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THEPOWEROFSTRATEGYINNOVATIONANewWayofLinkingCreativityandStrategicPlanningtoDiscoverGreatBusinessOpportunitiesRobertE.Johnston,Jr.J.DouglasBateAmericanManagementAssociationNewYork•Atlanta•Brussels•Chicago•MexicoCity•SanFranciscoShanghai•Tokyo•Toronto•Washington,D.C...........................10127$$$FM06-16-0313:04:27PSSpecialdiscountsonbulkquantitiesofAMACOMbooksareavailabletocorporations,professionalassociations,andotherorganizations.Fordetails,contactSpecialSalesDepartment,AMACOM,adivisionofAmericanManagementAssociation,1601Broadway,NewYork,NY10019.Tel.:212-903-8316.Fax:212-903-8083.Website::anewwayoflinkingcreativityandstrategicplanningtodiscovergreatbusinessopportunities/RobertE.Johnston,Jr.,J.DouglasBate.p.cm.Includesbibliographicalreferencesandindex.ISBN0-8144-0768-41.Strategicplanning.I.Bate,J.Douglas.II.Title.HD30.28.J6572003658.4012—dc2120030046182003RobertE.Johnston,Jr.andJ.DouglasBate.Allrightsreserved.PrintedintheUnitedStatesofAmerica.Thispublicationmaynotbereproduced,storedinaretrievalsystem,ortransmittedinwholeorinpart,inanyformorbyanymeans,electronic,mechanical,photocopying,recording,orotherwise,withoutthepriorwrittenpermissionofAMACOM,adivisionofAmericanManagementAssociation,1601Broadway,NewYork,NY10019.Printingnumber10987654321..........................10127$$$FM06-16-0313:04:27PSDedicatedto:Danielle,Rob,andEm:Yourenergy,humor,andloveinspireme.—BobBradleyandJeffrey:Youcanaccomplishanythingyoucommittodoing.—Doug..........................10127$$$FM06-16-0313:04:27PSThispageintentionallyleftblankCONTENTSAviiIixPARTONETHEWHATANDWHYOFSTRATEGYINNOVATION1C1StrategyMeetsInnovation3C2SIIMF13C3SIINSP28C4TDP38PARTTWOAGUIDEFORIMPLEMENTATION55C5TDP:TMS57C6TDP:SP71v..........................10127$CNTS06-16-0313:04:35PSviCC7TDP:AP106C8TDP:EP136C9TDP:CP185C10TDP:MP211PARTTHREEADVANCEDSTRATEGYINNOVATION227C11MDP229C12FSIS247ETFSI269G273RR279I283..........................10127$CNTS06-16-0313:04:36PSACKNOWLEDGMENTSThisbookispossibleonlybecauseofthecontributionofnumerousparticipantsinstrategyinnovationinitiativesacrossmanydifferentindustriesanddozensofcompaniesreachingbackto1983.How-ever,wewishtoacknowledgeherethespecialcontributionandsupportofafewindividualswhohavehelpedusbringittofruition.Wedecidedearlyonthatthestorywasbesttoldbysomeofthemanypioneerswhohavechampionedstrategyinnovationonbehalfoftheircompanies.IndividualswhocontributedgenerouslyintermsofpersonaltimeandsupportincludeBobGalvin,Motorola;BillCoyneandRonBaukol,3M;DieterKurzandMarcVogel,CarlZeiss;CraigWynett,P&G;BobLaPerle,EastmanKodak;BruceCarbonari,FortuneBrandsHomeandHardware;MaureenWen-mouthandTimO’Brien,Moen;DanBuchner,DesignContinuum;KenCox,NASA;GaryKaiser,EliLilly;RaySiuta,Hewlett-Packard;TerryTallis,EssentialPossibilities,andDanaSeccombe,bothfor-merlywithHewlett-Packard;andGarrettBouton,BarclaysGlobalInvestors.Althoughthisbookwillhighlightthestoriesofdozensofcompa-nies,wewouldliketoexpressaspecialthankstotwocompanies:MoenandMcNeilConsumerandSpecialtyPharmaceuticals.AtMoen,CEODickPosey,theexecutivestaff,andthePeriscopeIIteamhavebeenextremelysupportiveofourefforts.AtMcNeil,wewouldliketoexpressourappreciationtoCEOBillMcComb;BobCarpenter,vicepresidentofmarketing;AmyWeiseman,managerofinnovationandnewproductprocesses;andtheentireEdisonvii..........................10127$$ACK06-16-0313:04:51PSviiiAteamfortheircommitmenttotheexplorationofaroleforstrategyinnovationintheircompany.Wewerewarnedthatwritingabookisoneoflife’schallengesthatwilltestourcharacter,fortitude,andsenseofhumor.ThankstothewisdomanddisciplinedfreedomaffordedusbyAMACOM’sedito-rialdirector,AdrienneHickey,theorchestrationofassociateeditorMikeSivilli,andtheexperiencedprofessionalismofNielsBuessem,wefoundtheprocesstobebothenjoyableandfulfilling.Publishedauthorswhoprovidedseasonedsupportandencour-agementincludeChrisZook,Bain&Company;SidneyParnes,Cre-ativeEducationFoundation;TeresaAmabile,HarvardBusinessSchool;StanGryskiewicz,CenterforCreativeLeadership;JonathanLow,CapGeminiErnst&Young;T.GeorgeHarris,UniversityofCalifornia,SanDiego;LynneLesvesque,HarvardBusinessSchool;andBrianMattimore,consultant.Whileth

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