Misha De Sterke - The Future-Proof Organization: How Established Companies Create New Waves of Growth
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The 10x Growth Machine
Innovation is a top priority for many companies. However, most companies fail to innovate successfully. In this book Misha de Sterke combines academic knowledge with practical expertise to bridge this knowing-doing gap. He provides a structured approach that enables companies to grow organically and continue to create value in the long run. Companies should create their own growth machine. With The 10x Growth Machine they can!
Erik Stam,Professor of Strategy, Organization & Entrepreneurship, Dean of the Utrecht University School of Economics
A very pragmatic and insightful reading on how to approach innovations and organize for them in todays times. The new scope of innovation extends beyond the product and goes all the way to business models, something that established companies struggle to organize for and to build capabilities the book provides a clear perspective on how to approach these challenges. Definitely recommended for reading and as a guide to aspiring corporate innovators!
Aniruddha Kusurkar,Global Commercial Director, FrieslandCampina
Graphic design: Jorine Zegwaard, Jorinezegwaard.nl
Cover design: Maurice de Vries, Mauricedevries.nl
Model design: Erik Wiegers, Studiowiegers.nl
Copy editing: Selese Roche
www.10xgrowthmachine.com
2020 Misha de Sterke and Boom uitgevers Amsterdam, the Netherlands Management Impact is a division of Boom uitgevers Amsterdam
ISBN 978 94 6276 314 2
e-Book ISBN 978 94 6276 355 5
All rights reserved. No part of this book may be reproduced, stored in a database or retrieval system, or published, in any form or in any way, electronically, mechanically, by print, photo print, microfilm, or any other means without prior written permission from the publisher.
The publisher is fully aware of its responsibility to ensure optimum reliability. Nevertheless, we cannot accept liability for any inaccuracies that may appear in this publication.
The 10x Growth Machine
How companies can innovate, scale and win
Misha de Sterke
10x Growth Machine Framework
10x Growth Machine Canvas
Corporate venture methodology
Guide to determine growth opportunity areas
Metric board for Growth Accounting
Innovation capability assessment
Portfolio Tool
Growth Transformation canvas
Disruption analysis checklist
Questionnaire: Determine the organization of the corporate entrepreneurship function
Corporate Startup Maturity metered funding
Corporate Startup Maturity Level
Disruptive strategy checklist for venture boards
Checklist Innovation Director: Is your board onboard?
Evaluation of the Growth Machine
Evaluate the quality of your current strategy process
All tools are available at www.10xgrowthmachine.com
This book might well have had a different title, In Pursuit of Excellence. The problem with innovation is that for some people it can have negative connotations. It is perceived as creative people burning cash in cool places without being accountable for it. Unfortunately, this is true in some cases. Consultants and gurus selling illusions, the next methodology and framework (just like myself) or the next hype. These methodologies suggest that if you follow the steps, success will be the automatic result. But like any other top accomplishment in music, sport or business, there is no quick fix. Mastery and virtuosity require hard work, discipline and building the right mental muscle. Creating long-term growth for an established company successfully is an act of virtuosity. The reality is that most companies fail at it because its difficult and complicated. Why do you think the top 20 list of the Fortune 500 has changed so dramatically in the last couple of years?
To build the Growth Machine requires, besides competence, curiosity and determination, also the emotional willpower to fight for this challenge without giving up in the process. To perform at this level, we need to develop and nourish the kind of habits of thinking, being and doing that lead to excellence. In this book, Im offering a comprehensive framework, methodology and toolset that serves as a navigation map for you as an innovator, for understanding how to create new growth from non-incremental innovation. This methodology in itself will not guarantee success. That depends on how well you, as a reader, grasp the meaning of what Im saying and then implement this perfectly in your company. This journey will transform you personally and, I hope, transform your company into becoming the best version of itself. Many companies have done this before. Think of all the old companies that still exist, like Nintendo, GKN, P&G, Fujitsu, IBM and many more.
I wish you all the best in the journey, a lot of emotional stamina and intellectual horsepower.
Misha de Sterke
For Viktoriya, Isabel, Nicholas & Mia
You remind me every day what matters most
BY PETER VAN GRINSVEN
Most companies struggle with implementing a successful innovation strategy to create new business models and, thereby, new business. They witness startups and scale-ups disrupting their markets on the one hand, and on the other they struggle to break through their own bureaucratic and outdated ways of working and reporting. Only a few of the well-known companies have managed to create a future-proof new organization.
This remarkable book gives the reader some insight into how to crack the nut of creating a corporate Growth Machine by using innovation as a means, not as a goal in itself. Misha de Sterke presents a clear overview in which he shows a proven methodology. And pragmatic insights into how corporates could build new business models and create new ways of working, to implement innovation at the heart of their business.
The main reason I consider De Sterkes book to be a must-read, is that it clearly shows that, to become an innovative company, you need to be able to transform your organization and business models. That means thinking of innovation as a means, instead of a goal. Its not the model that is the critical element, nor new technologies. It is how colleagues, co-workers and management deal with them; it is indeed a people business. Its the CEO that embraces this new way of thinking and working with the whole organization, and its the senior management that understands the impact of controlling the company. The adjacent units (HR, Legal, Procurement) cooperate in a new fashion with the internal startups and the business units and start working in fresh innovative ways with the aforementioned models and technologies.
I congratulate Misha with his book, since it is the first book that I know of, that offers a clear overarching model to companies wishing to remain relevant in disruptive times, by combining great models, theories and provocative thinking with proven ways of working and pragmatic solutions.
And on a personal note, I thank him for being a crucial member of our ecosystem and a great colleague, who keeps pushing us to stay ahead of the innovation game.
Peter van Grinsven
CEO NL Startupbootcamp/Innoleaps/Talent Institute
Corporate innovation an introduction
Does your company have the right strategy to achieve growth? Is there an obsessive focus on the customers and the growth opportunities that they present?
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