience rapid deterioration in performance.

– The “topple rate,” at which big companies lose their leadership positions, has more than doubled, suggesting that “winners” have increasingly precarious positions.

– U.S. competitive intensity has more than doubled during the last 40 years.

– While the performance of U.S. firms is deteriorating, the benefits of productivity improvements appear to be captured in part by creative talent, which is experiencing greater growth in total compensation. Customers also appear to be gaining and using power as reflected in increasing customer disloyalty.

– The exponentially advancing price/performance capability of computing, storage, and bandwidth is driving an adoption rate for our new “digital infrastructure” that is two to five times faster than previous infrastructures, such as electricity and telephone networks.

The Shift
Index consists of three indices: Foundation, Flow, and
Impact, and 25 metrics that together quantify the stock, pace, and
implications of the shift. The index enables analysts to
anticipate changes, identify bottlenecks, and guide strategy.
Not everyone, of course, will choose to monitor the same metrics or assign them
the same weights. Thus, the Shift Index is less a single measure and
more an informational platform that will give rise to a diversity of models
and, a stronger collective sense about the pace and nature of change,
constraints and opportunities within that system. As constraints
fall away and opportunities increase, old conﬁgurations become unstable
and new structures emerge.

A number of
key ideas in the report resonated with our observations at The Human Company:

– the importance of creativity and innovation in ROA

– information “flows” over
information “stocks“

– passion as a driver for higher productivity

– more and more
discriminating consumers

– consistently declining return
on assets

– increasing rate at which big companies lose their leadership
positions

– rising executive turnover tied to increasing performance pressures

However, I was surprised to find one element missing in their measurement model.

What’s missing? Sustainability and its impact on the economy.

Sustainability
is the business imperative for our time. From global-warming to competition for natural
resources, sustainability must necessarily sit at the core of any sound
business strategy. The sooner businesses understand this the better.

Organizations will have no choice but to
follow government regulations and anticipate consumers reactions and merciless
communication via ever more powerful social networks aiming at securing a
healthy future.

More importantly employers who align their
businesses to create a more sustainable world will also attract, retain and
empower more and better employees. Sustainability challenges have become so
pressing that they not only affect us at a rational and emotional level but they
also threaten our survival instincts. And as such they are bound to impact employee productivity, loyalty, and creativity. Meaning is the underpinning and decisive factor of human efficiency. How could a corporation careless of its employees’ and
employees’ children future ever encounter long term success in a flat world?

In order to maintain competitivity, growth and profitability
organizations will have to build sustainable blueprints for the future. Take a look at Adam Werbach‘s latest book: Strategy
for Sustainability.

The Deloitte report is an example of a brilliant work conceived in an
intellectual tradition largely limited to our analytical minds. Yes, they do mention creativity and talent and yes, they talk about information flows, but I wish they had mentioned sustainability. A quick glance at the Intuitive Compass™ shows us that Deloitte overlooked the South West Quadrant. Regrettably, this is often the case with our business thinking.

Going forward, we cannot leave out the importance of our reptilian brain in its relentless ability to impact every second of our lives and its superior intelligence to sustain our species and hence help us make the best business decisions for a sustainable future (1).

Here’s looking forward to the the 2010 Shift Index; I hope to see a section on sustainability and a study on the decisive intangible dimensions of value creation which intuitive intelligence is designed to help us reckon with.

(1) In 2004 MIT School of Science Picower Insititute for Learning and Memory has shown that the basal ganglia which are parts of our reptilian brain are involved in our most sophisticated decision processes (Nature, Feb 24 2005)

The Intuitive Compass™: A Framework for Intuitive Intelligence

Posted on May 13, 2009 by Francis

We know that innovation is more about people and culture than it is about process and structures. Yet many executives find themselves unable to inspire their teams and foster a culture of innovation. This is not a new theme in management thinking, but it is one that has never been more important.

Early on, as my work took me deep into this realm – the world of intuitive intelligence – I struggled to build a model to explain why this was so. And so it was by accident, and by now we know that there are no accidents, that the model of The Intuitive Compass™ took shape:

Oddly enough, I was using Cartesian coordinates to explain the flaws in our linear thinking. The two principal axes, Play-Results and Instinct-Reason, give us four quadrants (NE, SE, SW, NW). Each of these quadrants represents a function or even a mindset in an organization. Let’s make a few generalizations to explain the framework:

The NE quadrant is the area where reason and results prevail. This is the realm of business administration and management. Most companies excel in this department, led by teh twin beacons of “maximizing shareholder value” and “cost management.”

The SE quadrant is the area where instinct is at the core and results are the rule of the game. This is the mindset one finds in a sales department, or in an athlete.

The NW quadrant is the area where reason engages in a creative thinking process as in strategic planning or marketing (think of an architectural firm or engineering company).

Finally, the SW quadrant is the area where instincts are at the heart of the creative process to invent and create from the unknown and the depth of the unconscious. This is where creators, scientists, researchers, and inventors experience eureka moments. Most executives and almost all companies, even those engaged in creative fields, lack a way to connect this quadrant back into the rest of the business.

The Intuitive Compass™ becomes a tool we can apply to assess and chart progress as companies (and executives) learn to harness intuitive intelligence in four key areas:

Strategy: how to employ intuitive intelligence to create sustainable, innovative business models which deliver real value to customers in their local environment.

Leadership: the transformative power of intuitive intelligence energizes, and builds movements – with clarity of vision and purpose.

Work Culture: the ecosystem health of your business culture is reflected in your bottom line results. The Intuitive Compass™ helps create the open culture you need to succeed in the intelligent economy.

Consumer Needs: map your customers needs and wants using The Intuitive Compass™ – creating a value innovation agenda for your customers.

The bottom line is convergence – with customers, employees, management and leadership.

Going forward, we’ll use The Intuitive Compass™ to chart how companies and leaders can use intuitive intelligence to shape the future – both in their industries and in the larger world.