Index
accelerators, for start-ups, 125
access, platform, 110–112
accountability, 63
adaptability
learning systems and, 97–99
unexamined habits and, 11–12
advantage. See competitive advantage; extendable core
agile development, 119, 122, 124
Alexa, 134
Allen, James, 87–99
Nest and, 134
Web Services, 125
anchoring, 57. See also cognitive biases
Angry Birds (game), 112
Apple, 99
combination strategy at, 134
differentiation at, 88
disruption by, 71
iTunes, 169–170
Net Promoter Scores, 97
platform business at, 101–102, 103
architecture, of platform businesses, 111–112
arenas vs. industries, 23–24
assessment
of competitive advantage, 20–21
of industry environment, 3–4
of predictions, 12–13
of purpose, 147
of strategic options, 41, 42–43
transient advantage and, 23, 30–31
assumptions
testing critical, 28–29
Audi, 137
Balanced Scorecard, 62
barriers
to disruption, 76–78
in pipelines vs. platforms, 110–112
relationships/networks and, 26–27
shaping strategy and, 8–9
testing, 46–49
beta tests, 120
biases, cognitive, 56–58
biomimetics, 138
Blank, Steve, 115–128
Blockbuster, 131–132
blockchain technology, 109
Blue River Technology, 119
BMW, 134
Bogle, John, 89–90
Bonobos, 136–137
BP, 51
Brandenburger, Adam, 129–140
Buche, Ivy, 141–153
Buffett, Warren, 17
bundling, 132–133
business model canvas, 117–119
business models
as barrier to disruption, 76–78
creativity in, 130
disruptive innovation from, 73–74
extendable core and, 72–73
lean start-ups and, 117–120, 124
repeatable, 87–99
capabilities, 40, 42–43, 93, 150–151
boundaries of, 161–162
next evolution in, 182–183
channels, 42–43
choices
framing, 36
identifying and testing barriers to, 45–49
lazy man’s approach to, 47–48
planning based on, 34–35
Choudary, Sangeet Paul, 101–114
Christensen, Clayton M., 71–85, 127
classical strategy, 3, 4–6, 12
cloud services, 125
cluster development, 172–177, 181, 183
Coca-Cola, 167
cognitive biases, 56–58
cognitively distant, 130
combination, in strategy building, 130, 133–135
commitment
assessing conditions for, 41, 44
escalating, 57
commoditization, 25–26
communities
disadvantaged, 163–166
shared value and, 159–161
competitive advantage
assessing, 20–21
differentiation and, 87–88
identifying possible, 37
misconceptions about, 21–23
persistent, 76–78
phases of, 18–20
shared value and, 163–166
surviving disruption and, 73
transience of, 17–31
where it matters, 75–76
competitive environments, 2
in arenas vs. industries, 23–24
ecosystem value and, 105
in platforms, 107–110
platforms’ transformation of, 103–105
shaping strategy and, 8–9
shared value and, 159–161
war-gaming and, 68–69
competitive risks, 67. See also risk management
competitive threats, 108–110
competitor analysis, 42–43
complexity, 99
compliance
crowdsourcing, 109
risk management and, 51, 69–70
confidence, 10–11
confirmation bias, 57
constraints
shared value vs. trade-offs and, 157–158
in strategy building, 130, 135–137
context, in strategy building, 130–131, 138–139
context switching, 138
contrast, in strategy building, 130, 131–133
core. See extendable core
core competencies, 114
corporate social responsibility, 159, 176. See also shared value
creativity, 129–140. See also innovation
in business models, 130
questions for, 40
scientific process and, 36
teams and, 38–39
culture
boundaries for, 55
of intellectual confrontation, 58–59
strategy mismatches with, 12–13
customer development, 119, 124
customer feedback, learning from, 97–98
customer relationships, 26–27, 91, 118
customers
business plans and, 116
extendable core and, 75
jobs to be done for, 75–76, 80–83
listening to, 120
pain points of, 148
preparing for transitions, 27, 28
shared value and, 162–166
customer value, 105
Daimler, 134
data, platforms and, 109–110
decision making, speed vs. accuracy in, 11–12
Deepwater Horizon, 51
demand-side economies of scale, 106. See also network effects
designing tests, 46–49
developing countries, 163–166, 173–176
deviance, normalization of, 57
Dhanaraj, Charles, 141–153
Diapers.com, 83
differentiation, 87–88
growth based in, 94–95
mapping, 90–92
sources of, 89–93
supporting, 95–99
disengagement process, 19, 27, 28
disruption, 71–85
assessing vulnerability to technology-based, 68–69
defining, 73–74
extendable core and, 72–73
persisting advantage and, 76–78
