NOTES

Chapter 1

1. References to Strategy& or “our firm” in Strategy That Works refer to a strategy consulting enterprise that navigated a series of changes in structure during the time the authors and their colleagues were developing the ideas in this book. Before April 2008, this enterprise was the global commercial strategy business in the management consulting firm Booz Allen Hamilton. Starting April 2008 it was an independent global consulting firm, Booz & Company. As of July 2015, it is Strategy&, a global team of practical strategists integrated within the PwC network of firms. For more about PwC’s Strategy&, see www.strategyand.pwc.com. For further details about how the PwC network is structured, see www.pwc.com/structure.

2. This study was conducted through an interactive survey and self-analysis tool called the Coherence Profiler. These figures reflect results gathered between 2010 and 2015. The profiler and more detail on results are available at “Our Leading Research on Strategy,” Strategy&, 2015, http://www.strategyand.pwc.com/global/home/what-we-think/cds_home/the_concept/our_leading_research_on_strategy.

3. “Companies Spend Money and Time at Odds With Their Own Strategy,” the Strategy& group of PwC, based on data from the Fit-for-Growth index profiler: http://www.strategyand.pwc.com/global/home/what-we-think/reports-white-papers/article-display/fitforgrowth-infographic-indexprofiler-results. Fit for Growth is a registered service mark of PwC in the United States.

4. “Companies Spend Money and Time at Odds With Their Own Strategy,” ibid.

5. Paul Leinwand and Cesare Mainardi, “What Drives a Company’s Success?” Strategy&, October 28, 2013, www.strategyand.pwc.com/global/home/what-we-think/reports-white-papers/article-display/what-drives-a-companys-success. Originally conducted and published by Booz & Company.

6. IKEA Systems B.V., “Who We Are,” accessed July 3, 2015, http://franchisor.ikea.com/who-we-are-2-2/.

7. Natura Cosméticos S.A., “Individual and Consolidated Financial Statements,” December 31, 2014, http://natu.infoinvest.com.br/enu/5179/1DemonstraesFinanceirasIngles1.pdf.

8. Bob Tita, “Danaher to Split Up Businesses, Buy Pall for $13.6 Billion,” Wall Street Journal, May 13, 2015, www.wsj.com/articles/danaher-to-buy-pall-for-13-6-billion-split-up-businesses-1431518043. See also “Danaher Reports Record Fourth Quarter and Full Year 2014 Results,” Danaher press release, January 27, 2015, http://phx.corporate-ir.net/phoenix.zhtml?c=82105&p=irol-newsArticle&ID=2010728.

9. Paul Leinwand and Cesare Mainardi, “The Coherence Premium,” Harvard Business Review 88, no. 6 (June 2010): 86–92.

10. Leinwand and Mainardi, “What Drives a Company’s Success?” op. cit.

11. J. Neely, John Jullens, and Joerg Krings, “Deals That Win,” strategy+business, July 14, 2015, http://www.strategy-business.com/article/00346.

12. Gerald Adolph, Cesare Mainardi, and J. Neely, “The Capabilities Premium in M&A,” strategy+business, February 22, 2012, http://www.strategy-business.com/article/12105.

13. “Management by walking around”: Thomas J. Peters and Robert H. Waterman, Jr., In Search of Excellence: Lessons from America’s Best Run Companies (New York: HarperBusiness, 1982, 2004), 289; “level five leadership”: Jim Collins, Good to Great: Why Some Companies Make the Leap … And Others Don’t (New York: HarperCollins, 2001), 17ff.

14. The quotes from individuals at CEMEX, Danaher, IKEA, and Natura come from interviews that were edited into roundtable-style articles, published or to be published by strategy+business. These are: Thomas A. Stewart, interviewer, “CEMEX’s Strategic Mix” (published April 13, 2015; http://www.strategy-business.com/article/00325); George Roth and Art Kleiner, interviewers, “The Danaher Zone” (in progress); Per-Ola Karlsson, Marco Kesteloo, and Nadia Kubis, interviewers, “The Idea of IKEA,” (in progress); and Thomas A. Stewart, interviewer, “Beauty, Business, Brazil” (about Natura, in progress). Other quotes were taken from interviews with the authors.

15. Jon Katzenbach, Rutger von Post, and James Thomas, “The Critical Few: Components of a Truly Effective Culture,” strategy+business, February 11, 2014, http://strategy-business.com/article/00237; also a forthcoming book on the subject by the authors.

