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My CEO Apprenticeship
With Alex Osterwalder
Alex Osterwalder
@AlexOsterwalder
Yves Pigneur
@YPigneur
Leadership
Awareness
Understand world-class
innovation management
and Culture.
Innovation
Ecosystem
Build your blueprint for
reinvention and growth.
Growth
Portfolio
Build your capacity for
reinvention. Generate new
growth in 12 months.
Growth
Discovery
Design, test and adapt
10 new early-stage business
ideas in only 3 months.
Solutions
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The Business Model Canvas is licensed as creative commons. Enjoy it and adapt it freely, as long as you reference with citation
“Strategyzer.com” and share your work under the same license. The Value Proposition Canvas is copyrighted Strategyzer AG
and is not to be modified or used in software or other commercial products. Feel free to use the Business Model Canvas and
Value Proposition Canvas in meetings or for consulting services under the condition of referencing and citing “Strategyzer.com”
and fully displaying the Strategyzer logo. You can find additional information on businessmodelgeneration.com/canvas/bmc
under “Legal Info”. Please contact support@strategyzer.com for any inquiry.
How entrepreneurship and leadership is often
portrayed in pop culture
Go to www.menti.com
and use the code: 4885 7645
What’s the reality of entrepreneurship?
Use Menti
Strategyzer 7
CEO Apprenticeship
1 2 3
Coaching Culture Explore & Exploit
Coaching
1
Steve Blank
Mentoring (& technical coaching)
Yves Pigneur Shani Ospina
Leadership & breakthrough coaching
Carl Samuels Marshall Goldsmith
Traditional leadership
coahcing: e.g. adding too
much value
Becoming a better leader by
understanding oneself better:
Why? I’m not broken!
“We are not pure, kind, loving beings [...] We are
deeply dangerous and most of us are on the edge
of insanity - this is not an exception, it's just what
it means to be human.”
— Alain de Botton, philosopher
“All of us are just holding it together. We are
dangerous to be around. We have all sorts of
impulses, feelings, desires, which makes us great
trouble to be around.”
— Alain de Botton, philosopher
“The only people we can think of as normal, are
people we've just met. Once we've met them a
little bit more, we all of a sudden realize that they
are not normal.”
— Alain de Botton, philosopher
we’re all a little “broken”
we’re all a little “broken”
… we all have ample room to grow as people and
ultimately leaders
->
what could we be?
we’re the same person “at work” or “at home”
at Strategyzer everybody gets a $2,500.-
coaching/growth budget to work on professional
and personal challenges
Emotional Literacy
Beta version by
©Shani Ospina
I get tense because my co-founder asks
questions about a strategic direction I
thought we were aligned on.
Do I feel like he still doesn’t trust the strategy
or mistrusts my judgement and my insights?
Is he really aligned with our strategy? Is he
undermining it? I think I believe he is misaligned and
is trying to find arguments against our strategy.
His intent is truly to understand what each piece of
evidence and insights means. My tension comes
from the fact that I don’t know for sure either.
By listening to my co-founder carefully and trying to
help him follow my reasoning we will grow stronger.
Go to www.menti.com
and use the code: 4885 7645
Coaching: hot or not?
Use Menti Culture
2
“If you want to understand a culture, you need to
map it..”
— Dave Gray, entrepreneur & author
The Culture Map
Outcomes
Beta
Behaviours
Enablers/Blockers
copyright: Strategyzer AG & Dave Gray, 2015
The makers of Business Model Generation and Strategyzer
dave gray:
davegrayinfo.com strategyzer.com
A Change Management Tool
Designed by: Date: Iteration:
Designed for:
Formal or informal rules, policies, routines, reward systems, rituals, …
What are our desired outcomes?
What behaviors will allow us to
achieve our desired outcomes?
What enables and blocks
us from our goals?
The Culture Map
DEFINITION
What you want to “harvest”
from a garden (fruits)
Elements that allow a garden
to
fl
ourish (water, fertilizer)
The heart of your culture
Outcomes
The concrete positive or negative conse-
quences resulting from people’s behavior.
Behaviors
How do individual and teams act or conduct
themselves within the company? What do
they do or say? How do they interact?
What patterns do you notice?
Enablers/Blockers
The levers that lead to positive or negative
behaviors inside your company. These could
be formal policies, processes, and reward
systems, or informal rituals and actions that
influence people’s behaviors and, ultimately,
influence a company’s outcomes.
DAVE GRAY
Author and entrepreneur
“If you want to understand
culture, you need to map it.”
DEFINITION
The Culture Map
Together with Dave Gray, Strategyzer developed
the Culture Map as a tool to design better-
performing companies. The Culture Map is a
practical, simple, and visual tool to understand,
design, test, and manage the corporate culture
you want to bring to fruition in your organization.
In this book we use the Culture Map to map
and design an innovation culture.
296
CULTURE
296
“Cultivate
corporate culture like
a garden”
The Culture Map
DESIGN
0 tolerance fortoxic people
Shani Ospina
“Stress-test” candidates before hiring “challenge”
Build a true feedback culture
The Fish Rots from the Head
2021
2020 2020
Governance,transparency &
idea meritocracy
What you want to “harvest”
from a garden (fruits)
Elements that allow a garden
to
fl
ourish (water, fertilizer)
The heart of your culture
Outcomes
The concrete positive or negative conse-
quences resulting from people’s behavior.
Behaviors
How do individual and teams act or conduct
themselves within the company? What do
they do or say? How do they interact?
What patterns do you notice?
Enablers/Blockers
The levers that lead to positive or negative
behaviors inside your company. These could
be formal policies, processes, and reward
systems, or informal rituals and actions that
influence people’s behaviors and, ultimately,
influence a company’s outcomes.
