*4.4.1. Evolution Cycle*

The **evolution cycle** is a new process that should sit between the performance cycle and the innovation cycle. It enables the continuous innovation of the established performance cycle catalyzed by the stimulus, ideas, and business plans that are outputs from the innovation cycle.

• The change management capability that helps the established organization to continuously evolve toward what it needs to become in order to deliver a full business plan for a new,

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Whatever we choose to call it, we can describe the essential characteristics in terms of resources, processes, and values. Our non-exhaustive checklist covers the following elements:

• Leadership that is energetic, positive, persuasive, and collaborative—from a leader who is

• Deep knowledge and appreciation of the performance cycle (core business operations, assets, capabilities, and "how we do things around here")—as a grounding for the bridging

• Expertise in disruption and innovation—fully appreciative of fresh thinking and new ideas, driven by customer insight, based on observation of the world outside and congruent with the organization's purpose and values. In other words, able to intelligently assimilate input

• Expertise in organization development and change management—covering the structural,

• Strategic and operational connection between the dynamic pipeline process of the innovation cycle and the mid−/long-term strategy and planning process of the performance cycle—to ensure that organization innovation to deliver proposition innovation is a regular

political, diplomatic, and technical domains of organizational change

**Process**: integrated, interlocking processes (**Figure 5**) providing:

• Expertise in scaling up the outcomes and learning from tests and prototypes

innovative initiative

**Resource**: a dedicated team providing:

of "business as usual" with innovation

topic on the leadership team agenda

**Figure 5.** Integrated processes.

from the innovation cycle

known by and commands respect in the core organization

The evolution cycle (**Figure 4**) does much more than just manages the friction at the interface between the Performance and innovation cycles. It also determines what new capabilities and activities should be added, what core processes should be changed, and what should be stopped or outsourced (framing the task of change management).

The evolution cycle is appreciatively disruptive: building on what's working and what's valuable while infusing innovative ideas and challenging received wisdom. The evolution cycle creates a movement for change through involving a broad cross section of people in the co-discovery of the strategic, operational, and behavioral consequences of an innovative proposition.

We have encountered aspects of the evolution cycle in our work, although it has never been called out in its entirety. It has been variously talked about as:


**Figure 4.** Evolution Cycle.

• The change management capability that helps the established organization to continuously evolve toward what it needs to become in order to deliver a full business plan for a new, innovative initiative

Whatever we choose to call it, we can describe the essential characteristics in terms of resources, processes, and values. Our non-exhaustive checklist covers the following elements:

**Resource**: a dedicated team providing:

*4.4.1. Evolution Cycle*

14 Marketing

where future value lies

**Figure 4.** Evolution Cycle.

The **evolution cycle** is a new process that should sit between the performance cycle and the innovation cycle. It enables the continuous innovation of the established performance cycle catalyzed by the stimulus, ideas, and business plans that are outputs from the innovation cycle. The evolution cycle (**Figure 4**) does much more than just manages the friction at the interface between the Performance and innovation cycles. It also determines what new capabilities and activities should be added, what core processes should be changed, and what should be

The evolution cycle is appreciatively disruptive: building on what's working and what's valuable while infusing innovative ideas and challenging received wisdom. The evolution cycle creates a movement for change through involving a broad cross section of people in the co-discovery of the strategic, operational, and behavioral consequences of an innovative proposition. We have encountered aspects of the evolution cycle in our work, although it has never been

• The "diamond cog" that sits between legacy operations and future innovation, fusing an appreciative understanding of the established business with a customer-centric view of

• The "membrane" that wraps around the entire organization, maintaining the integrity of the whole and preventing the new ideas from never getting off the ground in the first place,

• The "bridge" between strategy and execution, ensuring that organizational delivery is fully considered as part of the formulation of strategy, with both domains viewed as part of a

stopped or outsourced (framing the task of change management).

called out in its entirety. It has been variously talked about as:

drifting away, or being picked off by competitors

continuum rather than as discrete activities


**Process**: integrated, interlocking processes (**Figure 5**) providing:

• Strategic and operational connection between the dynamic pipeline process of the innovation cycle and the mid−/long-term strategy and planning process of the performance cycle—to ensure that organization innovation to deliver proposition innovation is a regular topic on the leadership team agenda

**Figure 5.** Integrated processes.

• Active, structured facilitation of the conversation to manage the inherent tension and conflicting priorities of the "improvers" versus the "disrupters"—making explicit the criteria being applied, the choices being made, the goals and KPIs being agreed, and the issues that need to be elevated for executive discussion

their "sense of purpose." Instead, they "float" in the organization and withhold their discre-

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http://dx.doi.org/10.5772/intechopen.74090

Our work [6] has revealed four conditions for positive engagement (**Figure 6**) that leadership

People have a clear sense of what the organization is about (and share this belief) and understand how they are a meaningful part of this. People's behaviors are aligned with the expectations held within their organization. Hence, people work toward a meaningful, common

tionary effort. Shared aspirations are lost and opportunities are squandered.

purpose, in an authentic manner. This condition underpins engagement:

• Shared values and behaviors are collectively translated into purposeful action.

• The efforts of an engaged workforce are harnessed toward organizational goals.

• People feel part of, and proud of, their organization—becoming powerful advocates.

Through visible and accessible leadership and effective communication channels, people are connected with colleagues across boundaries (i.e., hierarchal, professional, departmental) and are aware of, and appreciate, the interdependence of different roles and what's happening

• Ideas, knowledge, and best practices are shared—developing individuals and processes.

• People learn of the strengths, and good, in others—encouraging consistency and teamwork.