16. Deniz Caglar, Jaya Pandrangi, and John Plansky, “Is Your Company Fit for Growth?” strategy+business, May 29, 2012, http://www.strategy-business.com/article/12205; and the Fit for Growth index, http://www.strategyand.pwc.com/global/home/what-we-think/fitforgrowth.

17. Clive G. Jones, John H. Lawton and Moshe Shachak, “Organisms as ecosystem engineers,” Oikos 69, no. 3 (April 1994): 373–386.

18. Quotes about IKEA come from “The Idea of IKEA,” and from Ingvar Kamprad, The Testament of a Furniture Dealer: A Little IKEA Dictionary (IKEA, 1976). We also drew on Michael I. Norton, Daniel Mochon and Dan Ariely, The “IKEA Effect: When Labor Leads to Love,” Harvard Business School Working Paper 11-091, 2011; “The Secret of IKEA’s Success,” The Economist, Feb 24, 2011; Linda Matchan, “Cheap Thrills: Its prices are just one way IKEA is altering how America decorates,” Boston Globe, Nov 3, 2005; Kerstin Gustafsson, Gunilla Jönson, David Smith, and Leigh Sparks, “Packaging logistics and retailers’ profitability: an IKEA case study,” Lund University, 2004; J. Klevås, “Design for packaging logistics,” International Design Conference—Design 2006, Dubrovnik, Croatia; and Deniz Caglar, Marco Kesteloo, and Art Kleiner, “How Ikea Reassembled Its Growth Strategy,” strategy+business, May 7, 2012. http://www.strategy-business.com/article/00111.

19. References to job titles for IKEA executives draw upon the company’s description of its organizational structure: “About the IKEA Group: Welcome Inside Our Company,” accessed July 26, 2015; http://www.ikea.com/ms/en_GB/about-the-ikea-group/company-information/#organisation.

Chapter 2

1. Walter Isaacson, Steve Jobs (New York: Simon & Schuster, 2011).

2. Ibid., 326; Chloe Albanesius, “Steve Jobs vs. Everyone: His Best Fights,” PC Magazine Online, October 5, 2011, http://www.pcmag.com/article2/0,2817,2391784,00.asp.

3. “Steve Jobs Keynote Macworld 2001 SF,” video uploaded by Evgeny Z, November 8, 2011, YouTube, http://www.youtube.com/watch?v=pICctkS12fY.

4. Ken Favaro and Art Kleiner, “The Thought Leader Interview: Cynthia Montgomery,” strategy+business, February 26, 2013, http://www.strategy-business.com/article/00163?pg=all.

5. Barry Jaruzelski, John Loehr, and Richard Holman, “The Global Innovation 1000: Navigating the Digital Future,” strategy+business, October 22, 2013, http://www.strategy-business.com/article/00221.

6. Sources on Apple include Isaacson, Albanesius, and Favaro and Kleiner, op. cit., along with: Adam Lashinsky, Inside Apple: How America’s Most Admired—and Secretive—Company Really Works (New York: Business Plus, 2012), 126; David B. Yoffie and Michael Slind, “Apple Computer 2006,” Harvard Business School Case Study 9-706-496; David B. Yoffie and Penelope Rossano, “Apple Inc. in 2012,” Harvard Business School Case Study 9-712-490; John Boddie, “Has Apple Hit the Right Disruptive Notes?” Strategy&Innovation, Harvard Business School Publishing, 2005; Ken Mark, “Apple Inc.: iPod and iTunes,” Ivey Case Study 905M46, 2007; and Luc Wathieu, “Apple Stores,” Harvard Business School Case Study 9-502-063, 2010.

7. Joseph A. Michelli, Leading the Starbucks Way: 5 Principles for Connecting with Your Customers, Your Products and Your People (New York: McGraw-Hill Education, 2014), 4.

8. Bill Fischer, Umberto Lago, and Fang Liu, Reinventing Giants: How Chinese Global Competitor Haier Has Changed the Way Big Companies Transform (San Francisco: Jossey-Bass, 2013).

9. Art Kleiner, “China’s Philosopher-CEO Zhang Ruimin,” strategy+business, November 10, 2014, http://www.strategy-business.com/article/00296; Fischer, Lago, and Liu, Reinventing Giants, op. cit.

10. Jeannie Jinsheng Yi and Shawn Xian Ye, The Haier Way: The Making of a Chinese Business Leader and a Global Brand (Paramus, NJ: Homa & Seka Books, 2003), 27.