DAVE GRAY
Author and entrepreneur
“If you want to understand
culture, you need to map it.”
DEFINITION
The Culture Map
Together with Dave Gray, Strategyzer developed
the Culture Map as a tool to design better-
performing companies. The Culture Map is a
practical, simple, and visual tool to understand,
design, test, and manage the corporate culture
you want to bring to fruition in your organization.
In this book we use the Culture Map to map
and design an innovation culture.
296
CULTURE
296
“Cultivate
corporate culture like
a garden”
The Culture Map
DESIGN
Alan Mulally
former CEO Ford
ALIGNMENT
HUDDLES
DECISION
FORUMS
CELLS
WHERE COMPANY-LEVEL
DECISIONS ARE MADE (DACCI)
WHERE COMPANY-LEVEL
ALIGNMENTS TAKE PLACE THAT
DON’T REQUIRE DECISIONS
VALUE PROPOSITIONS
AND SUPPORT FUNCTIONS
(DACCI)
STRATEGY
IMPLEMENTATION
CELLS
CELLS
CELLS
CELL ALIGNMENT
HUDDLE
align focus,
fi
res, & deep
dives
CELLS
DECISION
FORUMS
ALIGNMENT
HUDDLES
STRATEGY
IMPLEMENTATION
HIRING
FORUM
INVESTMENT
FORUM
PROJECT
PORTFOLIO
FORUM
CELLS
allocate
resources
prioritize
next hires
+ / - / ↑/↓
projects
needs $
$
needs
🥷
approve needs
needs
STRATEGY
IMPLEMENTATION
CELLS
DECISION
FORUMS
ALIGNMENT
HUDDLES
GROWTH
HUDDLE
MARKETING
SALES
CUSTOMER
SUCCESS
align on
revenue
projections
projections
data
data
data evidence
HIRING
FORUM
INVESTMENT
FORUM
PROJECT
PORTFOLIO
FORUM
CELLS
needs $
needs
🥷
approve needs
$
needs
OUTBOUND
EXPERIMENTS
OUTBOUND
EXPERIMENTS
OUTBOUND
EXPERIMENTS
CELLS
DECISION
FORUMS
ALIGNMENT
HUDDLES
STRATEGY
IMPLEMENTATION
PRODUCT
FORUM
PRICING
FORUM
PROD/SALES/
CS HUDDLE
SALES
CUSTOMER
SUCCESS
+ / - / ↑/↓
products
de
fi
ne
prices
feedback/evidence
guidance
OUTBOUND
EXPERIMENTS
OUTBOUND
EXPERIMENTS
PROJECT
DELIVERY
CELLS
DECISION
FORUMS
ALIGNMENT
HUDDLES
STRATEGY
IMPLEMENTATION
HIRING
FORUM
INVESTMENT
FORUM
PROJECT
PORTFOLIO
FORUM
CELLS
allocate
resources
prioritize
next hires
+ / - / ↑/↓
projects
needs $
needs
🥷
approve needs
PRODUCT
FORUM
PRICING
FORUM
PROD/SALES/
CS HUDDLE
SALES
CS
+ / - / ↑/↓
products
de
fi
ne
prices
feedback/evidence
guidance
CELL ALIGNMENT
HUDDLE
align focus,
fi
res, & deep
dives
GROWTH
HUDDLE
MARKETING
SALES
CUSTOMER
SUCCESS
align on
revenue
projections
projections
data
data
data evidence
$
needs
OUTBOUND
EXPERIMENTS
OUTBOUND
EXPERIMENTS
OUTBOUND
EXPERIMENTS
OUTBOUND
EXPERIMENTS
OUTBOUND
EXPERIMENTS
PROJECT
DELIVERY
CELLS
DECISION
FORUMS
ALIGNMENT
HUDDLES
STRATEGY
IMPLEMENTATION
KPIs to Explore
& Exploit
3
The Explore-Exploit challenge
and the limits of OKRs
8 9
The Iterative
Process
Business Concept Design
Design is the activity of turning vague ideas,
market insights, and evidence into con-
crete value propositions and solid business
models. Good design involves the use of
strong business model patterns to maximize
returns and compete beyond product, price,
and technology.
The risk that a business can’t get access
to key resources (technology, IP, brand, etc.),
can’t develop capabilities to perform key
activities or can’t find key partners to build
and scale the value proposition.
Testing and reducing risk
To test a big business idea you break
it down into smaller chunks of testable
hypotheses. These hypotheses cover three
types of risk. Firstly, that customers aren’t
interested in your idea (desirability).
Secondly, that you can’t build and
deliver your idea (feasibility). Thirdly,
that you can’t earn enough money
from your idea (viability).
You test your most important hypotheses
with appropriate experiments. Each experi-
ment generates evidence and insights that
allow you to learn and decide. Based on the
evidence and your insights you either adapt
your idea if you learn you were on the wrong
path or continue testing other aspects of
your idea if the evidence supports your
direction.
Desirability risk
Customers aren’t interested
The risk that the market a
business is targeting is too
small, that too few customers
want the value proposition, or
that the company can’t reach,
acquire, and retain targeted
customers.
Feasibility risk
We can’t build and deliver
The risk that a business can’t
get access to key resources
(technology, IP, brand, etc.),
can’t develop capabilities to
perform key activities or can’t
find key partners to build and
scale the value proposition.
Viability risk
We can’t earn enough money
The risk that a business can’t
generate successful revenue
streams, that customers are
unwilling to pay (enough), or
that the costs are too high to
make a sustainable profit.
