The Innovator’s Solution: Creating and Sustaining Successful Growth is crucial for anyone in business trying to grow an existing company or a new one into a competitor in any market. I got the recommendation from Jeff Bezos, not directly, but secondhand through an online blog or podcast that he recommended everyone pursuing business read. It discusses specifically how to create disruptive and sustaining growth within companies. You will not hear these terms in your MBA program but I highly suggest you learn them and review the contents of the book to start to understand the theories used to build new growth channels in a business.
The premise of the book is different. The author admits that “no company has been able to build an engine of disruptive growth and keep it running and running.” And few books have said “Do this; no one’s ever done it before.” p. 291-292 But whenever you take action on a plan, “it was predicated upon a theory in your mind that your actions would lead to the envisioned outcome. So using theory to create successful growth business needn’t feel strange.” p. 288
Most businesses “blindly [copy] the best practices of successful companies without the guidance of circumstance-contingent theory….Replicating their success is not about duplicating their attributes; it’s about understanding how to generate lift.”
This book was a breath of fresh air and will plainly explain the challenges that you will face before you take a position to implement new growth initiatives. “Understand the forces that act upon the individuals involved in building businesses [and you will understand the powerful influences] managers choose and cannot choose to do.” p. 9
A couple key concepts:
To start the disruptive growth trajectory you should be “impatient for profits, patient for growth”.
The RPV model, or the Resource, Processes, and Values model is a “useful guide for executives who determine that they need to create new capabilities because those that their organization presently has aren’t well suited for building new-growth businesses.” p. 194