Archive for the 'breakthrough leadership' Category

Pyramid of World and Industry Rockers

I believe that some business leaders are the world’s crowning jewels of innovative leadership, and they each cast a long shadow. Mixed in with their mortal blood is a spark of something revolutionary that propels them toward greatness – a drive and a passion that not only fuels, but actually enables their genius. They are all poster children for my Wave Thinking™ process.Industry Rockers

Here’s what I call Pyramid of World and Industry Rockers. Following the World Rockers, the second tier of remarkableness are the Industry Rockers and theyinclude Microsoft’s Bill Gates, GE’s Jack Welch, Virgin Airlines’ Richard Branson, Wal-Mart’s Sam Walton, and Berkshire Hathaway’s Warren Buffett. The fourth tier includes Proctor & Gamble’s A.G. Lafley, Cisco’s John Chambers, Google’s Larry Page and Sergey Brin, Facebook’s Mark Zuckerberg, Twitter and Square’s Jack Dorsey, and others like them.

I initially thought to only include those who are living, but I had to make two exceptions because of their astounding achievements. If you can reinvent four industries, or start from scratch and build the largest company in the world with revenue of $466 billion and 2.2 million employees, then I promise to include you in my future hierarchy too.

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Eruptive Innovation Trumps Disruptive Innovation

Over the last 35 years, I’ve researched the fields of innovation, leadership, strategy, and many related areas by reading hundreds of excellent books and thousands of articles, and most important, talking with literally thousands of business executives and top managers.Innovation Hierarchy

I challenge you to find an executive of a Fortune 500 company who disputes that innovation is the fuel for growth. On the other hand, with a few exceptions, almost all rate their own companies poorly at it. And rightly so. Clayton Christensen and Michael Raynor in their book The Innovator’s Solution report: “Study after study concludes that about 90 percent of all publicly traded companies have proved themselves unable to sustain for more than a few years a growth trajectory that creates above-average shareholder returns.”

Business gurus speak of quite a few levels of innovation. From my research, I’ve developed a new framework that I call the Innovation Hierarchy. We’re all familiar with the first four levels of the Innovation Hierarchy:

  • Level One is Sustaining Innovation: Regular improvements that keep you moving forward, but not necessarily ahead of the competition. Keeping up with the Bezos, so to speak.
  • Level Two is Incremental Innovation: Medium-sized improvements that benefit both your customers and your company. This can keep you slightly ahead of the competition, or if you are behind, help you catch up a bit. But, as shown in my previous cartoon, if a rogue wave of innovation hits your industry, you’re sunk.
  • Level Three is Breakthrough Innovation: This is not based on novelty. As I define it, “breakthrough” results in step-change in both customer value and a company’s financial performance.
  • Level Four is Disruptive Innovation: Coined and defined by Clayton Christensen of Harvard Business School in 1995, it is game-change in an industry or a field such as education or health care. It is often created by providing the same or much better value to customers at a massively lower cost and price.

There is no question that disruptive innovation can change the rules of an entire industry, and rapidly create new winners and losers. Up until now, it has been the dream of any business wanting to win big. I would argue, though, that there is yet a higher level of innovation – a fifth level of the Innovation Hierarchy …

  • Level Five is Eruptive Innovation: It doesn’t just change an industry. It creates change so big and broad that it affects the world, the planet, society at large. History is replete with hundreds of eruptive innovations. Most advancements of mankind were due to one. Examples include fire, wheel, agriculture, ship, railroad, automobile, semiconductor, computer, robot, Internet, Cloud, and the smart phone. These do not just change industries; they change humanity.

The value of any framework is that it serves as a gauge to help you understand where you are and as a guide to show you what more you can achieve. Many businesses set their sights on achieving Breakthrough Innovation but most accept Incremental Innovation as “good enough.” After all, achieving Breakthrough Innovation takes vision and the ability to think and act “out of the box.” Yet beyond Breakthrough, there is no question that Disruptive Innovation can change the rules of an entire industry, and rapidly create new winners and losers. Until now, Disruptive Innovation has been the dream of any business wanting to really win big. Yet few businesses aggressively seek the even higher level of Eruptive Innovation. Truly visionary business leaders accept nothing less than Eruptive Innovation.

So what level of innovation is your company striving to achieve?

Inauguration: Barack Obama Has Huge Leadership Amplitude

Barack Obama has promised to cure America’s economic ills and restore America’s positive image. On a larger stage, he has the opportunity through influence to save the world from itself and make it a much better place. This will take huge Leadership Amplitude, as I call it. We are fortunate on this hallowed day of the inauguration of our 44th president. Obama has it, in spades!

Leadership Amplitude is made up of two components. The first is emotional amplitude, well known to psychologists. The second is what I have discovered and coined, Intellectual Amplitude.

Emotional Amplitude Moderated

Barack Obama may be the most emotionally centered president to date—perhaps even more so than Abraham Lincoln, one of his idols. For example, under the harshest fire from John McCain’s political pit bulls, Barack would hear it, smile and move forward. Golf Digest, in its February 2009 issue, reported Obama does the same on the golf course. He loves to compete by making small wagers to increase the pressure, and when he underperforms to his high expectations, he just smiles and analyzes how to improve on the next shot.

When he does increase his emotional amplitude, it is constructively. On the one extreme, he lets his emotions out of the box with deep compassion for the world’s problems and feels everyone’s pain around the world. On the positive extreme, his passion and confidence to solve them is obvious to everyone. As he stated, “The country has chosen hope over fear,” and later, “We are ready to lead once more.”

Intellectual Amplitude Unleashed

Constructive emotional amplitude is a wonderful quality, but it is insufficient in itself to change the country, much less the world. Doing so will require immense Intellectual Amplitude. Here is where Barack shines as a Breakaway Leader. I have discovered that Intellectual Amplitude is the one thing, the singular trait that distinguishes great from good leaders. It is the Holy Grail of Leadership, if you will.

In his inaugural speech, and throughout his campaigning for leader of the free world, Barack displayed Intellectual Amplitude at the two extremes. On the constructively negative side, he identified and focused on the top vital problems that America needs to address, and he passionately voiced a call to action to drill deep for their root causes to eliminate or substantially mitigate them. Now, on the positive extreme, he already has begun to outline a vision and strategy for reinventing America and its role in the world. His inauguration speech spoke to both extremes. He spoke of “the gathering clouds and raging storms,” and of optimism that “our minds are no less inventive than before,” and declared “the state of our economy calls for action, bold and swift.”

America’s Amplitude Must Be Huge

As I have asserted in prior writings, the “box” is not just a metaphor, it is real—a low amplitude. Remarkable leaders don’t just think out of the box, they lead the entire organization out of the box. In this case, the “organization” is America.

All of America must up its Amplitude to help Barack Obama and his administration see and solve the challenges of our country, and the world. As he proclaimed, “Starting today, we must pick ourselves up, dust ourselves off, and begin the work of remaking America.”

Barack, may breakthrough be with you.

Jim Bandrowski

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