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“achieving ambitious
business growth”
Iain Bruce & Jamie McCallum | Matrix Innovation Team
Agenda
1. Recap Workshop 1
2. Introduction to Highest & Best – Innovation Leadership
3. Growth Aspirations and Growth Strategy
4. Core Competence: Identifying your “Innovation Sweet Spot”
5. Big Opportunities – Changes in Your Environment
6. Idea Engineering
7. Fail Fast & Cheap Action Planning
8. Discussion: Next-stage Assessment
9. Application Thinking Time
recap:
workshop 1
highest & bestinnovation leadership model
Exercise: Highest & Best: Innovation Leadership
Business Life Cycle
vision & objectives
Be honest about your growth aspirations……
Time
£ / €
(now) 5 Years
Want to get to here?
Normal Incremental
Growth Continues.
Sales stay the same.
Past Future
New and Different
Same Old Stuff
What are your personal drivers?• Secure your retirement?
• Grow the value of the business to sell it?
• Make a better return on your efforts?
• Make more profit now?
• Pass something on to the next generation of the family?
• Provide more secure employment for more people?
• Give something back to society/the community?
• Make the most of your potential?
• Do something no-one else has done?
• Achieve something that no-one else thought was
possible?
• Be remembered?
• Have fun?
1. What are you seeking to be in four years time?
2. What are your economic goals?
3. What products / services will you be delivering?
4. Where will you compete geographically?
5. Who are your customers?
6. What technology will you employ?
7. What are your fundamental values, attitudes and beliefs?
8. What are your major strengths and competitive advantages?
9. What is your desired public image?
10. What are the desires of the key stakeholders in the
business?
11. How many employees will you need to deliver the above?
exercise:
vision
options for growth
exercise:pipeline growth assessment
GROWTH PIPELINE
All values are Millions
Sales Today
Sales 3 Years Ago Sales Goal 3 Yrs
Actual Growth 3 Yr Growth Goal
Incremental Incremental
Estimate
Market growth or
"working harder"
Market growth or "working
harder"
£ Raw Value Prob. Net Value Scout
£0.00 £0.00
£0.00 £0.00
£0.00 £0.00
£0.00 £0.00
£0.00 £0.00
£0.00 £0.00
£0.00 £0.00
£0.00 £0.00
£0.00 £0.00
£0.00 £0.00
3 Yr Growth Goal £0.00 - Incremental Est. £0.00 - Systemic Est. Net Value £0.00 = Pipeline Gap (Excess) £0.00
25% - Who knows?
Probability Ranges
* List only initiatives with RAW potential for generating at least 10% growth. This standard is key for
small and mid sized companies because 1) it keeps the focus on the big stuff and 2) all ideas have a
"probability" of success thus "shooting high" guarantees a payoff.
90% - Absolute certainty
75% - There are a few unknowns
50% - Odds are good but there are many unknowns
Total Systemic Growth Total Systemic Net Value
Tangib le initiatives or "working smarter"
What we've done to grow Our Growth Pipeline*
Tangib le initiatives or "working smarter"
Actual Growth over 3 Years
Systemic Systemic Estimate
3 Year Growth Goal
Strategic Questions
Today
Which customers do we serve
today?
Who are our competitors today?
What are our products/markets
today?
What is our basis of differentiation
today?
What skills or capabilities make us
unique today?
Where does value lie today?
In the Future
Which customers will we serve in the
future?
Who will our competitors be in the future?
What will our products/markets be in the
future?
What will the basis of differentiation be in
the future?
What skills or capabilities will make us
unique in the future?
How will we build future value?
