Effective leadership is the high point in today’s competitive environment. It is imperative for leaders to have a sound plan for the future, a firm grip on the present and an understanding of the past. Without these, it is almost impossible to achieve and sustain success.
I have incorporated these elements within my framework for strategic innovation. I call it the Three Box Solution. This framework commences with an appreciation of time as a continuum.
Managing the present (Box 1) is the prime focus for most leaders today. With no revenue; without Box 1, business comes to a standstill. Therefore, the emphasis on the performance engine that generates revenue, is crucial. At the same time, attention to what one hopes to achieve tomorrow for the organisation (Box 3) is equally vital.
Without Box 3, there is no future. To implement Box 3, one has to discard some of the mindsets, practices, policies, and perhaps products or services that enabled both the leader and the company reach where they are today. Leaving behind the past (Box 2) completes the circle.
Among the three boxes, Box 2 is the most challenging. Good leaders are able to envisage an obsolete trend and implement changes to script a success story.
Following a particular trend or rationalising to keep elements that helped the organisation succeed in its journey, can take it only so far. Therefore, it is important to gauge futuristic goals, pick up the “weak signals” and act upon them to make the business and the organisation future ready.
Weak signals are emergent changes that appear on the horizon, sometimes so dim and distant as to be almost imperceptible. They could be changes in behaviour or demographics, technology, the economy—almost any activity related to humanity. Within the Three Box framework, they are the raw materials leaders can use to develop assumptions about what may happen in the future.
Weak signals are ubiquitous but, as mentioned above, sometimes are difficult to detect. Where do you find them? You can mine for signals by using a free-for-all approach, soliciting ideas from the public, for example. Or, you may choose to create a task force within your organisation, dedicated to identifying up-and-coming trends.
Another option is to look for individuals within your company who seem to have their eyes on the horizon. Often, these are younger individuals or people who have a reputation among co-workers for nonconformity. These mavericks see the world differently, tuning in to signals that others miss.
Effective leaders understand, however, that weak signals must be tested to determine whether they truly do foretell coming changes or are just noise. This is the third leadership behavior in which the Three Box framework is rooted. Experimentation resolves uncertainties and increases learning even as it reduces risk. Following is an example of how a humble candy became a global success story by picking up weak signals.
Innovative leaders realise the Three Box framework is an ongoing process, not a one-time project. They are always searching for and testing weak signals. They never cease building the future even as they ensure their organisations function at peak performance today. They are constantly vigilant for traps of the past. As a result, their companies are able to operate successfully and simultaneously within all three boxes. (Source: Extracts from Article written by Vijay Govindarajan in the Times of India dated 18.04.2016)
