Proposed ExO Canvas: Innovation and Strategic Planning

Introduction

In an increasingly dynamic and competitive world, organizations must adopt innovative approaches to ensure sustained growth. Salim Ismail's Exponential Organizations (ExO) methodology provides a valuable framework for achieving this goal. This article compares a traditional ExO Canvas with a proposed version that includes a 10-year vision, a customer-oriented Big Hairy Audacious Goal (BHAG), and a backcasting planning approach. The necessary steps to achieve these goals, KPIs, OKRs, and the impact on the community are detailed.

Key Definitions

ExO (Exponential Organization)

An ExO, or Exponential Organization, is one whose impact output is disproportionately large—at least 10 times greater than its peers—due to the use of new organizational techniques that leverage accelerating technologies. These organizations adopt attributes such as Community & Crowd, Algorithms, Leveraged Assets, and Staff on Demand, among others, to achieve exponential growth.

Canvas

A canvas is a visual tool for designing, describing, challenging, and pivoting business models. The ExO Canvas specifically helps organizations identify key areas for fostering exponential growth by adopting certain attributes and practices.

Backcasting

Backcasting is a planning technique where a desired future vision is established, and steps are identified to achieve that vision by working backward. This approach is particularly useful for developing long-term strategies and ensuring that current actions align with future goals.

Scenario Planning

Scenario planning is a methodology that allows organizations to foresee different possible futures and prepare strategies for each. By considering multiple scenarios, companies can be more flexible and better adapt to environmental changes.

OKRs (Objectives and Key Results)

OKRs are a management methodology popularized by John Doerr in his book "Measure What Matters". They help organizations define and track objectives and their key results. This technique promotes focus and alignment at all levels of the organization, facilitating the measurement and tracking of progress towards strategic goals.

BHAG (Big Hairy Audacious Goal)

Jim Collins coined the term BHAG in his book Built to Last: Successful Habits of Visionary Companies. A BHAG is a clear and compelling long-term goal that a company strives to achieve, challenging its capacity and stretching its limits. These goals are designed to inspire and motivate the organization to achieve extraordinary accomplishments.

Traditional ExO Canvas

The traditional ExO Canvas is based on the Massive Transformative Purpose (MTP) and the attributes SCALE and IDEAS. This structure helps organizations identify key areas to foster exponential growth.

Massive Transformative Purpose (MTP)

The MTP is a purpose statement that inspires and motivates the organization and its community to achieve significant and positive change in the world.

SCALE (External Attributes)

Staff on Demand: Use scalable and temporary human resources to increase flexibility and reduce fixed costs.
Community & Crowd: Leveraging the power of community and crowd for innovation, feedback, and support.
Algorithms: Use algorithms and data analysis to make informed decisions and automate processes.
Leveraged Assets: Use of external assets to minimize capital investments and maximize efficiency.
Engagement: Fostering active participation and engagement from users and the community through personalized and meaningful experiences.

IDEAS (Internal Attributes)

Interfaces: Creating intuitive and effective user interfaces that facilitate interaction with technology and processes.
Dashboards: Implement control panels that provide real-time visibility and track KPIs and OKRs.
Experimentation: Fostering a culture of constant experimentation to test and validate new ideas quickly.
Autonomy: Empowering employees and teams to make autonomous decisions aligned with organizational goals.
Social Technologies: Use of social technologies to improve communication, collaboration, and cohesion within the organization.

Proposed ExO Canvas

The proposed ExO Canvas includes the MTP, SCALE, and IDEAS attributes, as well as a 10-year vision, a customer-oriented BHAG, and a backcasting approach. These additional elements allow for better strategic alignment and a more focused approach to long-term impact.

Additional Components:

1. 10-Year Vision
2. Customer-Oriented BHAG
3. Backcasting Planning
4. Community Impact
5. KPIs and OKRs for Monitoring
6. MTP, Mission, Vision, and Values Located at the Base of the Canvas
   Justification: This structure reflects the MTP, mission, vision, and values, which are the foundations supporting all goals and the organization itself.

