A CEO for a large, established, infrastructure company announces a new “strategy,” called Win 21. Under this strategy, the CEO says, revenue in 2021 will be double what it is today, even though growth rates in the last five years have averaged just 2%. To support this goal, the CEO defines three priorities:
- Defend the market position of established offerings.
- Prepare for new contracts currently being negotiated by ensuring critical service capabilities and technology platforms are in place.
- Grow in new markets with new and updated offerings.
Clearly, the strategy represents a challenge for every part of the company—especially the innovation team, which will have to create the new offerings that will drive this growth while supporting established and emerging capabilities.
We worked with the product innovation team at this company to interpret the CEO’s challenge and map a path to meet his audacious goal. The first step—a portfolio diagnostic exercise, was used to assess the potential of the current portfolio in light of the new strategy. The key question: Are the level and distribution of current innovation spending sufficient to meet the new goal? (more…)