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

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.


Best Practicesdriven by Conventional Wisdom

Playbooksdriven by Unspoken Rules or Orthodoxies


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


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.


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


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.


$3BN 110 TARGETS

80% YIELD

GoldCorp 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.



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.


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



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

DTTL and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients

under the rules and regulations of public accounting.

Copyright © 2019 Deloitte Development LLC. All rights reserved.

http://www.deloitte.com/about

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

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

Documents

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