Preparation
The company's ExO Sprint goal was to transform the organization, the industry, and related industries, so all ExO initiatives were focused on the insurance industry and adjacent industries.
INTERprotección's ExO Sprint was one of the first ever executed, so the approach in terms of the number and type of ExO teams differed from what we recommend today. In fact, the ExO Sprint presented in this book is the result of lessons learned—and improvements made—after executing several ExO Sprints with early adopters such as INTERprotección.
Execution
INTERprotección's ExO Sprint began in March 2016 and ran for a total of 11 weeks (one week for the Awake Session and Align Session at the outset, plus 10 weeks for the ExO Sprint weekly assignments).
The project was led by INTERproteccion CEO Paqui Casanueva, who also played a role as an ExO Sprint participant. His participation was a powerful motivator to his team and helped drive a mindset change.
Six teams were created: Two focused on the main business (ExO Core); two focused on creating new businesses (ExO Edge), gaining inspiration from new technologies; and two focused on creating new businesses (ExO Edge), gaining inspiration from new business models in other industries. Each of the teams had an ExO Coach, with Francisco Palao acting as the Head Coach overseeing and supporting all ExO Coaches on the methodology.
The main challenge was managing and coordinating six ExO teams, which turned out to be too many. A particular issue was that the schedule for the ExO Disruption Session and later Launch Session was tight; there was little time for each team to present its ExO initiatives. Nonetheless, the ExO teams managed to deliver a great outcome. INTERprotección was a true early adopter of the ExO Sprint methodology, and the learnings there significantly contributed to the improvement of the ExO Sprint process for future projects.
Outcomes
The ExO Sprint resulted in six ExO initiatives (two ExO Core Initiatives and four ExO Edge Initiatives), as well as an innovation lab that was designed during the course of the ExO Sprint. All ExO initiatives presented were selected for further development and received a total of $2.5 million in funding.
Overall, INTERproteccion learned how to transform the organization by keeping incremental innovation within the organization and allocating disruptive innovation outside the main organization. The company also learned that not only is it important to generate a lot of ExO Initiatives (content) but also to either design an innovation lab (a container) or find an external company builder to further develop the ExO initiatives once the ExO Sprint is completed.
INTERproteccion also figured out what the insurance industry will look like as a result of the disruption currently underway and launched ExO initiatives that will allow it to keep (and solidify) its leadership position. In short, INTERproteccion adopted a “learn-by-doing” approach to transformation.
Finally, the INTERproteccion ExO Sprint resulted in a mental shift throughout the organization, transforming those with an immune-system-response mindset into ExO-minded innovators.
Follow-Up
The impact of the ExO Sprint was huge on multiple levels. Some of the ExO Edge Initiatives generated thousands of dollars in revenues within a few days of their market launch. The newly formed innovation lab is developing the ExO Edge Initiatives and investing in external projects. Finally, the company mindset was transformed and most of the ExO Sprint participants were either promoted or given new responsibilities as a result of the intensive professional growth they experienced during the ExO Sprint.
Preparation
In 2016, aware of the profound industry transformations forthcoming on a global and local scale, we decided to redefine our innovation strategy to remain relevant and, even more, to take a leading position in the future by creating and seizing new opportunities. To this purpose, we took the ExO framework as a reference and went a step further to engage ExO Works to propel our transformation.
Our primary goal was to shift from operating as a conventional utility to a digitized, innovation-driven one. The scope involved any and all aspects of the business, including energy, utilities, finance, service, and government.
We were eager to test the ExO Sprint methodology in-house. DEWA was being encouraged by the Dubai government to try out new approaches to spark innovation, and a methodology like the ExO Sprint was a perfect channel for this. All divisions of DEWA were involved. The intention was to transform the industry and the organization.
Execution
We embarked on this phenomenal journey as soon as we could: The ExO Sprint kicked off in Dubai December 5, 2016, and ran to March 12, 2017.
We had wanted to expedite the pre-Sprint process and jump in prior to engagement of the full leadership team and final selection of participant teams. We learned, however, that this preparation is critical for the success of the Sprint. When we next do another engagement of this type, we will also choose a time of the year where most of the employees who need to be engaged in the ExO Sprint will have fewer competing demands on their time.
Outcomes
The ExO Sprint was a unique opportunity for our different divisions to collaborate closely on a common purpose and experience the richness that this brings. It also helped to uncover untapped talent within the organization and open up opportunities for experimentation.
The teams developed seven initiatives that together represented a new business ecosystem for the company. The projects were developed based on transformative business models combined with exponential technologies such as blockchain, artificial intelligence, water out of air, and energy storage.
We achieved amazing results on multiple levels:
- Strategic: DEWA was the first organization in the region to learn the ExO methodology. We became an early adopter and received a boost in the right direction of innovation.
- Cultural: The ExO Sprint introduced effective collaboration, helped in overcoming cultural barriers, and offered a new approach to developing ideas and solutions.
- Personal: The ExO Sprint introduced our employees to new resources (internal and external), and participants gained a new understanding of where and how they could implement emerging technologies.
