Are you relying on your past successes? Evolve your company’s strategy for the future with the “three-box” solution.
There is a general tendency among successful companies to stick to past/ present successes. In the long run, they fall prey to success traps and disappear.
Blockbuster is a great example of success traps. Too much focus on their past success blinded them. They failed to constantly innovate. Blockbuster went bankrupt in 2010. Netflix disrupted the traditional business model- DVD-by-Mail distribution and adapted successfully to the digital world. Netflix’s primary business is its subscription-based service offering online streaming of a library of movies, television programs and inhouse productions. As of April 2019, Netflix had over 148 million paid subscriptions worldwide, including 60 million in the United States, and over 154 million subscriptions total including free trials. Netflix market cap as of July 2019 is $147.02 Billion.
How do you manage the efficiency of the existing business– one that is growing and establish an innovation culture simultaneously to meet the competing demands of the industry?
World’s leading expert on strategy & innovation- Vijay Govindarajan, takes you through a highly effective and a comprehensive “three-box” framework in this 2 min. video. The three-box model is a general framework that applies everywhere whether it’s a business, university, non- profit or even in your own personal life.
The three-box model-
- Box 1: The Present– Manage the core business at peak profitability
- Box 2: The Past– Abandon ideas, practices, and attitudes that could inhibit innovation
- Box 3: The future-Convert new business ideas to build a future
The strategy mainly depends on creating a future while managing the present. Vijay firmly believes that the future is not about what you do in the future. The future is now and what you do today to create the future.
Professor|Dartmouth’s Tuck School of Business
Top 50 Management Thinker; Professor at Dartmouth’s Tuck School of Business. Ranked #3 on Thinkers 50, an elite list of global business minds published bi-annually. Educated in India, he has held faculty positions at Harvard University, INSEAD, Indian Institute of Management and Tuck School of Business.