2019 Deloitte Board Symposium · habits and rules . that shape widely held “conventional...

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  • 2019 Deloitte Board SymposiumInspire. Influence. Impact.

    March 7-8, 2019

  • Detonate: Blowing up best practices in the boardroomGEOFF TUFFPrincipal and Senior Leader, Innovation and Applied Design, Deloitte Consulting LLP

  • 3 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

    Blow up the playbooks.Ignite change.

  • 4 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

    Best Practicesdriven by Conventional Wisdom

    Playbooksdriven by Unspoken Rules or Orthodoxies

  • 5 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

    I was told over and over again that I would never be successful, that I was not going to be competitive and the technique was simply not going to work. All I could do was shrug and say:

    "We'll just have to see.”

    Dick Fosbury

  • 6 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

    IMPERATIVE TO INNOVATE

    M&A Activities

    Competitive Pressures

    Capital Market Expectations

    Regulatory Change

    Leadership Changes

    Technological Change

    What’s different today is that technological change is occurring at an exponentially accelerating rate

    Customer and Market Evolution

    The Imperative to InnovateINNOVATION FUNDAMENTALS

  • 7

    1960 1990 20201975 2005

    60

    50

    40

    30

    20

    10

    AV

    ERA

    GE

    NU

    MB

    ER O

    F Y

    EAR

    S O

    N S

    &P

    500

    The average life span of a company listed in the S&P 500 in the early 1960s was right around 60 years. Today, it’s under 20.

    EXPONENTIAL CHANGE

    Sources: Richard N. Foster, “Creative Disruption Whips through Corporate America,” Standard & Poor’s, Winter 2012; “Disruptive Forces in Europe: A Primer,” Credit Suisse Equity Research, August 24, 2017.

  • 8 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

    WH

    ERE

    TO P

    LAY

    (MAR

    KETS

    & C

    UST

    OM

    ERS)

    AD

    JACE

    NT

    EXIS

    TIN

    GN

    EW

    Successful innovation efforts begin with clear innovation ambition and intent.

    TRANSFORMATIONALDeveloping breakthroughs and inventing things for markets that don’t yet exist

    ADJACENTExpanding from existing business into “new to the company” business

    COREOptimizing existing products for existing customers

    EXISTING INCREMENTAL NEW

    HOW TO WIN (PRODUCTS & ASSETS)

    See the May 2012 issue of HBR for “Innovation for the Risk Averse” by Doblin.

    INNOVATION AMBITION

  • 9 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

    The nature of innovation opportunity is shifting as digital drives accelerated change.

    KNOWN AND KNOWABLE OPPORTUNITIESwhich can be plannedfor and tackled

    INNOVATION AMBITION

    UNKNOWN OPPORTUNITIESwhich must either

    be discovered or developed

  • Copyright © 2018 Deloitte Development LLC. All rights reserved. 10

    SPOTTING ORTHODOXYIndustries and companies tend to develop a set of habits and rules that shape widely held “conventional wisdom” over time— we call these rules “orthodoxies.”

    Orthodoxies are pervasive beliefs that often go unstated and unchallenged—they shape strategy and create blind spots.

    They can get in the way of breakthrough opportunities as they prevent unconventional solutions from being considered.

  • Copyright © 2018 Deloitte Development LLC. All rights reserved. 11

    $3BN 110 TARGETS80% YIELDGoldCorp published it’s geological data and challenged the world to do the prospecting via an open innovation challenge

    Mining is one of the world’s oldest industries and is governed by some very conventional thinking.

    RULE #1: Do not share proprietary data.

  • Copyright © 2018 Deloitte Development LLC. All rights reserved. 12

    Blow up the playbooks.Ignite change.

    Orthodoxies Table Exercise

    Within

    Within your table, think about and discuss the orthodoxies that you’ve heard or have discussed within the boardroom. Share with your tablemates what role you’ve played versus management in challenging those orthodoxies.

  • 13

    FINANCIAL FORECASTING & BUDGETING

    RISK MANAGEMENT SYSTEMS

    STRATEGIC PLANNING CALENDAR

    SYNDICATED DATA

    TRADITIONAL INSIGHT GENERATION

    CELEBRATING FAILURE

    ORG CHARTS AND CAREER PATHS

    THE SEVEN DEADLY PLAYBOOKSThere are seven corporate mainstays that we challenge in depth in our book.

  • 14 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

    Four principles typify the mindset of successful “digital age” innovators.

    Bring a Beginner’s Mind

    THINK DIFFERENTLY

    ACTDIFFERENTLY

    Focus on Driving Human Behavior

    Embrace Impermanence

    Make Minimally Viable Moves

    DETONATE

  • 15 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

    Blow up the playbooks.Ignite change.

    Function Table Exercise

    Within

    Within your table, discuss which functions within the organization is likely to be an enabler and which organization is a roadblock in the detonate process.

    - Finance - Human Resources- Legal- Marketing/sales- Research & Development - Other Department

  • • Play the role as the conscience of the future organization, challenging management to apply a beginner’s mind

    • Avoid the trap of calling for more data in the face of uncertainty over risk

    • Repurpose Six Sigma’s 5 Why method to root out orthodoxy: “why, exactly, do we do this (this way)?”

    • Ask more impactful questions

    Key Takeaways

  • About Deloitte

    Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its

    member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a detailed description of

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    under the rules and regulations of public accounting.

    Copyright © 2019 Deloitte Development LLC. All rights reserved.

    http://www.deloitte.com/abouthttp://www.deloitte.com/us/about

    Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5The Imperative to InnovateThe average life span of a company listed in the S&P 500 in the early 1960s was right around 60 years. Today, it’s under 20. Slide Number 8The nature of innovation opportunity is shifting as �digital drives accelerated change.Slide Number 10GoldCorp published it’s geological data and challenged the world to do the prospecting via an open innovation challenge Slide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17