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To reach beyond its traditional businesses, Emerson CEO Chuck Knight
appointed a "growth czar," Charlie Peters, who helped
each business develop initiatives, mostly outside their traditional
customer base. Peters tracked the initiatives in a central "war
room." In addition to opportunities within each business unit,
the existence of a growth czar helped business units gather engineering
and marketing expertise from throughout the company to create new
business models that cut across existing divisional boundaries.
Combining resources across divisional boundaries often plays a key
role in cultivating the larger world as a Fertile Field.
NiSource, the $3.1 billion-a-year parent of Northern Indiana Public
Service Co., is another Fertile Field innovator. It began innovating
in the 1980s because it had to, developing unregulated power plants
for industry because the steel mills and chemical refineries it
served would have gone to someone else for the services if it had
not done so. Under president Gary Neale the company has expanded
that business to make it the leading developer of on-site industrial
power generation in the U.S. Beyond that, Neale has encouraged senior
NiSource managers to explore where the assets and competencies of
a good public utility could contribute more. At first, NiSource
kept individual bets small. The few where NiSource went far afield
didn't work out. (A used-tires-to-energy plant in Britain, for example,
was closed.) But NiSource has created value with close-to-home investments.
It is managing unregulated pipelines and natural gas storage facilities
and has installed the first commercial microgenerator in the U.S.,
in a Walgreen's store in Chesterton, Ind. The generator uses the
gas that NiSource supplies to generate electricity as well as heat
on site, cutting costs while increasing reliability - and opening
an enormous potential market for the company.
Fertile Field challenges differ radically from those of either Cauldron
or Spiral Staircase. Where a Spiral Staircase manager must nurture
passionate loyalty to customers and to the business, the key to
managing Fertile Field innovation is to encourage exploration of
new frontiers. That frequently means discouraging people from too
much concern with existing customers and the existing business.
Where Spiral Staircase innovation calls for experimentation throughout
the organization to capture the upside in a business with growth
potential, Fertile Field innovation demands training for people
with traditional backgrounds so they can see opportunity in related
fields and use their skills to seize it. Where Spiral Staircase
innovation demands teams focused on improving the customer's experience,
Fertile Field innovators gain more from task forces that look outside
the organization. They rarely benefit training all the rank-and-file
in innovation. (NiSource tried doing so, and reaped little benefit.)
Teams that work on Fertile Field innovations, then, are necessarily
an elite. That doesn't mean they should consist exclusively of senior
managers or a band of young M.B.As. A company's best customer service
representatives or even its best truck drivers may understand the
real nature of the company's assets and competencies - and what
can be done with them - in a way that people on the fast track may
not. But where everyone should feel they're part of the team working
on Spiral Staircase innovations, smaller groups have to drive Fertile
Field exploration.
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