Reducing
Uncertainty
and Risk
TEST
BUSINESS
DESIGN
Ideate
Business
Prototype
Assess
Learn
D
e
c
i
d
e
Hypothesize
Experiment
Idea
Key Hypotheses
Business Model
Experiments
Value Proposition
Key Insights
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SEARCH
GROW
SEARCH,
ITERATE, FIND
(OR RETIRE)
SCALE &
MANAGE
The Explore/Exploit Continuum
Idea
Business
Results
tive
vague ideas,
to con-
d business
e use of
to maximize
oduct, price,
t get access
brand, etc.),
form key
ers to build
Testing and reducing risk
To test a big business idea you break
it down into smaller chunks of testable
hypotheses. These hypotheses cover three
types of risk. Firstly, that customers aren’t
interested in your idea (desirability).
Secondly, that you can’t build and
deliver your idea (feasibility). Thirdly,
that you can’t earn enough money
from your idea (viability).
You test your most important hypotheses
with appropriate experiments. Each experi-
ment generates evidence and insights that
allow you to learn and decide. Based on the
evidence and your insights you either adapt
your idea if you learn you were on the wrong
path or continue testing other aspects of
your idea if the evidence supports your
direction.
Feasibility risk
We can’t build and deliver
The risk that a business can’t
get access to key resources
(technology, IP, brand, etc.),
can’t develop capabilities to
perform key activities or can’t
find key partners to build and
scale the value proposition.
TEST
BUSINESS
DESIGN
Ideate
Business
Prototype
Assess
Learn
D
e
c
i
d
e
Hypothesize
Experiment
Idea
Key Hypotheses
Business Model Value Proposition
Business Model(s)
Value Proposition(s)
Solution(s)
High uncertainty Low(er) uncertainty
SEARCH
GROW
Go to www.menti.com
and use the code: 4885 7645
How well do you understand EXPLORE?
Use Menti
Uncertainty
Higher: unpredictable
what will work ->
test & iterate fast
Lower: predictable what is
likely to work ->
plan & execute
Uncertainty
Lower: predictable what is
likely to work ->
plan & execute
investments
Large bets after deep
analysis -> predictable &
planned returns
Small initial bets made
quickly to test -> invest if
evidence else retire project
Higher: unpredictable
what will work ->
test & iterate fast
Uncertainty
Lower: predictable what is
likely to work ->
plan & execute
investments
Large bets after deep
analysis -> predictable &
planned returns
Small initial bets made
quickly to test -> invest if
evidence else retire project
goals & metrics
On track, time & budget?
is everything going as
initially planned?
Is it possible? What did we learn?
does evidence suggest we should
continue, iterate, or retire project?
Higher: unpredictable
what will work ->
test & iterate fast
3 buckets
improved processes
or re
fi
ned value
propositions
new customers, new
channels, or new
geographies
new business models,
value propositions, or
revenue models
+transformative +sustaining +ef
fi
ciency
High uncertainty Low(er) uncertainty
High uncertainty Low(er) uncertainty
metrics/KPIs metrics/KPIs
leadership style
leadership style
culture culture
processes processes
skills & experience skills & experience
investment style investment style
High uncertainty Low(er) uncertainty
AKIs OKRs
Aspirations and
Key Insights
Objectives and
Key Results
Objectives & Key Results
OKRs to manage your
business
High uncertainty Low(er) uncertainty
AKIs OKRs
Aspirations and
Key Insights
Objectives and
Key Results
OKRs
The Objective is the goal we plan to achieve - ideally
formulated as an outcome rather than an activity.
The Key Result is the metric by which we measure our
progress towards our objective - several key results can
be used in parallel or sequentially to measure progress
towards the same objective.
OKRs
Objective: ______ million CHF in sales from Growth
Solutions in 2023 from our conventional inbound leads.
Key Result #1: _____ million CHF in sales pipeline at
stage Sales Qualified Opportunities (SQO).
Key Result #3: 0 sales lost to competition if price was not
the challenge.
Key Result #2: _____ million CHF in sales pipeline at
stage Proposals Sent.
Uncertainty
Lower: predictable what is
likely to work ->
plan & execute
investments
Large bets after deep
analysis -> predictable &
planned returns
Small initial bets made
quickly to test -> invest if
evidence else retire project
goals & metrics
On track, time & budget?
is everything going as
initially planned?
Is it possible? What did we learn?
Higher: unpredictable
what will work ->
OKRs
Uncertainty
investments
Small initial bets made
quickly to test -> invest if
evidence else retire project
goals & metrics
Is it possible? What did we learn?
Higher: unpredictable
what will work ->
OKRs
We have strong evidence from
the past that makes this
objective relatively predictable
conduct a thorough analysis and
plan resources to achieve the
key results for this objective.
Regularly review key results to
measure progress toward the
objective. Analyze what blocks/
enables progress.
Aspirations & Key Insights
OKRs to manage your
business
High uncertainty Low(er) uncertainty
AKIs OKRs
Aspirations and
Key Insights
Objectives and
Key Results
The Aspiration is the goal we hope to achieve - ideally
formulated as an outcome rather than an activity.
The Key Insight is what we need to learn about to assess
if the aspiration is possible - several key insights can be
used in parallel or sequentially to measure achievability
of the same aspiration.
AKIs
Aspiration: _______ million CHF in sales for platform
from enterprise in 2023
Key Insight #1: We understand what potential customers
value most about platform that may lead to a sale
AKIs
Key Insight #3: We understand what pricing structure
resonates with customers who consider buying platform
Key Insight #2: We understand which type of customers
and contexts lead to platform buying interest or intent
Uncertainty
investments
goals & metrics
OKRs
We have strong evidence from
the past that makes this
objective relatively predictable
conduct a thorough analysis and
plan resources to achieve the
key results for this objective.
