Defined growth types, at least one of which is noncore; nonspecific classification criterion
Defined growth types with simple, agreed-upon classification criteria
Growth goals and guidelines
No clear vision
Directional vision lacking key specifics
Codified and shared growth targets with detailed on- and off-the-table strategic options
Productionsystems
Robust innovation processes
Innovation treated randomly
Innovation process defined, occasionally followed
Robust, learning-based process to conceive of and commercialize ideas routinely followed
Idea supply chain
No systematic mechanisms to source innovative ideas
Mechanisms to source internal or external ideas
Mechanisms to source internal and external ideas at or beyond the fringes of the company and industry
New-growth groups
No safe spaces for incubation
Informal mechanisms to shelter new ideas
Formal mechanisms serve as safe spaces for new ideas
Little bets labs
No mechanism to design and execute strategic learning experiments
Mechanism to run single-variable experiments (e.g., product prototype)
Structured ways to rapidly and affordably run multivariable experiments (e.g., transaction test)
M&A and partnership engines
No formal approach to acquisitions or partnerships
Acquisitions and partnerships occasionally made and in an ad hoc way
Robust process to acquire and partner with promising ventures
Governanceand controls
Idea governance systems
No disciplined approach to manage innovation
A single process to manage all types of ideas
Distinct measurement and management approaches for different types of ideas
Portfolio tracking systems
No tracking system
Ad hoc tracking system
Formal systems produce regular snapshot report that is the basis of leadership discussion
Resource allocation systems
“Find it when we need it” mentality
Dedicated pool of human and financial resources for innovation, with allocations reviewed episodically
Dedicated pool of human and financial resources for innovation, with allocations reviewed regularly
Continuous improvement systems
No continuous improvement systems
Occasional SWAT teams to address identified issues
Individual or small team that “innovates the innovation systems”—specifically spotting and removing bottlenecks
Leadership, talent,and culture
Lean-forward leaders
No role modeling by leaders
Desired cultural changes identified; inconsistent role modeling by leaders
Leaders regularly role-model desired behaviors and intervene to shape the corporate culture
Innovation talent
Growth efforts led by “usual suspects”
Identified talent plan with detailed description of desired language and skills
Established, skilled team supported by enabling language
Measurement and reward systems
Working on new-growth efforts can negatively impact career
Working on new-growth efforts has neutral impact on career
Dual systems that reward operational excellence and innovation appropriately
Development programs
No formal training mechanisms
Episodic, not systematic, training efforts
Formal mechanisms to teach key mind-sets and spread enabling language
The June 2011 issue of Harvard Business Review detailed P&G’s effort to systematize the pursuit of growth (“How P&G Tripled Its Innovation Success Rate”). The story begins in the year 2000, when P&G found its revenue shrinking despite a robust economy
