New Margin and Spotify are the result of Management Innovation

A couple of weeks ago I had the great pleasure of lecturing on Beyond Budgeting in one Lean conference in Bologna. The theme was Modern Management Methods. On the way there I read about Dagens Industri "Kvargkriget" which is apparently going on in the Swedish market. The background lies in the great demand due to the fact that we now use not only millet to make the lice balls taste better, but also as part of a healthy protein-rich diet.

Among other things, I read that Arla, just two weeks after its biggest competitor, launched a new product directly aimed at the segment of consumers who use frets for health reasons. I have met employees from Arla on several occasions in recent years and am not surprised that you have been able to work so agile in developing new products. This ability to adapt has been a clearly stated ambition in the development of the company's management model in order to respond more quickly to changes in the market.

Once on site in Bologna, I met with a representative from Spotify - who admittedly briefly and concisely talked about their innovative product - but devoted most of their presentation to describing the company's innovative management processes and highly conscious leadership philosophy.

When we look behind the scenes at companies with innovative products, we often find companies that actively and purposefully work to create innovative governance and management processes. Thus, it is not successful products that build sustainably successful companies, but on the contrary. At least that is my conviction.