Regularly review key results to
measure progress toward the
objective. Analyze what blocks/
enables progress.
AKIs
We have no or little evidence for
success yet, which makes it a
relatively unpredictable aspiration.
design quick & cheap
experiments to produce evidence
& key insights for this aspiration.
Regularly review evidence and key
insights to assess achievability of
the aspiration. Decide to continue,
iterate or retire based on evidence.
Exploring New Ideas
Test
Reduce
Innovation
Risk
Idea PROGRESS
Search: Shape, Test, Adapt
Risk Reduction
& Funding
Pro
fi
table
Business
The Iterative
Process
Business Concept Design
Design is the activity of turning vague ideas,
market insights, and evidence into con-
crete value propositions and solid business
models. Good design involves the use of
strong business model patterns to maximize
BUSINESS
DESIGN
Ideate
Business
Prototype
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For uses please inquire about licensing fees at sales@strategyzer.com
The following applies to any content you intend to reuse:
‣ The Strategyzer logo should always fully appear on any slide that
contains our illustrations and/or content.
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than Strategyzer’s, unless this has been previously agreed upon by Strategyzer AG
and formalized in a written agreement.
‣ This content cannot be resold or integrated into any physical or software product.
The Business Model Canvas is licensed as creative commons. Enjoy it and adapt it freely, as long as you reference with citation
“Strategyzer.com” and share your work under the same license. The Value Proposition Canvas is copyrighted Strategyzer AG
and is not to be modified or used in software or other commercial products. Feel free to use the Business Model Canvas and
Value Proposition Canvas in meetings or for consulting services under the condition of referencing and citing “Strategyzer.com”
and fully displaying the Strategyzer logo. You can find additional information on businessmodelgeneration.com/canvas/bmc
under “Legal Info”. Please contact support@strategyzer.com for any inquiry.
Leadership
Awareness
Understand world-class
innovation management
and Culture.
Innovation
Ecosystem
Build your blueprint for
reinvention and growth.
Growth
Portfolio
Build your capacity for
reinvention. Generate new
growth in 12 months.
Growth
Discovery
Design, test and adapt
10 new early-stage business
ideas in only 3 months.
Solutions
Alex Osterwalder
@AlexOsterwalder
Yves Pigneur
@YPigneur
ThankYou

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BoSON23 | Alex Osterwalder | Coaching & Leadership in Remote Companies

  • 1. My CEO Apprenticeship With Alex Osterwalder
  • 3. Leadership Awareness Understand world-class innovation management and Culture. Innovation Ecosystem Build your blueprint for reinvention and growth. Growth Portfolio Build your capacity for reinvention. Generate new growth in 12 months. Growth Discovery Design, test and adapt 10 new early-stage business ideas in only 3 months. Solutions
  • 4. These slides are copyright of Strategyzer AG and are intended for personal use only. For uses please inquire about licensing fees at sales@strategyzer.com The following applies to any content you intend to reuse: ‣ The Strategyzer logo should always fully appear on any slide that contains our illustrations and/or content. ‣ This content should not be published on any other online or offline channels other than Strategyzer’s, unless this has been previously agreed upon by Strategyzer AG and formalized in a written agreement. ‣ This content cannot be resold or integrated into any physical or software product. The Business Model Canvas is licensed as creative commons. Enjoy it and adapt it freely, as long as you reference with citation “Strategyzer.com” and share your work under the same license. The Value Proposition Canvas is copyrighted Strategyzer AG and is not to be modified or used in software or other commercial products. Feel free to use the Business Model Canvas and Value Proposition Canvas in meetings or for consulting services under the condition of referencing and citing “Strategyzer.com” and fully displaying the Strategyzer logo. You can find additional information on businessmodelgeneration.com/canvas/bmc under “Legal Info”. Please contact support@strategyzer.com for any inquiry.
