The suggestion in this KelloggInsight article is that when responding to being told to innovate, rather than turning the culture of your organization into a start-up, use the venture capital model to look at the data for areas where you can take big risks and to get big rewards. Strategy execution is shaped by creating a base line of a risk-reward balance, and using this to determine which of your portfolio of options are suitable. This requires engaging the knowledge and expertise that exists at all levels within the organization, not only for a better understanding, but also to gain commitment.
This highlights a few key points about decision-making
- A broad range of options gives a better range of outcomes.
- Evaluation criterion should be known and set out ahead of time.
- Engagement and commitment from the workforce should be secured before implementation