The Reciprocity Advantage

About the Author

Bob Johansen and Karl Ronn are trailblazers in the world of business innovation. Bob Johansen, a distinguished fellow at the Institute for the Future in Silicon Valley, collaborates with corporations like McKinsey, UPS, Kellogg, Disney, and McDonald's, bringing a wealth of foresight and strategic thinking. Karl Ronn, the managing director of Innovation Portfolio Partners, assists Fortune 500 companies in discovering and developing new products and services. His previous role as vice president of research and development and general manager of new business for Procter & Gamble adds to his robust expertise.

Main Idea

In "The Reciprocity Advantage: A New Way to Partner for Innovation and Growth," Johansen and Ronn propose a revolutionary approach to business growth. They emphasize the power of reciprocity—giving now to gain later—in leveraging underutilized resources, forming innovative partnerships, and experimenting to scale new businesses with low risk. The book argues that in an era of technological and social disruptions, companies can achieve substantial growth by adopting a reciprocity mindset, where they share assets intelligently to create value both for themselves and their partners.

Table of Contents

1. Introduction: The New Way to Grow a Business
2. Reciprocity on a Massive Scale
3. Partnering to Do What You Can't Do Alone
4. Experimenting to Learn: How to Make Money in New Ways
5. Amplifying to Create Scale
6. Future Forces That Will Demand Reciprocity
7. How to Develop Your Own Reciprocity Advantage
8. How to Uncover Your Right-of-Way
9. How to Find the Best Partners for You
10. How to Scale Your Reciprocity Advantage

Introduction: The New Way to Grow a Business

Reciprocity lives in the space between transactions and philanthropy. It’s about creating win-win situations where businesses can grow while also doing good. Johansen and Ronn introduce the concept of the "reciprocity advantage," which leverages a company's existing resources to create new value. They argue that in today's interconnected world, doing good and doing well must be combined in innovative ways.

"Advantage means achieving a winning position, but it doesn't necessarily mean that others must lose in order for you to win." - Johansen and Ronn

The authors illustrate how reciprocity can be a powerful driver of growth, enabling businesses to tap into new opportunities and markets. This approach not only fosters innovation but also builds stronger, more sustainable businesses.

Reciprocity on a Massive Scale

The concept of reciprocity is not new, but applying it on a massive scale to drive business growth is revolutionary. Johansen and Ronn discuss the importance of identifying and leveraging a company's "right-of-way"—the underutilized resources that can be shared to create mutual benefit.

Right-of-Way

The idea of right-of-way is illustrated through historical examples, such as the transcontinental railroad. While railroads focused on transportation, they missed the opportunity to capitalize on the communications potential of the telegraph wires strung along their tracks.

"The railroads missed claiming most of the benefits from their own right-of-way." - Johansen and Ronn

To uncover your right-of-way, consider the three aspects of your business: product, service, and experience. Each has the potential to create massively scalable reciprocity if leveraged correctly.