A successful business model is like a shark that has to keep moving to stay alive. But how do you make sure you’re not stuck in a crowded swim lane with declining margins, swimming upstream against disruptive currents, or even worse, find your organization dead in the water? A growing number of institutional leaders tell us that their current approach to innovation isn’t working. Inertia and culture are getting in the way of what’s next. The job-to-be-done for institutional leaders is to explore, test, and commercialize next practices and new business models. R&D for new business models is the new strategic imperative.
Saul Kaplan
A next practice is a new and improved version of a capability or group of capabilities. It has the potential to transform customer experience promising a better way to deliver value. A market-tested next practice can either be integrated into today’s business model or be leveraged independently to enable entire new business models. Since its inception twelve years ago, Business Innovation Factory (BIF) has been developing and integrating the next practices of human-centered design, rapid prototyping, and storytelling/engagement into all of our client project work. These lynchpin capabilities now enable us to deliver on our value proposition: BIF helps institutional leaders make transformation safer and easier to manage.
I am beyond proud today, on behalf of our entire BIF team, to introduce:
BIF’s Design Methodology includes detailed inputs, key activities, and outputs for each of the four phases of the process.
It’s the result of a 12-year labor of love. Here are ten things our team has learned along the way:
1 You can’t analyze your way to transformation; it’s a generative act.
2 Transformation requires a different approach than incremental change.
3 Leadership in the 21st century requires more focus and new approaches to explore and test what’s next.
4 Institutions have the capabilities to accelerate society’s path to what’s next, but they’re locked in the straightjacket of what’s now.
5 Emerging technologies are an exciting and important enabler, but without the human side of innovation, transformation isn’t possible.
6 Transformation starts when you ‘Shift” your lens to see opportunities from the perspective of customer experience and jobs-to-be-done.
7 Customer experience provides the best foundation for the ‘Conceptual Design’ of a next practice or new business model.
8 The only way to know if a design concept will survive customer contact is to ‘Prototype and Test’ it in the real world.
9 To successfully ‘Commercialize’ next practices and new business models, start with a market-tested Minimum Viable Business Model.
10 BIF’s Design Methodology helps make transformation safer and easier to manage.
Everyone on Team BIF has contributed to our Design Methodology in countless ways over the years. We wouldn’t be able to share it today without each team member’s amazing effort and without collectively living our BIF value of collaborative innovation. Innovation is a team sport. Special thanks to BIF Experience Designers Crystal June Rome and Kay Zagrodny, who did the hard project work. They immersed themselves into herding passionate inno-cats at BIF, spent countless hours listening to me drone on about the underlying idea, and stayed true to their most recent project experience. Crystal and Kay had just wrapped up an amazing project, working with BIF’s Chief Market Maker, Elizabeth MacLaren. They worked with the Population Health team at Children’s Health in Dallas, prototyping and testing a transformational next practice centered on family well-being. The next practice we helped them develop was then stitched together with the capabilities to deliver an insurance product. A brand new business model is being launched by Children’s Health now in Dallas. Imagine that, a hospital commercializing a new business model that is on the hook to economically improve family well-being. Team BIF rocks!
“At BIF, we believe that social system transformation becomes more possible when we all open source our new approaches, platforms, and tools. That’s how we get better faster together.”
We have also benefited enormously from a growing and engaged community of innovation junkies from around the world who inspire us and help us to get better faster every day. At BIF we believe in enabling random collisions of unusual suspects or making a RCUS! It’s key to finding opportunities between our silos, disciplines, and sectors. I’m grateful for a random collision with XPLANE Co-Founder Dave Gray, and their crazy cool and talented team. XPlane’s superpower is using visualization to help teams align around a shared purpose and story. We leaned heavily on XPlane’s superpower to create this visualization of our BIF Design Methodology, and it won’t be the last time we collaborate.
We share our BIF Design Methodology today to more clearly describe how we help institutional leaders explore and test what’s next. We also share it because at BIF, we believe that social system transformation becomes more possible when we all open source our new approaches, platforms, and tools. That’s how we get better faster together. The 12-month process depicted in BIF’s Design Methodology is intended as a guideline. We always customize it to meet the specific needs and requirements of each client project.
