Strategy in Turbulent Times

PREFACE AND ACKNOWLEDGMENTS 9

Chapter 1 THE FUTURE ISN’T WHAT IT USED TO BE 13
Key questions addressed in this chapter 14
What if competitors are not your biggest nightmare? 15
What is turbulence? 17
VUCA, VUCA, VUCA 21
Many different turbulence recipes 25
Are the traditional strategy models obsolete? 29
Towards a new turbulence strategy playbook 32
Turbulence animal farm 37
Key takeaways 39

Chapter 2 BUILDING CORPORATE FORESIGHT 41
Kurt Verweire & Koen Tackx
Key questions addressed in this chapter 42
What is corporate foresight? 44
Steps in the sensing process 48
Step 1: Scanning—Identify change drivers that might affect future performance 48
Step 2: Prioritizing—Focus your attention on the change drivers that matter 51
Step 3: Futuring—Explore plausible futures 53
Step 4: Framing—Examine implications and brainstorm on potential reactions 59
Biases in the sensing process 62
Building a vigilant organization 66
Key takeaways 73

Chapter 3 STRATEGIZING IN TURBULENT TIMES 75
Kurt Verweire, Koen Tackx & Walter Van Dyck
Key questions addressed in this chapter 76
A shaving powerhouse gets challenged 78
Many options available 79
Playing offense or defense? 81
Reacting to turbulence inside versus outside the core 83
Business model innovation 86
How to react to turbulence 93
Camel strategy: Core resilience 94
Salmon strategy: Corporate innovation 96
Chameleon strategy: Core transformation 99
Octopus strategy: Corporate transformation 101
What strategy did Gillette choose? 104
Which strategy when? 107
Key takeaways 113

Chapter 4 CHAPTER OF THE CAMEL – CORE RESILIENCE 115
Key questions addressed in this chapter 116
The camel: A master of core resilience 118
Camel story #1: Can you still rock in a crisis? 119
Camel story #2: Is a crisis period the right time for innovation? 122
Camel story #3: Can camel endurance help you become a market leader during a crisis period? 125
Camel story #4: How to get ready for the extreme and unexpected? 128
Core resilience: A combination of different tactics 131
Crisis management: The art of bouncing back 136
Building resilience: How to react proactively 139
Agility management: Surfing the waves of volatility and uncertainty 144
What about your camel capabilities? 150
Key takeaways 153

Chapter 5 CHAPTER OF THE SALMON – CORPORATE INNOVATION 155
Key questions addressed in this chapter 156
The salmon: A master of corporate innovation 158
Salmon story #1: Can you build a successful platform business if you’re not a leading technology firm? 159
Salmon story #2: Is it smart to copy a failure story? 164
Salmon story #3: How to move out of your 100-year old core business? 171
Building a new business model outside the core 177
Are you really ready to do this? 182
Disciplined experimentation 184
Organizing for corporate innovation 186
Well-equipped for a salmon strategy? 190
Key takeaways 193

Chapter 6 CHAPTER OF THE CHAMELEON – CORE TRANSFORMATION 195
Key questions addressed in this chapter 196
The chameleon: A master of core transformation 198
Chameleon story #1: Does more customer intimacy help you out of the commoditization game? 199
Chameleon story #2: What to do if the world’s most powerful company enters your market? 203
Chameleon story #3: How to turn a traditional bank into a digital frontrunner? 208
Core transformation: It’s not what you think 213
Finally, align the other components of your business model 219
Building a new business model inside the core 215
Managing the transformation journey 220
What about your chameleon capabilities? 232
Key takeaways 235

Chapter 7 CHAPTER OF THE OCTOPUS – CORPORATE TRANSFORMATION 237
Key questions addressed in this chapter 238
The octopus: A master of corporate transformation 241
Octopus story #1: How can a centenarian become one of the hippest brands in the media industry? 242
Octopus story #2: How to win a fight against Amazon and Apple? 252
Octopus story #3: How does an asset-heavy company fight with asset-light companies? 257
Transformation inside the core 266
Innovation outside the core 268
Changing the corporate identity 269
Well-equipped for an octopus strategy? 273
Key takeaways 277

REFERENCES 278