Learning to Grow empowering teams to implement

innovative business models

Klaus North Wiesbaden Business School, Germany

Klaus.north@hs-rm.de

www. dynamic-sme.org

2

Many firms die not because they do the wrong things, but because they keep doing the right things too long“ Prof. Yves Doz, INSEAD

3 Source: http://de.slideshare.net/thegaragegroup/new-approaches-to-business-model-innovation

How to implement Innovative business

models?

Source: http://www.capgemini.com/blog/capping-it-off/2013/08/how-to-implement-innovative-business-models

Changing business models is a learning process

SENSING new opportunities New or changed

business

model

SEIZING opportunities

MANAGING THREATS /

TRANSFORMING

Individual & organizational

learning

The development of the „Learning to grow“ methodology

2009 Survey of 124 innovative German

SMEs with above average growth rates:

Identification of growth factors

2010-11Action research with 13 + 13 SMEs

to develop „Learnig to grow methodology“

Since 2011: Aplication of methodology and

trainig of „growth“ coaches in Germany,

Spain, Argentina,Brazil, Peru

Today: aprox. 70 Learning to grow projects

BMBF project

Wachstum

Lernen

EU project

Dynamic SME

and

regionally

funded

projects

Statement Significance

„Our employees show in their daily activities, that they support

firm‘s aims of growth and innovation.“ 0,000 High

„Our firm is characterized by the ambition to continous

improvement and looking for new solutions“ 0,001 High

„The relations between the members of our firm are characterized

by mutual respect and trust.“ 0,001 High

"Our employees share the firm’s visions." 0,009 High

„Our employees engage strongly for the needs of our customers“ 0,018

„Employees in our firm are strongly success- and achievement-

oriented.“ 0,028

„We realize improvement based on ideas of our employees all the

time.“ 0,039 Weak

"Transfer and sharing of knowledge goes well even between

departments and different professions." 0,054 Weak

„Our firm is characterized by entrepreneurial thinking and action of

employees.“ 0,078 Weak

Activating Employees is key for success Independent Variable: „Competence-based Management“ - (Factor analysis, Oneway ANOVA)

The “Learning to grow” methodology

1. Analysis of growth capabilities and deficits by means of a “wheel of growth”

carried-out by management team assisted by a “growth coach”

Four Challenges

for growth-management

Project-based learning

as method to get things

moving

Eight Growth-levers

as starting point for a

targeted development

project

The “Learning to grow” methodology

2 the owner/manager supported by a “growth coach” defines (a) strategic growth project(s) that has/have a short to medium term impact on business performance and in parallel serves to learn new roles and behaviours.

Implementation & learning projects Implementation & learning projects Implementation & learning projects Implementation &

learning projects

Implentation of knowledge

management

Improvement of recruitment

Remuneration by results

Development of new

business unit

Delegation of responsibilities in

order processing

New business model:

Development of internet

sales platform

Establishment of a middle

management level

new concept for better alignment of

work and familiy life

Improve R&D effectiveness

Procedure to sistematically gain

new clients

Development of continuous

improvement

Business process optimization

Development of new career and

remuneration system for

professionals

Empowerment of teams in sales

Participative strategy development

for new businesses

„Learning to grow“ - some project examples

Development of

new product lines

New business model:

From manufacturing to

services

The “Learning to grow” methodology

3. the project is handed over by the owner/manager to a team of employees who define their learning objectives to be accomplished and carry-out the project conceived as a learning journey over a period of 6 to 9 months.

4. The whole process is supported by a coach (approx. 12 half days of intervention) who has been trained in the methodology.

Defining learning objectives and assessing competencies of project team with the competence matrix:

Competen-

ces/skills Maria Jim Horace Anna

Market

analysis

Project

management

Systematic

problem

solution

French

language

High

competence

Basic knowledge medium

competence

The “Learning to grow” methodology

5. The “Learning to grow” methodology is used in a network of about 10 SMEs whose teams meet to exchange experiences and run joint learning sessions.

Results of “learning to grow” projects

• More open communication

• Acceptance of responsibilidades

• Proactive behaviour

• Management by objectives

• Structuring and solving problems

• Effectiveness of collaboration

• Systematic problem solving

• Results orientation

• Project management

• Delegation of responsibilities

• Improved participation

Freeing managers

from opera-tional tasks

Invividual competence development

Better Communication

Improved Team work

Achievement of specific business goals ( p.e. capture new markets)

¿What has changed in your firm due to the Learning to grow project?

Improvement of internal communication

New procedures introduced

New responsa- bilities defined

Better implementation of changes

More open firm culture

Improved profitability

to a great extent significantly to some extent a little nothing

Resources if you are interested to learn more

about the methodology

• Hardwig/Bergstermann/North (2011): Wachstum Lernen – eine Handlungsanleitung für kleine und mittlere Unternehmen. Wiesbaden. Gabler

• RKW Deutschland,Ed (2012). Management des Wachstums – Wie Unternehmen Wachstum lernen. Sternenfels. Verlag Wissenschaft und Praxis

• Spain (Basque Country) manual and video with results of basque enterprises :

• http://www.uggasa.com/index.php?option=com_content&view=category&layout=blog&id=35&Itemid=96&lang=es

• Video: http://www.youtube.com/watch?v=8aHxdhriZoI ,

• Brasil:

• http://empreendedor.com.br/artigo/metodo-ensina-empresas-ganharem-dinamismo-para-abrir-portas-certas

• Paper: vencendo os desafios do crescimento: o método “aprender a crescer” para pequenas e médias empresas brasileiras http://navus.sc.senac.br/index.php/navus/article/view/100

•

• Project “Dynamic SME”: www.dynamic-sme.org

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