Transformation Framework: Vision & Experimentation

Visionary corporations purposefully experiment more than competitors.[1] They remain open to relatively organic, unanticipated means of growth, and reward employees for such creativity. This appears to be an extension of the fact that most visionary corporations were not started with a great idea. Many of their later successes were out of opportunism and accident not design.

For example, Johnson and Johnson’s (JNJ) move into personal care products was accidental.[2] While selling considerably more sophisticated medical devices, JNJ noticed suppliers often could not meet doctors’ needs for items like gauze and plastics.[3] This gave rise to Band Aids and other products now considered staples of the consumer health product industry. Marriott employees noticed guests always arrived tired, expanding services to include airport delivery.[4] American Express financial services noticed that its clients traveled more than the average population, creating a travel services branch.[5] Finally 3M, the poster-child for company-sponsored employee experimentation, started as a manufacturing company in industrial grinders and adhesives to eventually become the largest producer of sandpaper, post it notes, and scotch tape, among other things, all of which were created by internal employees.[6]

From this Collins suggests a number of lessons:[7]

·??????????????????????????Give it a try – and quick

·??????????????????????????Act don’t wait

·??????????????????????????Accept mistakes as the cost of doing business and trust success will come

·??????????????????????????Take small steps.

·??????????????????????????Give people the room they need to succeed

·??????????????????????????Put mechanisms and reinforcements in place to reward success and effort

·??????????????????????????Do not suppress experimentation

·??????????????????????????Do not reward obsessive or controlling leadership

The primary modifier which ensures unbounded experimentation does not destroy value lies in the enterprise’s ability to simultaneously preserve the core and stimulate progress. Take risks. Just do not embrace risk for risk sake. To that end, planning is a persistent trait that complements an experimentation-rich risk-tolerant culture. Planning is used as a means to continually evolve the organization. With a plan that precedes experimentation even failed ideas help point to the better ideas.[8] The human impact is that employees understand they are free to take action in a wide range of issues based on general guidance, and are empowered, entrusted, and expected to help improve the enterprise.

[1] Last, 145.

[2] Last, 141.

[3] Last, 141.

[4] Last, 142.

[5] Last, 143.

[6] Last, 150.

[7] Last, 163-165.

[8] Last, 140.