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Competing on the Edge: The

use of
time- pacing

The common traps in strategic change

The
The
The
The

chaos versus the bureaucratic trap


lockstep versus the star trap
overconnect versus the disconnect trap
foresight versus the no-sight trap

The use of time pacing and developing


a strategic rhythm
3M Optical Systems
Summary and conclusions

Commitment to a future and


flexibility for a future

The collective vision of our business is


Clear Ambiguous
Our future success depends on particular industry
scenario
Yes . No
Our approach to the future is to
Plan React
Our attention to the future is
Frequent Rare
We have several meaningful products and future
oriented strategic alliances
Yes . No
Our business is considered to be a
Leader Follower

The Foresight Trap

Source of
Foresight

Focus
Focuson
on
Creating
Creatingplans
plans

Warning
Signals

One
Oneindustry
industry
Vision
Vision
Tightly
Tightlyconfigured
configured
Plans
Plans
Sporadic
Sporadicattention
attention
To
Tofuture
future

Symbolic
Symbolic
importance
importanceofof
planning
planning
Manage
Managecomplex
complex
resource
resource
allocations
allocations

Plans
Plansoften
oftenwrong
wrong
Single
Singlebet
beton
onthe
the
future
future
Strategic
Strategicdrift
drift

The No-sight Trap

Source of
No-sight
Focus
Focuson
on
current
current
operations
operations
only
only

Warning
Signals

No
Novision
vision
Reacting
Reactingtoto
events
events
No
Noattention
attentiontoto
the
thefuture
future

Complete
Completeattention
attention
on
ontodays
todays
competition
competition

Frustration
Frustration
Late
Lateproduct
productand
and
services
services
Reactive
Reactivestrategies
strategies
Missed
Missedopportunities
opportunities

Experimentation at the edge


of time
Management Practices
Key Concepts
Vision of the
business
Wide variety of
low-cost probes
Constant but thin
attention

Craft a vision of the business


not the industry
Probe the future with a wide
variety of low cost probes
across multiple time horizons
Where appropriate, measure the
probe results and use these to
shape strategic direction
Frequently revisit the future
without investing too much

Results
Insight into
possible futures
Anticipatory
moves
Flexible strategy
Constant

Rules for picking


probes

Develop many types of low-cost probes.


Be sure to choose some probes that have a
chance of small failures.
Pick up some probes that require
implementation followed by a measurement of
results.
Use more probes when the market place is
particularly volatile.
Break big probes into small ones as much as
possible.
Place more probes into the most likely future.
Pick some probes randomly.
Build on the results of your probes to shape the
next strategic moves.
Do not probe endlessly in a particular area.

Getting into the rhythm of time


pacing
New product or service concepts are introduced in your business at

rhythmic intervals
TF
Your business has specific metrics, such as time to launch a global
product, months to deliver a product, or percentage of annual revenue
from new sources, that evaluate performance using time
TF
Your business has explicit procedures for transitions such as moving into
new markets, integrating acquisitions, or ramping up to volume
manufacturing
TF
Your business has a routine for leaving old business areas
TF
Your business is synchronized with the rhythms of key customers and
suppliers
TF

Time pacing and


developing
a strategic rhythm

It involves changing because of the passage


of time, not the influence of events.
It helps to ensure the early anticipation of
future events.
It reminds managers to search for existing
rhythms.
It creates a sense of relentless urgency.
It requires synchronization with the
marketplace and with the internal
capabilities of the business.

Which of the following do you


have in your organization?

Introduction of new product or service


concepts at rhythmic intervals
Use of specific metrics that evaluate
performance using time dimension
Existence of explicit procedures for
transitions in terms of markets,
products, or production facilities
Use of specific sun-set rules for leaving
old business areas

3M Optical Systems:
Managing corporate
entrepreneurship
What
practices make 3M such an

innovative company?
Develop a time line of Andy Wongs
actions. How effective has he been?
Develop a time line for Paul Guehlers
actions. How effective has he been?
What should Andy Wong do with the
computer privacy screen AFE?

Postpone/Reject the proposal


Fund it within the business
Get funding from Guehler
Go to a senior mentor for funding

Rules of Competing on
On Strategy
the Edge: Lessons
Advantage is temporary so continuously generate
Learned
new sources of advantage
Strategy is diverse, divergent and complicated so
develop a semi-coherent strategy
Reinvention is the goal so find out new ways of
creating value rather than simply being more
efficient in what you do.

On Organization
Live in the present and maximize the advantages of
minimum structure
Stretch out the past and maximize learning
Reach into the future and experiment by probing the
future
Time pace change and not become the hostage of
external events

Lessons Learned

On Leadership
Grow the strategy by correcting the clearest
cases of over and under structuring
Drive strategy from the business level by
letting it evolve bottom-up
Repatch businesses to markets and
articulate the whole by shaping a simple
synthesis of the firm that captures the
essence of of the businesses without
constraining your front line managers

Structural alternatives for


introducing change in
Cocooned
Model: The change team is made up of
organizations

the best and the brightest talent available from across


the organization. The team members remain within
their particular organizational units but have a charter
from senior management to operate across
organizational boundaries.
Direct Delivery model: The organization creates a
distinct unit with its own brand, business goals, and
the freedom to compete with other organizational
units.
The Ring Model: The organization surrounds a
single manager with a ring of personnel drawn from all
areas of the firm featuring a non-hierarchical structure
and the allocation of overlapping responsibilities to
team members.