‘Strategy and innovation’ is the heading of this web page. It is a sensible heading, as the two terms are often mentioned in one breath. But why? A strategy is definitely not an example of an innovation and an innovation is not an example of a strategy.
The reason, obviously, is that a good strategy for the year 2020 always includes innovations. When it comes to the implementation of a modern strategy, there is a lot to innovate in the process of implementing the strategy to achieve the goal of the strategy at all (for example: turnover doubling or world domination).
It all sounds abstract and it is, so let's make it concrete. Consider an Internet platform like Facebook. If this company were to choose a new strategy, you know that for the platform, the website, this would lead to dozens if not hundreds of adjustments and innovations. Innovations are then the solutions that have not yet been thought of.
How very different, by the way, innovation used to be. Back then, you thought of a product or a service, and you immediately came up with the idea how that product or service would be created. From A to Z, it was a sophisticated process. Nowadays, it is a matter of experimenting, of trial and error.
Does this trial and error also apply to strategies? At least in new business development, which is often the most adventurous side of a strategy, failure has become acceptable. At least, if failure means that from failure you move on to success. Because when it comes to strategies, times are merciless. Organizations that do not have a strong strategy and corresponding plan risk being quickly overtaken by competitors, old or new. There should be room for experimenting in this age of social innovation. But time is always limited – given that competitors are also feverishly trying to innovate. The objective these days is nearly always implementing digital transformation or a digital transition.
With the advance of digitalization, strategies sometimes become such radically different concepts that they can disrupt entire sectors. This is called disruption and is the starting point for changing value chains. Disruptive innovations increasingly force companies to enhance and then maintain their agility. Agile organizations respond more easily and quickly to trends and developments in the market. Digitalization is nearly always at the heart of a new strategy, that much is clear. But there is more to it than that because our society is also changing radically in other ways. And finally, what about the effect of digital business processes and cloud computing, which facilitate working from home and support agile organizations?
In addition, consumers increasingly expect that companies and other organizations have a good story to tell: a story that pays attention to the environment, climate, stakeholders internationally and their own employees. Focusing on social impact is the overall theme, as it has also been named as an important theme by Management Scope, alongside diversity. Social impact usually comes down to sustainability, but socially acceptable policies, the ‘S’ of ESG (environmental, social & governance) are also becoming an increasingly important focus point for organizations.
Climate change, polarization and increasing wealth inequality make today’s world complex. CEOs deal with issues that arise from this. When setting a course, they must have a broad perspective and perceive the interrelationships – but that is often lacking. The experts at our round table argue for a broader view: ‘Leaders must learn to use unconventional tools.’
Read moreMore cooperation in the supply chain is critical to make companies future-proof, says professor and supervisory director Kitty Koelemeijer. ‘It is in the DNA of entrepreneurs to be self-reliant, but the time of every man or woman for him or herself is over.’ She says the ESG criteria can be a ‘wonderful catalyst’ to get cooperation really off the ground. ‘That is not only good for the environment, but also for companies themselves.’
Companies can do far more in the fight against absenteeism, according to Danish entrepreneur, CEO of Insurance at Heart, Gitte Kristiansen. In her former role as Global Head of Pensions & Insurance at the internationally operating cleaning and facility company, ISS, she pioneered efforts to drastically reduce absenteeism.
More cooperation in the supply chain is critical to make companies future-proof, says professor and supervisory director Kitty Koelemeijer. ‘It is in the DNA of entrepreneurs to be self-reliant, but the time of every man or woman for him or herself is over.’ She says the ESG criteria can be a ‘wonderful catalyst’ to get cooperation really off the ground. ‘That is not only good for the environment, but also for companies themselves.’
Companies can do far more in the fight against absenteeism, according to Danish entrepreneur, CEO of Insurance at Heart, Gitte Kristiansen. In her former role as Global Head of Pensions & Insurance at the internationally operating cleaning and facility company, ISS, she pioneered efforts to drastically reduce absenteeism.
Heineken's Chief Financial Officer, Harold van den Broek, is executing his strategic and sustainability agenda in a tumultuous climate of rising prices and pressured profit figures. According to the CFO, shareholder value creation will give way to stakeholder value creation. ‘It has become imperative to take good care of the entire environment in which your company operates.’
If it were up to fivefold Board member Carin Gorter, the Supervisory Board would also test the company’s strategy for agility. The resulting measured and realistic insights help companies maneuver in these volatile times. ‘I want to make organizations and their strategy agile for the future from the perspective of opportunities as well as risks.’
Training and development, automation, and flexible career paths ... these are the knobs employers need to turn to prepare for the labor market of the future, according to our roundtable participants. At the same time, they note that the work environment will continue to change, even in ways that cannot be foreseen today. 'We will have to anticipate that again and again.'
Heineken's Chief Financial Officer, Harold van den Broek, is executing his strategic and sustainability agenda in a tumultuous climate of rising prices and pressured profit figures. According to the CFO, shareholder value creation will give way to stakeholder value creation. ‘It has become imperative to take good care of the entire environment in which your company operates.’
If it were up to fivefold Board member Carin Gorter, the Supervisory Board would also test the company’s strategy for agility. The resulting measured and realistic insights help companies maneuver in these volatile times. ‘I want to make organizations and their strategy agile for the future from the perspective of opportunities as well as risks.’
Training and development, automation, and flexible career paths ... these are the knobs employers need to turn to prepare for the labor market of the future, according to our roundtable participants. At the same time, they note that the work environment will continue to change, even in ways that cannot be foreseen today. 'We will have to anticipate that again and again.'
Healthtech company Philips aims to improve the lives of billions of people with meaningful innovations and access to health care. How does this ambition relate to sustainability and Philips’ strategy? Global Head of Sustainability Robert Metzke: ‘Sustainability is not a goal in and of itself, but an integral part of our strategy to improve the quality of people’s lives.’
Read moreJan Anne Schelling had just started as CHRO of Royal IHC in 2018 when the shipbuilder fell on hard times and barely survived. Now that the reorganization has been deemed a success, Schelling is looking to the future. ‘We need to strengthen our workforce and work more efficiently,’ he says.
In De Raad (‘The Council’), a carefully composed team of experts take a look at an important boardroom concern. What insights, suggestions and warnings does De Raad have to offer boards? This time, we are discussing the future of the supply chain.
Triodos Bank's social mission has remained unchanged for 40 years, but in terms of leadership, organization and capital structure, the sustainable bank is in transition. It is up to CEO Jeroen Rijpkema to connect the past with the future. ‘I realize it might hurt.’
Of course, at VodafoneZiggo, they focus on the right tooling and continuous deployment as a service and do push themselves to the cutting edge. Executive Director of Technology Eben Albertyn says this with a wink, but the underlying message is serious. ‘Complicated diagrams are a means, not an end. Clients want to send a text message or make a phone call – they have absolutely no interest in words like digital or technology.’
Triodos Bank's social mission has remained unchanged for 40 years, but in terms of leadership, organization and capital structure, the sustainable bank is in transition. It is up to CEO Jeroen Rijpkema to connect the past with the future. ‘I realize it might hurt.’
Of course, at VodafoneZiggo, they focus on the right tooling and continuous deployment as a service and do push themselves to the cutting edge. Executive Director of Technology Eben Albertyn says this with a wink, but the underlying message is serious. ‘Complicated diagrams are a means, not an end. Clients want to send a text message or make a phone call – they have absolutely no interest in words like digital or technology.’