accountability, 167–169
decision rights and, 150–152, 154–155
for performance, 101
adaptive capabilities, culture mismatches with, 12–13
adaptive strategy, 3, 6–8. See also strategy
American Express, 127
American Management Association, 52
Apollo program, 92–93
assumptions
articulating and testing, 139–143
failure to examine, 138–139
Athenahealth, 76–77
attention, focused, 171–185
authenticity, self-awareness and, 172–174
Authentic Leadership Development course, 173
autonomy, 218–219
awareness. See also focus
exercising, 174
expanding your, 175
systems, 184
balance
innovation portfolio, 21–25
strategic intent and, 93
Balanced Scorecard, 198
Banta, Ken, 225–229
best practices, 85–86
BF Goodrich, 125
BHP Billiton, 218
biases, risk management and, 192–194
Bishop’s Buffet, 136
boards, 225–229
boundaries
information flows across organizational, 158–159
risk management and, 191
brain
empathic concern and, 179
empathy and, 178
self-awareness and, 172
brand ambassadors, 82
brands and branding, 83–84
in Japanese companies, 113
strategic intent and, 112–113
bricks, searching for loose, 103, 104–105
business models, 51–71
barriers to changing, 69
building great, 57–63
core, premature abandonment and, 135
customer value proposition and, 54–55, 57–60
definition of, 54–57
elements of successful, 58
in great, 53
half-life of, 144
identifying the need for new, 53, 54–55, 63–66
innovation management breakdowns and, 131
innovation problems in, 52–53
in practice, 54–55
steps in changing, 53
understanding your current, 53, 54
when the old one will work, 67
business units, strategic styles in, 13–15
Calming Technology Lab, 174
Canon, 89, 90, 91, 96–97, 105–106, 116
strategic intent of, 91
capabilities, strategic styles and adaptive, 12–13. See also skills
change, organizational conversation and, 79
change initiatives
anchoring changes in the culture and, 48–49
communication of vision in, 36, 42–44
consolidating improvements in, 34, 37
declaring victory too soon in, 35, 47–48
empowerment for, 34, 37, 44–45
guiding coalitions in, 36, 39–41
institutionalizing new approaches in, 34, 37
leading, 33–49
mistakes in, 35
phases in, 35
in practice, 36–37
as process versus event, 35
removing obstacles to the new vision in, 44–45
sense of urgency in, 34, 36–39
short-term wins in, 34, 37, 46–47
steps to creating, 34
changing the terms of engagement, 103, 105–107
Christensen, Clayton M., 51–71, 127, 145
Cisco Systems, 80–81
unexamined habits with, 11–12
Coca-Cola, 82
cognitive control, 175–176, 177
collaboration
competition through, 91, 103, 106–107, 115
information flows and, 158–159
color television industry, 103, 111
command-and-control approach, 73
commitment escalation, 193
communication
about competitiveness problems, 115–116
about risks, 198
across organizational boundaries, 158–159
with boards, 226–227
in change initiatives, 39
change initiatives and, 34, 36
common patterns in, 42–43
execution and information flows, 148–152
gaining trust in, 76–77
information flows in, 148–152, 155–157, 166–167
innovation and, 30–31
intentionality in, 84–86
leadership as conversation and, 73–86
listening well in, 77
Companhia Vale do Rio Doce, 217–218, 219
company life cycles, 110–111
innovation portfolio balance and, 25
premature abandonment of core business and, 136–137
strategic styles and, 14–15
Compaq, 127
compassion fatigue, 179–180
compensation, 218–219
competencies
embedding new, 116
identifying new, business model innovation and, 68
in Japanese companies, 113
strategic intent and, 90–91, 96–97
competition
building layers of advantage in, 90–91, 103–104
business model change and, 64–65
changing the terms of engagement and, 103, 105–107
remaking strategy models and, 92–93
risks based in, 203
strategic intent and, 87–118
surrender process in, 108–110
through collaboration, 91
