17 Jun 2010

Growth Strategy Model - The Organization Platform

Processes are not enough to drive growth. There needs to a number of support mechanisms that ensure the processes flow properly. These are what I refer to as the platforms for growth. There are three main platforms: Strategic, Organization, and Networks. The Organization platform ensures that the required structure is in place to ensure the growth model operates efficiently.

First, all roles need to be defined and in place. An executive team must be ultimately accountable for the strategic direction of the program. A Innovation leadership team, comprised of senior executives, are responsible for executing the strategy. An Innovation team are the administrators of the program. They ensure communications and reporting go out as planned, projects have all the needed support, and oversee all model processes. If desired, the Innovation team can help with early opportunity research.

Second, governance of the program needs to be clearly defined. The executive team must create a program charter that set targets, defines boundaries of focus, and clarifies how program investments will be overseen. For example, Whirlpool has two governing bodies for their innovation program. One manages the program strategy and the other plans the innovation road map based on the strategy.

Third, available funding for the program needs to be defined. While it is great to define growth targets, it is meaningless if funds are not committed to achieving the them. Clear targets and investments help set expectations for return on investment. Some companies distinguish between sustaining and growth investments. Whirlpool sets a fixed % of revenue (or assets) for sustaining investments and funds growth based on the zero-based investment methodology.

Roles, governance, and funding provide the structure for the growth strategy model. Without them, I don't think any program will get very far. If you get into a situation where some executive asks you to lead a growth program, make sure you get that person to agree to the organizational platform. They should be the one defining the charter and serving on the executive team.