Discovery-driven Growth: The Only Plan Is to Learn as You Go
Episode Description
For companies planning to launch new initiatives during uncertain times, it's important "to know from the start that the plan is wrong," according to Wharton management professor Ian MacMillan. Assumptions are what get most companies into trouble, MacMillan and co-author Rita Gunther McGrath, a professor at the Columbia Business School, argue in their new book, Discovery-driven Growth: A Breakthrough Process to Reduce Risk and Seize Opportunity. In an interview with Knowledge@Wharton, McGrath and MacMillan describe how firms tend to approach growth in ways that hurt them, and what they can do to make the most of new opportunities, even during the current downturn. Transcript can be found at: http://knowledge.wharton.upenn.edu/article.cfm?articleid=2226 đź“‚ Management
Brief Summary
Rita McGrath and Mac discuss growth strategies for companies facing uncertainty, emphasizing Discovery Driven Growth and learning from failures.
Key points
- The Dilemma of Growth. Many companies fail at growth due to conventional approaches and assumptions about certainty.
- Navigating Uncertainty. In tough times, companies must reassess their resources and focus on growth opportunities.
- Learning from Failures. Strategy should focus on intelligent failures that provide learning opportunities.
- Discovery Driven Planning. A company diversifies by using telemetry for new business opportunities, including patient monitoring.
- The Art of Disengagement. Planning for potential failure is crucial to minimize damage and costs.
- Navigating Economic Downturns. In a downturn, focus on maximizing cash inflow and minimizing outflow to avoid insolvency.
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Episode highlights
- The Dilemma of GrowthMany companies fail at growth due to conventional approaches and assumptions about certainty.“You can’t be right in a world of massive uncertainty.”1:25Apr 27, 2009
- Navigating UncertaintyIn tough times, companies must reassess their resources and focus on growth opportunities.“Stop panicking and take a look at your whole portfolio.”2:47Apr 27, 2009
- Learning from FailuresStrategy should focus on intelligent failures that provide learning opportunities.“Strategy today is about learning, not sustainable competitive advantage.”10:40Apr 27, 2009
- Discovery Driven PlanningA company diversifies by using telemetry for new business opportunities, including patient monitoring.“Why don’t we take our telemetric capabilities and begin to build businesses around that?”18:17Apr 27, 2009
- The Art of DisengagementPlanning for potential failure is crucial to minimize damage and costs.“You need to plan ahead of time how are you going to disengage from that project if it doesn’t work out.”20:07Apr 27, 2009
- Navigating Economic DownturnsIn a downturn, focus on maximizing cash inflow and minimizing outflow to avoid insolvency.“The most critical issue is to find ways of reducing the probability of insolvency.”21:41Apr 27, 2009