Canvas Comparison

1. Massive Transformative Purpose (MTP)
   Traditional: Focused on a broad purpose that guides all organizational actions.
   Proposed: Includes a long-term vision that clearly defines the desired state of the organization in 10 years.
2. BHAG (Big Hairy Audacious Goal)
   Traditional: Generally internal, oriented towards organizational transformation.
   Proposed: Directed towards customers, focused on creating a significant and memorable impact in the market and community.
3. Backcasting Planning
   Traditional: Not included.
   Proposed: Break down the 10-year vision into specific strategic steps: 5 years, 3 years, 1 year, and the next QBR (Quarterly Business Review).
4. Community Impact
   Traditional: Limited focus on organizational growth.
   Proposed: Considers the social and community impact of the organization's actions, making it more visible and explicit.
5. KPIs and OKRs
   Traditional: Focused on internal performance metrics.
   Proposed: Includes specific KPIs and OKRs to monitor the implementation of SCALE and IDEAS attributes and ensure the fulfillment of the organization's mission, vision, and values.

Backcasting Planning: 5 Steps

1. 10-Year Vision
   Goal: Become the market leader in sustainable solutions.
   Community Impact: Significant reduction in the industry's carbon footprint.
2. 5-Year Goals
   Strategy: Global expansion and development of new green technologies.
   KPIs/OKRs: 50% increase in revenue from sustainable products.
3. 3-Year Goals
   Strategy: Strengthening strategic partnerships and improving operational efficiency.
   KPIs/OKRs: 30% reduction in operational costs through automation.
4. 1-Year Goals
   Strategy: Implementation of pilot projects and evaluation of results.
   KPIs/OKRs: Successful launch of at least 3 pilot projects with measurable positive results.
5. Next QBR
   Strategy: Tactical adjustments based on quarterly performance.
   KPIs/OKRs: Achievement of 90% of established quarterly objectives.

ExO Canvas Backcasting Process

1. Establish the 10-Year Vision, based on your MTP
   Define a specific and desired future state of the organization.
   Example: Become the leader in sustainable solutions with a significant impact on carbon footprint reduction.
2. Determine the BHAG
   Set an inspiring and customer-oriented BHAG that motivates the organization.
   Example: Achieve a global saving of 1 million tons of CO2 through our solutions.
3. Identify 5-Year Goals
   Break down the vision into tangible and achievable medium-term goals.
   Example: Expand our sustainable solutions to 20 new international markets.
   
4. Establish 3-Year Goals
   Define intermediate goals that bring the organization closer to the 5-year goals.
   Example: Form strategic partnerships to improve the adoption of green technologies.
   
5. Establish 1-Year Goals
   Detail actions and objectives for the short term that lay the groundwork for future success.
   Example: Launch and evaluate pilot projects in key markets to validate new solutions.
6. Establish Your Next Quarter Goals
   Outline specific actions and objectives for the upcoming 90 days to build a foundation for future success.
   Example: Initiate and assess pilot projects in critical markets to verify new solutions.

Conclusion

The comparison between the traditional and proposed ExO Canvas highlights the importance of incorporating a long-term vision, a customer-oriented BHAG, and a backcasting approach to align the organizational strategy with future goals better.

The placement of the MTP, mission, vision, and values at the base of the proposed canvas reflects their fundamental role as the support for all goals and the organization itself. This structure not only improves clarity and focus but also ensures that all actions and decisions are aligned with the organization's core purpose and values.

References

Wharton. (2022). Scaling a Business: How to Build an Unicorn. [Online Course].
Ismail, S. (2014). Exponential Organizations: Why new organizations are ten times better, faster, and cheaper than yours (and what to do about it). Diversion Books.
Doerr, J. (2018). Measure What Matters: OKRs: The Simple Idea that Drives 10x Growth. Penguin.
Collins, J., & Porras, J. (1994). Built to Last: Successful Habits of Visionary Companies. Harper Business.