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Fast Company
09-07-2025
- Business
- Fast Company
The secret behind innovation that matters: Scale
Everyone loves the 'aha' moment—that big idea, concept, or insight. But real impact happens when innovation takes root, at scale. This is where the rubber really meets the road. We are facing some of the biggest global challenges in decades—from socioeconomic changes and an aging population to climate impacts and the real need to feed our rapidly changing world. Innovation is how we turn challenges into ideas and actionable results. But it only matters when it can be scaled, making its way from whiteboards and pilot plants into the real world on shelves and in people's lives. So, what does it take to make that happen? The best recipe for scalable innovation starts with the right culture, partners, and willingness to stay the course. Build a culture of innovation You don't get world-changing ideas by staying comfortable. The essence of innovation is stepping into something new. Scaling innovation starts by intentionally building a culture of innovation, with the right mindset, beliefs and behaviors. My teams have done this by: Attracting top talent: Innovation begins with innovators. We consistently focus on recruiting deep expertise and curious minds to our team. Building world-class capabilities: Driving growth requires investing in capabilities needed for the future (looking at emerging spaces 3-5 years out) even in tough times. Focusing on customer and consumer needs: Know your 'why.' For us, it's fulfilling our purpose through solutions that deliver value to our customers and their consumers. Dedicated innovation and technical teams tagged to strategic customers have made all the difference. Enhancing innovation systems and processes. Governance and defined processes aren't optional. We got creative, working with our audit team to make innovation measurable and so it sticks. Innovation isn't just R&D. It's a mindset that thrives on experimentation, tolerates failure, and encourages rapid iteration. When you focus not only on the idea, but how that idea creates impact for customers across your organization or industry, that's where the magic happens. You can reinforce how your unique capabilities, processes, and portfolio connect, building conviction to act across an organization, together. Partnerships drive exponential possibility I've been asked a lot about what the benefits are of companies collaborating to drive scalable innovations. To me it's simple. Innovation is the ultimate team sport. No one succeeds alone. Period. Scaling innovations demands a connected system across the supply chain, geographies, and partners. This approach unites experts from academia, startups, VCs, suppliers, and brand-name companies around the same goal: finding science-driven innovations that work. Part of the equation is balancing profit, purpose, and demand. Innovations must make business sense and deliver profits. But you can't abandon ship at the first sign of short-term volatility. That's why this kind of integration is rare and powerful. Sharing risks and rewards requires a foundation of partnership, trust, and clear understanding of the role each of us plays in the full innovation ecosystem. For Cargill, which supports 30+ startups in 11 countries and almost every continent, partnership takes many forms. We have an early validation program to address the biggest startup challenges, moving from concept to scale. We also partner with universities and accelerators to advance critical research and innovations. And we partner with customers to achieve shared goals of improved health, nutrition, sustainability, and food system resilience Stay the course Great ideas are just the beginning. Too many innovations are celebrated early, hitting the top of the hype curve before getting filed away. Why? Because scaling isn't easy. Scale demands rigor, patience, and some grit. It takes science, systems, and the right incentives to stay committed long enough to see real results. It's the repeatable and reliable innovations that make the real difference, including those that are accessible. To make sure your innovations stick, build scalability into your innovation plans from the start. Think in systems, prioritize speed, and access and always collaborate. Balance delivering for today (we're all accountable to the bottom line) without losing sight of the long-term vision. The future belongs to those who not only imagine what's possible but who can build it at scale. That's how we move from 'aha' to innovations that truly change our world. Florian Schattenmann is CTO of Cargill.
Forbes
15-06-2025
- Business
- Forbes
Discovering The New Age Of Value Creation
CEOs of fast growing firms: Schmidt; Barra, Nadella, and Amin For several centuries, businesses sought mainly to make money. But some 25 years ago, a different idea began spreading. 'What if,' some said, 'instead of aiming to make money, we set out to create value for our customers?' When they did that systematically, they found that customers responded positively and, to everyone's surprise, they were usually much more profitable. So why don't all firms commit to creating value for their customers? The shift is key for many reasons: The shift is still under way. We thus now live in two different, concurrent worlds. One world is still dominated by autocrats, sharks, and self-interested businesses who are doing what they can to extract profits for themselves and their associates at considerable cost to society. The other world comprises businesses and many other kinds of organizations and individuals who are intent on creating value for others. The result here is an emerging Age of Value Creation. The idea that businesses must be primarily self-interested has a long and difficult history. Self-interest in business was assumed by the founder of modern economics, Adam Smith, in Wealth Of Nations (1776). It was presumed by the father of 20th century management processes, Frederick Taylor, in The Principles of Scientific Management (1911). It was explicitly pursued by the movement led by Nobel Laureate Milton Friedman and his colleagues to maximize shareholder value (1970 and beyond, even though the idea was eventually labeled by former CEO of GE, as 'the dumbest idea in the world.' It was endorsed by the U.S. Business Round Table (1997), until that endorsement was declared politically unacceptable in 2019. Leading management journals still publish and praise articles about self-interested businesses focused on making profits for the benefit of the firm, its executives and its shareholders. The management of self-interested corporations tends to be hierarchical, bureaucratic, mechanical, process-driven, inert, and inhuman, stifling creativity and innovation, and more. In the relatively stabler context of the 20th century, large self-interested firms made financial profits, even as staff engagement moved steadily lower and business returns gradually declined. What has led to change? It wasn't a sudden moral epiphany on the part of business leaders. It was