of retail grocery stores, 78–85
disruptive innovation, 68–69, 71–85
distribution, 169–170
DonorsChoose.org, 132
dot-com boom, 120
DVDs, disruption by, 78
e-commerce
groceries, 78–85
UPS’s visionary strategy and, 9–10
economic conditions
innovation-based economy and, 123–126
risk management and, 66
strategic style and, 13–14
transient advantage and, 23–31
economic development initiatives, 173
economies of scale, 105–106
ecosystem barrier, 77–78
ecosystems. See also platforms
forces exerted by, 107–110
forces within, 107
value for, 105
Edelman trust barometer, 152
e-learning, 74
empire-building trap, 23
employees
differentiation and, 93
productivity of, 170–171
energy use, 167
engagement, on platform, 113
entrepreneurs
innovation-based economy and, 123–126
jobs to be done for customers and, 75–76
environment
company life cycle and, 14–15
external risk management and, 66–69
misplaced confidence about, 10–11
strategic style and, 1–15
environmental considerations, 158, 165. See also shared value
lean start-up and, 115
experts
embedded, 60–61
independent, 58–59
exploitation phase, 19
extendable core, 72
disadvantages of, 74–75
identifying opportunities for, 75–76
jobs to be done for customers and, 78–85
as source of advantage, 73–75
external forces, 105–106
shaping strategy at, 8–9
facilitators, in risk management, 59–60
fair trade movement, 158–159
far-outside-in questions, 40
fashion retailing, 7–8
evolution of capitalism and, 183
financial reporting, 12
financial services industry, 60–61
first-mover trap, 22
arenas vs. industries and, 23–24
flexibility
at Haier, 14
shaping style and, 8–9
Friedman, Milton, 159
functions, risk management and, 61–65
General Electric (GE), 26–27, 127, 156, 162–163, 180
geopolitical changes, 66–67
Gilt Taste, 82
global financial crisis, 66, 67, 69–70
goals, planning based on, 11–12
Goldman Sachs, 70
innovation and, 112
metrics, 113
platform, 108–109
Scholar, 169–170
open, 111–112
government regulation, 174–175, 178–179
graphical user interface, 138
grocery stores, 78–85
groupthink, 57
differentiation-based, 94–95, 99
entrepreneurial, metrics supporting, 24–25
shared value and, 182
strategies driving, 141
guideshops, 136–137
habits, in strategic planning, 11–12
Haier, 14
Hayward, Tony, 51
employee productivity and, 170–171
Hilti, 98
Hindustan Unilever, 170
Project Shakti, 170
hostage-resources trap, 22
hotel pricing, 73–74
housing finance, 146–147
human/machine collaboration, 134–135
human resources, 109
impact, broadening, 152
implementation, of purpose-driven strategy, 149–151
industry assessment
arenas vs., transient advantage and, 23–24
strategic style and, 3–4
industry structure, 161
information, availability of, 125
information technology, 108
infrastructure, 172–177
innovation
differentiation sources and, 92
early-stage, 28
economy based on, 123–126
extreme-user strategy for, 138–139
in large companies, 127
lead-user strategy for, 138–139
permissionless, 112
shared value and, 182
sporadic, 23
white-space trap and, 22–23
inside-out questions, 40
intellectual property, 102–103
intention analysis, 81–82
interactions, 110, 111. See also platforms
failure in, 113
internal control systems, 55
internal costs, 158–159
internet commerce. See e-commerce
inventory, 109
inversion, organizational, 108–109
investments, differentiation and, 92, 93
”invisible hand” concept, 182
iteration, 28–29. See also experimentation
Jain Irrigation, 168
Jet Propulsion Laboratory (JPL), 57, 58–59
Jobs, Steve, 130
Johnson & Johnson, 156, 170–171
J.P.Morgan, 109
JPMorgan Chase, 70
J.P.Morgan Private Bank, 61, 63
Kaplan, Robert S., 51–70
Kindle, 169–170
Kramer, Mark R., 155–184
Lafley, A.G., 33–50
launch process, 18
lazy man’s approach to choice, 47–48
leaders and leadership
as orchestraters, 29
platforms and, 114
in purpose-driven strategy, 150
risk management and, 69–70
transforming the agenda of, 150
lean start-ups, 115–128
business plans and, 116–120
entrepreneurial, innovation-based economy and, 123–126
key principles in, 117–119
new strategy for, 126–128
stealth mode and, 120–122
learning, from experimentation, 28–29
learning systems, 97–99
Lievonen, Matti, 144
life cycle, of company, 14–15
LinkedIn, 110
location, 171–172
logistics chains, 79–80
Love, Claire, 1–15
Mahindra, Anand, 148–149
Mahindra Finance, 146–147
