114. The Role of Senior Executives in Leading New Growth Initiatives: A Conversation with Robyn Bolton
Aug 29, 2023
auto_awesome
In this podcast, Robyn Bolton discusses the role of senior executives in leading new growth initiatives. She highlights the importance of senior leaders standing astride mainstream and disruptive growth businesses, sensing changing circumstances, and adjusting metrics to create space for employees to spot disruptive opportunities. Robyn emphasizes the need for senior leaders to act when business is good rather than during difficult times. The chapter descriptions include exploring the challenges of information asymmetry, managing innovation, and the importance of vigilance in disruptive innovation.
Senior leaders must break free from established processes and prioritize resources to create a disruptive growth engine.
Senior leaders play a vital role in managing disruptive growth by actively coordinating actions, breaking free from established processes, and guiding the work of employees.
Deep dives
Creating a Disruptive Growth Engine
Creating a disruptive growth engine requires senior leadership to break free from established processes and prioritize resources. An example from an athletic company demonstrates the value of using existing processes to accelerate acceptance of disruptive innovations. Another example from a food and beverage company shows the consequences of relying on Six Sigma methodologies for innovation. Senior leaders must actively coordinate actions, create reliable processes, and stand at the interface between the core business and disruptive initiatives.
The Role of Senior Leaders
Senior leaders play a vital role in managing disruptive growth by actively coordinating actions, breaking free from established processes, and guiding the work of employees. Their ability to stand at the interface between the core business and disruptive initiatives is crucial for success. They must encourage an 'and not or' mindset, recognizing the importance of both sustaining and disruptive innovations. Additionally, senior leaders need to act proactively even when the organization appears to be performing well.
Establishing a Disruptive Growth Engine
Establishing a true disruptive growth engine is challenging, but essential for sustained success. It requires senior leadership to start before the need arises and create a culture of continuous innovation. The engine should be led by a senior manager and supported by an expert team capable of shaping ideas into disruptive businesses. The involvement of all employees in identifying disruptive opportunities is also vital for long-term success.
Creating Space for Disruption
Senior leaders must create space for disruption by challenging established processes and incentivizing employees to bring forward anomalies and disruptive ideas. Middle managers should be empowered to actively scout for disruptive opportunities and be rewarded for doing so. This process can involve adjusting metrics and incentives to encourage the identification and pursuit of disruptive innovations.
The Business Model Framework draws an important distinction between a company's Priorities (that is, its Value Proposition and Profit Formula) and its Capabilities. Regarding the latter, which are more effective drivers of corporate innovation – Processes or Resources? The answer to this question, of course, depends on an organization's circumstances and strategic goals. Specifically, in circumstances where companies are pursuing growth via sustaining opportunities, a company's Processes are key. However, in circumstances where companies are pursuing potentially disruptive opportunities, their Resources - and particularly senior leadership - are crucial. In this episode, Robyn Bolton brings these concepts to life through the stories of two companies working to build disruptive growth engines, highlighting the actions of senior executives at each firm, one of which was ultimately successful while the other faltered and failed in these attempts. In conversation with host Katie Zandbergen, Robyn shares insights on several topics related to the role of senior leaders, including the necessity of standing astride the interfaces of mainstream and disruptive growth businesses; the ability to sense when circumstances are changing; the importance of adjusting metrics and incentives to create space for employees to spot disruptive opportunities; and the need (and challenge) to act when business is good rather than during difficult times. As Robyn points out, if you want different results, then you need to do things differently - and this often means tackling the difficult task of setting aside processes that drive sustaining innovation, at least in some parts of the business, and leaning more on a company's resources, including its senior leadership, to play a crucial role in the management of disruptive growth initiatives.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode