Launching successful adjacent business is all about rapidly reducing uncertainty
What adjacent businesses need
ICG’s Evidence Based Execution approach is focused on rapid learning and iteration. ICG guides you to apply this approach in your business launch to increase your success rate, lower the cost of failures and gain credibility with your executives.
- The uncertainties that most impact the business case are addressed first and they vary for each business
- Adjacent business teams iterate quickly and methodically in the field and in the market
- Even with highly skilled practitioners the probability of a business success is typically 25% to 50%, so guided expertise is a must
- Projects are funded at the lowest possible level until key uncertainties are removed all the way through scale-up
The problems with stage gate processes
One of the most beloved “best practices” to unlearn is using stage gate processes launching adjacent businesses.
- Stage gate processes are based on predictability, so often work well in the core
- The most important sources of risk are captured in checklists or compliance tests
- Projects are funded assuming they will succeed so they have high burn rates
- Projects that have to repeat steps are viewed as poorly managed
- The product is deemed ready to scale after exiting the last gate