- Ideas: Some of the ExO Sprint initiatives were taken on by our R&D department, including the initiative to transform air into water; others were presented to the Dubai 10X program for disruptive innovation launched by the Government of Dubai.
Follow-Up
DEWA continues to work with concepts similar to the ones developed during the ExO Sprint through the investments in startups it carries out as part of the Dubai Government Accelerators' program and its comprehensive Research and Development Program.
Our employees gained a heightened awareness of innovative resources and technology, and the culture became collaborative—clear evidence of a shift in mindset.
A goal for the organization was to test a completely new approach for creating value along with a new velocity for decision-making. In the end, not only did we achieve this, but we also experienced significant positive benefits such as increased team collaboration and instituting experimentation and agile exploration of new technologies and trends into all facets of our work.
Preparation
Over the past couple of years, Stanley Black & Decker has initiated efforts to double revenues in the next half-decade through organic growth and acquisitions. To achieve this growth, the company must be open to new business models, adopt new technologies, and pursue new businesses with high opportunities for growth. With the ExO Sprint we saw a unique opportunity to experience how to ideate, test, and, importantly, launch initiatives with exponential potential.
We wanted to generate a deep transformation of our organization quickly. We chose to run four ExO Sprints, each in a different business unit, to achieve company-wide impact. Concurrently, we selected existing internal projects to accelerate with ExO Incubation Partners and established an internal incubation unit, our Exponential Learning Unit (ELU), to orchestrate the work of generating new exponential businesses.
Our first ExO Sprint was focused on our Security business unit, which is in an industry seeing rapid commoditization of services. Our objectives were to address external disruptions and create new, fast-growing businesses.
Execution
The ExO Sprint for the Security business took place in our North American and European offices over the course of 10 weeks, from the Awake session on August 24, 2017, to the final presentations on December 12, 2017.
It was a challenge to unlearn some of our organizational practices—how we typically do things—in order to learn new alternatives. For example, this was evident when the teams had to validate their hypotheses. There was a natural tendency to want to engage third parties to do this, rather than “getting out of the building” to do it ourselves. The Sprint was valuable in bringing more agile ways of working to life.
One of the greatest challenges for participants was having the availability to commit the required time to the ExO Sprint. Learning to juggle day-to-day business responsibilities while creating new structural value for the organization was a bumpy road, but we recognized it as a crucial exercise required by any organization that wants to remain relevant in this era of disruption.
Overcoming the implicit tension between meeting quarterly numbers and going into uncharted waters with the ExO Sprint was achieved with strong support by our leadership, who demonstrated courage in their willingness to try new approaches and gave unwavering support to participants throughout the process.
Outcomes
Outstanding results were achieved over the course of the ExO Sprint. Many of the teams came to the final presentation with demos. Seven of the eight initiatives presented at the final session were funded on the spot and approved for next steps.
The ExO Sprint created the opportunity to tap into new markets, solve some of our current challenges, and discover new technologies and applications. Furthermore, it catalyzed a profound mindset shift not only for participants, but also for outside employees who were attracted by the process and amazed by the results.
Along the way, we learned that:
- We have significant in-house talent. Without the opportunity to commit time to create structural value for the company in an orchestrated way through an agile process, this talent would have remained untapped or beyond reach.
- The process of creation may initially seem overwhelming but by gaining confidence through persistence and practice, it becomes an empowering experience.
- Opportunities to create value are ubiquitous.
The process and results of the ExO Sprint confirmed to leadership the need for transformation and the need for a new way to seize opportunities and achieve growth.
Follow-Up
The impact of the ExO initiatives is tremendous: New businesses are being launched, the Core initiatives are making our company 10x more efficient in some areas, and startup acquisitions are being explored that are expected to accelerate the development of some of the ExO Edge Initiatives.
From the ExO Sprint, we gained the benefit of being able to identify, structure, and rapidly validate exponential opportunities for growth and adaptability. We instilled a profound mindset shift from a single-speed operating model focused only on meeting quarterly goals, to a dual-speed operating model focused simultaneously on meeting quarterly goals while creating value by leveraging the abundance of a hyper-connected and tech-powered world.
We are now underway with our next two ExO Sprints for other business divisions.
Preparation
Our ExO Sprint lasted 10 weeks, with a one-week break before Week 1 and a two-week break prior to its completion. The goal was to build on the success of the LF Design business in a way that nobody would expect by adopting a new methodology for innovation that harnesses the power of exponential technologies, provides new vectors of discovery and growth, and accelerates our capacity to always be innovating.
The scope of work was defined to focus on the Large Format Design segment with two main intents: Transform the LF printing industry and make the current organization more flexible and adaptive. We recognized that many industries could be transformed by applying the core competences of the LF Design division, such as pharma, cosmetics, printing, communications, and construction.
HP decided to start with Large Format Design Printing because our Project Sponsor was recognized as a visionary within the company when it comes to innovation and the application of new methodologies.
