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The Three-Box Solution: A Strategy for Leading Innovation, by Vijay Govindarajan
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How to Innovate and Execute
Leaders already know that innovation calls for a different set of activities, skills, methods, metrics, mind-sets, and leadership approaches. And it is well understood that creating a new business and optimizing an already existing one are two fundamentally different management challenges. The real problem for leaders is doing both, simultaneously. How do you meet the performance requirements of the existing business—one that is still thriving—while dramatically reinventing it? How do you envision a change in your current business model before a crisis forces you to abandon it?
Innovation guru Vijay Govindarajan expands the leader’s innovation tool kit with a simple and proven method for allocating the organization’s energy, time, and resources—in balanced measure—across what he calls “the three boxes”:
• 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 breakthrough ideas into new products and businesses
The three-box framework makes leading innovation easier because it gives leaders a simple vocabulary and set of tools for managing and measuring these different sets of behaviors and activities across all levels of the organization. Supported with rich company examples—GE, Mahindra & Mahindra, Hasbro, IBM, United Rentals, and Tata Consultancy Services—and testimonies of leaders who have successfully used this framework, this book solves once and for all the practical dilemma of how to align an organization on the critical but competing demands of innovation.
- Sales Rank: #55461 in Books
- Published on: 2016-04-26
- Released on: 2016-04-26
- Original language: English
- Number of items: 1
- Dimensions: 9.30" h x .90" w x 6.20" l, 1.10 pounds
- Binding: Hardcover
- 256 pages
Review
“The book [The Three Box Solution] is clearly presented, with illuminating case studies from a variety of organizations helping to explain the ideas.” — The Globe and Mail
"The Three Box Solution is an insightful and thoughtful work that should be on the must-read list for all CEOs—and everyone involved in leading innovation in any kind of enterprise." — Research-Technology Management
“The era of doing things in the same way decade after decade is over. Organisations are confronted by external change and the urgent need to change themselves. Innovation is nothing less than a matter of corporate survival…By creating three boxes that a company ought to concentrate on when it is trying to pilot its way into the future, Prof Govindarajan may enable its leaders and workers to think outside the box their normal experience traps them in.” — Peter Day, BBC
“A powerful new framework.” — Developing Leaders
“The Three Box Solution is a clear winner…” — BW Businessworld (India)
“He succinctly outlines the key behaviors that I believe every business leader must focus on, to drive innovation without waiting for the next competitive crisis…the approach actually works and applies to leaders at all levels.” — Forbes
“Supported with rich examples—GE, Mahindra & Mahindra, Hasbro, IBM and Tata Consultancy Services—and testimonies of leaders who have successfully used this framework, The Three Box Solution solves the dilemma of how to align an organisation on the critical but competing demands of innovation.” — The Financial Express, India
“When we read The Three Box Solution and hear VG describe the experiences from leaders of Hasbro, Tata, IBM, United Rentals, Mahindra & Mahindra amongst others, we get inspired to find our own balance between these three innovation areas: preservation, destruction and creation...The Three Box Solution helps leaders come into harmony with an ageless rhythm, that creates sustainable prosperity." — Innovation Management (innovationmanagement.se)
“With case studies from toy manufacturer Hasbro, coffee maker Keurig, TCS and even a church reinventing itself, The Three Box Solution makes a good breezy read.” — The Times of India
ADVANCE PRAISE for The Three-Box Solution:
Jeffrey R. Immelt, Chairman and CEO, General Electric Company—
“Simple, powerful, and purposeful.”
Zhang Ruimin, Founder, Chairman, and CEO, Haier Group—
“The Three-Box Solution presents a simple, yet powerful framework to simultaneously optimize continuous process improvement and breakthrough innovation. Inspiring for management executives.”
Anand G. Mahindra, Chairman and Managing Director, Mahindra Group—
“Govindarajan’s Three-Box Solution provides a framework for balancing the imperatives of the present with the demands of the future. It is a construct that permeates all our strategic thinking.”
Marshall Goldsmith, New York Times and Wall Street Journal bestselling author, Triggers—
“If your company needs to stop doing what it’s done and branch out in new and profitable ways, this is the book for you.”
Omar Ishrak, Chairman and CEO, Medtronic—
“The Three-Box Solution is a superb guidance manual for anyone formulating and driving a long-term company strategy. An excellent resource for managers and leaders at all levels.”
Ajay Banga, President and CEO, MasterCard Inc.—
“Govindarajan provides a winning combination of strategic insights and actionable steps designed to help virtually any business or organization build a better future.”
Indra K. Nooyi, Chairman and CEO, PepsiCo, Inc.—
“At PepsiCo, we practice what Govindarajan preaches.”
Samuel R. Allen, Chairman and CEO, Deere & Company—
“This book is worth reading more than once; I highly recommend it.”
Bhaskar Bhat, CEO, Titan Watch—
“It is very refreshing to read The Three-Box Solution because of both its relevance and its simplicity. As you read the book, you connect with events in your own journey as you grapple simultaneously with ideas such as learning from the past, living in the present, and dreaming about the future. The simplicity of Govindarajan’s model, like all great ideas, triggers you to think, ‘Hey, why did I not think about it this way?’ I recommend this book and its approach to both current and aspiring CEOs. Business schools will also find this approach worthy of teaching, and chief strategy officers will find it most useful.”