  • 5. How entrepreneurship and leadership is often portrayed in pop culture Go to www.menti.com and use the code: 4885 7645 What’s the reality of entrepreneurship? Use Menti
  • 6. Strategyzer 7 CEO Apprenticeship 1 2 3 Coaching Culture Explore & Exploit Coaching 1
  • 7. Steve Blank Mentoring (& technical coaching) Yves Pigneur Shani Ospina Leadership & breakthrough coaching Carl Samuels Marshall Goldsmith Traditional leadership coahcing: e.g. adding too much value
  • 8. Becoming a better leader by understanding oneself better: Why? I’m not broken! “We are not pure, kind, loving beings [...] We are deeply dangerous and most of us are on the edge of insanity - this is not an exception, it's just what it means to be human.” — Alain de Botton, philosopher “All of us are just holding it together. We are dangerous to be around. We have all sorts of impulses, feelings, desires, which makes us great trouble to be around.” — Alain de Botton, philosopher “The only people we can think of as normal, are people we've just met. Once we've met them a little bit more, we all of a sudden realize that they are not normal.” — Alain de Botton, philosopher
  • 9. we’re all a little “broken” we’re all a little “broken” … we all have ample room to grow as people and ultimately leaders -> what could we be? we’re the same person “at work” or “at home” at Strategyzer everybody gets a $2,500.- coaching/growth budget to work on professional and personal challenges
  • 10. Emotional Literacy Beta version by ©Shani Ospina I get tense because my co-founder asks questions about a strategic direction I thought we were aligned on. Do I feel like he still doesn’t trust the strategy or mistrusts my judgement and my insights? Is he really aligned with our strategy? Is he undermining it? I think I believe he is misaligned and is trying to find arguments against our strategy. His intent is truly to understand what each piece of evidence and insights means. My tension comes from the fact that I don’t know for sure either. By listening to my co-founder carefully and trying to help him follow my reasoning we will grow stronger. Go to www.menti.com and use the code: 4885 7645 Coaching: hot or not? Use Menti Culture 2
  • 11. “If you want to understand a culture, you need to map it..” — Dave Gray, entrepreneur & author The Culture Map Outcomes Beta Behaviours Enablers/Blockers copyright: Strategyzer AG & Dave Gray, 2015 The makers of Business Model Generation and Strategyzer dave gray: davegrayinfo.com strategyzer.com A Change Management Tool Designed by: Date: Iteration: Designed for: Formal or informal rules, policies, routines, reward systems, rituals, … What are our desired outcomes? What behaviors will allow us to achieve our desired outcomes? What enables and blocks us from our goals? The Culture Map DEFINITION What you want to “harvest” from a garden (fruits) Elements that allow a garden to fl ourish (water, fertilizer) The heart of your culture Outcomes The concrete positive or negative conse- quences resulting from people’s behavior. Behaviors How do individual and teams act or conduct themselves within the company? What do they do or say? How do they interact? What patterns do you notice? Enablers/Blockers The levers that lead to positive or negative behaviors inside your company. These could be formal policies, processes, and reward systems, or informal rituals and actions that influence people’s behaviors and, ultimately, influence a company’s outcomes. DAVE GRAY Author and entrepreneur “If you want to understand culture, you need to map it.” DEFINITION The Culture Map Together with Dave Gray, Strategyzer developed the Culture Map as a tool to design better- performing companies. The Culture Map is a practical, simple, and visual tool to understand, design, test, and manage the corporate culture you want to bring to fruition in your organization. In this book we use the Culture Map to map and design an innovation culture. 296 CULTURE 296 “Cultivate corporate culture like a garden” The Culture Map DESIGN
  • 13. Shani Ospina “Stress-test” candidates before hiring “challenge” Build a true feedback culture
  • 14. The Fish Rots from the Head 2021 2020 2020
  • 15. Governance,transparency & idea meritocracy What you want to “harvest” from a garden (fruits) Elements that allow a garden to fl ourish (water, fertilizer) The heart of your culture Outcomes The concrete positive or negative conse- quences resulting from people’s behavior. Behaviors How do individual and teams act or conduct themselves within the company? What do they do or say? How do they interact? What patterns do you notice? Enablers/Blockers The levers that lead to positive or negative behaviors inside your company. These could be formal policies, processes, and reward systems, or informal rituals and actions that influence people’s behaviors and, ultimately, influence a company’s outcomes. DAVE GRAY Author and entrepreneur “If you want to understand culture, you need to map it.” DEFINITION The Culture Map Together with Dave Gray, Strategyzer developed the Culture Map as a tool to design better- performing companies. The Culture Map is a practical, simple, and visual tool to understand, design, test, and manage the corporate culture you want to bring to fruition in your organization. In this book we use the Culture Map to map and design an innovation culture. 296 CULTURE 296 “Cultivate corporate culture like a garden” The Culture Map DESIGN Alan Mulally former CEO Ford
