The project team had certainly prepared for the workshop. Its members had a carefully constructed PowerPoint document, replete with facts and figures that showed the attractiveness of what we'll call the booming management-training market in China (details have been disguised to protect the client's confidentiality). Embedded video clips showed potential customers raving about the offering the team had recently piloted. A meticulously constructed business plan showed how the venture could thoughtfully expand into six major cities in China.
Yet, the presentation highlighted a critical gap between the team and its senior management sponsors. Executives immediately began asking questions about why the team was focusing on only six cities. The team responded by saying that its model required substantial marketing and a large local staff. Smaller cities just couldn't support that overhead. Executives pressed, asking the team to figure out how to reach 100 cities. Team members assumed that meant going back to the drawing board to develop a business model that would be profitable in smaller cities. And that meant, they thought, sharply lower investments in marketing and smaller staff.
To read the full, original article click on this link: The Two Questions to Ask Before You Innovate - Scott Anthony - Harvard Business Review