11. Sources on Haier include Fischer et al., Jinsheng and Shawn, and Kleiner, op.cit.; and Bill Fischer, Umberto Lago, and Fang Liu, “The Haier Road to Growth,” strategy+business, April 27, 2015, http://www.strategy-business.com/article/00323.

12. Correspondence with CEMEX public affairs.

13. Clayton M. Christensen, The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Boston: Harvard Business School Press, 1997), 31ff.

14. Gary Hamel and C. K. Prahalad, Competing for the Future (Boston: Harvard Business School Press, 1994), 247.

15. Sam Frizell, “Meet the Robots Shipping Your Amazon Orders,” Time, Dec 1, 2014; David Cardinal, “Amazon Deploys 10,000 Robot Workers, a Year after Obama’s Famous Amazon Jobs Speech,” ExtremeTech, May 30, 2014, http://www.extremetech.com/extreme/183254-amazon-deploys-10000-robot-workers-a-year-after-obamas-famous-amazon-jobs-speech.

16. Kaj Grichnik and Conrad Winkler, with Jeffrey Rothfeder, Make or Break: How Manufacturers Can Leap from Decline to Revitalization (New York: McGraw-Hill, 2008), 1ff.

17. U.S. Securities and Exchange Commission, “Division of Corporation Finance: Standard Industrial Classification (SIC) Code List,” last modified January 3, 2011, www.sec.gov/info/edgar/siccodes.htm.

18. “History of Smith Corona,” Smith Corona web page, accessed July 9, 2015, www.smithcorona.com/history; Erwin Danneels, “Trying to Become a Different Type of Company: Dynamic Capability at Smith Corona,” Strategic Management Journal 32, no. 1 (January 2011): 1–31.

19. “2012 re:Invent Day 2: Fireside Chat with Jeff Bezos & Werner Vogels” Amazon Web Services, youtube video, November 29, 2012: https://www.youtube.com/watch?v=O4MtQGRIIuA. Quote starts about 4:30.

20. J. P. Mangalindan, “Why Amazon’s Fire Phone Failed,” Fortune, Sept. 29, 2014; http://fortune.com/2014/09/29/why-amazons-fire-phone-failed/.

21. Tony F, “Tesla Batteries as Backup to Power Homes?” Tesla Forums, blog, August 16, 2011, http://my.teslamotors.com/fr_CH/forum/forums/tesla-batteries-backup-power-homes.

22. Gerald Adolph and Kim David Greenwood, “Grow From Your Strengths,” strategy+business, August 18, 2015, http://www.strategy-business.com/article/00354?gko=478fb.

23. This trigger was inspired by “I Can Do That” by Marvin Hamlisch and Edward Kleban in A Chorus Line, 1975.

24. “The Danaher Zone,” op cit.; Richard McCormack, “A Manager’s Guide to Implementing Lean,” (interview with George Koenigsaecker), Manufacturing and Technology News, May 16, 2001, http://www.manufacturingnews.com/news/01/georgek.html; George Koenigsaecker, Leading the Lean Enterprise Transformation (Boca Raton, FL: CRC Press 2009).

25. Natura Cosméticos S.A., Natura Brasil Annual Report 2012, https://www.naturabrasil.fr/en/about-us/our-annual-reports.

26. Howard Schultz and Dori Jones Yang, Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time (New York: Hyperion, 1997), 6.

27. Michael Gates Gill, How Starbucks Saved My Life: A Son of Privilege Learns to Live Like Everyone Else (New York: Gotham Books, 2007); Tom Ehrenfeld, “Starbucks and the Power of Story,” strategy+business, June 10, 2008, http://www.strategy-business.com/article/08211.

28. Keith Oliver, Edouard Samakh, and Peter Heckmann, “Rebuilding Lego, Brick by Brick,” strategy+business, August 29, 2007, www.strategy-business.com/article/07306.

Chapter 3

1. PepsiCo, Annual Report, 2013, www.pepsico.com/Assets/Download/PEP_Annual_Report_2013.pdf.

2. Brian Cornell and Tom Greco, presentation at Thomson Reuters Streetevents, PEP—PepsiCo at CAGNY Conference, February 20, 2014, edited transcript, www.pepsico.com/docs/album/Investor/pep-transcript-2014-02-20t18_45.pdf?sfvrsn=2.

3. Candace Choi, “Cappuccino Potato Chips? America Says No Way,” Associated Press, October 20, 2014.

4. Trefis Team, “Frito-Lay Dominates U.S. Salty Snacks, But Rising Cracker Sales Could Stall Growth,” Forbes, June 27, 2014, www.forbes.com/sites/greatspeculations/2014/06/27/frito-lay-dominates-u-s-salty-snacks-but-rising-cracker-sales-could-stall-growth; Trefis Team, “PepsiCo Rides on Growth in Frito-Lay and Developing Markets in the First Quarter,” Forbes, April 21, 2014, http://www.forbes.com/sites/greatspeculations/2014/04/21/pepsico-rides-on-growth-in-frito-lay-and-developing-markets-in-the-first-quarter/; Anthony A. Verstraete, “Frito-Lay: Case Study in Using MIS for Competitive Advantage,” Smeal College of Business, Penn State University, 1994.

5. Mike Cooke and Edward H. Baker, “Helping the CIO Lead” [interview with Charles (“Charlie”) Feld], strategy+business, December 13, 2010; http://www.strategy-business.com/article/00055.

6. James L. McKenney, Duncan Copeland, and Richard O. Mason, Waves of Change: Business Evolution Through Information Technology (Boston: Harvard Business School Press, 1995), 190.

7. Indra Nooyi, Q4 2013 PepsiCo Earnings Conference Call transcript, Thomson Reuters StreetEvents, February 13, 2014, https://www.pepsico.com/docs/album/Investor/q4_2013_pep_transcript.pdf?sfvrsn=2; Brian Cornell, “Winning in North America,” Strategy Presentation at 2014 Consumer Analyst Group of Ny conference, February 20, 2014: http://www.slideshare.net/Foodsfluidsandbeyond/pep-cagny-2014; Katy Askew, “Pep-siCo confident on US snacks despite slowing sales,” Just-Food, September 4, 2014: http://www.just-food.com/analysis/pepsico-confident-on-us-snacks-despite-slowing-sales_id127785.aspx; Sharon Bailey, “Why PepsiCo’s oper-ating margins are still under pressure,” Market Realist, Feb 25, 2015, http://marketrealist.com/2015/02/pepsicos-operating-margins-still-pressure/.

8. Lashinsky, Inside Apple, op. cit.

9. Oliver, Samakh, and Heckmann, “Rebuilding Lego, Brick by Brick,” op. cit.

10. “The Danaher Zone,” op. cit.

11. Bob Tita, “Johnson Controls to Spin Off Automotive Business,” July 25, 2015. Wall Street Journal, http://www.wsj.com/articles/johnson-controls-to-spin-off-automotive-business-1437742476.

12. For more on the strategic context of this story, see Paul Leinwand and Cesare Mainardi, The Essential Advantage: How to Win with a Capabilities-Driven Strategy (Boston: Harvard Business Review Press, 2011), 50–54.

13. Johnson Controls, Inc., Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Fiscal Year Ended September 30, 2014 (Washington, DC: US Securities and Exchange Commission, 2014), www.johnsoncontrols.com/content/dam/WWW/jci/corporate/investors/2014/JCI%202014%2010-K.pdf, 26.

14. Consumer Product Information Database, “Listerine Antiseptic Mouthwash, Original” May 22, 2008, http://whatsinproducts.com/types/type_detail/1/9569/standard/Listerine%20Antiseptic%20Mouthwash,%20Original-05/22/2008/10-001-115.

15. David Gelles, “Coke and McDonald’s, Growing Together Since 1955,” New York Times, May 15, 2014, www.nytimes.com/2014/05/16/business/coke-and-mcdonalds-working-hand-in-hand-since-1955.html. The story comes from an interview with a former consultant to McDonald’s.

16. Sarah Germano, “Under Armour Turns Ambitions to Electronic Apparel, Monitoring Apps,” Wall Street Journal, February 27, 2015; Adam Auriemma, “With Digital Fitness Trackers, CEOs Band Together.” Wall Street Journal, March 12, 2014; John Phung, “The History of Under Armour—A Mastermind for Performance Apparel,” SearchWarp, January 12, 2006, http://searchwarp.com/swa33442.htm; Drake Baer, “Here’s How Under Armour Grew into a $15 Billion Athletic-Apparel Empire,” Business Insider, February 19, 2015, http://www.businessinsider.com/history-of-under-armour-2015-2?op=1; Daniel Roberts, “Under Armour Gets Serious,” Fortune, October 26, 2011; http://fortune.com/2011/10/26/under-armour-gets-serious/.

