Innovation
Axibra helps organizations grow their innovation capability — across the whole company, not in one team.
See how it worksPortfolio allocation is the most important long-term decision to generate results. The UNITE approach to portfolio allocation gives you a straightforward best practice for allocating your resources across the 3 Horizons of Growth.
The package
The case
The greater risk, the greater the reward, but a smart business doesn’t put all it’s eggs in one basket. The UNITE approach to Portfolio Allocation offers a straightforward approach to resource allocation, who is in charge of each type of initiative, and the goal of each type of transformation. This will allow you to create long-term strategies for growth and implement them effectively.
The mechanics
Radical innovation has by far the biggest potential, yet it also carries the highest risk. We recommend you allocate around 10% of your portfolio to (radical) innovation as a default. A healthy 20% should be dedicated to making a step-change transformation to your existing business in Horizon 2 to adapt to changing technology and market conditions. To devote such significant resources to innovation and transformation, you must carefully evaluate what tofocus on and where to cut costs. The Strategy-Execution framework we provide will be quintessential in that context. To run such a portfolio allocation, you need to have the right kindof organization. By far most resources – around 70% – should be dedicated to optimizing your core and differentiating areas in Horizon 1. This suggested default allocation of resources must obviously be adapted to your situation and industry – please read the related commentary in our book to deep-dive. Consider the ambidextrous org-chart for that. In brief, ensure you separate the existing business from the new business you are hoping to build through innovation.
The purpose
What is the goal of the model?
A balanced portfolio. Like any portfolio, your company’s portfolio should represent a good balance between executing and improving the existing business, transforming it, and entering new grounds. You also want to balance your risks – both short- and long-term. Use the 3 Horizons and the portfolio allocation model we suggested to keep your growth engine running without burning out.
Beyond the download
The PDF is yours to keep. But a model changes something only when it touches the work — and that is what Axibra does with it. The model becomes the structure your decisions are made in, and every outcome stays traceable back to the input it came from.
In practice
For years we applied this model by hand, in client engagements. It now runs inside Axibra.
Axibra helps organizations grow their innovation capability — across the whole company, not in one team.
See how it worksAxibra closes the infamous gap between strategy and execution, and carries a transformation through to delivery.
See how it worksCulture is the first reason transformations fail. Axibra keeps the organizational side of a decision in view instead of leaving it to chance.
See how it worksThousands of organizations leverage the UNITE models — these are some of them …
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From here on
Axibra is where these models run. It carries a decision through to the work that follows it, and keeps every result traceable back to the input it came from. If you would rather start with a conversation, we are one call away.
Strategy does not fail in the thinking. It fails in the handover.
Stefan F. DieffenbacherFounder & Managing Director of Digital Leadership
