In this Case Study, leading Hargraves organisations, including Coca-Cola Amatil, Sydney Water, George Weston Foods, Westpac and Selleys, continued their analysis on the impediments that prevent their organisation from achieving the degree of step-change required for them to position themselves for the future strategically. The topic addressed in this workshop was:
The distraction of current strategy/current business model that inhibits your organisation from being truly innovative
5 companies outlined how their organisations had addressed this issue.
- CCA is forming a Breakthrough Innovation Group (BIG) with seven executive heads from CCA and their product/Brand partners. This group will address their biggest business problems from a strategic planning basis and will only work on six projects at a time. The criteria for Breakthrough projects include 1st to Aust, 1st to customer, incremental revenue, makes their competitor nervous, new to CCA and new technology/system across the value chain.
This will give them three levels of innovation activities: Innov8 (their employee-led innovation stream), an ‘Idea lead’ stream that uses Stage-Gate Process and their Future Works Team to focus on manufacturing/operational issues and BIG that is lead from the top to ensure that there is a stronger longer-term pipeline.
- Sydney Water works on three levels and has different structural groups to support this. The levels are NOW (maintains the asset), a subset of this being NEXT (new processes/technology) and LATER (infrastructure delivery 5-10 years out that utilises supply/demand modelling and a liveable city group 10+ years). The Corporate Strategy Group coordinates and communicates between the three groups and ties the activities of Sydney Water.
- George Weston Foods (Tip Top Bread) has been driving costs out and has squeezed all that it can, and is now introducing innovation to the category. The challenge they face is changing the high volume/standardised product manufacturing mindset to accommodate smaller, higher-value runs. Given that artisan bread takes time and different processes, from an operational perspective, do they require dedicated low volume factories to gain the most from this strategy? They are in the process of changing from tactical to strategic. They have significantly increased their marketing/NPD team that makes up their innovation team responsible for ideation/business case etc., up to gate 2.
- Westpac has done well with incremental but recognised that they were light on the third horizon (5+ years out). The biggest challenge that they face is finding problems to solve. They utilise challenges, e.g. how to use social media, recognising that information is the new currency/resource for them. They are experimenting with Innovation Dens (based on the Dragon Den concept), with two teams of five people permitted to meet for 3 months from 3 pm each Friday to work on either assigned problems or ones they generate. The parameters for the project are that it must utilise a competency and target institutional customers. Tools are provided that assist the process (e.g. Business Model Canvas and Validation Boards) of building business cases.
- Selleys have evolved their process over time by keeping it simple and using language that everyone understands. Their metric is % sales NPD last 3 yrs. They have three levels of projects and use the stage-gate process incrementally to ensure that the projects are implemented ASAP. The levels are 1. Simple refreshers (HOPS) 2. New stuff (STEPS) in existing spaces (focus on doing it faster than others) and 3 Breakthrough (JUMPS).
They also have different targets depending on the portfolio importance (Brand / Product / Segment), with more focus being applied to STEPS & JUMPS from a strategic positioning/ what’s going to be the next big thing. Again, utilising consumer insights to determine where the trends are going.
We thank Griffith Hack for their support of this topic and Hargraves members for sharing insights.