The 70-20-10 rule helps in balancing risk and innovation by allocating resources in a way that maintains a focus on core technologies while still allowing for exploration of new ideas. 70% of resources are dedicated to core technologies, which are typically lower risk and provide steady returns. 20% is allocated to adjacent innovations, which are somewhat riskier but can provide significant benefits if successful. The remaining 10% is dedicated to transformational innovation, which is the riskiest but also has the potential for the highest returns. This allocation allows for a balance between maintaining current operations and exploring new opportunities.
Why do so many perfectly managed companies fail? Inspired by the seminal work of author Clayton Chri...
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