Thursday, April 12, 2012

CEO must do three things


Someone may ask, why not Microsoft created Google, hundreds of creating nana depending on the fly, American telephone &telegraph company created Skype? Why the wealthy companies hard to steal new opponents before find the next big hot? For these phenomena, a simple explanation is that a lot of the old company was too focused on the current business model, forget the existing business model and not enduring effective. The success of today and tomorrow will also cannot guarantee success.

In fact, any a visionary CEO should manage 3 box: box 1 is management now, namely maintain existing business, to improve the current performance; Box 2 is selectively forget the past, namely the subversion some things, such as the poor performance of products and services, untimely policies and practices, outdated assumptions and concepts; The box is creating the future 3, that is, the creation of new business and business model. In other words, to sunry always young, CEO must ensure that the company's maintain force, subversion force and creativity to keep the right balance.

The author to seal, whom the harp technology for example, and how should the CEO from three aspects the successful management three box.

Strategy development strategy is based on data analysis process, the goal is to carefully to find the needs of customers, the pursuit of the company differentiation, and achieve maximum profit. Although this process has many advantages, but it also killed the box in the three strategic thinking. If you stick to emphasize the rigorous leader data analysis, often will because evidence is limited or weak signal to reform, the result is they short-sighted, only pay attention to the current customer rather than emerging customers, only looked at the current opponents rather than potential entrants, emphasize the use of existing ability rather than creating new ability, and think of the distinction between the market is fixed.

In fact, box of 3 strategy with traditional way way is quite different. Want to create, get first subversion-discard the traditional strategy formulation method, then the new method.

Seal, whom will the voice of non-traditional harp into the box of 3 strategy formulation process. For example, it directly invited a small part of the customers' alone or common on the company's long-term imagine questioned, and the company's future development positive Suggestions are put forward. The company also pay attention to the opinions of the young workers, and through the "youth voices group, strategic graffiti wall, knowledge coffee shop, impromptu conference, rapid share will wait for means, encourage employees involved in the strategy.

Responsibility to maintain existing business setting, the success of the company through the establishment of a series of mechanism for everyone to work to be responsible for the results. But, to open up the future, first have to forget the past. To predict the future potential nonlinear variation, first have to abandon responsible for the results of the harsh methods. The project of the uncertainty of the box is very high, many assumptions are often prove to be wrong, in this case, the project results are likely disappointing. If required, project leader must be responsible for the results of bad, so they will only busy self defense, and never open discussion, also won't learn from that wrong decision is very likely to appear. In fact, the leader should carry of responsibility that is quickly from the box of strict experiments 3 from them.

Seal, Joseph whom established a very strict results orientated culture. But at the same time, it to the new service is put forward different requirements: accept greater uncertainty, but not indulge mistakes.

To realize the organization design excellence daily operations, the company will do more than just recruiting and training talents. They also must use a job description, the organization design and working process to optimize staff cooperation way. To create a future project, the company must form a special team to management. And to form a team, the first step is to take the box 2 action, rejecting the standard practice of the organization. To implement box 3 project, you have to start from scratch form a team as needed

Outsiders can play an important role in this, because they will bring new skills and drive change.

India's top management, whom harp for new consulting business has formed a new independent department. They were recruited from outside the company with a 15 years consulting experience to people in charge of the project, and from other consulting company to dig the many senior partner. In the department in structure, they adopted a new process and the organizational design, in order to adapt to the new business model.

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