Execution
We made four customizations to the standard ExO Sprint:
- Edge teams were open to the possibility of disrupting other industries by building on the existing core competencies of the current business.
- We created an “uncontaminated” team (i.e., participants with less than six months with the company) made up of Millennials.
- We brought external ExO Advisors to the closing session.
- We conducted an extra feedback loop during Week 9, allowing teams to really adopt the Experimentation attribute as a fundamental change to the way they usually work.
As could be expected, challenges during our ExO Sprint were mainly related to having participants get used to changing their usual ways of working, keeping up with the weekly deliverable schedule and bringing in new, external perspectives.
We found that the “soft skills” of coaching (empathy, encouragement, reframing, etc.) were valuable in supporting participants through their new experiences. We also grappled with low bandwidth, which we addressed by bringing additional participants to the teams.
Outcomes
At the close of the ExO Sprint, eight initiatives (names withheld) were presented, along with specific next steps:
Initiative 1
- 3 Engineers to be assigned within a month
- 1 Product Manager to be assigned within a month
- Technical Sponsor named
Initiative 2
- $50K assigned to move forward
- Technical Sponsor named
Initiative 3
- $20K assigned to move forward
- 1 Subject Expert to be assigned within a month
- 50% Product Manager and 50% Customer Experience role to be assigned within a month
- Technical Sponsor named
Initiative 4
- $50K assigned to move forward
- Team assigned, with 25% commitment
Initiative 5
- Find external company builder/entrepreneur; challenge to be launched within a month
- Decision expected within a quarter
Initiative 6
- Feature for new products in existing line
- 30% of Customer Experience role and 30% of R&D
Initiative 7
- Merge with existing product
Initiative 8
- Present to a different business division within a week
Follow-Up
The results were extraordinary. On the organizational front, the following transformations took place:
- Cultural shift to becoming more agile in execution; we moved away from the idea of perfection in favor of going FAST.
- Cultural shift toward customer insights; we initiated a culture of experimentation (customer development, fast prototyping).
- Opened our business to the outside. For example, external ExO Advisors were engaged to do periodic (once or twice monthly) checks on the progress of the projects.
- Incorporation of the word “disruption” in strategic conversations where it had been formerly taboo.
- Developed deep knowledge of disruptive technologies and ExO attributes.
- Created new opportunities and ideas to explore; ExO ideas were integrated into our current innovation processes.
Other business units have now followed our lead and are running self-provisioned ExO Sprints supported by some of our ExO Sprint participants, who are serving as internal facilitators.
Preparation
The energy industry is being exposed to many changes that will ultimately transform it completely—so much so that we're assuming that electricity will be free in a decade! Given this tectonic shift in the industry, our main goal was to transform our company into an innovation-centric organization. Our intent was to transform not only the industry but the company as well. To that end, the Edge Stream was designed to work on any sector whether or not it was in an adjacent market.
Execution
The project was led by our CEO, Ignacio Cuerva, who provided us with a draft of this book and which we used as a guide with great success.
Our ExO Sprint was structured into four teams, two Core and two Edge, each comprised of five people. Paqui Rubio was the ExO Coach for both Core teams as well as a team member on one of the Edge teams. Alfredo Rivela (CEO of Turning Tables) acted as the ExO Coach for both Edge teams, and Francisco Palao, co-author of this book, acted as Head Coach in support of both ExO Coaches whenever they had any questions about the methodology.
Outcomes
Ten initiatives were presented at the Launch Session: five from the Core teams and five from the Edge teams. Eight initiatives were selected by Cuerva's leadership team and received funding for their next stages. The ExO Core Initiatives are being coordinated internally by the Innovation Department, and Turning Tables, Grupo Cuerva's innovation lab, is developing the ExO Edge Initiatives.
While it's too early to report on results of the recently launched initiatives, it's clear that the mindset of the organization as a whole has completely shifted, and that those who participated in the ExO Sprint feel empowered to try new things in their goal of leading the way to industry transformation.
Follow-Up
Two of our ExO Edge Initiatives are most likely to result in two new companies while the other two will become part of the Disruptive Innovation Lab ecosystem previously launched by Turning Tables in its role as an implementation partner.
Our ExO Core Initiatives are predominantly focused on digital transformation and include designing new roles (e.g., a data scientist) and making the company more adaptable to clean energy disruption.
The biggest challenge of the ExO Sprint was the level of dedication required and ensuring that executive management was at all times aware that employees needed to dedicate over 50% of their time to the project. However, strong support from the CEO of the company and a high level of passion among the participants working on the ExO Sprint made the whole project a great experience for everyone, especially given the outstanding results.
In particular, the ExO Sprint participants value their new mindset around experimentation and early exposure to customers, and they are currently applying this new way of thinking and doing to their daily basis tasks.
With a third of our employees engaged in the project, the ExO Sprint was a massive commitment, one that translated into a tremendous shift in terms of our company's culture and in defining what is possible. Many of our staff have now come to adopt a transformational mindset, and our new “normal” involves creating and testing new hypotheses on a daily basis.