The Power of Strategy Innovation

CHAPTER 2

STRATEGY INNOVATION IS MANAGING THE FUTURE

There are always two parties—the party of the Past and the party of the Future; the Establishment and the Movement.

—RALPH WALDO EMERSON

When do you know that you need strategy innovation? In most cases, it is when the projection of revenues for future products and services does not add up to the company’s growth targets. When this happens, business leaders scramble around to find ways to address this “delta,” the difference between the revenues they expect to generate and the revenues they need to generate (see Figure 2-1).

The Dreaded Delta and the Spiral of Incrementalism

The knee-jerk reaction to this revenue-target dichotomy is to pull together a team of people to brainstorm some new product ...