The 7 Perspectives of Effective Leaders Perspective Three

New initiatives that change or add to a business's current operations.

Crate and Barrel initially focused on tableware. Later, they successfully expanded into furniture.

Crate and Barrel began by importing and selling European tableware.

Crate and Barrel's expansion into furniture significantly increased their business by over 50%.

A strategic bet involving potentially higher risks and rewards compared to less dramatic changes.

A key employee suggested expanding into furniture, effectively changing the company’s focus and strategy.

Strategic bets are measured by their impact on the business, not just the initial investment.

Proactive decisions bridging Current Reality and Vision, typically spanning 18 months to 3 years, with a chance of quicker payoffs in times of crisis.

The present state of the organization and its environment.

The desired future state of the organization.

Large-scale strategic initiatives have a 70% failure rate.

Confidence is crucial for initiating strategic bets, which inherently involve risk.

Strategic bets involve risk and uncertainty; they're not guaranteed to succeed.

Backup plans to address potential failures of strategic bets and mitigate their negative impact on the business.

Failure can be a key driver for improvement in strategic bets, leading to better outcomes.

Leaders who anticipate and learn from failure, rather than being surprised or threatened by it, tend to achieve higher success rates in their strategic bets.

Intentionally identifying and addressing potential flaws in strategic plans early on, allowing for quick adjustments and learning.

High-impact initiatives that are not guaranteed to succeed, but offer potential for significant gain if executed correctly.

Specific milestones or metrics used to trigger a review or adjustment of a project/initiative if performance falls below a certain threshold.

Forecasting possible failed outcomes of a project or initiative by speculating past the desired outcome and identifying potential obstacles.

The distance between the current state of a business and its desired future vision.

The present situation of an organization or business, including its resources, limitations, and market position.

The desired future state of an organization, including its goals, aspirations, and the outcomes it wants to achieve.

Clearly defined, measurable goals for strategic initiatives to effectively track progress and success/failure.

Assigning responsibility and authority for a specific initiative to a single individual, promoting clarity and effective decision-making.

An unconscious preference toward continuing a project/initiative, despite evidence that it may not be successful.

New initiatives that require significant resources and attention, but hold potential for significant growth.

Considering the consequences of a successful strategic bet, especially regarding infrastructure and support systems.

The process of changing a strategic bet from a special project to a standard business operation.

Leaders prioritize helping teams think critically and articulate opportunities.

Leaders should clearly communicate the current state, future vision, and plan for executing strategic bets.

Leaders must consistently explain strategic bets' connection to vision and goals.

Strategic bets by nature push teams and individuals out of their comfort zones.

Proactively seeking new ideas and solutions, and empowering others to contribute to strategic bets.

Establishing shared responsibility for executing strategic bets to ensure success.

Regularly tracking progress towards strategic goals and benchmarks to ensure continued improvement.