17. Deborah Arthurs, “Now We Know Who to Blame! Flat-Pack Revolution Sparked When an IKEA Designer Sawed the Legs Off a Table to Fit It in His Car,” Daily Mail, July 19, 2013, www.dailymail.co.uk/femail/article-2370113/Ikea-designer-Gillis-Lundgren-sparked-flat-pack-revolution-sawing-table-legs-fit-car.html; “Ikea Relaunches First Flat-Pack Table,” DeZeen, July 22, 2013, www.dezeen.com/2013/07/22/ikea-revives-three-legged-diy-side-table; IKEA, “The IKEA Product Range,” IKEA web page, http://franchisor.ikea.com/product-for-a-better-everyday-life, accessed July 3, 2015.

18. “The Idea of IKEA,” op. cit.

19. Amit Bagaria, “Uniqlo vs Zara vs H&M vs the World of Fashion Retailing,” ReTales, ETRetail.com blog, February 10, 2014, http://retail.economictimes.indiatimes.com/re-tales/Uniqlo-vs-Zara-vs-H-M-vs-the-world-of-fashion-retailing/91.

20. Joe Avella, producer, “The One Reason Zara Is Dominating the Fashion Industry Right Now,” video, Business Insider, July 14, 2015; http://www.businessinsider.com/zara-dominating-beating-competition-fashion-industry-2015-7.

21. At the end of fiscal year 2014, Inditex operated 6,683 stores in eighty-eight markets. Inditex, “FY2014 Results: 1 February 2014 to 31 January 2015,” accessed July 3, 2015, www.inditex.com/documents/10279/145048/Full+year+2014+Results.pdf/244e2a9f-12bd-4509-ad06-470e7f10800b.

22. Paloma Díaz Soloaga and Mercedes Monjo, “Caso Zara: la empresa donde todo comunica (Zara Case Study: The Company Where Everything Communicates),” Harvard Deusto Marketing y Ventas 101 (November–December 2010): 60–68; Zeynep Ton, Elena Corsi, and Vincent Dessain, “Zara: Managing Stores for Fast Fashion,” case 9-610-042 (Boston: Harvard Business School, revised January 19, 2010).

23. Ton, Corsi, and Dessain, “Zara: Managing Stores for Fast Fashion,” op. cit.

24. Rodrigo Orihuela, “Inditex Sales Growth Hits Two-Year High as More Stores Open,” BloombergBusiness, March 18, 2015; http://www.bloomberg.com/news/articles/2015-03-18/inditex-full-year-profit-meets-estimates-on-zara-chain-expansion.

25. Dave Mock, The Qualcomm Equation: How a Fledgling Telecom Company Forged a New Path to Big Profits and Market Dominance (New York: AMACOM American Management Association, 2005), 168; Paul McLellan, “A Brief History of Qualcomm,” SemiWiki, January 29, 2014, www.semiwiki.com/forum/content/3123-brief-history-qualcomm.html.

26. Chris Chiaccia, “Qualcomm Has a Huge Target on It from Jana Partners—Here’s the Investor Letter in Its Entirety,” The Street, April 13, 2015, www.thestreet.com/story/13110333/1/qualcomm-has-a-huge-target-on-it-from-jana-partners--heres-the-investor-letter-in-its-entirety.html.

27. Mock, The Qualcomm Equation, op. cit., 153–154.

28. Qualcomm, “Qualcomm Announces Fourth Quarter and Fiscal 2014 Results, Fiscal 2014 Revenues $26.5 billion, GAAP EPS $4.65, Non-GAAP EPS $5.27,” press release, Qualcomm, San Diego, CA, November 5, 2014, http://files.shareholder.com/downloads/QCOM/0x0x791877/4610a277-ca86-4da7-8b11-8618efec1d2a/FY%202014%204th%20Quarter%20Earnings%20Release.pdf.

29. PwC Digital Services, “Upping the Ante” (video), 2015: http://digital.pwc.com/upping-the-ante.

30. These two companies were Southdown, purchased in 2000, and RMC, a large multinational with presence in the U.S. and Europe, purchased in 2005. See Donald R. Lessard and Cate Reavis, “CEMEX: Globalization ‘The CEMEX Way,’” MIT Case study 09-039, March 5, 2009, https://mitsloan.mit.edu/LearningEdge/CaseDocs/09%20039%20CEMEX%20%20Lessard.pdf.

