Shift from past-based planning to discovery-driven growth in uncertain environments.
Importance of recognizing and disengaging from unsuccessful initiatives to foster growth culture.
Deep dives
Discovery-Driven Growth Approach by Rita McGrath
Rita McGrath discusses the concept of discovery-driven growth, emphasizing the shift from traditional business planning reliant on past experience to a learning-oriented approach. In uncertain environments like new markets, focusing on assumptions and planning to learn, rather than planning to be right, is crucial. This methodology is not solely for innovation but applicable to any business facing significant uncertainty.
Four Steps for Executives' Growth Efforts
Rita McGrath outlines four key steps for executives to plan effectively for growth initiatives. These steps include leveraging organizational processes to support experimentation, prioritizing growth on the management agenda, fostering a high tolerance for experimentation and setbacks, and developing appropriate measurement and reward systems to align with learning goals.
Importance of Disengagement and Recouping Learnings
Rita McGrath highlights the significance of recognizing when disengagement from unsuccessful initiatives is necessary. She stresses the importance of systematically disengaging, involving key stakeholders, and repurposing learnings and capabilities for future endeavors. Additionally, developing a culture that values learning over being right and adapting reward systems to promote strategic action is crucial for driving growth.
To plan for the future, businesses usually look to their past. But what if your company is in uncharted territory? Columbia Business School professor Rita McGrath has a different idea: Design experiments to test your assumptions using “discovery-driven growth.”
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