Interview with growth consultant Chris Zook: A less risky path to business model innovation

Abstract

Purpose - Creating a fundamentally different business in the shadow of the old one - while its assembly lines continue to roll - is a daunting challenge. Bain consultant Chris Zook recently published the last book in a trilogy which addresses the question of how to make "fundamental change in your business model, while still running your business.". This paper aims to explores his views on this subject. Design/methodology/approach - For this interview, two Strategy & Leadership senior editor's - one a Silicon Valley consultant and former CEO and the other an academic - asked Zook to take them on a guided tour of his reinvention process. Findings - The paper finds that the underlying thesis in each of the three books is that companies need to master all phases of a strategic life cycle: from extracting the full potential from their core business, to expanding their business successfully, to redefining themselves For most companies and in more industries, the strategy cycle - from Focus, to Expand, to Redefine - has become shorter, and therefore companies frequently confront moments of redefinition of their core. Practical implications - In this interview, Zook's how-to advice for managers covers: the role of hidden assets, the "state of the core diagnostic" tool, the "shrink to grow" strategy, how to test "the waters," and the FER (focus-expand-redefine) cycle. Originality/value - Because the interview considers the whole trilogy the reader gets a unique view of how Zook's ideas fit together and build a cogent thesis.