Giovanni Caforio, CEO, Bristol-Myers Squibb—
“The Three-Box Solution brilliantly tackles the challenges of a successful company to continually drive the linear innovation essential for today’s operational excellence, while nurturing the nonlinear innovation necessary to create the company’s future.
Marc Casper, President and CEO, Thermo Fisher Scientific Inc.—
“The Three-Box Solution is essential reading for any senior executive leading a successful company with a proud history. Govindarajan gives a clear path for how to create the environment and culture within a company to foster innovation that will make a difference in ensuring a bright future for an organization.
Ian Cook, Chairman, President, and CEO, Colgate-Palmolive Company—
“In The Three-Box Solution, Govindarajan offers a compelling framework for driving innovation while delivering current goals, without the constraints of past successes and failures. With powerful, international examples, he offers a clear guide to creating the sustainable, innovation culture needed to stay ahead.”
Alexander M. Cutler, Chairman and CEO, Eaton Corporation—
“What a compelling piece of work—and its genius is in its simplicity. Leaders at all levels of the organization should find the three-box model for innovation a how-to manual for success.”
Stuart Fletcher, CEO, Bupa—
“The Three-Box Solution is an extremely stimulating, encouraging, valuable, and enjoyable read.”
Brian D. Goldner, Chairman, President, and CEO, Hasbro, Inc.—
“In The Three-Box Solution, Govindarajan concisely and bravely distills key insights applicable across varied industries and provides practical takeaways to facilitate execution. The book is a must-read for any manager who values courageous leadership, adaptability, and foresight.”
Cyrus Mistry, Chairman, Tata Group—
“Govindarajan offers unique insights into the need to balance the demands of the present with those of the future. He highlights the importance of investing wisely in building the future while creating a sense of urgency about embracing change. Many managers will relate to the caution he urges about getting too caught up in the all-consuming demands of the present. For a more-than-century-old organization like Tata, his three-box framework offers many important lessons.”
Narayana Murthy, cofounder, Infosys Limited—
“In today’s world, organizations need to continuously innovate and demonstrate a high degree of learnability to stay relevant and ahead of the competition. Through real-life cases and simple frameworks, Govindarajan provides insight and guidance on how leaders can prime organizations for the future while balancing priorities of the present. The Three-Box Solution is a must-read for leaders at all levels.”
Abidali Z. Neemuchwala, CEO, Wipro Limited—
“The three-box approach is a pragmatic way to think through and balance the needs of existing business and crafting a future. Explained in a simple manner, it provides a framework that leaders can use to reflect on the dynamics of business and attain present and future goals. In today’s business environment, leaders are required to run both a sprint and a marathon at the same time.”
Doug Oberhelman, Chairman and CEO, Caterpillar Inc.—
“The Three-Box Solution offers a sound, strategic approach to ensure that Caterpillar’s long history of innovation—developing, designing, and manufacturing the machines and engines our customers want and need—continues.”
About the Author
Vijay Govindarajan (known as VG) is the Coxe Distinguished Professor at Dartmouth’s Tuck School of Business, a Marvin Bower Fellow at Harvard Business School, and widely regarded as one of the world’s leading experts on strategy and innovation. He is the author of many books and articles, including the New York Times bestseller Reverse Innovation.
Most helpful customer reviews
14 of 15 people found the following review helpful.
Functional but not revolutrionbary (or all that motivating). Read/buy the HBR article instead.
By Mark B
3.5 stars. I read numerous business books each year. So foar for 2016, this one was my least favorite. It's not a bad book, and the concepts are good as reminders. However, it is much too wordy and droning. Kudos to the author for having nice summaries and execution ideas at the end of each chapter. I would strongly suggest you look for and buy the Harvard Business Review article where the author introduced the three-box concept. You will get the idea without having to withstand very, very wordy case studies that feel like filler. The premise of the book: Keep your current operations healthy (they fund innovation), cut your losses on lagging or under-performing/no-longer-relevant operations, and innovate for the future using seperate groups and management principles. That really is it. Business 101.
5 of 6 people found the following review helpful.
Strong applications for ALL leaders, not just those in one specific field
By Roger Nierenberg
I was excited to learn about Vijay Govindarajan’s latest book, The Three Box Solution, since I have long admired his work. As an orchestra conductor, I wasn’t expecting to derive any insight and inspiration about music from a business guru’s model for leadership. But as soon as I understood his ideas I immediately saw important parallels to my work with orchestras.
Govindarajan’s book illuminates the thorny challenge of leadership during a time of rapid and disruptive innovation. Leaders must manage today’s success, while also anticipating and preparing for an unexpected tomorrow. Govindarajan invents a simple structure to elucidate this: sort all of your organization’s activities into three imaginary boxes. Box 1 contains the activities that manage the present. Box 2 is for activities that purposefully purge the organization of its attachment to previous, and even current success patterns. And Box 3 contains the activities that prepare for an unchartered future whose wave of innovation is only beginning to arrive.
