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2256 : STEP FOUR – PLANNING FOR IMPLEMENTATION

the first iteration identifies the blocks
and their impact assuming that you take
no action

reduce impact of ‘residual risk’ The second iteration takes account of
the likelihood that the blocks will occur, after you have taken whatever
action is open to you. The focus of managing this so-called ‘residual
risk’ then transfers to reducing the impact of the block in question.

Considering it inevitable that competitors would seek to emulate his
Internet Securities, Inc. business model – scoring 5 for likelihood in our
earlier grid – Gary Mueller maximised the range of material exclusive to
him. Aware that competitors would seek to imitate his Cobra beer, and
that patent protection of the precise brewing formula would not stop
this competitive reaction, Karan Bilimoria invested heavily in building
the brand to reduce the impact of competitive reaction.

technique 2: force-field analysis This technique

acknowledges that implementation of innovative ideas typically faces
both positive (‘driving’) and negative (‘restraining’) forces. It provides a
framework for identifying the various forces which are likely to be at
play, evaluating their relative impact, and generating ideas for
overcoming the negative forces while capitalising on the positive forces.

It is rare that an innovation faces forces which, overall, are initially
balanced in its favour – far from it. The technique is helpful, therefore,
in establishing how to achieve a better balance between driving and
restraining forces. A defined and growing market need which is not
currently satisfied by products or services on the market would
constitute a major positive force, while regulatory restrictions or the
inability to secure raw material supplies would clearly represent
negative forces.

step one: brainstorm the forces The first step involves
brainstorming the various forces at play around your business idea,
observing all the usual rules for divergent thinking. Think of all the
positive forces as well as the negative forces – avoid taking anything for
granted and make sure that you capture all your ideas.