31. Scott Kirsner, “Acquisition Puts Amazon Rivals in Awkward Spot,” Boston Globe, December 1, 2013, www.bostonglobe.com/business/2013/12/01/will-amazon-owned-robot-maker-sell-tailer-rivals/FON7bVNKvfzS2sHnBHzfLM/story.html; Dave Smith, “Chart of the Day: Amazon’s Biggest Acquisitions,” Business Insider, August 26, 2014, www.businessinsider.com/chart-of-the-day-amazons-biggest-acquisitions-2014-8.

32. Neely, Jullens, and Krings, “Deals That Win,” op. cit.; Adolph, Mainardi, and Neely, “The Capabilities Premium in M&A,” op. cit.

33. “The Danaher Zone,” op. cit.

34. “The Deal: Qualcomm Divests Omnitracs for $800MM,” August 23, 2013, http://www.thestreet.com/story/12017187/1/the-deal-qualcomm-divests-omnitracs-for-800m.html.

35. Ashok Divakaran, Gary L. Neilson, and Jaya Pandrangi, “How to Design a Winning Company,” strategy+business, August 27, 2013, http://www.strategy-business.com/article/00194; Gary L. Neilson, Karla L. Martin, and Elizabeth Powers, “Secrets to Successful Strategy Execution,” Harvard Business Review 86, no. 6 (June 2008), 60–70; PWC, 10 Minutes on Organizational DNA, 2014, http://www.pwc.com/en_US/us/10minutes/assets/pwc-10minutes-organizational-dna.pdf.

36. Edgar H. Schein, The Corporate Culture Survival Guide (San Francisco: Jossey-Bass, 2009); Art Kleiner, “The Cult of Three Cultures,” strategy+business, July 1, 2001, http://www.strategy-business.com/article/19868.

37. Leinwand and Mainardi, The Essential Advantage, op. cit., 185–186.

38. Ikujiro Nonaka and Hirotaka Takeuchi, The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation (New York: Oxford University Press, 1995).

39. Robert Putnam, “Recipes,” in Peter M. Senge et al., Fifth Discipline Fieldbook: Strategies and Tools for Building a Learning Organization (New York: Currency, 1994); Richard R. Nelson and Sidney G. Winter, An Evolutionary Theory of Economic Change (Cambridge, MA: Belknap Press of Harvard University Press, 1982); Markus C. Becker, “The Concept of Routines Twenty Years After Nelson and Winter (1982): A Review of the Literature,” working paper 03-06, Research Unit for Industrial Dynamics, University of Southern Denmark, Department of Marketing, Odense, 2002, www3.druid.dk/wp/20030006.pdf.

40. Nicholas Ind, Oriol Iglesias, and Majken Schultz, “How Adidas found its Second Wind,” strategy+business, August 18, 2015, http://strategy-business.com/article/00352.

41. “The Idea of IKEA,” op. cit.

Chapter 4

1. Thomas A. Stewart, “CEMEX’s Strategic Mix,” strategy+business, April 13, 2015, http://www.strategy-business.com/article/00325.

2. Kleiner, “China’s Philosopher-CEO Zhang Ruimin,” op. cit.

3. Edgar H. Schein, Organizational Culture and Leadership (San Francisco: Jossey-Bass, 2010), 7.

4. “Natura Annual Report, 2012,” op. cit., 3.

5. Stewart, “Beauty, Business, Brazil,” op. cit.

6. Joseph Mitchell, Leading the Starbucks Way: 5 Principles for Connecting with Your Customers, Your Products and Your People (New York: McGraw-Hill Education, 2014), 12.

7. Natura’s ad copy comes from the company’s English-language website, https://www.naturabrasil.fr/en, accessed August 12, 2015; all other quotes in the section are from Stewart, “Beauty, Business, Brazil,” op. cit.

8. John Elkington, Cannibals with Forks: The Triple Bottom Line of 21st Century Business (Mankato, MN: Capstone, 1997).

9. Jon R. Katzenbach and Douglas K. Smith, The Wisdom of Teams: Creating the High-Performance Organization (Boston: Harvard Business School Press, 1993).

10. Lashinsky, Inside Apple, op. cit., 46.

11. IKEA, “Our Business in Brief,” http://inter.ikea.com/en/about-us/business-in-brief/; and “The Secret of IKEA’s Success,” The Economist, Feb 24 2011, http://www.economist.com/node/18229400.

12. “The Idea of IKEA,” op. cit.

