The Three Box Solution

Leaders have to manage three boxes simultaneously.

BOX 1: Manage the present core businesses at peak efficiency and profitability.

BOX 2: Breakaway from obsolete practices of the past. Some of these may have been the source of past success.

BOX 3: Innovate nonlinear futures for the business by

(1) redefining your set of customers,

(2) reinventing the value you offer them.

To start thinking about the three boxes to transform your organization, it is important to start looking for discontinuities. These could be:

Customer discontinuities—Are today’s biggest, fastest-growing, or most profitable customer segments likely to be the same ones in the next ten to fifteen years? Who will be your customers in the future? Are there small or emerging customer segments today that are using or even customizing your products or services in unconventional ways? Which non-consumers today could potentially become consumers in the future? What would be their priorities? 

Technological discontinuities—What disruptive technologies can open up new opportunity spaces?

Nontraditional competitors—Are today’s most potent competitors likely to be the same ones in the next ten to fifteen years? Who will you be competing against in the future? And on what basis? 

New distribution channels—Will there be fundamental changes in your go-to-market approach in the future? What possible supply chain economies might your business face? 

Regulatory changes—What are the potential regulatory reforms? What new opportunities might they open up for you?