Technological innovation is moving at lightning speed. Leaders must forgo their old strategic plans for this era of runaway growth. Strategist David Espindola created the Strategic Plan for the Exponential Era (SPX) to guide decision-making at the leadership level. By understanding how exponential growth works, you will learn to identify opportunities on the horizon, generate insights and build the capabilities to optimize them. It is an iterative process that embraces experimentation and risk. As a leader, you don’t need big plans to survive in the Exponential Era, but you do need the right ones.
Exponential growth and convergence drive technology in the 21st century.
In technology, change isn’t just happening broadly; it’s occurring faster than ever before, and becoming more and more complex. The Internet of Things (IoT), 5G and rapid automation are making inroads in every sector, including retail, manufacturing and the service industries. Companies’ strategic planning processes must adapt to this new Exponential Era, yet leaders often struggle to know what steps to take, or when.
Generally, humans have trouble thinking about the future. This makes exponential growth difficult to grasp. Its effects aren’t felt right away, and often it is too late to reverse those effects once they have taken hold. Entrepreneurial business ventures now typically follow an elbow-shaped exponential curve, which has three stages:
- Initial inflection window – Early entrants in a new field compete for dominance. New opportunities and threats first become apparent. Smart companies begin small preparations for change.
- Turning point –
David Espindola is a partner of Intercepting Horizons, a strategic advisory services firm. Michael W. Wright is a partner of Intercepting Horizons and the author of the acclaimed The New Business Normal.