The Three-Box Solution

Vijay Govindarajan's framework addresses a dilemma leaders face when they must keep a thriving business performing while reinventing it at the same time, two management challenges that call for different skills, metrics and mind-sets. He proposes splitting an organization's time, energy and resources in balance among three boxes. Box 1 runs the present core business; Box 2 lets go of the past, including attitudes and practices that worked before but could hold back innovation; Box 3 builds the future through new products, businesses and models. The boxes give leaders a common vocabulary and tools to manage and measure each set of activities at every level, illustrated with cases from Hasbro, IBM, United Rentals, Tata and Mahindra & Mahindra.

Indra Nooyi praised it on Twitter for setting out a balanced approach to innovation that she considered essential.