  • 16. ALIGNMENT HUDDLES DECISION FORUMS CELLS WHERE COMPANY-LEVEL DECISIONS ARE MADE (DACCI) WHERE COMPANY-LEVEL ALIGNMENTS TAKE PLACE THAT DON’T REQUIRE DECISIONS VALUE PROPOSITIONS AND SUPPORT FUNCTIONS (DACCI) STRATEGY IMPLEMENTATION CELLS CELLS CELLS CELL ALIGNMENT HUDDLE align focus, fi res, & deep dives CELLS DECISION FORUMS ALIGNMENT HUDDLES STRATEGY IMPLEMENTATION HIRING FORUM INVESTMENT FORUM PROJECT PORTFOLIO FORUM CELLS allocate resources prioritize next hires + / - / ↑/↓ projects needs $ $ needs 🥷 approve needs needs STRATEGY IMPLEMENTATION CELLS DECISION FORUMS ALIGNMENT HUDDLES GROWTH HUDDLE MARKETING SALES CUSTOMER SUCCESS align on revenue projections projections data data data evidence HIRING FORUM INVESTMENT FORUM PROJECT PORTFOLIO FORUM CELLS needs $ needs 🥷 approve needs $ needs OUTBOUND EXPERIMENTS OUTBOUND EXPERIMENTS OUTBOUND EXPERIMENTS CELLS DECISION FORUMS ALIGNMENT HUDDLES STRATEGY IMPLEMENTATION
  • 17. PRODUCT FORUM PRICING FORUM PROD/SALES/ CS HUDDLE SALES CUSTOMER SUCCESS + / - / ↑/↓ products de fi ne prices feedback/evidence guidance OUTBOUND EXPERIMENTS OUTBOUND EXPERIMENTS PROJECT DELIVERY CELLS DECISION FORUMS ALIGNMENT HUDDLES STRATEGY IMPLEMENTATION HIRING FORUM INVESTMENT FORUM PROJECT PORTFOLIO FORUM CELLS allocate resources prioritize next hires + / - / ↑/↓ projects needs $ needs 🥷 approve needs PRODUCT FORUM PRICING FORUM PROD/SALES/ CS HUDDLE SALES CS + / - / ↑/↓ products de fi ne prices feedback/evidence guidance CELL ALIGNMENT HUDDLE align focus, fi res, & deep dives GROWTH HUDDLE MARKETING SALES CUSTOMER SUCCESS align on revenue projections projections data data data evidence $ needs OUTBOUND EXPERIMENTS OUTBOUND EXPERIMENTS OUTBOUND EXPERIMENTS OUTBOUND EXPERIMENTS OUTBOUND EXPERIMENTS PROJECT DELIVERY CELLS DECISION FORUMS ALIGNMENT HUDDLES STRATEGY IMPLEMENTATION KPIs to Explore & Exploit 3 The Explore-Exploit challenge and the limits of OKRs
  • 18. 8 9 The Iterative Process Business Concept Design Design is the activity of turning vague ideas, market insights, and evidence into con- crete value propositions and solid business models. Good design involves the use of strong business model patterns to maximize returns and compete beyond product, price, and technology. The risk that a business can’t get access to key resources (technology, IP, brand, etc.), can’t develop capabilities to perform key activities or can’t find key partners to build and scale the value proposition. Testing and reducing risk To test a big business idea you break it down into smaller chunks of testable hypotheses. These hypotheses cover three types of risk. Firstly, that customers aren’t interested in your idea (desirability). Secondly, that you can’t build and deliver your idea (feasibility). Thirdly, that you can’t earn enough money from your idea (viability). You test your most important hypotheses with appropriate experiments. Each experi- ment generates evidence and insights that allow you to learn and decide. Based on the evidence and your insights you either adapt your idea if you learn you were on the wrong path or continue testing other aspects of your idea if the evidence supports your direction. Desirability risk Customers aren’t interested The risk that the market a business is targeting is too small, that too few customers want the value proposition, or that the company can’t reach, acquire, and retain targeted customers. Feasibility risk We can’t build and deliver The risk that a business can’t get access to key resources (technology, IP, brand, etc.), can’t develop capabilities to perform key activities or can’t find key partners to build and scale the value proposition. Viability risk We can’t earn enough money The risk that a business can’t generate successful revenue streams, that customers are unwilling to pay (enough), or that the costs are too high to make a sustainable profit. Reducing Uncertainty and Risk TEST BUSINESS DESIGN Ideate Business Prototype Assess Learn D e c i d e Hypothesize Experiment Idea Key Hypotheses Business Model Experiments Value Proposition Key Insights i v e p t D e s i g n v i t y o f t u r n i n g v a g u e i d e a s , t s , a n d e v i d e n c e i n t o c o n - p r o p o s i t i o n s a n d s o l i d b u s i n e s s G o o d d e s i g n i n v o l v e s t h e u s e o f g b u s i n e s s m o d e l p a t t e r n s t o m a x i m i z e t u r n s a n d c o m p e t e b e y o n d p r o d u c t , p r i c e , a n d t e c h n o l o g y . T h e r i s k t h a t a b u s i n e s s c a n ’ t g e t a c c e s s t o k e y r e s o u r c e s ( t e c h n o l o g y , I P , b r a n d , e t c . ) , c a n ’ t d e v e l o p c a p a b i l i t i e s t o p e r f o r m k e y a c t i v i t i e s o r c a n ’ t f i n d k e y p a r t n e r s t o b u i l d a n d s c a l e t h e v a l u e p r o p o s i t i o n . T e s t i n g a n d r e d u c i n g r i s k T o t e s t a b i g b u s i n e s s i d e a y o u b r e a k i t d o w n i n t o s m a l l e r c h u n k s o f t e s t a b l e h y p o t h e s e s . T h e s e h y p o t h e s e s c o v e r t h r e e t y p e s o f r i s k . F i r s t l y , t h a t c u s t o m e r s a r e n ’ t i n t e r e s t e d i n y o u r i d e a ( d e s i r a b i l i t y ) . S e c o n d l y , t h a t y o u c a n ’ t b u i l d a n d d e l i v e r y o u r i d e a ( f e a s i b i l i t y ) . T h i r d l y , t h a t y o u c a n ’ t e a r n e n o u g h m o n e y f r o m y o u r i d e a ( v i a b i l i t y ) . Y o u t e s t y o u r m o s t i m p o r t a n t h y p o t h e s e s w i t h a p p r o p r i a t e e x p e r i m e n t s . E a c h e x p e r i - m e n t g e n e r a t e s e v i d e n c e a n d i n s i g h t s t h a t a l l o w y o u t o l e a r n a n d d e c i d e . B a s e d o n t h e e v i d e n c e a n d y o u r i n s i g h t s y o u e i t h e r a d a p t y o u r i d e a i f y o u l e a r n y o u w e r e o n t h e w r o n g p a t h o r c o n t i n u e t e s t i n g o t h e r a s p e c t s o f y o u r i d e a i f t h e e v i d e n c e s u p p o r t s y o u r d i r e c t i o n . D e s i r a b i l i t y r i s k C u s t o m e r s a r e n ’ t i n t e r e s t e d T h e r i s k t h a t t h e m a r k e t a b u s i n e s s i s t a r g e t i n g i s t o o s m a