People are enabled to voice opinions about organizational issues, input new ideas, and positively influence how they perform their roles. Leaders believe that staff contributions are inte-

• Shared experiences help people build more positive working relationships.

gral to success and foster an environment of true collaboration:

can create and promote.

Condition 1: Alignment to purpose

Condition 2: Connected across boundaries

across their organization:

Condition 3: Enabled to contribute

**Figure 6.** Conditions for engagement.

• A regime for continuous development of prototypes, formulation of experiments, and live testing of new ideas—to ensure consistency, shared learning, and habituation of the process of evolution. This particular process may be part of the innovation cycle, depending on the scope and capability of the dedicated innovation team

#### **Values**: a foundation of common purpose and culture.

To maintain the integrity of the organization overall, it may seem obvious that purpose and values must be aligned across the performance cycle and innovation cycle. However, it is a natural consequence of an effective innovation cycle that new opportunities and new ways of working will emerge and challenge the ideological underpinnings of the core business.

Automotive manufacturers used to think of themselves as being in the business of selling as many cars as possible and needing to compete vigorously with other manufacturers for share of market. Nowadays, they are all in the process of reframing their purpose toward "provision of mobility solutions," where access to mobility becomes more important than ownership of a car. This requires major industry players to collaborate more extensively with another one on industry challenges such as electric vehicle standards and charging infrastructure.

Constant sense check of alignment is therefore integral to the evolution cycle process. The innovation cycle can and should continuously stretch and test the legacy purpose and established values of the performance cycle.

To emphasize, the proposed evolution cycle is not a reframing of the innovation cycle or an upgrade to the performance cycle. It is a new process that explicitly concerns itself with the challenge of evolving the established organization, fusing performance and innovation perspectives into a continuous process of organization change.

#### *4.4.2. Active engagement*

**Engage the organization**: tap into the latent potential of the established organization in driving change.

How should leadership think about evolving the organization? There is one way of looking at it which is to consider the core organization as an obstacle that does not want to change, a deadweight impeding progress that requires intervention.

There is another way of looking at it which is to view the people in the organization as a source of energy and inspiration, a latent competitive advantage with the potential to be engaged and energized behind a new direction.

Our experience is that in reality, most people want to go to work and to do a good job. Most desire to understand how to give their best. Most care about their role and their organization's success—and want to know what they can do to best contribute. Yet, a lack of investment in engaging people's enthusiasm and helping them realize their potential means they can lose their "sense of purpose." Instead, they "float" in the organization and withhold their discretionary effort. Shared aspirations are lost and opportunities are squandered.

Our work [6] has revealed four conditions for positive engagement (**Figure 6**) that leadership can create and promote.

Condition 1: Alignment to purpose

• Active, structured facilitation of the conversation to manage the inherent tension and conflicting priorities of the "improvers" versus the "disrupters"—making explicit the criteria being applied, the choices being made, the goals and KPIs being agreed, and the issues that

• A regime for continuous development of prototypes, formulation of experiments, and live testing of new ideas—to ensure consistency, shared learning, and habituation of the process of evolution. This particular process may be part of the innovation cycle, depending

To maintain the integrity of the organization overall, it may seem obvious that purpose and values must be aligned across the performance cycle and innovation cycle. However, it is a natural consequence of an effective innovation cycle that new opportunities and new ways of working will emerge and challenge the ideological underpinnings of the core business.

Automotive manufacturers used to think of themselves as being in the business of selling as many cars as possible and needing to compete vigorously with other manufacturers for share of market. Nowadays, they are all in the process of reframing their purpose toward "provision of mobility solutions," where access to mobility becomes more important than ownership of a car. This requires major industry players to collaborate more extensively with another one on

Constant sense check of alignment is therefore integral to the evolution cycle process. The innovation cycle can and should continuously stretch and test the legacy purpose and estab-

To emphasize, the proposed evolution cycle is not a reframing of the innovation cycle or an upgrade to the performance cycle. It is a new process that explicitly concerns itself with the challenge of evolving the established organization, fusing performance and innovation per-

**Engage the organization**: tap into the latent potential of the established organization in driv-

How should leadership think about evolving the organization? There is one way of looking at it which is to consider the core organization as an obstacle that does not want to change, a

There is another way of looking at it which is to view the people in the organization as a source of energy and inspiration, a latent competitive advantage with the potential to be

Our experience is that in reality, most people want to go to work and to do a good job. Most desire to understand how to give their best. Most care about their role and their organization's success—and want to know what they can do to best contribute. Yet, a lack of investment in engaging people's enthusiasm and helping them realize their potential means they can lose

industry challenges such as electric vehicle standards and charging infrastructure.

need to be elevated for executive discussion

**Values**: a foundation of common purpose and culture.

lished values of the performance cycle.

*4.4.2. Active engagement*

ing change.

16 Marketing

spectives into a continuous process of organization change.

deadweight impeding progress that requires intervention.

engaged and energized behind a new direction.

on the scope and capability of the dedicated innovation team

People have a clear sense of what the organization is about (and share this belief) and understand how they are a meaningful part of this. People's behaviors are aligned with the expectations held within their organization. Hence, people work toward a meaningful, common purpose, in an authentic manner. This condition underpins engagement:


#### Condition 2: Connected across boundaries

Through visible and accessible leadership and effective communication channels, people are connected with colleagues across boundaries (i.e., hierarchal, professional, departmental) and are aware of, and appreciate, the interdependence of different roles and what's happening across their organization:


#### Condition 3: Enabled to contribute

People are enabled to voice opinions about organizational issues, input new ideas, and positively influence how they perform their roles. Leaders believe that staff contributions are integral to success and foster an environment of true collaboration:

**Figure 6.** Conditions for engagement.