Mahindra Group, 148–149
malleability, of competitive environment, 4–10
Malnight, Thomas W., 141–153
managers and management
annual strategic planning and, 33–34
differentiation and, 90, 93, 98–99
possibilities-based approach and, 50
purpose and, 152
shared value and, 183
marketing, 108
markets, shared value and, 158–159, 162–166
Mars Petcare, 142–143, 148, 150, 152
Pet Insight Project, 148
Martin, Roger L., 33–50
McGrath, Rita Gunther, 17–31, 127
Merrill Lynch, 23–24
Mestral, George de, 138
metrics
government regulation and, 178–179
lean start-ups and, 124
platforms and, 112–114
shared value and, 178–179, 181
strategic style and, 12–13
transient advantage and, 24–25
microfinance, 170
Mikes, Anette, 51–70
mind-sets, 114
entrepreneurial, 183
social responsibility, 156
minimum viable product, 115, 122
mission statements, 54
mobile banking services, 164
mobile payment platforms, 133–134
M-PESA, 164
Murdoch, Rupert, 114
Musk, Elon, 131
natural disasters, 66
neoclassical economics, 157–158
Nest Labs, 134
Nestlé, 156, 168–169, 171, 173–175
Nestlé Purina PetCare, 142–143
Net Promoter systems, 97–98
network effects, 102, 105–106, 108–109. See also platforms
negative, 113–114
networks, personal, 26–27
nimbleness, 119
noise, on platforms, 112
Nokia, 21, 22, 97, 98–99, 101–102
Noma (restaurant), 137
nonnegotiables, 93, 95–97, 98–99
nonprofit organizations, 163
normalization of deviance, 57
North Carolina Research Triangle, 177
offshoring, 161
oil industry, 1, 2, 6, 143–144
Oil of Olay, 35–36, 37, 38, 43, 48, 49
Olam International, 94–95, 96–97, 171
online retailing, of groceries, 78–85
online universities, 74
open architecture, 111–112
open governance, 111–112
open source software, 125
operations, 109
optimization, 105
organizational structure, 108–109
outputs, identifying desired, 36–38
outside-in questions, 40
outsourcing, 108–109, 161, 169
pain points, focusing purpose on, 148
Parker, Geoffrey G., 101–114
PayPal, 131
performance
differentiation and, 88
reporting systems, 178–179
standards, 178
strategic style’s influence on, 4
permissionless innovation, 112
pet-food industry, 142–143
pipeline businesses, 102–105, 108–109
focus in, 110
metrics and, 112–114
platforms vs., 102–105
pivoting, 115
planning. See strategic planning
platforms, 101–114
access and governance in, 110–112
communities, 108–110
consumers for, 103
focus in, 110
metrics and, 112–114
network effects in, 105–106. See also network effects
organizational structure and, 108–109
owners of, 102
pipelines vs., 102–105
producers in, 103
providers of, 102
resource orchestration in, 104–105
rules and architecture in, 111–112
spillover effects in, 111
strategy change by, 107–114
pollution, 165
pop-up stores, 132
Porter, Michael, 23, 105, 155–184
possibilities-based approach, 34–51
assessing validity of options in, 42–43
critiques in, 39–40
desired outputs in, 36–38
generating possibilities in, 35–40
identifying barriers in, 45–46
issues vs. choice in, 34–35
making the choice in, 49
rules for, 39–40
specifying conditions for success in, 40–45
steps in, 36
teams for, 38–39
tests in, 46–49
Prahalad, C. K., 163
predictability, of competitive environment, 4–10
predictions
assessing, 12–13
lean start-ups and, 115–120
overconfidence in, 10–11, 56–57
Procter & Gamble. See Oil of Olay
procurement, 168–169
product definition, 130, 162–166
productivity, 161–162, 165–172
employee, 170–171
products
combination strategy and, 130, 133–135
shared value and, 181
profits, 159–160, 163, 178–181
shared value and, 182
prospective approach, to purpose, 148, 149
protectionism, 66
purpose, 141–153
assessing centrality of, 147
critical roles of, 141–148
defining, 149–150
developing, 148–149
disseminating throughout organization, 150–151
implementing in strategy, 149–151
managing people and, 152
prospective approach to, 148–149
retrospective approach to, 148–149
trust and, 146–147
value proposition reshaping and, 144–148
purpose statement, 149–150
quality trap, 22
questions
asking the right, 50
boosting creativity with, 40
types, 40
ramp-up phase, 19
Raynor, Michael, 73
research and development (R&D), 139
real-time response, 98
reconfigure phase, 19
reinvention, 88–89
relationships, with customers, 26–27, 91, 118
renewable energy, 144, 150–151
resources
