1. Commit to an identity. Avoid getting trapped on a growth treadmill, chasing multiple market opportunities where you have no right to win. Instead, be clear-minded about what you do best, and develop a solid value proposition and build distinctive capabilities that will last for the long term. IKEA, for example, exemplify this idea by sticking religiously to their identity: “Creating a better everyday life for the many people.”

2. Translate the strategic into the everyday. Design and build your own bespoke capabilities that set you apart from other companies. Then bring those capabilities to scale in your own distinctive ways. Zara has turned the fashion industry on its head by perfecting its capabilities in fast, fashion-forward design and rapid-response manufacturing. This allows Zara to deliver an astonishing 36,000 new designs a year to more than 1,900 stores around the globe.

3. Use culture, not structure, to drive change. Tap the power of the ingrained thinking and behavior that already exists below the surface in your company instead of another structural reorganisation. The Brazilian company Natura does this beautifully. Its corporate culture celebrates relationships and nature above all else, which has helped it attract 1.5 million sales consultants. These brand zealots build relationships with seemingly every woman in South America, making Natura the region’s largest beauty and personal-care-product enterprise.

4. Cut costs to grow stronger. Marshal your resources strategically, doubling down on the few capabilities that matter most and pruning back everything else. That’s how Lego went from losing a million dollars a day in 2004 to being the world’s largest toy company in 2015. The company had major expenses in areas like like clothing and theme parks, where it didn’t have the capabilities to win. Lego cut these businesses.

5. Create the change you want to see. Starbucks is a classic example. Its customers thought they just wanted coffee, but CEO Howard Schultz knew they wanted “a third place,” beyond home and work, to gather. With 22,000 stores and counting, the company continues to develop its concept and to dominate the “coffee and community” space it created.

Does your company need an audit of its digital skills? Furthr can help. Contact  Andy@furthr.co.uk

Posted in: Infographic of the day