competitive advantage, responsibility for, 101–102
competitive position, innovation portfolio balance and, 25
confidence, misplaced, 10–11
confirmation bias, 193
conformity, 93
strategy hierarchy and, 117
content providers, employees as, 82
control, giving up, 175
core-belief identification squads, 141
core businesses, premature abandonment of, 121, 122, 134–137
Corporate Executive Board, 121–122
Corporate Strategy Board, 25
cost structure, 56
creativity, 183
culture
anchoring changes in, 48–49
executives “walking the talk” in, 44
risk management and, 191, 194–195
strategy mismatch with, 12–13
curiosity, 214. See also talent spotting
customer value proposition (CVP), 54–55, 57–60
key resources/processes and, 61–62
decentralization, 112–115
decision making
conversational intimacy and, 76
information available to employees and, 160–161
second-guessing, 157–158
decision rights, 148–152, 154–155, 167–169
at Caterpillar, 156
second-guessing, 157–158
deliberation versus intuition, 179–180
denominator management, 114–115
determination, 214. See also talent spotting
development, stretch, 219–222
deviance, normalization of, 193
dialogue, 78–81. See also communication
digital music players, 51
disaggregation, 93
disrupters, fending off, 64
disruptive innovation, 203
growth stalls and, 127
by P&G, 63
war-gaming and, 204–205
downsizing, 43
Duke Energy, 77
Eastman Kodak, 127
economic change, 79
economic disasters, 202
Egon Zehnder, 211, 212, 214, 217, 219
EMC, 83
emerging markets, 111–112
emotional empathy, 178–179
emotional intelligence
focus on others and, 176–182
self-awareness in, 171–174
empathic concern, 178, 179–180
empathy, 176–182
controlling, 180
learning, 179
systems awareness and, 184
employees. See also talent
blame for competitive failure and, 101
expanding roles of, 81–84
growth stalls and, 121, 123, 137–138
information available to, 160–161
stretch development of, 219–222
empowerment, change initiatives and, 34, 37
engagement, 214. See also talent spotting
environment
external risks, 201–205
environments
strategic assumptions and, 138–143
strategic style and, 1–15
Eriksen Flanker Task, 177
estimate anchoring, 193
execution, 147–170
in brief, 149
building blocks for good, 147–148, 162
of business model innovation, 65–66
decision-rights clarification and, 148–152, 154–155
elements of strong, 152–161
identifying sources of problems in, 161, 163
information flows and, 148–152, 155–159
information to employees and, 160–161
innovation system management and, 25–30
lack of capability for, 147
motivation alignment and, 148
organizational-change simulator for, 163–169
in practice, 150–151
second-guessing decisions and, 157–158
structure and, 148
traits of organizational effectiveness and, 152, 153
transformation programs for, 161–169
Exelon, 78
experiments, shaping strategy and, 8–9
experts
embedded, 196–197
independent, 194–195
Facebook, 8–9
facilitators, 195–196
failure, value of documenting, 108
fashion retailing, 7–8
feedback, for CEOs, 77–78, 173–174
Fernández-Aráoz, Claudio, 207–223
financial services industry, 196–197
fleet management, 62–63
flexibility
shaping strategy and, 8–9
strategic intent and, 96
focus, 171–185
in brief, 173
excellence and, 184–185
expanding your, 175
innovation and, 183
open awareness, 173–174
on others, 176–182
self-control and, 175–176
strengthening, 174
on the wider world, 182–184
on yourself, 171–176
Ford, 107
forecasts, reviewing accuracy of, 12–13
functions
risk management and, 197–201
strategic styles and, 13–15
funding
for innovation, 19, 22–25, 27–28
risk management and, 196
Furr’s Cafeterias of Texas, 136
Garrow, Stephen D., 225–229
Gates, Melinda, 182
generational changes, 79, 211, 213
geopolitical changes, 202
global change, 79
strategic intent and, 87–118
global financial crisis, 202, 205–206
