ADDING LENSES TO BOXES
Inspired by Professor Govindarajan’s Three-Box Solution, we developed the Three Lenses Plus One Framework.
THREE LENSES PLUS ONE
Navigating Complexity: Customer Behavior, Organizational Readiness,
Exponential Technologies, and Beyond
As Planet and People First Business Catalysts, our work includes analyzing business landscapes to co-develop processes and cultures that embed sustainable and ethical practices. To pursue this goal, we leverage a distinct analytical framework designed to dissect and address complex business challenges through a holistic lens. The three lenses framework, which we detail in the following discourse, is not merely a tool for critique, but also a blueprint for action. It merges deep insights into customer behavior, organizational dynamics, and technological advancements with acute awareness of the broader environmental context. Herein, we describe the foundational structure of this approach and the work ethos that supports it.
In our analysis of business challenges, we employ a comprehensive framework that involves three primary lenses:
- Customer Behavior, which dictates organizational design;
- Organizational Readiness, which is shaped by what customers aspire to achieve; and
- Exponential Technologies, which enable and augment the capabilities defined by the first two lenses.
Additionally, we incorporate a ‘plus lens,’ termed
Peripheral Dynamics,
to account for the broader environmental factors that not only influence but are also influenced by these three core aspects.
In Nested Circles’ analytical framework, we perceive the three lenses — customer behavior, operational readiness, and exponential technologies — as distinct entities, each moving and spinning at unique velocities and trajectories. When we say ‘less turbulence’ and ‘less noise,’ we refer to this movement and spin.
This motion is not just a metaphor for change but an accurate representation of the dynamic nature of these domains. Customer behavior shifts unpredictably, operational readiness evolves at varying paces, and exponential technologies advance rapidly, often in unforeseen directions.
According to Nested Circles, the innovation crux lies in the interactions between these moving elements. When these lenses collide, they create friction. The ‘constructive friction’ we promote in our motto.
It is a force we term ‘E-INNO’ (Energy to Innovate). This friction can be a source of wear and tear, challenging the existing structures and norms. More importantly, as constructive friction it can be a catalyst for groundbreaking innovation. At these moments of collision and friction, new ideas are forged, strategies are redefined, and innovative solutions emerge. By harnessing E-INNO, businesses can transform challenges into opportunities, driving prosperity and betterment in a constantly evolving landscape.
FRICTION: A DUAL-EDGED SWORD
Within the ‘Three Lenses Plus One’ framework, the concept of E-INNO – Energy to Innovate – represents the friction that arises at the intersections of Customer Behavior, Organizational Readiness, and Exponential Technologies, all under the influence of Peripheral Dynamics. This friction is a dual-edged sword capable of both wear and tear (destructive friction: Box 1 and Box 3 are at odds with each other) and substantial innovation (constructive friction: all boxes perform in strategic alignment).
THE THREE LENSES – DESTRUCTIVE FRICTION
E-INNO’s friction can lead to wear and tear within an organization. This wear and tear manifests not just physically but as stress on resources, strains in workforce dynamics, and challenges to existing processes and paradigms. The collision of various business elements, such as evolving customer demands, operational capacities, and rapid technological changes, without effective management, can result in conflict, inefficiency, and resistance to change. This aspect of friction can hinder progress, create internal and external conflicts, and lead to missed opportunities.
THE THREE LENSES – CONSTRUCTIVE FRICTION
However, on the other side, and more crucially, the friction of E-INNO is a potent driver of innovation. The transformative power of this friction lies in its ability to disrupt the status quo, creating an environment conducive to creative thinking and problem-solving. This compels organizations to challenge conventional methods, rethink ingrained beliefs, and explore new approaches.
The key to converting friction into a wayfarer for innovation is the perception and management of the intersecting challenges. When approached positively, friction becomes a propelling force, urging the organization to innovate. This spurs businesses to reevaluate their strategies, revolutionize their product offerings, and reimagine their operational models. For instance, friction from changing customer behaviors can lead to the development of more personalized and customer-centric products, while challenges brought about by new technologies can stimulate the creation of novel business models and operational strategies.
Effective balancing and harnessing of this friction require a culture that embraces adaptability, continuous learning, and open communication. Organizations must be adept at recognizing when friction leads to destructive wear and tear and when it signals the potential for innovative breakthroughs, and Nested Circles must be there to support them. Leadership plays an instrumental role in this balancing act by fostering an environment that encourages experimentation, tolerates calculated risks, and views failures as opportunities for learning.
Fostering a Culture of Innovation
To truly capitalize on E-INNO, organizations must embed a culture of innovation at every level. This involves nurturing curiosity, recognizing and rewarding innovative ideas, and creating a supportive environment in which employees feel empowered to challenge norms. A systematic approach to innovation is also crucial as it integrates customer insights, technological advancements, and broader market trends into every decision-making process.
In summary, E-INNO, as a catalyst for innovation, highlights the need to embrace and skillfully manage the friction arising from the dynamic interplay of different business elements. Although it can lead to wear and tear, it plays a more significant role as a driver of innovation, transforming challenges into opportunities for development and transformation. Recognizing and harnessing the positive aspects of friction enables businesses to unlock new potential, achieve sustainable growth, and maintain competitiveness in an ever-evolving business landscape.