NE
W
MA
RK
ET
S
EX
IST
ING
MA
RK
ET
S
EXISTING
PRODUCTS
NEW
PRODUCTS
market
development
market
penetration
unrelated
diversification
product
development
exercise:pipeline growth assessment
(part II)
NE
W
MA
RK
ET
S
EX
IST
ING
MA
RK
ET
S
EXISTING
PRODUCTS
NEW
PRODUCTS
market
development
market
penetration
unrelated
diversification
product
development
ADAPTPromise & Product
for Mutual Profits
LEADWOW’s
for Mutual Profits
NEW
Customers
& Markets
CURRENT
Customers
CURRENT
Capabilities
NEW Products
& Services
The Big Opportunities for
SIGNIFICANT PROFIT GROWTH
ADAPT
IMPROVE LEAD
NEW Customers
& Markets
CURRENTCustomers
NEW Products
& Services
CURRENTCapabilities
Perpetual Profit Cycle
ADAPT
IMPROVE LEAD
NEW Customers
& Markets
CURRENTCustomers
NEW Products
& Services
CURRENTCapabilities
The Perpetual Profit Cycle &
identifying yourinnovation “sweet spots”
CAPABILITIES MARKETS
Capabilities
• We sell fish
• We smoke fish to produce distinct
flavour profiles
Resources
Tangible
Resources
Intangible
Resources
Human
Resources
Physical
Financial
Intellectual Property
Use of Technology
Relationships
Networks
Awards
Quality – be specific
Reputation – be specific
Skills
Competencies
Knowledge
Expertise
Culture
Motivation
Values
- beliefs
- attitudes
- behaviours
Capability Tangible
Resources
Intangible
Resources
Human Resources
Sell Fish Shop
Chilled Counter
Fish
Ice
Till
Supplier Rel’s
Reputation for fresh
fish
Personality
Arithmetic
Profit focused
Smoke Fish Fish
Preparation area
Clean room
Kiln
Storage area
Salt
Wood
Flavourings
Packaging
Vacuum packer
Recipe
HACCP process
Supplier rel’s
Patent
Fish Smoker’s
Association
Great Taste awards
25 years experience
- preparation
- fileting
- smoking
- packaging
Professional
Knowledge sharing
Profit focused
Employee benefits
Competency Tests:
1. Can anyone from outside the company easily identify all of the resources involved and how they interact with each other?
2. Would a major issue arise if a key member of staff left the organisation?
3. Could your competitors copy this capability easily?
4. Does this capability offer long lasting competitive advantage?
Key Success
Factors
Core Competencies
Capabilities
Tangible
Physical
Financial
Intangible
IP
Technology
Relationships
Quality
Reputation
Human
Skills
Knowledge
Culture
Motivation
Values
Big Changes
SOCIAL INFLUENCES
TECHNOLOGICAL INFLUENCES
ECONOMIC INFLUENCES
ENVIRONMENTAL INFLUENCES
POLITICAL / LEGAL INFLUENCES
exercise:
Big Changes
idea engineering exercise:
customer problems
First FAIL FAST FAIL CHEAP
Action Plan
Item Estimate
A Final Decision Makers How many customers or purchase
occasions exist?
B Concept Persuasion What % buy when they see the
concept?
C Marketing Support What % get to see the concept?
D First Purchase Revenue How much do they spend 1st purchase?
E Repeat Rate % What % of first purchasers will buy
again?
F Repeat Purchase Revenue How much do repeat purchases cost?
G Number of Repeat
PurchasesHow many times in a year will a repeat
purchaser buy?
Item Estimate
A Final Decision Makers How many customers or purchase occasions exist?
B Concept Persuasion What % buy when they see the concept?
C Marketing Support What % get to see the concept?
D First Purchase Revenue How much do they spend 1st purchase?
E Repeat Rate % What % of first purchasers will buy again?
F Repeat Purchase Revenue How much do repeat purchases cost?
G Number of Repeat
Purchases
How many times in a year will a repeat purchaser
buy?
Trial Sales = A x B x C x D
Repeat Sales = A x B x C x E x F x G
Total Sales = Trial Sales + Repeat Sales
next stage:
assessment
Tue 4th December Invest NI
Bedford Street
Belfast
Wed 5th December InterTradeIreland
Newry
Thu 6th December Athlone
Presentation Dates
growth plan
thinking time…
