Strategy is first on the list as this is where an initiative starts but it was the least of the stated problems.

Issues cited were “lack of or poor vision”, “mis-alignment”, “project selection” and “wrong decisions”.

CEOs often take the blame for this but we note it can be a bit of fait accompli when other factors are the more direct cause of failure. In our experience, leadership typically has a viable direction but lacks a fully dedicated team with the right skill set and experience.

IaaS Fit : Experience

We run an objective assessment of the existing strategy based on relevant experience. We are not afraid to question assumptions, skill sets, incentives, culture and commitment to determine the major risk factors. These become the priorities and building blocks for the project phases.

Structure was the highest ranked factor of them all.

Issues cited were failure to “prepare”, “innovate”, “engage”, “integrate”, “act”, “execute ideas”. Pretty much overall implementation.

Also noted were lack of “market orientation”, “framework”, “measurement” and “bureaucracy”. These are often the result of trying to get results with the wrong tool set.

IaaS Fit : WoW, Framework for Agile Innovation

Our fundamental thesis is that companies are designed to run on proven processes. Strategic innovation is something different than business as usual and the company struggles to execute against a challenge of a different nature.

We believe a better way to address this is with a dedicated and experienced resource. Ideally it will align with the existing resources, but if existing processes and culture are too much of a constraint, it will be free to pursue a more effective path.

Culture was the 2nd most cited issue. We understand.

Issues cited include organizational norms, priorities, politics, barriers and inability to learn and/or change as needed.

IaaS Fit Entrepreneurial Experience, WoW

Our experience has shown the need for a completely different mindset to take on the challenge of strategic innovation. The problems are harder to solve, success is uncertain and the way forward unclear. This is not the preferred job for everyone.

The best way we found to address this is with a separate entity and charter run by a diverse, risk tolerant team of creative problem solvers. The makeup is not necessary for business as usual but will be the difference when you need to make a difference.

Problems noted here relate to leadership and talent.

Other than the obvious issues with specific sub-par skills for a task, the lack of executive support / commitment will kill any strategic initiative.

IaaS Fit : Entrepreneurial Experience, WoW, Diversity

Our initial assessment places a high priority on committed executive sponsorship.

Once a champion has been confirmed, an XTM can supply the necessary leadership and initiative to get the strategic initiative started. We’ve been there. We’ve done it.

PROFILE : A small to mid size company ($50 - $500M) with a market position based on a single product line, technology or core competency. Future viability requires developing new applications, technologies and markets or vertical growth requiring a business transformation to create added value.

NEED : Existing markets are plateauing or shrinking, creating a sense of urgency to find new business. Existing resources are limited in scope, bandwidth and the requisite domain experience to pursue new growth platforms in the desired time frame.

FIT : An XTM serves as a highly effective team with the necessary experience and diversity to evaluate and catalyze the development of a new growth platform. Additional resources are added as needed to drive market engagement for validation and prototyping.

VALUE : Addressing the risk of a new growth platform without core team constraints. Accelerated development and effective use of working capital by using a lean XTM as the lead resource until the market direction and product definition are proven.

PROFILE : Smaller companies are often acquired for a technology, market presence or level of product integration to establish a foothold in a new market and act as a seed for a new growth platform.

The very differences that made the company attractive can become detrimental obstacles at key operational levels and compromise the entire value of the acquisition.

NEED : M+A initiatives fail to meet expectations more often than not. The acquired company is often pressured to deliver on short term growth targets while being subjected to the disruption of integrating operational practices. Internal competitive forces can become a factor and derail the objective cooperation needed to ensure success.

FIT : An XTM can act as a buffer and champion for the acquisition by allowing them to stay focused on their operational goals while a sustainable fit is found with the core business. The team members are selected for a compatible perspective with greater flexibility to explore potential synergies.

VALUE : An XTM can help preserve and accelerate the expected value of a new growth platform catalyzed by the acquisition of an existing enterprise.

PROFILE : $MM in funding with a focused technology platform and repeatable demonstration of proof of principal. Core team in place but weighted more towards technology, academic backgrounds than operational experience.

NEED : Addressing a number of challenging market development and product commercialization issues with ongoing budget pressure. Bandwidth at a premium with a limited range of supporting expertise.

FIT : An XTM embodies an entrepreneurial mindset and culture to fill in as a compatible resource on demand and expand the potential solution set to the many challenges of bringing a novel innovation to market. Industry veteran experts minimize the management overhead.

VALUE : A capital efficient resource to address specific challenges with increased bandwidth, expertise and diversity on demand. Quick ramp up with low overhead to address any gaps in the core team while minimizing the burn rate for working capital.

PROFILE : A large well established company ( $B+) with significant investments in R+D and core competencies. They typically have a competitve market presence but are under pressure to demonstrate meaningful growth in volatile markets.

NEED : The core team is well aligned with current operational plans, but may not have the bandwidth, priority, incentive, risk tolerance or specific skill set to take on the challenges of an unproven opportunity.

FIT : An XTM is deployed as an entrepreneurial resource to supplement the domain expertise and insights of the core team and catalyze the new growth platform. A framework is used to capture key contributions with the flexibility to enlist external resources independent of existing organizational silos.

VALUE : The odds of successful innovation are improved by adding entrepreneurial expertise to the insights and domain expertise of the core team. Operational effectiveness is improved for an early stage New Growth Platform without compromising quarterly operating numbers or career ambitions of key employees.