Why Systems Thinking and Platforms are Necessary for Growth
An article published this week by consulting firm KPMG discussed the critical culture elements necessary for innovation and long term growth.
Some key growth takeaways are:
- The Leader and their leadership team must have a commitment to innovate for growth. Meaning that to be successful, and lower the risk of failure with innovation, the CEO should be PERSONALLY involved. Either with direct participation or very public and very visible continuous support of the Innovation efforts in both word and deed.
- The article indicates that in most successful organizations, the executive team drives or at minimum sponsors the effort. We see this in our own work and statistics with our clients.
- An engaged CEO and leadership team is 85% more successful then a bottom up effort, with a sole team member trying to push up stream.
- There is a limit to one single person’s ability to innovate. Especially in mid-market companies with a craftsman founder at the helm, or in a culture where the founder is or was directly driving the company. So, it’s necessary to provide education for the rest of the organization on the What, Why and How of Innovation. This provides a common language to innovate with a ton of diversity and stimulus to scale and grow the capability.
- The talent make up of your team is important. Boldness and the ability to listen to customers is critical. Team members need a deep understanding of the customer. Not only to understand what customers like, don’t like or want to change about your offerings, but listening skills as to what is not said. The ability of connecting the dots to get ahead of customers and entice them to buy something they didn’t know they needed.
The Importance of Systems Thinking to Enable Platforms that Scale
We are learning, at a very rapid rate, the importance of how platforms and systems thinking are necessary to engage the company leadership and enable the employees to innovate for long term growth.
An easy way to think about a platform is as a technology that enables the creation of products, processes and services that support a present or future benefit for an end customer. A popular technology platform example is Uber, a technology platform that requests cars as transportation, which has quickly commoditized and de-regulated the personal transportation industry.
Platforms are essentially social networks with a purpose. The purpose of delivering value. Value for the end customer. Get the systems thinking and platform element right, and you can scale for growth.
Systems and systems thinking were defined by Deming as “a network of interdependent components that work together to try to accomplish the aim of the system. The aim for any system should be that everybody gains, not just one part of the system at the expense of any other. In a business context this includes shareholders, customers, suppliers, employees, the community and the environment.”
What are the Twelve (12) Key Questions for Systems Thinking and Building Platforms for Growth
There are some key questions about your company platform and system to educate, innovate and operate your company. These questions help to identify the opportunities to learn, improve and grow. Some foundational questions are always: Why, What, Where and How?
- What is Innovation? How would you know if you see it?
- Why do you innovate?
- What is the Aim of the company (it’s mission) or project?
- Where are you looking to go?
- How do you innovate?
- What is the education platform for your teams to learn?
- What is the collaboration platform for your teams to share learnings and collaborate on ideas?
- What is the project management pipeline platform that captures your employees ideas that allows them to collaborate?
- How does your organization build the idea further, problem solve the idea challenges, and accelerate your speed to market?
- Do you have an operating system for your business that links your strategy to tactics?
- How are the actions of the team, and projects they are working on aligned to the strategy of your company?
- Where can you take direct measurements from the data in your operating system platform that help you to guide the company and course correct and pivot your project or strategy as you learn?
Ready to Learn More and Explore Next Steps for Systems Thinking and Platforms?
If you would like to learn more about Why, What, and HOW of systems thinking and platforms for growth, consider the following next steps:
The Innovation Garage offers three levels of innovation training anchored in systems thinking that will build innovation mastery for your organization. To learn more about upcoming innovation training and education events, click here.
Consider a lunch and learn, a 4 hour express session, or a one (1) to two (2) Day Executive Program.
At The Innovation Garage®, We help organizations grow. Providing education, tools, technology, and expert consulting in change management for strategy, innovation, and supply chain. Guiding leaders from organizations across the world to intentionally self-disrupt their offerings and organizations. We deliver world-class education, tools, and technology on how to craft business operating systems focused on long-term profitable growth.
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