New Book Review: "Future Value Generation"
New book review for Future Value Generation: Do You Need to Create New Business Logics?, by Daniel Egger, CreateSpace, 2016:
Copy provided by author Daniel Egger.
According to Egger, most companies today strive to react with quick solutions when challenged by change, and at the same time, strive to design new opportunities for the future. Unfortunately, however, companies get disappointing results because (1) innovation merely attempts to solve past problems, (2) strategy locks in a static worldview, and (3) foresight too often explores what is possible, but not practical. In order to create new value (which the author refers to as "logic"), the author argues that companies instead need to integrate these three approaches.
In his introductory pages, Egger explains that organizations will lag if they do not add new competencies and new methods to prepare for change. "If they try to meet new challenges using the reasoning, arguments, and hypothesis of the past, they might solve the problem, but it will take increasingly more time. Without new organizational capabilities, they have less and less time to adapt these new challenges, which will increase in quantity and complexity. Urgent action is critical."
"If the organization is inactive, cultural distress builds up, leading to managing daily crises and fast, super-simplified decision making, a tactical response that cannibalizes mid- and long-term value generation. This way of responding to change drives the organization into constant waves of disorder, causing it to forget about creating purpose and exploring new opportunities that emerge. Interesting is that a focus on crisis management might save the day but will only postpone critical business decisions."