SCHOOL OF BUSINESS ADMINISTRATION TECHNOLOGY COMMERCIALIZATION PROGRAM Topic for the Week: Strategy Under Uncertainty John A. Hengeveld week 5 class 1
SCHOOL OF BUSINESS ADMINISTRATION TECHNOLOGY COMMERCIALIZATION PROGRAM AGENDA Strategy under Uncertainty Leadership of Uncertainty
SCHOOL OF BUSINESS ADMINISTRATION TECHNOLOGY COMMERCIALIZATION PROGRAM Lets discuss Uncertainty What does uncertainty mean to each of you? What uncertainty is acceptable in your organization? How does uncertainty impact value?
SCHOOL OF BUSINESS ADMINISTRATION TECHNOLOGY COMMERCIALIZATION PROGRAM A Radical Concept The value of a firm is driven directly by the nature of uncertainties it choses to accept. Consider a firm with out
SCHOOL OF BUSINESS ADMINISTRATION TECHNOLOGY COMMERCIALIZATION PROGRAM Strategy under Uncertainty 1: Identify Nature and Extent Of Residual Uncertainties 3: Build a Portfolio of Actions 2: Define Strategic Posture 4: Actively manage the strategy Trigger Events Short Cycle Review of Portfolio
SCHOOL OF BUSINESS ADMINISTRATION TECHNOLOGY COMMERCIALIZATION PROGRAM Nature of Uncertainty 4 types of uncertainty –Pretty Clear Future –Future Alternatives –A Range of Future –True Ambiguity Give me examples of each….
SCHOOL OF BUSINESS ADMINISTRATION TECHNOLOGY COMMERCIALIZATION PROGRAM Strategic Posture Shape the future Adapt to the future Reserve the right to play
SCHOOL OF BUSINESS ADMINISTRATION TECHNOLOGY COMMERCIALIZATION PROGRAM Portfolio of Actions No Regret Moves Options Big Bet
SCHOOL OF BUSINESS ADMINISTRATION TECHNOLOGY COMMERCIALIZATION PROGRAM Leadership under Uncertainty Leadership of Disruption Looking at the view points of Christensen, and B&E, what different characteristics are required to manage under uncertainty? McCall’s model
SCHOOL OF BUSINESS ADMINISTRATION TECHNOLOGY COMMERCIALIZATION PROGRAM A Framework for Finding the Right Organizational Structure and Home C A D B AutonomousMainstream DisruptiveSustaining Heavyweight Functional Poor Fit Good Fit Fit to Org Structure Fit with Org Values