The Next Next Common Sense - TEXT

Michael Lissack

○ Leading indicators of long-term capability development

Technology company Adobe uses this canvas when designing major initiatives like its transition to cloud services. For each change component, Adobe explicitly documented immediate revenue impacts, mid-term ca- pability building benefits, and long-term strategic positioning advantages. This systematic mapping helped Adobe design a transition approach that maintained short-term performance while building long-term advantage, rather than sacrificing one for the other.

Portfolio Allocation Framework

This resource management approach explicitly distributes invest- ments across different time horizons:

1. Define funding categories : Create distinct investment buckets: ○ Performance investments: Enhancing current operations ○ Innovation investments: Developing new opportunities ○ Exploration investments: Creating future options 2. Establish minimum allocation thresholds : Set non-negotiable minimum percentages for each category, even during challenging periods. 3. Implement portfolio governance : Create different evaluation criteria for each category: ○ Performance investments: Traditional ROI metrics ○ Innovation investments: Strategic positioning metrics ○ Exploration investments: Learning and option value metrics 4. Design cross-horizon incentives : Develop reward systems that recognize:

○ Short-term delivery excellence ○ Mid-term capability building ○ Long-term option creation

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