We live in a time that screams for transformation yet too many institutions are only capable of tweaks. We developed BIF’s Design Methodology because a growing number of institutional leaders know they need a better approach to innovation. Together, we can make transformation safer and easier to manage.
Related Slideshow: Worcester’s 25 Wealthiest and Most Influential
Mel Cutler - CIO and Founder of Cutler Capital Management
Not only did Cutler found Cutler Capital Management, but he also is the founder of two banks - Flagship Bank & Trust and Madison Banc Shares.
Cutler Capital Management has $325 million in assets.The Melvin S. Cutler Charitable Foundation has more than $8 million in assets. He has been influential in business and in philanthropy for decades.
Rotman has been in the family business for 35 years - with Rotman's Furniture in College Square - a landmark next to I-290.
He and his brother Barry have been running the business taking over for their parents Murray and Ida.
In the 1990's, Rotman's Furniture seemed like it was the only furniture store. In the day they dominated advertising - their TV spots ran in Providence and Boston markets. Today, with Bob's and Jordan's in the market it is a lot more competitive.
In the early 1990s, Rotman’s partnered with the Central Mass Housing Authority (CMHA) to work with Donations Clearinghouse to donate used furniture to families in need. The family has been a major supporter for Walk for Homeless.
In 2014, Seder was named the Worcester Corporate Lawyer of the Year. He was also named in 2014 as one of the Best Lawyers in America for Bankruptcy and Creditor Debtor Rights/Insolvency and Reorginzation Law.
He owns property in Worcester totaling nearly $6 million.
A partner at Seder & Chandler Law, Seder is also the former chair of the Worcester Business Development Corporation.
Former owner of Consolidated Beverages, Fields recently sold the company (which he and his father spent millions on ten years ago) to Quality Beverage.
Fields now solely focuses on Wormtown Brewery which just opened on Shrewsbury Street in March. Fields owns majority interest in the company - using the millions he made in the Consolidated Beverages sale to invest into Wormtown.
Fields is one of the youngest on the GoLocalWorcester list of the 25 Wealthiest and Most Influential.
Sue Mailman - President and CEO of Coghlin Electric
President and Owner of Coghlin Electric, Mailman is arguably the most talented businesswoman in Central Massachusetts. Mailman serves on a range of community focused boards and is the Chair of the Worcester Regional Chamber of Commerce Board.
Mailman is savvy and responsible for a business that is now part of WESCO Distribution, Inc. - a $3 billion concern.
She is the 4th generation leader of a company over 130 years old.
Tony Tilton - Director of Fletcher Tilton Law Firm
With roots in Worcester dating back 190 years, Fletcher Tilton is the 9th oldest law firm in the nation and is one of only five of the top 50 law firms in Massachusetts not located in Boston.
The firm is responsible for multiple private trusts and foundations, and Director Tony Tilton oversees 20 private family foundations and handles nearly a half a billion dollars in assets.
In Worcester, if any charity is seeking donations - they typically have to go through Tilton. He and his partner, Warner Fletcher, decide where most of the charitable money in the city goes.
He is enormously responsible for raising the $7.5 million for the new Boys and Girls Club clubhouse nearly 10 years ago. Tilton is also Treasurer of Cape Cod Healthcare.
He has honorary degrees from both Clark and Assumption.
Mark Fuller - Chairman of THE GEORGE F. and SYBIL H. FULLER FOUNDATION
At the end of last year, the Fuller Foundation had assets of nearly $55 million. The foundation awarded more than $3.6 million in grants ($2.9 of which went to 69 capital grants to local colleges and organizations).
Fuller is also Vice President of Benefit Development Group in Worcester and Treasurer of the Barton Center for Diabetes Education.
Prolific in his energy and focus to serving the community.
DeFeudis sits on the Hanover Theatre board of directors and was instrumental in raising the $31 million needed to renovate the theatre. DeFeudis also contributed $1 million to the Hanover Theatre project.
DeFeudis is the Chairwoman of Worcester Sharks Charities and a member of the UMass Medicine Development Council.
DeFeudis has provided a full scholarship annually to a student at Worcester State University.
She may be the community's most active philanthropist.