control vs. orchestration of, 104–105
hostage, 22
shared value creation and, 167–168
restructuring, 27
retailing
constraints in, 136–137
contrasting assumptions about, 131–132
fashion, 7–8
grocery stores, 78–85
retrospective approach, to purpose, 148–149
Revolution Foods, 163
ride sharing, 77, 107, 111, 113
Ries, Eric, 121
risk management, 51–70
categories of risk, 52
cognitive biases and, 56–58
as compliance issue, 51
dialogue-based, 53–56
embedded experts in, 60–61
of external risks, 52, 56, 65–69
facilitators in, 59–60
the function trap in, 61–65
independent experts in, 58–59
leadership and, 69–70
of preventable risks, 52, 54–55
of strategy risks, 52, 55–56, 58–61
risk oversight structure, 63
risk review boards, 58–59
risks
categories of, 52
Roominate, 125
Root Capital, 175
Rovio, 112. See also Angry Birds (game)
Sagentia, 26
sales, 110
SAP, 109
scenario planning, 67–68
scientific method, 34
scope, of advantage, 37
segmentation, 42–43
shaping strategy (strategic style), 3, 8–9
shared value, 155–184
corporate social responsibility vs., 176
definition of, 160
evolution of capitalism and, 182–183
government and civil society implications of, 174–175
government regulation and, 178–179
local cluster development and, 172–177
reconceiving products and markets for, 162–166
redefining productivity and, 165–172
roots of, 159–161
trade-offs vs., 157–159
Siggelkow, Nicolaj, 33–50
Singapore Air, 87–88
Smith, Adam, 182
Soap.com, 83
social contract, 160–161
social responsibility, 159, 176. See also shared value
society, shared value and, 155–184
trade-offs vs., 157–159
Sony Ericsson, 101–102
speed
transient advantage and, 29
spillover effects, 111
sporadic-innovation trap, 23
stability, 17–18
start-up accelerators, 125
start-ups. See also lean start-ups
failure rate of, 115
lean, 115–128
status quo
in possibilities-based strategy, 36–37
setting testable conditions for, 48–49
stealth mode, for start-ups, 120–122
stories, as possibilities, 36–38
strategic initiatives, as transient competitive advantages, 17–18
strategic planning
annual, 33–34
business plans and, 115–120
departmental, 13–14
issues vs. choice in, 34–35
scenario, 67–68
shaping strategy and, 8
unexamined habits in, 11–12
strategic styles, 1–15
finding the right, 3–10
industry differences and, 1–2
traps around, 10–13
using multiple, 13–14
using the wrong, 12
strategic traps, for executives, 10–13
strategy risks, 52, 55–56, 58–61
stress tests, for risk, 67
success, specifying conditions for, 40–45
superiority trap, 22
supply-side economics, 105–106
SWOT analysis, 136
tail-risk stress tests, 67, 68
Tata, Ratan, 9
teams, for generating strategic possibilities, 38–39
technology
as barriers to disruption, 76–78
combination strategy and, 134–135
disruption based on, 73–74
war-gaming and, 68–69
TechnoServe, 174–175
Tencent, 133–134
Tesla, 136
tests
conducting, 47–49
stress, 67
textile industry, 19–20
Thomson Reuters, 164
Tillmanns, Philipp, 1–15
Toyota Production System, 121
transaction costs, 169
transient advantage, 17–31
anatomy of, 18–20
assessment of your company and, 21, 23, 30–31
customers and, 25–27
leadership and, 29
misconceptions about, 21–23
trends, responding to, 145
trust, purpose and, 146–147, 152
Tyson, Mike, 116
unbundling, of products or services, 132–133
unifying the organization, through purpose, 152
Urbi, 179–180
U.S. National Science Foundation, 126
value
creating shared, 155–184
creation of, in capitalism, 155
creation of, in platform ecosystems, 107, 110–112
economic and societal, 161–162
proposition, reshaping, 144–148
volume vs., 151
activities, identifying, 37
redefining productivity in, 165–172
value proposition, 144–148, 161
values
differentiation and, 93, 95–97
nonnegotiable, 95–97
preventable risks and, 54
Van Alstyne, Marshall W., 101–114
Velcro, 138
venture capital, 123, 125, 163
Verghese, Sunny, 95
vertical integration, 161
video rental industry, 131–132
video streaming, 78, 107, 131–132
visionary strategy, 3, 9–10, 161
Vodafone, 164
Volkswagen do Brasil, 62–63, 64–65
volume, value vs., 151
Walmart, 24, 79, 156, 165, 171
Warby Parker, 108
war-gaming, 68–69
Waste Concern, 163
WaterHealth International, 163
WeChat Pay, 133–134
Wells Fargo, 162
Wessel, Maxwell, 71–85
white-space trap, 22–23
Yara, 176–177
Zara, 7–8
Zook, Chris, 87–99