l l , t h a t t o o f e w c u s t o m e r s w a n t t h e v a l u e p r o p o s i t i o n , o r t h a t t h e c o m p a n y c a n ’ t r e a c h , a c q u i r e , a n d r e t a i n t a r g e t e d c u s t o m e r s . F e a s i b i l i t y r i s k W e c a n ’ t b u i l d a n d d e l i v e r T h e r i s k t h a t a b u s i n e s s c a n ’ t g e t a c c e s s t o k e y r e s o u r c e s ( t e c h n o l o g y , I P , b r a n d , e t c . ) , c a n ’ t d e v e l o p c a p a b i l i t i e s t o p e r f o r m k e y a c t i v i t i e s o r c a n ’ t f i n d k e y p a r t n e r s t o b u i l d a n d s c a l e t h e v a l u e p r o p o s i t i o n . V i a b i l i t y r i s W e c a n ’ t e T h e r i s g e n s R e d u c i n g U n c e r t a i n t y a n d R i s k T E S T B U S I N E S S D E S I G N I d e a t e B u s i n e s s P r o t o t y p e A s s e s s L e a r n Decide H y p o t h e s i z e E x p e r i m e n t I d e a K e y H y p o t h e s e s B u s i n e s s M o d e l E x p e r i m e n t s V a l u e P r o p o s i t i o n K e y I n s i g h t s r a t i v e s s C o n c e p t D e s i g n s t h e a c t i v i t y o f t u r n i n g v a g u e i d e a s , e t i n s i g h t s , a n d e v i d e n c e i n t o c o n - e t e v a l u e p r o p o s i t i o n s a n d s o l i d b u s i n e s s m o d e l s . G o o d d e s i g n i n v o l v e s t h e u s e o f s t r o n g b u s i n e s s m o d e l p a t t e r n s t o m a x i m i z e r e t u r n s a n d c o m p e t e b e y o n d p r o d u c t , p r i c e , a n d t e c h n o l o g y . T h e r i s k t h a t a b u s i n e s s c a n ’ t g e t a c c e s s t o k e y r e s o u r c e s ( t e c h n o l o g y , I P , b r a n d , e t c . ) , c a n ’ t d e v e l o p c a p a b i l i t i e s t o p e r f o r m k e y a c t i v i t i e s o r c a n ’ t f i n d k e y p a r t n e r s t o b u i l d a n d s c a l e t h e v a l u e p r o p o s i t i o n . T e s t i n g a n d r e d u c i n g r i s k T o t e s t a b i g b u s i n e s s i d e a y o u b r e a k i t d o w n i n t o s m a l l e r c h u n k s o f t e s t a b l e h y p o t h e s e s . T h e s e h y p o t h e s e s c o v e r t h r e e t y p e s o f r i s k . F i r s t l y , t h a t c u s t o m e r s a r e n ’ t i n t e r e s t e d i n y o u r i d e a ( d e s i r a b i l i t y ) . S e c o n d l y , t h a t y o u c a n ’ t b u i l d a n d d e l i v e r y o u r i d e a ( f e a s i b i l i t y ) . T h i r d l y , t h a t y o u c a n ’ t e a r n e n o u g h m o n e y f r o m y o u r i d e a ( v i a b i l i t y ) . Y o u t e s t y o u r m o s t i m p o r t a n t h y p o t h e s e s w i t h a p p r o p r i a t e e x p e r i m e n t s . E a c h e x p e r i - m e n t g e n e r a t e s e v i d e n c e a n d i n s i g h t s t h a t a l l o w y o u t o l e a r n a n d d e c i d e . B a s e d o n t h e e v i d e n c e a n d y o u r i n s i g h t s y o u e i t h e r a d a p t y o u r i d e a i f y o u l e a r n y o u w e r e o n t h e w r o n g p a t h o r c o n t i n u e t e s t i n g o t h e r a s p e c t s o f y o u r i d e a i f t h e e v i d e n c e s u p p o r t s y o u r d i r e c t i o n . D e s i r a b i l i t y r i s k C u s t o m e r s a r e n ’ t i n t e r e s t e d T h e r i s k t h a t t h e m a r k e t a b u s i n e s s i s t a r g e t i n g i s t o o s m a l l , t h a t t o o f e w c u s t o m e r s w a n t t h e v a l u e p r o p o s i t i o n , o r t h a t t h e c o m p a n y c a n ’ t r e a c h , a c q u i r e , a n d r e t a i n t a r g e t e d c u s t o m e r s . F e a s i b i l i t y r i s k W e c a n ’ t b u i l d a n d d e l i v e r T h e r i s k t h a t a b u s i n e s s c a n ’ t g e t a c c e s s t o k e y r e s o u r c e s ( t e c h n o l o g y , I P , b r a n d , e t c . ) , c a n ’ t d e v e l o p c a p a b i l i t i e s t o p e r f o r m k e y a c t i v i t i e s o r c a n ’ t f i n d k e y p a r t n e r s t o b u i l d a n d s c a l e t h e v a l u e p r o p o s i t i o n . V i a b i l i t y r i s k W e c a n ’ t e a r n e n o u g h m o n e y T h e r i s k t h a t a b u s i n e s s c a n ’ t g e n e r a t e s u c c e s s f u l r e v e n u e s t r e a m s , t h a t c u s t o m e r s a r e u n w i l l i n g t o p a y ( e n o u g h ) , o t h a t t h e c o s t s a r e t o o h i g m a k e a s u s t a i n a b l e p R e d u c i n g U n c e r t a i n t y a n d R i s k T E S T B U S I N E S S D E S I G N I d e a t e B u s i n e s s P r o t o t y p e A s s e s s L e a r n Decide H y p o t h e s i z e E x p e r i m e n t I d e a K e y H y p o t h e s e s B u s i n e s s M o d e l E x p e r i m e n t s V a l u e P r o p o s i t i o n K e y I n s i g h t s SEARCH GROW SEARCH, ITERATE, FIND (OR RETIRE) SCALE & MANAGE The Explore/Exploit Continuum Idea Business Results tive vague ideas, to con- d business e use of to maximize oduct, price, t get access brand, etc.), form key ers to build Testing and reducing risk To test a big business idea you break it down into smaller chunks of testable hypotheses. These hypotheses cover three types of risk. Firstly, that customers aren’t interested in your idea (desirability). Secondly, that you can’t build and deliver your idea (feasibility). Thirdly, that you can’t earn enough money from your idea (viability). You test your most important hypotheses with appropriate experiments. Each experi- ment generates evidence and insights that allow you to learn and decide. Based on the evidence and your insights you either adapt your idea if you learn you were on the wrong path or continue testing other aspects of your idea if the evidence supports your direction. Feasibility risk We can’t build and deliver The risk that a business can’t get access to key resources (technology, IP, brand, etc.), can’t develop capabilities to perform key activities or can’t find key partners to build and scale the value proposition. TEST BUSINESS DESIGN Ideate Business Prototype Assess Learn D e c i d e Hypothesize Experiment Idea Key Hypotheses Business Model Value Proposition Business Model(s) Value Proposition(s) Solution(s) High uncertainty Low(er) uncertainty SEARCH GROW Go to www.menti.com and use the code: 4885 7645 How well do you understand EXPLORE? Use Menti Uncertainty Higher: unpredictable what will work -> test & iterate fast Lower: predictable what is likely to work -> plan & execute Uncertainty Lower: predictable what is likely to work -> plan & execute investments Large bets after deep analysis -> predictable & planned returns Small initial bets made quickly to test -> invest if evidence else retire project Higher: unpredictable what will work -> test & iterate fast