recognition by businesses that the world itself had changed. Thus the internet (and now AI) gave rise first, to firms, new possibilities for innovation, and then to customers, more choices, and finally to firms again, the potential of new business models that can generate exponential network effects. The old way of running things couldn't keep up. Smart executives saw they had to do something different. While each firm is unique and uses its own language, the underlying management patterns have much in common. Thus Apple talks of a different 'culture'. Microsoft speaks about 'mindset', 'empathy' and 'values.' Amazon focuses on 'leadership principles' and 'works backward from the customer.' Some firms talk of 'mental models' and 'narratives.' The Agile Manifesto spoke of valuing 'individuals and interactions' more than 'processes and tools.' Despite the differences, they are all about putting people ahead of processes. This new breed of firm generally uses subjective concepts to drive their objective business processes. These mindsets, goals, values, and narratives are the very things that traditional management dismissed as having only second importance. The result has been an upheaval in every aspect of business practices. It can be called a paradigm shift in management, although probably no more than 20% of public firms have yet made the transition. The fastest growing firms have transformed almost every aspect of the enterprise so as to form an integrated, complex, multi-dimensional organism. These multiple but integrated changes require that everyone thinks, perceives, speaks, and acts differently from work in a traditional organization. Methods, processes and tools don't disappear. But in these firms. it is the mindsets, values, and narratives that drive and transform the methods and processes, rather than vice versa. The result is a culture where people can see meaning in what they do. Table 1: Self-interested Organizations and Value Creating Enterprises. Summary of prevalent differences between self-interested organizations and value-creating ... More enterprises This is not to suggest that all fast-growing firms do all these things all the time or that fast-growing firms are without flaws. All such firms need to make continued progress towards creating steadily more value for stakeholders. and avoid backsliding towards self-interest. Understanding how these fast-growing firms are being managed is the first step for those firms that are still being managed by yesterday's methods and processes. Unless they begin making similar shifts, most will not survive, at least in their current form. And read also: How Creating Value For Others Has Become The Key To Business Success Why Peter Drucker Got Customer Value Right Table 2: Firms with a track record of sustained fast growth
Yahoo
08-05-2025
- Automotive
- Yahoo
Johnson Controls International PLC (JCI) Q2 2025 Earnings Call Highlights: Strong Growth and ...
Q : How do you plan to implement lean practices in such a large organization, and is the organization ready for it? A : Joakim Weidemanis, CEO, explained that lean is about aligning the organization towards the customer and involving everyone in waste elimination. While some remnants of lean exist from past automotive connections, the foundation is not strong. The organization is open-minded, and they have already started working on one value stream. The approach involves prioritizing and tackling one value stream at a time. There is a need for further strategic evaluation of the portfolio to optimize growth and shareholder value, indicating potential areas of underperformance. The company's operational and innovation execution is hindered by complexities in its footprint and operating methods. Tariffs and geopolitical uncertainties pose potential risks, with an estimated exposure of 2% of sales or 3% of cost of goods sold. The company faces complexities in its current product offerings, including a high number of SKUs, which may slow operational and innovation execution. The company is implementing a new organizational model to enhance customer focus and operational performance, which is expected to drive future growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript . Story Continues Q: What is the potential for margin expansion in the field, and how does it compare to peers? A: Joakim Weidemanis, CEO, believes there is significant opportunity for margin improvement in the field through value stream mapping and digital tools. He does not see a bigger limit on margin expansion compared to peers and is optimistic about improving margins in both product and field operations. Q: What is the outlook for free cash flow conversion, and can it sustain at 100%? A: Marc Vandiepenbeeck, CFO, stated that they confidently raised guidance to about 100% free cash flow conversion for the year, supported by strong working capital fundamentals. While it's early to commit to 100% conversion indefinitely, they expect to remain solidly in the 90s and potentially better as operational efficiencies improve. Q: How do you view capital allocation, especially in terms of acquisitions versus shareholder returns? A: Joakim Weidemanis, CEO, is currently reviewing the strategy to determine the best approach for capital allocation. He sees opportunities to differentiate with technology and will provide more insights on capital allocation strategy once the strategic review is complete. Q: How is the data center business performing, and what are the expectations for new product rollouts? A: Joakim Weidemanis, CEO, noted that the data center business is strong, with continued healthy demand. They have been working closely with large customers on designing data center architectures, leveraging their differentiated York Chiller platform. The demand remains robust, and they are investing in manufacturing and field capabilities to support growth. Q: What is the impact of tariffs on margins, and how are you managing pricing in contracts? A: Marc Vandiepenbeeck, CFO, explained that while they are recovering costs from tariffs, they are not applying margin on these recoveries, which dampens short-term margin expansion. They have implemented strong contractual terms to manage pricing and change orders effectively. Q: What are your initial impressions of the fire and security portfolio, and how do you plan to rejuvenate growth? A: Joakim Weidemanis, CEO, acknowledged the strength of the fire and security franchises but is still assessing growth acceleration potential. He is taking a fresh look at the strategy and will provide more insights once he has a clearer understanding of the portfolio's potential. Q: How do you ensure installation drives aftermarket growth, and what is the strategy for service attachment? A: Joakim Weidemanis, CEO, is conducting a detailed analysis of installation projects to understand their financial performance and service attachment. The strategy will likely involve a tailored approach based on customer types and products, aiming to simplify complexities and enhance service attachment. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
