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ADVANCING EXEMPLARY BOARD LEADERSHIP© NACD. All rights reserved.
Managing Status Quo Risk
Rethinking Risk & the Board Agenda
NACD SummitDeer Valley, UT December, 2013
Adam HartungManaging Partner, Spark PartnersCEO, Soparfilm Energy CorporationChairman, The Content Laboratory
2013 Adam Hartung
© Adam Hartung 2013
Which of these companies do you think is most likely to double revenue in the next 5-10 years?
Boeing
Disney
Starbucks
Apple
1
2
3
4
© Adam Hartung 2013
Which of these companies do you think is most likely to fail in 5-10 years?
NBC/Universal/Comcast
Microsoft
United Airlines
1
2
3
4
© Adam Hartung 2013
On which of these Boards would you prefer to have served in the last 3 years?
OR
OR
OR
© Adam Hartung 2013
Doing things right, or doing the right thing:What’s the Board’s Role?
Value Proposition:
What You Need to Know, at Your Fingertips
© Adam Hartung 2013
Publishers Enhanced Delivery, But Missed the “Game Changer” Surrounding Them
© Adam Hartung 2013
The true secret to business success surprised us
Overcoming Lock-in to past success
The biggest risk in business today is
Status Quo Risk
Core
Focus
© Adam Hartung 2013
Apple’s success came from creating new markets – Changing the Game
© Adam Hartung 2013
Apple’s best skill has been anticipating the future - rather than “execution”
© Adam Hartung 2013
How can Boards help companies manage Status Quo Risk?
Be future-oriented
Obsess about competitors
Encourage disruption
Force white space
© Adam Hartung 2013
VS.
Step 1 – Focus on future trends;not past markets/solutions
© Adam Hartung 2013
Rethink the Board agenda; Reallocate the discussion time
60% ?
33% ?
20% ?
Less than 20%?
What percentage of your Board’s time is spent discussing
Market Trends?
© Adam Hartung 2013
Step 2 – Focus on needs and competitors; not current solutions and customers
Key Question: How much is spent on improving the current business model vsDeveloping new markets, opportunities and business models?
© Adam Hartung 2013
Obsess about fringe competitors and Game Changing opportunities
VS.
© Adam Hartung 2013
Step 3 – Ask how your company will be disruptive; not just how it will be better, faster, cheaper
© Adam Hartung 2013
No company is beyond Game Changers, and Managing Status Quo Risk
© Adam Hartung 2013
Step 4 – Ask about white space projects and teams
© Adam Hartung 2013
Prediction
Boeing
Disney
Starbucks
Apple
1
2
3
4
Revenue Doubler:
?
!NBC/Comcast
Microsoft
UAL
1
2
3
4
Likely Investor Failure:
© Adam Hartung 2013
Manage Status Quo Risk for superior rates of return
Invest for the future, not from the past
Focus more on competitors, less on customers
Be Disruptive,sustaining will decline
Look for White Space projects to innovate and learn
© Adam Hartung 2013
Contact Information
847.726.8465www.adamhartung.com
adam@sparkpartners.com
Board MemberKeynote Speaker
Planning Workshops