10 Rules for Strategic Innovators
Vijay Govindarajan and Chris Trimble

Harvard Business School Press
Price: Rs 1465

Empower employees. Encourage initiative. Cultivate risk taking. Overcome mindlessness such as, “We do it this way because it has always been done this way."

‘i.t.’ score: 80%

Where should managers take their cue from when they seek to navigate a new business venture through uncharted territory? 10 Rules for Strategic Innovators by Vijay Govindarajan and Chris Trimble describes how a new business can not only stay afloat, but also thrive by steering clear of familiar methods.

The authors emphasise that strategic innovators realise that business models, competencies and degrees of uncertainty are factors that differ for every new business, and hence established norms sometimes need to be set aside.

Using real-life examples, the duo explain how avoiding established staffing, structure, systems and culture choices can help synthesise a conducive ‘organisation DNA’ for a new business. This is directly opposite to assuming that what has worked so far, will continue to succeed.

For instance, roles and responsibilities of heads of major business departments may require adaptation, since aligning with the shape of the new organisation will take time.

A new unit seeking to capture an emerging market may have different needs and would also need new yardsticks. Sticking to old measures can lead to conflict between the new and old business.

The authors stress the importance of scientific planning, or planning that resembles the scientific method of validating a theory based on a carefully thought over prediction. While managers plan, they often do not place enough emphasis on refining business theories. Instead, plans are reduced to being statements of individual and group targets and their associated costs. As a result, predictions fall prey to learning disabilities, implying that business predictions are a key part of the learning process. The learning process is entrenched in the planning cycle, in business theory, and not in experience.

Comparing a bold, competitive expansion strategy with a reasonable, diligent growth strategy, the authors explain how each approach can inhibit learning.

The former method is linked to overlooking too many unknown factors affecting business models, and the need to succeed fast to recover returns on huge investments, because of which learning and reinventing predictions take a backseat. The latter approach, too, leads to a very slow learning process, which is a major learning disability when operating in a dynamic business environment.

Theory-focused planning is presented as the way to achieve breakthrough growth. An innovative idea is not enough in itself.

10 Rules for Strategic Innovators lucidly describes rules that modern managers can follow to drive growth.

Don’t assume it to be a 10-point listing of ways to succeed, though. It needs attentive reading, and some familiarity with management concepts will help translate the advice it dishes out into practical moves.