Frank Carroll founded the Small Business Service Bureau in the 1960s, a company designed to help and advocate for small businesses across the country. SBSB has grown into one of the largest small business groups in America.
Carrol's been helping people in Worcester ever since.
Carroll raised $1 million to build a Korean War Memorial in Worcester and was instrumental in the building of a hospital for American soldiers from Worcester County in Vietnam.
Carroll hosts a show at the Hanover Theatre to raise money for the St. John's Church Food for the Poor Program.
Grenon scored $22.5 million in profit shares following the sale of Commerce Group, Inc. to MapFre in 2006. Grenon serves on the Board of Trustees for Massachusetts Biomedical Initiative. He is also a Trustee of Assumption College.
Grenon is the President of E-C Realty Corporation. Previously, he was the founder, President and CEO of Protector Group Insurance Agency - which was sold three years ago with annual revenues of $13.6 million.
Grenon runs a charitable trust in his name that holds $312,864 in assets.
McDonough and his family have run FLEXcon for 60 years and the manufacturer of pressure-sensitive films and adhesives has grown to be a mega company.
The global firm employs a reported 1,300 employees around the world. The private company has gotten more active in Worcester - with community sponsorships and earlier this summer, McDonough spoke at the DCU Center as part of the Worcester Research Bureau’s Acting Locally Panel.
in 2009, McDonough was named the Worcester Business Journal's Big Business Leader of the Year.
However, the company’s reach is global with manufacturing and sales offices on nearly every continent on the globe.
Salois is President and CEO of Atlas Distributing in Auburn. He serves as the Director of Fidelity Bank and is a Trustee of Saint Vincent’s Hospital.
Speaking of influential, Salois was named to Governor Charlie Baker’s Economic Transition Team last December and Atlas played host to a Central Mass Delegation of Senators and State Reps in March.
He has a big impact on business, government and the community.
Angelini is known to be a lawyer's lawyer. He was named one of the 2015 Best Lawyers in America by Best Lawyers, Angelini is known as one the nicest and down-to-earth guys in Worcester.
Angelini serves on the board at MassPort and is chairman of the board of Hanover Insurance. He, along with Sue Mailman of Coghlin Electric and Becker College President Robert Johnson, were instrumental in re-recruiting Ed Augustus to be City Manager in Worcester.
With Angelini at the helm of the firm, Bowditch & Dewey has been able to both expand the firm’s Boston presence and continue to prosper in Worcester.
Another big winner in the sale of Commerce lands on GoLocalWorcester's Wealthiest and Most Influential - the son of a prominent business owner who achieved success in his own right.
As the Boston Globe reported at the time of the Commerce sale, “Arthur J. Remillard Jr., who ran the company until his retirement in July 2006, will be paid $26 million for his 710,000 shares, while his children, Arthur III and Regan, will receive $43.6 million and $15.9 million, respectively. Arthur III and Regan are both members of the Commerce board.”
In 2012, the younger Remillard purchased the Haven Country Club in Boylston (formerly Mount Pleasant Country Club). At the time of the rebranding of the golf course, Regan issued a forward-looking statement, “I see this as a club whose star is rising. We’ve taken the traditional country club model and updated it a bit, to better fit the way people live today … A club should be someplace where you can have fun and feel at home. That’s the vision here.”
The Regan Remillard foundation has more than $500K in assets - while the Remillard Family Foundation has nearly $2 million.
M. Howard Jacobson - Vice Chairman of WGBH Educational Foundation Inc
Jacobson serves as the Chair of the Board for the Boston Market Corporation and the Wyman-Gordon Company. He is the Vice Chairman of WGBH Educational Foundation Inc. and a Trustee of WPI.
Jacobson served as Senior Advisor and Consultant at Private Advisory Services of Bankers Trust Private Bank from 1991 to 2001.
Prior, he served as the President and Treasurer of Idle Wild Foods, Inc. until 1986.
Like many on this list, he is also on the UMass Medicine Development Council.
There are people who are wealthy on this list and then there is Gapontsev.
Gapontsev, the father of the fiber-optic laser industry, is the only billionaire on this list because he's the only billionaire in Central Massachusetts. Thanks to lasers, his net worth is $1.24 billion.
This genius Russian and Worcester resident is the founder of IPG Photonics - located in the town of Oxford.