  • 19. Uncertainty Lower: predictable what is likely to work -> plan & execute investments Large bets after deep analysis -> predictable & planned returns Small initial bets made quickly to test -> invest if evidence else retire project goals & metrics On track, time & budget? is everything going as initially planned? Is it possible? What did we learn? does evidence suggest we should continue, iterate, or retire project? Higher: unpredictable what will work -> test & iterate fast 3 buckets improved processes or re fi ned value propositions new customers, new channels, or new geographies new business models, value propositions, or revenue models +transformative +sustaining +ef fi ciency High uncertainty Low(er) uncertainty High uncertainty Low(er) uncertainty metrics/KPIs metrics/KPIs leadership style leadership style culture culture processes processes skills & experience skills & experience investment style investment style High uncertainty Low(er) uncertainty AKIs OKRs Aspirations and Key Insights Objectives and Key Results
  • 20. Objectives & Key Results OKRs to manage your business High uncertainty Low(er) uncertainty AKIs OKRs Aspirations and Key Insights Objectives and Key Results OKRs The Objective is the goal we plan to achieve - ideally formulated as an outcome rather than an activity. The Key Result is the metric by which we measure our progress towards our objective - several key results can be used in parallel or sequentially to measure progress towards the same objective. OKRs Objective: ______ million CHF in sales from Growth Solutions in 2023 from our conventional inbound leads. Key Result #1: _____ million CHF in sales pipeline at stage Sales Qualified Opportunities (SQO). Key Result #3: 0 sales lost to competition if price was not the challenge. Key Result #2: _____ million CHF in sales pipeline at stage Proposals Sent.
  • 21. Uncertainty Lower: predictable what is likely to work -> plan & execute investments Large bets after deep analysis -> predictable & planned returns Small initial bets made quickly to test -> invest if evidence else retire project goals & metrics On track, time & budget? is everything going as initially planned? Is it possible? What did we learn? Higher: unpredictable what will work -> OKRs Uncertainty investments Small initial bets made quickly to test -> invest if evidence else retire project goals & metrics Is it possible? What did we learn? Higher: unpredictable what will work -> OKRs We have strong evidence from the past that makes this objective relatively predictable conduct a thorough analysis and plan resources to achieve the key results for this objective. Regularly review key results to measure progress toward the objective. Analyze what blocks/ enables progress. Aspirations & Key Insights OKRs to manage your business High uncertainty Low(er) uncertainty AKIs OKRs Aspirations and Key Insights Objectives and Key Results
  • 22. The Aspiration is the goal we hope to achieve - ideally formulated as an outcome rather than an activity. The Key Insight is what we need to learn about to assess if the aspiration is possible - several key insights can be used in parallel or sequentially to measure achievability of the same aspiration. AKIs Aspiration: _______ million CHF in sales for platform from enterprise in 2023 Key Insight #1: We understand what potential customers value most about platform that may lead to a sale AKIs Key Insight #3: We understand what pricing structure resonates with customers who consider buying platform Key Insight #2: We understand which type of customers and contexts lead to platform buying interest or intent Uncertainty investments goals & metrics OKRs We have strong evidence from the past that makes this objective relatively predictable conduct a thorough analysis and plan resources to achieve the key results for this objective. Regularly review key results to measure progress toward the objective. Analyze what blocks/ enables progress. AKIs We have no or little evidence for success yet, which makes it a relatively unpredictable aspiration. design quick & cheap experiments to produce evidence & key insights for this aspiration. Regularly review evidence and key insights to assess achievability of the aspiration. Decide to continue, iterate or retire based on evidence. Exploring New Ideas Test Reduce Innovation Risk Idea PROGRESS Search: Shape, Test, Adapt Risk Reduction & Funding Pro fi table Business The Iterative Process Business Concept Design Design is the activity of turning vague ideas, market insights, and evidence into con- crete value propositions and solid business models. Good design involves the use of strong business model patterns to maximize BUSINESS DESIGN Ideate Business Prototype
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  • 24. Leadership Awareness Understand world-class innovation management and Culture. Innovation Ecosystem Build your blueprint for reinvention and growth. Growth Portfolio Build your capacity for reinvention. Generate new growth in 12 months. Growth Discovery Design, test and adapt 10 new early-stage business ideas in only 3 months. Solutions