Three Box solution and a Leader's role

The Three-Box Solution, conceptualized by Vijay Govindarajan, outlines a framework for balancing present performance, innovating for the future, and managing transitions from the past. The boxes are:

1. Box 1: Manage the Present
2. Box 2: Selectively Forget the Past
3. Box 3: Create the Future

A Leader's Role in the Current Context

1. Managing the Present (Box 1)

Leaders must ensure operational excellence and drive immediate results to maintain stability and performance in the current environment.

• Role: Set clear priorities and align teams toward measurable goals. Foster a culture of accountability and agility to respond to rapid changes, such as economic fluctuations or technological disruptions. Use data-driven decision-making to optimize current processes. Support employee well-being to navigate evolving workplace demands (e.g., hybrid work models, employee engagement).

2. Selectively Forgetting the Past (Box 2)

To innovate effectively, leaders need to identify outdated practices, mindsets, or structures that hinder growth.

• Role: Challenge legacy systems and encourage open discussions about necessary changes. Lead by example in abandoning obsolete traditions that no longer serve the organization or its mission. Manage resistance to change by explaining the "why" behind shifts and showing empathy toward employees' attachment to the past. Promote continuous learning to unlearn habits and embrace modern solutions.

3. Creating the Future (Box 3)

Leaders should focus on innovation and long-term vision to ensure sustained relevance and competitiveness.

• Role: Cultivate a visionary mindset by exploring new technologies, markets, and business models. Invest in talent development to equip the team with skills required for future challenges. Create an organizational culture that values experimentation and tolerates calculated risks. Collaborate with external stakeholders, including customers and partners, to co-create innovative solutions. Align the organization's purpose with global trends, such as sustainability, inclusivity, and digital transformation.

Balancing All Three Boxes

In the current volatile and complex environment, leaders must not focus on one box at the expense of others. Instead, they need to:

• Act as integrators, ensuring present-day operations fund future innovations.
• Serve as change agents, dismantling outdated norms while empowering teams to embrace new strategies.
• Be visionary thinkers, inspiring others to see and strive toward the future, even when it feels uncertain.

By mastering the balance of managing today, learning from yesterday, and building for tomorrow, leaders can drive meaningful and lasting impact.