Govindarajan cautions that many leaders fall into the trap of focusing most attention on Box 1 and neglecting the others. But so do most conductors. Standing in front of the musicians, a conductor feels terribly responsible for the success of the notes that they are about to play. And yet the greatest conductors find a way to transcend the moment, to communicate the meaning of the entire work. You would think that, in order to accomplish this, a conductor would have to work much harder. But instead, he entrusts some of the responsibility for execution to the musicians, thus clearing the space to convey a picture of the future, in all of its glorious possibility.
To celebrate Govindarajan’s book I created a video for my Music Paradigm website. The video shows two maestros, conducting the identical passage and edited to be in perfect synchronicity, yet with completely different leadership approaches. On the right side you see David Oistrakh, the magnificent violin virtuoso who was a surprisingly good conductor. But on the left side you see the legendary Carlos Kleiber. It is astounding to see how effortlessly Kleiber transcends what even the greatest conductors can achieve. He shifts from box 1 to box 2 and 3 so seamlessly that sometimes his gestures appear to have uncoupled from what the orchestra is currently doing. But that is because Kleiber understands how much the musicians need the conductor to give meaning to the entire work and show where the music is going, long before the musicians have played it.�
4 of 5 people found the following review helpful.
How to Find or Create the Businesses that can Consistently Outperform the Stock Market over the long term!
By Porus Munshi
What if as an investor you’ve learned a thing or two from Warren Buffet and want to be able to pick at a glance the businesses most likely to be valuable for the long term?
What if as a business leader, given the economic shifts in recent times, you had a tool that helps you to create an organization that’s successful no matter what the economic conditions it faces?
What if as a potential employee, given the recent epidemic of pink slips, you want to know which organization is going to give you the most stability in the midst of unstable times?
Whether you are an investor, or a business leader, or even a potential employee, all you need is to ask just 3 Questions about the organization.
If the answer to ALL these 3 Questions is ‘Yes’, you’ve picked or are running an organization that’s on the right track and that’s poised to be successful for the long term.
If the answer to ANY of these 3 Questions is ‘No’, that organization is likely on the wrong track and will meander and struggle buffeted by every tiny economic and social squall to cross its path.
These 3 Questions are at once both a business X-Ray for investors seeking insight into how organizations should be run, as well as a How-To guide for business leaders seeking to future-proof and recession-proof their organizations.
Performance in the market place is a Lag Indicator. What businesses do Today is the Lead indicator. To understand these Lead Indicators and to use them in a manner that changes the game, Vijay Govindarajan has developed a powerful growth solution that he calls the Three Box Solution that holds the answers to the following questions:
Box-1 Question: Does the Organization have a method and strategy to radically expand the capacity and performance of its existing businesses and offerings? How to find out whether it has such a strategy and if it doesn’t, what to do about it.
Box-2 Question: Does the Organization have a mechanism to systematically let go of the past and stop doing the things that work so well today but are unlikely to add value tomorrow?
As VG says, “Your future weaknesses are embedded in your current strengths”. The single largest factor that has lost more shareholder wealth than all other factors put together is the organizational belief that the future will be a continuation of the past. Box-2 solutions and ideas that VG shares can help you to systematically let go of an organizational past that’s made you successful but won’t keep you successful.
Box-3 Question: Does the Organization have a mechanism to systematically pick up seemingly weak but potentially game-changing insights from the market and develop them into solutions and offerings in a de-risked manner? VG’s book shows you how this can be done to make an almost seamless transition so that Box-3 becomes the new Box-1 that fuels the organizational growth engine.
The answers to these questions and the solutions to them form the heart of the book The Three Box Solution.
Here’s a quick snapshot: What kind of organizations are most at risk of letting the successes of the today drive them off the cliff of tomorrow? Here are a few of the characteristics VG outlines:
1. Those that primarily promote from within
2. Pride themselves on their homogeneous culture
3. Have a strong culture
4. Whose employees have a long tenure in the company
5. Rarely hire from outside other than for entry-level positions
6. Have a long track record of success
7. Whose dominant logic is ‘don’t mess with success’
8. Top management has worked primarily in the same industry
9. Has a strong performance focus and is driven to achieve short-term financial goals.
LOL! I can think of several successful companies that now seem to be more like walking time bombs.
If I were to sum up the essence of this book in one word, it would be Longevity.
It’s about how to create organizations, whether business, social or governmental that last for the really long term.
Germany’s Mittelstand is famous for its small and mid-sized companies that have been successful since the dawn of the industrial age, have survived two world wars, and lived though German partition and re-integration. But then these companies are usually closely held family businesses with few of the pressures of quarterly results that the stock market imposes.
I firmly believe that VG's book has the insights, the strategies and practices that can actually be used to create Mittelstand-type really long term successes in large, global, diversified companies despite being subject to the quarterly pressures of the stock market.
The book has detailed case studies and case snippets of companies like IBM that have re-created themselves, Microsoft that is in the process of recreating itself under Satya Nadella, and companies like Hasbro and Mahindra that follow the Three Box Solution and seem pretty much on the path to Longevity.
Enjoy!
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