13. McCormack, “A Manager’s Guide to Implementing Lean,” op. cit.

14. “The Danaher Zone,” op. cit.

15. Lashinsky, Inside Apple, op. cit., 76.

16. For more on the critical few theory and practice, see the Katzenbach Center site: http://www.strategyand.pwc.com/global/home/what-we-think/katzenbach-center.

17. Stewart, “CEMEX’s Strategic Mix,” op. cit.

18. Art Kleiner, “The Thought Leader Interview: Douglas Conant,” strategy+business, August 28, 2012, http://www.strategy-business.com/article/00128.

19. Kleiner, “China’s Philosopher-CEO Zhang Ruimin,” op. cit.

Chapter 5

1. Peter Fabris, “CIO Hall of Fame: Charles Feld,” CIO Magazine, September 15, 1997, www.cio.com/article/101855/CIO_Hall_of_Fame_Charles_Feld; Mike Cooke and Edward Baker, “Helping the CIO Lead,” strategy+business, December 13, 2010, www.strategy-business.com/article/00055?pg=all.

2. Leinwand and Mainardi, The Essential Advantage, op. cit.; interview with Shaun Holliday.

3. James L. McKenney, Duncan Copeland, and Richard O. Mason, Waves of Change: Business Evolution Through Information Technology (Boston: Harvard Business School Press, 1995), 194.

4. George Lazarus, “Eagle’s Plants Have Landed in the Lap of Frito-Lay,” Chicago Tribune, February 8, 1996, http://articles.chicagotribune.com/1996-02-08/business/9602080224_1_frito-frito-lay-salty-snacks.

5. These four categories are part of the Fit for Growth approach pioneered at Strategy& to help companies rethink their expense profiles in light of their strategies. Deniz Caglar, Pandrangi, and Plansky, “Is Your Company Fit for Growth?”, op. cit.

6. Erin Ailworth, “Who Will Hire a Petroleum Engineer Now? The Oil Slump Casts a Cloud over the Ranks of Students Who Flooded into the Industry,” Wall Street Journal, May 8, 2015, http://www.wsj.com/articles/who-will-hire-a-petroleum-engineer-now-1431130173.

7. Dave Mock, The Qualcomm Equation: How a Fledgling Telecom Company Forged a New Path to Big Profits and Market Dominance (New York: AMACOM American Management Association, 2005), 113.

8. Ibid., 138.

9. Shumeet Banerji, Paul Leinwand, and Cesare Mainardi, Cut Costs, Grow Stronger: A Strategic Approach to What to Cut and What to Keep (Boston: Harvard Business Press, 2009).

10. David Tweed, “Brick by Brick: Inside Lego,” Bloomberg, April 17, 2013, www.bloomberg.com/video/brick-by-brick-inside-lego-4-17-SlbmZEQnSfyC~y1eSm9Fag.html.

11. Oliver, Samakh, and Heckmann, “Rebuilding Lego, Brick by Brick,” op. cit.

12. Ibid.

13. Jørgen Vig Knudstorp, quoted in ibid.

14. Ibid.

Chapter 6

1. Kleiner, “China’s Philosopher-CEO Zhang Ruimin,” op. cit.

2. Ibid.

3. IKEA, “Providing Patterns for Success,” IKEA web page, http://franchisor.ikea.com/providing-a-pattern-for-success, accessed July 3, 2015.

4. Hadley Malcolm, “Ikea Wants to Get a Little More Personal,” USA Today, June 14, 2015, www.usatoday.com/story/money/2015/06/12/ikea-30th-anniversary-us-expansion/71066656.

5. “The Idea of IKEA,” op. cit.

6. Beth Howitt, “How Ikea Took Over the World,” Fortune, March 15, 2015, http://fortune.com/ikea-world-domination.

7. World Business Council for Sustainable Development, Cement Sustainability Initiative, “Sustainability Benefits of Concrete,” www.wbcsdcement.org/index.php/about-cement/benefits-of-concrete, accessed July 3, 2015.

8. Stewart, “CEMEX’s Strategic Mix,” op. cit.

9. Attributed to Kay on http://www.smalltalk.org/alankay.html, a web page maintained by the Active Information Corporation, accessed August 13, 2015.

10. Roberts, “Under Armour Gets Serious,” op. cit.

11. Thomas N. Hubbard, Paul Leinwand, and Cesare Mainardi, “The New Supercompetitors,” strategy+business, August 8, 2014, http://www.strategy-business.com/article/00272.

