Idea in Brief
The Challenge
To remain competitive, firms must develop transformational new-growth strategies. But leadership teams are rarely aligned on what degree of growth is needed and what markets and types of innovations to invest in.
The Approach
Faced with stagnation or decline in a mature industry, leaders at the global telecom Swisscom engaged in a unique program involving structured dialogues and interactive exercises to reveal misalignments and help the team converge on common growth goals and strategy.
The Outcome
Following the program, Swisscom embarked on a clear long-term growth strategy, launching a set of innovative ventures, creating a VC-like group to oversee related investments, and locking in a schedule of annually increasing funding.
In 2016, Bern-based Swisscom seemed trapped in a mature industry. The global telecom sector was flatlining, with revenue inching up a mere 1% per year and profits and prices under siege. Despite Swisscom’s long track record of innovation—it pioneered international direct-dial telephone service in the 1960s and 2G mobile services in the 1990s, and was instrumental in Switzerland’s having achieved the world’s highest rate of broadband installation—stasis had set in at the $12 billion company. CEO Urs Schaeppi and his senior leaders knew the firm needed to refine its long-term growth strategy for a world transformed by digital technology, but they were divided by disagreement about the best path forward. Some executives were comfortable with slow growth and higher profits through efficiencies; others believed the company needed to move boldly into new markets. “There is limited perception of a shared or common agenda,” one leader noted. Further complicating the strategy choices were Swisscom’s culture and decision-making style. “It’s a real Swiss democracy,” said one executive, referring to the customary Swiss deference to a majority view. “We don’t deal well with conflict,” said another.
