Follow me @daniel_egger

FUTURE VALUE GENERATION

THE KEY TO SUCCESS IS

ACCESS TO OPPORTUNITYIn today’s ever-changing world, we cannot explore new

possibilities and reduce the impact of daily surprises in pure

certainty, neither in complete uncertainty; we need an

integrative logic that guides us.

The Future Value Framework describes

such a guidance. More precisely, it

explores how to use more efficiently the

competitive advantage of time. Its goal:

human and context centric value

generation.

FUTURINGINNOVATION STRATEGY

AN INTEGRATING CANVAS

OPTIONS

PORTFOLIO

Resources and assets that

are risk weighted and

aligned to the value

strategy.

VALUE PROPOSITION

A platform where the

generated value meets the

perceived, with the goal to

establish a sustainable

Value Exchange.

PORTFOLIO OF CHANGE

A selection of key changes

that are relevant for the

organizational business

model.

FUTURES CONTEXT

A set of probable realities

of the future, the people

who live in it and a

description what they

value.

VISIONS

What the organization

desires and believes about

the future.

FUTURE VALUE

PROPOSITION

The offering of value that

creates a probable superior

market position and

positive value exchange.

VALUE

POLICIES

Guide execution of the set

value strategy that

connects the present and

the future value

proposition.

More(The link opens an other

slidedeck with more details

about the Framework)

VUCA is an acronym for a reality

that challenges.

It stands for volatility, uncertainty, complexity, and ambiguity.

Those four words describe an environment where decisions are

made in uncertainty and where constant challenges drive

organizations to adapt, experiment, access new information in

a much more agile way.

VUCA equals OPPORTUNITY

“Volatility provides profit opportunity” (Warwick-Ching, 2013)

“Uncertainty is opportunity” (Hemingway & Marquart, 2013)

“Simplifying (IT) complexity is a major opportunity” (Boston Consulting Group, 2013)

“Ambiguity equals opportunity” (Amerasia Consulting Group, 2013)

(Nathan Bennett and James Lemoine, 2014)

VOLATILITY

Relatively unstable

change; information

is available and the

situation is

understandable, but

changes is frequent

and can be

unpredictable

UNCERTAINTY

Lack of knowledge

whether (and when)

an event will have

business relevant and

significant

implications. Cause

and effect are

understood.

COMPLEXITY

Many interconnected

parts, not all known,

forming an elaborate

network of

information. But not

necessarily involve

immediate change.

AMBIGUITY

A lack of knowledge;

cause and effect are

not understood and

there is no precedent

for making prediction

as to what to expect.

(adapted from Nathan Bennett and James Lemoine, 2014)

VUCA equals opportunitywhen…

… organizations

incorporate agility and

resources allocation to

increase resiliency.

… organizations

gather beyond existing

information and

analyze them from

new perspectives.

… organizations

adapt their internal

logics to the external

changes mirroring

environmental

complexity.

… organizations

experiment to

determine what

strategies are the most

beneficial for a new

business logic.

VOLATILITY UNCERTAINTY COMPLEXITY. AMBIGUITY

(adapted from Nathan Bennett and James Lemoine, 2014)

&

The four counter actions to embrace VUCA

and transform it into an opportunity (agility,

information, adaptation and

experimentation) are incorporated logics of the Future Value Framework.

Agility is present throughout the Framework. However, in the case of VUCA the main value added comes from the Option Portfolio.

The Options Portfolio is a combination of risk-weighted and context relevant assets and resources. Pre-validated against the Value Policies the portfolio offers alternatives, a buffer accessed when needed. This concept facilitates decision-making and increase agility of implementation aligned to the set strategic north. The Option Portfolio integrate innovation with the strategy and balances short-term decision making with the long-term value strategy.

Portfolio of Change

Option Portfolio

Value Policies

Agility

New information and the understanding WHY changes occur that are relevant define the Portfolio of Change.

The Portfolio is a selection of selected Driving Forces (faster changes) and Attractors (slower accumulating changes) relevant for the organizational context. The portfolio establishes a focal point what information and changes we should consider. Four types of information are used to explore the changes:Pragmatic Information (including Political Information), Speculative Information and Imaginative Information. By exploring different types of information the quality and understanding of the changes increase.

Portfolio of Change

Information

Adaptation is present in the FVG by connecting three parts: The Portfolio of Change, the Value Policies and the Option Portfolio.

• As organizations already mapped the environment and validate it constantly. Consequently it is better prepared in case of sudden external changes. (Portfolio of Change)

• Secondly, organizations defined and researched strategic and tactic options for their set strategy and possible external changes. With more alternatives in hand they can react faster. (Option Portfolio)

• Those strategic choices are already aligned to the Value Policies, the guiding corridor that connects the external mapped changes with the strategic options and the future with the present. The Policies balance short term tactical responses and the long term value position. Pre-validatedthey allow a faster adaptation without the necessity to validate each choice with the stakeholders when sudden changes occur.(Value Policies)

Portfolio of Change

Option Portfolio

Value Policies

Adaptation

Experimentation is defined in the Framework by the Value Policies and the Option Portfolio.

The Policies define a corridor for decision-making. They set the boundaries and not the actions, and therefore represent guiding principles. They offer a space for experimentation which strategic option is the most adequate one compensating the changes and their relevancy for the new business logic.

The Portfolio of Change offers the options for the Policies. Existing options are adjusted constantly and new created. The option portfolio offers alternatives for experimentation.

Portfolio of Change

Option Portfolio

Value Policies

Experimentation

VUCA equals opportunity.

And the FVG offers a integrated logic to

apply it to your strategic and innovation process in a structured way.