Understanding business is imperative for HR as it aligns with the Zone to Win concept, where organizations divide operations into distinct zones: Performance, Productivity, Incubation, and Transformation . HR's comprehension of business allows it to strategically allocate resources based on the needs of each zone. In the Performance Zone, where existing products or services excel, HR designs processes to ensure fast product and service turnaround times; compensation and incentives must be linked to individual and team performance. In the Productivity Zone, aimed at improving operational efficiency, HR streamlines processes and fosters a culture of productivity and collaboration across silos. In the Incubation Zone, HR typically does not fully dedicate resources to each investment or idea but ensures that the organizational system supports internal innovation, risk-taking, and exploration of new ventures. Finally, in the Transformation Zone, where timing is most critical — if the company misses catching the wave at the right time, it will not have a second chance — HR must dedicate existing resources or make a business case to justify new resources to enable the new revenue stream of the company. By grasping business dynamics, HR can effectively tailor its strategies, ensuring that talent management initiatives align with organizational objectives across all zones. This strategic alignment minimizes priority conflicts and maximizes HR's contribution to sustainable growth and success. Rather than isolating HR functions to specific zones, this approach integrates HR seamlessly into the broader organizational strategy, fostering agility and resilience in a dynamic business environment. Thus, HR's understanding of business becomes a cornerstone in navigating the complexities of the Zone to Win framework, facilitating strategic resource allocation and driving organizational performance across diverse operational contexts.
Each zone has its objectives, metrics, and management strategies tailored to its unique characteristics and objectives. By effectively managing all four zones, organizations can achieve balance between innovation and operational excellence, ensuring their continued relevance and success in dynamic market environments.
Sustaining Innovation
Disruptive Innovation
Transformation Zone
Performance Zone
Exploratory idea go to be scaled
Generate revenue of core business
Contribute >10% of revenue
Need to revitalize established business model & process timely
Could be a zone to re-engineer under performing established business model
A source of >90% of enterprise revenue
Enabling company to catch the next wave
A hub of shared services
Contributing to bottom-line
Only 0-2% of topline contribution
Ensuring compliance, efficiency, effectiveness
Could be a zone to incubate technology or platform for established business
Managed as a cost centers
Incubation Zone
Productivity Zone
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Source : Zone to Win, Geoffrey A Moore, 2015
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