GM, 107
Goldman Sachs, 206
Goleman, Daniel, 171–185
Goodward Insurance, 163–169
Google, 22
innovation metrics at, 30
governance, 85
groupthink, 193
growth initiatives, 19
growth stalls, 119–145
assumptions in, 139–143
in brief, 121
in Fortune 100 and Global 100 companies, 120, 144
innovation management breakdowns and, 121, 122, 131–134
long-term effects of, 144
premature abandonment of core business and, 121, 122, 134–137
premium market position backfires and, 121, 122, 126–130, 132–133
preventing, 123
red flags for, 140
research on, 124
root causes of, 128–129
strategy competence renewal and, 143–145
talent bench shortfalls and, 121, 123, 137–138
Groysberg, Boris, 73–86, 212, 213
guiding coalitions, in change, 36, 39–41, 44–45
habits, unexamined, 11–12
Haier, 14
Hayward, Tony, 187
Heinz, 127
hierarchy
change guiding coalitions and, 40
social relationships and, 181–182
strategic intent and, 115–117
hiring, 213–217. See also talent; talent spotting
strategic intent of, 91
Huawei, 211
execution and, 150–151
industries
changing boundaries in, 110
changing the terms of engagement and, 103, 105–107
innovation portfolio balance in different, 24–25
life stages of, 110–111
information flows, 148–152, 155–157, 166–167
across organizational boundaries, 158–159
innovation
audits, 30
business model, 51–71
clarifying you ambitions about, 18–21
conservatism in leadership and, 117–118
defining, 18
executives’ responses toward, 17–18
importance of, 17
integration of, 27
management of, breakdowns in, 121, 122, 131–134
pipeline management for, 19, 28–29
portfolio management, 17–31
Silicon Valley approach to, 96
system management for, 25–30
talent for, 26–27
wellsprings of, 183
Innovation Ambition Matrix, 18–21
innovation portfolios
adjacent innovation initiatives, 21, 22–23, 27, 28–29
balance in, 21–25
in brief, 19
clarifying you ambitions and, 18–21
core innovation initiatives, 19–20, 22–23, 27, 28–29
innovation system management and, 25–30
managing, 17–31
metrics for, 29–30
moving forward with, 30–31
shaping strategy and, 8–9
talent and, 26–27
transformational innovation initiatives, 20–21, 22–23, 25–26, 27–28, 29
insight, 183, 214. See also talent spotting
integration, innovation and, 27
International Monetary Fund, 211
internet software industry, 1–2
interviewing techniques, 216–217. See also talent spotting
intimacy, in communication, 74, 75–78
Intuit, 59–60
intuition versus deliberation, 179–180
Japanese companies
brands and core competence in, 113
color television, 103–104, 111
development processes in, 219–220
strategic intent of, 89–90
wisdom of the anthill in, 116
Jet Propulsion Laboratory, 193
job losses, 43
John Lewis Partnership, 212
Johnson, Mark W., 51–71
Johnson & Johnson, 190
joint ventures, 106–107
JPL, 194–195
JPMorgan Chase, 206
JP Morgan Private Bank, 197, 199
Juniper Networks, 83
Kagermann, Henning, 51–71
Kaplan, Robert S., 187–206
Kingfisher plc, 85–86
Kmart, 136
Kotter, John P., 33–49
leaders and leadership
abilities for, 220–221
change efforts and, 33–49
conservatism in, 117–118
as a conversation, 73–86
focused, 171–185
getting personal feedback for, 77–78
premature abandonment of core businesses and, 135–136
talent bench shortfalls in, 137–138
talent spotting for, 220–221
working with boards, 225–229
Levi Strauss & Company, 119, 123, 127, 130
licensing, 106–107
Love, Claire, 1–15
management
in change initiatives, 38
command-and-control approach to, 73
as a conversation, 73–86
denominator, 114–115
elitist view of, 115–117
execution and, 149–150
innovation portfolio, 26–30
strategic business units and, 112–115
strategic intent and, 91–92
Western, global competitors and, 88–89
working with boards and, 227–228
margin model, 56
market leadership, 94
market saturation, 135
marshmallow test, 176
Martin, Karla L., 147–170