According to Forbes Magazine, he is #1533 on the Forbes Billionaire list globally.
Crowley runs Polar Beverages - a foundation in Worcester and a company the city is proud to hang its hat on. Polar Beverages is valued at nearly $500 million and Crowley is largely responsible for it. He's modernized the Seltzer water industry with numerous flavors and engages his customers to perfection.
Crowley made an attempt to purchase the T&G in 2009, but was snubbed by New York Times - who sold it to John Henry (who sold it again within months). The Crowley family also owns Wachusett Mountain and the nearby Wachusett Village Inn.
EDITOR'S NOTE - We previously published a photo of Chris Rowley rather than Ralph. This has been corrected and we apologize for the error.
Branca is a philanthropist, developer and Dunkin’ Donuts mogul.
He is a national leader in the Dunkin’ franchise structure
In Branca's family, nearly 700 Dunkin Donuts are owned - with him owning 60 DD franchises.
Branca is the Chairman of the Dunkin' Donuts Franchise Owners Political Action Committee and Chairman of the Dunkin' Donuts Regional Advisory Council of all Dunkin' Donuts franchisees in the Northeastern U.S., and is the Vice Chairman of the Washington-DC based Coalition of Franchisee Associations.
Branca's company owns 72 and 60 Shrewsbury Street - the home of Volturno, Sweet and Wormtown Brewery.
Together, both buildings are valued at more than $3 million.
The DCU Center (former Worcester Centrum) was nearly named the Krock Arena. The Krocks have been a power in banking and real estate in the city for decades.
The Krock family owns 11 pieces of property in Worcester (worth multiple millions) including three parking lots across from the Worcester Courthouse and the building that formerly housed the Irish Times (worth $1.5 million total between the three lots and building).
Krock used to own the Commerce Bank Building before he sold the building for $4.5 million to David “Duddie” Massad in 2010 - for $400,000 less than its estimated value - after turning down offers of $21 million, $11 million, and $10 million.
Allen Fletcher - President of the Greater Worcester Land Trust
Up until 2008, Fletcher owned Worcester Magazine — once a top level alternative weekly newspaper. He, along with his brother Warner, inherited a tremendous wealth and he's utilized that money to make his own impression on Worcester.
Fletcher's money is part of what's behind the Canal District revitalization and he serves as the President of the Greater Worcester Land Trust - a non-profit organization that serves to protect the land of Worcester.
Fletcher maybe the most influential person in philanthropy in Central Mass.
Fletcher is the chairman of three charitable trusts in Worcester - including the two largest - George I Alden Trust, Stoddard Charitable Trust and Fletcher Foundation.
Last year alone, the Alden Trust gave $9.5 million in charitable donations - including a $3 million future payable donation to WPI. The Stoddard Trust has more than $70 million in assets and gave more than $3.5 million last year in charitable donations.
Fletcher, along with #6 on this list, Tony Tilton, run Fletcher Tilton Law Firm - which oversees 20 private family foundations and handles nearly a half a billion dollars in assets.
A Grafton Hill product, Massad owned several car dealerships including Diamond Auto Group, Emerald Chevrolet Oldsmobile, Duddie Motors and the largest Hertz franchise in Virginia Beach, Virginia.
Massad serves as the Chairman of Commerce Bank in Worcester - a company he purchased from the Krock family - that has over $1.7 billion in assets and 250 employees according to the bank.
In 2005, he donated $12.5 million for a new medical facility at UMass Memorial Medical Center's Lake Avenue campus.
He was indicted for fraud in 2008 - but was ultimately proven innocent.
Fred Eppinger - CEO and President of Hanover Insurance
Eppinger may be the most able chief executive in central Massachusetts. His leadership in growing Hanover Insurance and his activism in the community is unmatched.
The company is trading 33% higher in the past year.
Eppinger, a Holy Cross graduate, made more than $5 million in compensation in 2014 as CEO and President of Hanover Insurance.
Eppinger also has $28 million in options through Hanover. Eppinger has been with Hanover since 2003 - when it was called Allmerica and had lost $306 million. Since then, Eppinger has turned Hanover around as a business and the company has donated millions towards the Hanover Theatre, Hanover Field, and UMass Memorial.
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