E297 | The Strategic Problem of Change with Martin Reeves

Martin Reeves, Chairman of the BCG Henderson Institute, delves into the nuanced world of strategy, addressing its complexities in both personal and business spheres. In an engaging discussion, he highlights the scarcity of truly exceptional strategies and underscores the necessity of evaluating success progressively over time. Through his conversation with Dominic Monkhouse, Reeves elaborates on CEOs' critical role in executing strategies and the hurdles involved in preserving an innovative culture as organisations expand. He sheds light on why keeping strategies confidential can be beneficial, the adaptability required in strategic planning, and the risks posed by complacency and an inward focus.This podcast highlights the vital role of imagination and creativity in spurring innovation and fostering organisational change. They dissect the challenges associated with implementing transformative ideas, emphasising the need to move beyond conventional procedures and navigate internal politics effectively. The power of storytelling and the ability to mobilise enthusiasm for new ideas are discussed as pivotal tools in driving change. The conversation touches on the importance of framing the right questions, the paradox of hierarchy and innovation, and the need for depoliticisation and depth of debate in business. Martin shares insights from his book 'The Imagination Machine' and recommends other books on innovation and strategy.On today’s podcast: Great strategies are rare and enduring success is hard to achieve.The role of CEOs in strategy execution is important but not the dominant factor.Secrecy in strategy is not as valuable as having robust and evolvable scripts.Complacency and internal focus can hinder innovation and change.Imagination is a crucial aspect of strategy and should be given more attention. Change is a strategic problem that requires understanding the forces of change and resistance and working on both sides of the equation.Imagination is triggered by surprise and the ability to detect anomalies and changes in the world.Selling ideas and driving change requires storytelling, galvanising energy, and making it clear why the change is in everyone's best interest.Mental models can limit creativity and innovation, and it's important to challenge existing mental models and embrace counterfactual thinking.Depoliticisation and depth of debate are crucial for effective strategy and innovation.Ambidexterity is the ability to balance the focus on running the current business with preparing for the future.Diversity is important for variation and selection, but it requires a focus on both ethical and evolutionary aspects.Curiosity drives innovation and learning, and listening is a skill that can be continuously improved.Simplicity and focus are more valuable than comprehensive and exhaustive lists of strategies and actions.The biggest myth in business is that it's mostly a financial equation when in reality, it's about serving human ends and using human means to achieve them.Follow Martin:WebsiteLinkedInYour strategy needs a strategyRecommended reading:Co-Intelligence: Living and working with AI