Massachusetts General Hospital, 179
mastery, 218–219
Matsushita, 107
mature companies/industries
decision rights and, 154
innovation portfolio balance and, 25
premature abandonment of core businesses and, 136–137
strategic styles and, 14–15
Merck Global Health Innovation, 28
metrics
business model innovation and, 69
economic, 29–30
external, 29
innovation and, 19
for innovation portfolios, 29–30
internal, 29–30
strategic intent and, 100
strategic style and, 12–13
Mikes, Anette, 187–206
milestones, 100
mindfulness practice, 177
MinuteClinic, 60
mission statements, 190
mix management, 138
motivation, 215
change initiatives and, 38
execution and, 148
hiring for, 214
strategic intent and, 91–92
MySpace, 8–9
Nagji, Bansi, 17–31
National Jewish Health, 62
natural disasters, 202
NEC, 93–94
Neilson, Gary L., 147–170
niche-jumping strategy, 131–134
Nissan, 101
normalization of deviance, 193
norms, innovation and, 69
oil industry, strategy in, 1, 2, 6
Olson, Matthew S., 119–145
open awareness, 173–174
optimism, 175
organizational-change simulator, 163–169
organizational conversation, 73–86. See also communication
benefits of, 75
in brief, 75
business trends forcing, 79
elements of, 74
expanding employee roles and, 81–84
organizational effectiveness, traits of, 152, 153, 154
organizational structure
as barrier to change, 45
execution and, 148
information flows across, 158–159
strategic intent and, 112–115
outsourcing, 106–107
overconfidence, risk management and, 192–194
patience, 70. See also business model
performance
resource allocation for innovation and, 22–25
talent spotting and, 209
pessimism, 175
Philip Morris, 127
Philips, 107
Pink, Daniel H., 218
pipeline management
talent spotting and, 210, 212–213
planning
adaptive, 12–13
boards and, 228–229
change initiatives and, 34
culture mismatches with, 12–13
departmental, strategic styles and, 13–15
scenario, 203–204
strategic intent and, 94–96
strategic styles and, 1–15
positive thinking, 175
potential, 208
hallmarks of, 214–216
high-potential programs and, 214
retention of, 217–219
stretch development and, 219–222
at the top, 212
power, personal connections and, 181–182
Powers, Elizabeth, 147–170
Prahalad, C. K., 87–118
risk management and, 195–196
premium-position captivity, 121, 122, 126–130, 132–133
process, key, business models and, 57, 60–63
Procter & Gamble, 21, 63, 67, 127
product launches, 19, 27, 78, 131, 164–165, 201
profitability, 92–93
purpose, 218–219
QuickBooks, 59–60
Quinsa, 207
R&D, 131–134
reciprocal responsibility, 101–102
Reeves, Martin, 1–15
relationship building, 180–182
resilient organizations, 169
resource allocation
business models and, 56, 60–63
for innovation portfolios, 19, 22–25, 27–28
strategic intent and, 90–91, 96, 107
resource leveraging, 92–93
resource velocity, 56
retention, 217–219. See also talent
revenue growth, stalls in. See growth stalls
revenue model, 56
Rio Tinto, 218
biases in, 192–194
in brief, 189
as compliance issue, 187
embedded experts in, 196–197
of external risks, 201–205
facilitators in, 195–196
function trap in, 197–201
independent experts for, 194–195
leadership challenge of, 205–206
oversight of, 199–200
of preventable risks, 190–191
report cards in, 201
risk event cards in, 200
scenario planning for, 203–204
of strategy risks, 194–197
tail-risk stress tests in, 203
war-gaming in, 204–205
risk review boards, 194–195
risks, 93
categories of, 188
identifying, 190–191
strategy, 188, 191–192, 194–197
Samsung, 26–27
scenario planning, 203–204. See also planning
searching for loose bricks, 103, 104–105
second-guessing, 157–158
self-awareness, 171–174
70-20-10 balance, 22–25
shadow cabinets, 142
Share at the Marketplace, 85–86
shareholder wealth, 94
share price, 22
Shell Oil, 203
simulator, organizational-change, 163–169
skills, strategic intent and, 90, 100. See also competencies