12. Trident and Chiclets had been part of Pfizer in the early 2000s. Pfizer sold them to Cadbury in 2002, and Kraft acquired them when it acquired Cadbury in 2010.

13. Phil Wahba, “Procter & Gamble Selling Beauty Brands Like Clairol, Covergirl to Coty for $12.5 Billion” Fortune, July 9, 2015, http://fortune.com/2015/07/09/procter-gamble-coty/.

14. Hubbard, Leinwand, and Mainardi, “The New Supercompetitors,” op. cit.

15. Bob Tita, “Johnson Controls to spin off automotive business,”Marketwatch, July 25, 2015, http://www.marketwatch.com/story/johnson-controls-to-spin-off-automotive-business-2015-07-25.

16. Viren Doshi and Georges Chehade, “The New Volatile World of Oil and Gas,” strategy+business, February 19, 2015. http://www.strategy-business.com/blog/The-New-Volatile-World-of-Oil-and-Gas.

Chapter 7

1. E. C. McKenzie, Mac’s Giant Book of Quips and Quotes (Baker Book House, 1980); the attribution of this quote is disputed according to Wikiquotes, http://en.wikiquote.org/wiki/Michelangelo.

2. Warren Bennis and Burt Nanus, Leaders: Strategies for Taking Charge (New York, Harper & Row, 1985), 20.

3. Leinwand and Mainardi,” What Drives a Company’s Success,” op. cit.

4. Howard Schultz, Onward: How Starbucks Fought for Its Life Without Losing Its Soul (New York: Rodale, 2011), 97.

Appendix A

1. This appendix was adapted from Cesare Mainardi, with Art Kleiner, “The Right to Win,” strategy+business, November 23, 2010, http://www.strategy-business.com/article/10407. It was based in part on Walter Kiechel, The Lords of Strategy: The Secret Intellectual History of the New Corporate World (Boston: Harvard Business Review Press, 2010); Walter Kiechel, “Seven Chapters of Strategic Wisdom,” strategy+business, February 23, 2010, http://www.strategy-business.com/article/10109; and Art Kleiner, The Age of Heretics: A History of the Radical Thinkers Who Reinvented Corporate Management, 2nd ed. (San Francisco: Jossey-Bass, 2008).

2. Bruce Henderson, “The Development of Business Strategy,” in Carl W. Stern and Michael S. Deimler, eds., The Boston Consulting Group on Strategy: Classic Concepts and New Perspectives (New York: Wiley, 2006).

3. Michael E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors (Florence, MA and Washington, DC: Free Press, 1980, rev. ed. 1998).

4. Robert H. Hayes and William J. Abernathy, “Managing Our Way to Economic Decline,” Harvard Business Review 58, no. 4 (July/August 1980).

5. Michael E. Porter, “What Is Strategy?” Harvard Business Review, 74, no. 6 (November/December 1996); and Michael E. Porter, “The Five Competitive Forces That Shape Strategy,” Harvard Business Review 57, no. 2 (March/April 1979).

6. Henry Mintzberg, The Rise and Fall of Strategic Planning: Reconceiving Roles for Planning, Plans, Planners (Florence, MA and Washington, DC: Free Press, 1994).

7. Thomas J. Peters and Robert H. Waterman Jr., In Search of Excellence: Lessons from America’s Best-Run Companies (New York: Harper & Row, 1982).

8. Gary Hamel and C. K. Prahalad, Competing for the Future (Boston: Harvard Business School Press, 1994).

9. Chris Zook with James Allen, Profit from the Core: Growth Strategy in an Era of Turbulence (Boston: Harvard Business School Press, 2001); and Chris Zook with James Allen, Profit from the Core: A Return to Growth in Turbulent Times rev. ed. (Boston: Harvard Business Review Press, 2010).

Appendix B

1. Gary Hamel and C. K. Prahalad, Competing for the Future, op. cit.; David Teece, Dynamic Capabilities and Strategic Management (New York: Oxford University Press, 2009); Ikujiro Nonaka and Hirotaka Takeuchi, The Knowledge-Creating Company, op. cit.; Art Kleiner, “Professor Chandler’s Revolution,” strategy+business, April 9, 2002, http://www.strategy-business.com/article/18594?gko=103b7; and Alfred D. Chandler Jr., Inventing the Electronic Century: The Epic Story of the Consumer Electronics and Computer Industries (New York: Simon & Schuster, Free Press, 2001).