Week 28, 2023—Issue #264
Innovation Returns, The 85% Rule, and Adaptive Ecosystems
Successful organizations do three things: they create value for customers, they fulfill their people, and they continuously adapt to change.
Here are three ideas to help you do the same:
#valuecreation
Business model innovations deliver results
Doblin’s Ten Types of Innovation fall into three categories: Configuration, which is all about how the organization is set up to deliver value; Offering, which is all about what the organization does and sells; and Experience, which focuses on why customers choose to engage. Doblin suggests that most companies invest most of their resources in the Offering category, innovating on product features and performance, etc. Interestingly, Doblin also suggests that this is the category least likely to generate outsized returns! It’s the Configuration category that delivers the biggest bang for the buck, and that is especially true for business model innovations!
More: A (Very) Brief Introduction to Ten Types of Innovation from MAQE
#personalfulfillment
The 85% Rule makes for better teamwork
Greg McKeown believes we have misunderstood peak performance. Despite what we might think, maximum effort does not equal maximum results. It never has and never will, at least not in the long run. Here’s what works: the 85% rule, which counterintuitively suggests that to achieve maximum output, you need to avoid giving maximum effort. Operating at 100% effort all the time will lead to burnout and ultimately suboptimal results. While the exact number 85% may be just a rule of thumb, it’s a helpful one for managers who want to create high-performance teams without burning out their employees.
More: Ask for 85% Effort in HBR
#businessagility
Adaptive ecosystems for continuity and change
David K. Hurst parallels business ecosystems to natural ones, identifying three adaptive stages: Passion, where innovators act freely amidst uncertainty; Reason, where maturing businesses focus on managerial efficiency and scalability while following a clear path; and Power, where administrators prioritize stability and control, reducing their ability to pursue new ideas. According to Hurst, embracing this adaptive cycle, much like a natural ecosystem, is critical for business longevity. This involves overcoming systemic challenges to become a genuine ecosystem, thus achieving a balance between continuity and change.
More: Forces of Nature in Strategy+Business
That’s all for this week.
Until next time: Make it matter.
/Andreas
How can we build better organizations? That’s the question I’ve been trying to answer for the past 10 years. Each week, I share some of what I’ve learned in a weekly newsletter called WorkMatters. Back-issues are published to Medium after three months. Subscription is free. This article was originally published on Friday, July 14, 2023.