Slind, Michael, 73–86
smart customization, 160–161
social and emotional learning (SEL), 177
social intelligence, 176–182
social media, 80. See also communication; organizational conversation
social sensitivity, 180–182
social thinking, 80–81
Sony, 111
stage-gate processes, 28–29
Stanford University, 174
storytelling, 83–84
strategic alliances, 87–88, 91, 96
strategic analysis, 141–142
strategic business units (SBUs), 112–115
strategic fit, 92–93
strategic intent, 87–118
in brief, 89
building layers of advantage in, 90–91, 103–104
changing the terms of engagement and, 103, 105–107
competing through collaboration and, 103, 106–107
corporate challenges in, 97–99
definition of, 90–91
the essence of winning in, 92–94
global opportunity/threat analysis and, 111–112
management and, 91–92
managing competitive engagements and, 102–103
misunderstanding rivals’, 108–109
overcommittment to “recipes” and, 112–115
in practice, 90–92
reciprocal responsibility and, 101–102
searching for loose bricks and, 103, 104–105
stability of, 94
strategic planning and, 94–96
strategy hierarchy and, 115–117
stretch required for, 96–97
surrender and, 108–110
target setting in, 94–118
strategic styles
avoiding traps with, 10–13
in brief, 3
culture mismatches with, 12–13
finding the right, 3–10
most-used, 11
operating in multiple, 13–15
predictability, malleability, and, 4, 12
survival, 2
unexamined habits and, 11–12
strategy
assumptions behind, 138–143
avoiding traps in, 10–13
boards and, 228–229
culture mismatches with, 12–13
executing, 147–170
exploitative versus explorative, 182–183
fitting to your situation, 1–15
focusing on, 182–183
misplaced confidence in, 10–11
recipes for, 110
remaking, 92–93
renewing competence in, 143–145
risks related to, 188, 191–192, 194–197
strategic intent versus, 87–118
strategy for, 1–15
in subsidiaries and geographic markets, 13–15
unexamined habits and, 11–12
venture capitalist reviews of, 142–143
stress-testing, 203
stretch development, 219–222
succession planning, 212
supplier strategies, 62
surrender, process of, 108–110
survival strategy, 2
systems awareness, 184
tail-risk stress tests, 203. See also risk management
talent
as barrier to change, 45
better hiring and, 213–217
growth stalls and lack of strong, 121, 123, 137–138
for innovation, 26–27
innovation and, 19
retention of, 217–219
scarcity of top, 210–213
stretch development, 219–222
talent spotting, 207–223
better hiring and, 213–217
in brief, 209
first era of, 208–209
fourth era of, 210
interviewing techniques for, 216–217
second era of, 209
third era of, 210
for top positions, 210–213
what to look for in, 220–221
Target, 52
Tata Motors, 62
teams, innovation and, 19
technology
business model innovation around, 64
external risks from, 203
leadership communication and, 79
premium-position captivity and, 127
TelePresence, 80–81
Tenacity, 174
thought leaders, 82–83
Tillmanns, Philipp, 1–15
Toyota, 107
traits of organizational effectiveness, 152, 153, 154
True North groups, 173–174
trust
conversational intimacy and, 76–77
gaining, 76–77
Tuff, Geoff, 17–31
unpredictability
adaptive strategic style and, 6–8
shaping strategic style and, 8–9
UPS, 9–10
urgency, sense of
growth stalls and, 144–145
guiding coalitions and, 40–41
values
conversational intimacy and, 78
risk management and, 190
in talent spotting, 220
van Bever, Derek, 119–145
venture capitalists, strategy review by, 142–143
Verry, Seth, 119–145
vision
change initiatives and, 34, 36, 41–42
focus on the wider world and, 182
obstacles to, removing, 44–45
volatile, uncertain, complex, and ambiguous (VUCA), 210, 214
Volkswagen do Brasil, 198–199, 200, 201
war-gaming, 204–205
willpower, 175–176
wins, short-term, 34, 37, 46–47
Xerox, 89, 90, 91, 96–97, 105–106
Xiameter, 66–70
Yamaha, 111
Zara, 7–8