INDEX

Abernathy, William, 205

accountability, 15

leadership in, 197–198

mutual, 130–133

adaptation school of strategy, 206–207

Adidas, 8–9, 114–116, 159

adjacencies, 207–208

adjacency trap, 51

Adolph, Gerald, 56–58

advantage, transience of, 54

aggregators, 214

agility, 12, 51, 54, 55

Agnefjäll, Peter, 25, 95, 119, 121

alignment, 4–5. See also coherence

Alves, Denise, 128

Amazon, 8

capabilities at, 54–55

capabilities system at, 102

cost allocation at, 146

culture at, 123

expansion at, 43

future shaped by, 184–185

growth at, 57

identity profile of, 56

industry realignment by, 184–185, 187

mergers and acquisitions, 104

Prime, 57

supply chain at, 49

Anheuser-Busch, 151

anthropological methods, 179–180

Apple, 4, 8

capabilities system at, 45, 47, 78, 79, 102, 175–176

cost allocation at, 146

crises at, 173

culture at, 123, 125, 131, 137

expansion at, 42–43

future shaped by, 19, 175–176

Genius Bar, 79

identity at, 13, 32–34

identity profile of, 35

industry realignment by, 187

apps, 94, 102, 104

ASI-PAC, 96

aspirations, 15, 62–64

Bagaria, Amit, 96

banking apps, 102

Bell, Alexander Graham, 109

Benadryl, 88, 89

benchmarking, 78–79, 164–165

Bennis, Warren, 193

best practices, 10, 11, 70–73, 78–79

Bezos, Jeff, 54–55

boldness, 193–201

BP, 189

Brodin, Jesper, 26

budget processes, 169–172. See also costs, cutting to grow stronger

Calloway, Wayne, 75

Campbell Soup Company, 140

capabilities

alignment with, 4–5

at Apple, 33

best practices and, 10, 11

blueprinting, 13–15, 76–86

budgeting and, 170–172

building distinctive, 86–107

chaining, 57–58

codification of, 112–117

conventional wisdom on, 10–11

cost cutting and, 152–158

cross-functional, 12, 86–88

culture alignment with, 121

defining, 82

definition of, 77–78

describing, 48–50, 83

determining value of, 82–83

differentiating, 4, 152–154

cost of developing, 7, 107

developing, 70–73

slow rate of change in, 54

emotional power of, 124

focused interventions on, 87–94

at Haier, 41

identity and, 12–13, 37, 45–50

identity triggered by, 61–62

imitating others’, 50, 78–79

innovation in, 87, 95–102

logistics, 49

mergers and acquisitions for, 87, 103–107

requirements of, 83–84

research on building, 7–10, 209–212

scaling, 24, 77, 107–117

stability of, 54–55

strategic and everyday, 13–15

technology disruptions and, 92–94

types of, 152–158

unconventional leadership acts and, 10–19

value propositions and, 44

capabilities systems

blueprinting, 76–86

building, 77, 86–107

business case for, 84

culture alignment with, 123

execution and, 69–70

fit among capabilities in, 84–85

at Frito-Lay, 70–77

functional boundaries and, 108–112

growth based on, 56–58

identity and, 45–50

at JCI-ASG, 79–86

leadership in developing, 134

planning for, 85–86

recharging, 174, 175–178

scaling, 77, 107–117

as strategy driver, 49–50

of supercompetitors, 185

tacit and explicit knowledge in, 108, 112–117

Carlucci, Alessandro, 59, 60

category leaders, 43, 214

Cementos Anáhuac, 103–104

Cementos Tolteca, 103–104

CEMEX, 8

capabilities system at, 47, 176

crises at, 173

critical-few approach at, 140

demand creation by, 181–184

expansion at, 43

future shaped by, 181–184

identity profile of, 183

identity trigger at, 64–65

innovation at, 44

mergers and acquisitions at, 103–104

Patrimonio Hoy program, 181

resource management at, 17

value proposition at, 44

Chandler, Alfred D., 209

change

barriers to, 198, 200–201

conventional wisdom on, 11

critical-few approach to, 138–144

of culture, 16, 119–120, 138–144

culture and, 15, 16

identity coherence in, 51–60

leadership in, 198

resistance to, 85–86

Chicago Pneumatic, 61

Christensen, Clayton, 47–48

code-division multiple access (CDMA), 99–102, 156–157

coherence, 4–10

definition of, 4–5

developing, 60–61

five acts of unconventional leadership and, 10–19

identity assessment and, 37

path to, 28–29

premium from, 6–7

research on, 7–10, 209–212

Colgate, 187

collective mastery, 116, 133–138, 197–198

Collins, Jim, 9

communities of practice, 111

Competing for the Future (Hamel & Prahalad), 207

competitive necessities, 154–157

competitiveness, internal, 132–133

Conant, Douglas, 140

concentration school of strategy, 207–208

ConocoPhillips, 189–190

consolidators, 215

Construrama, 181–182

consumer packaged goods (CPG) industry, 187–189, 190

continuous improvement, 92

core competencies, 207

costs, cutting to grow stronger, 12, 16–18, 145–172

vs. across-the-board cuts, 148

budget processes and, 169–172

differentiating capabilities and, 152–154, 160, 165

effects of failure to, 21

finding areas for, 152–165

at Frito-Lay, 149–152

at IKEA, 25

leadership in, 198, 200

at Lego, 165–169

lights-on expenses, 157, 165

not required expenses, 157–158

spending alignment tool for, 160–162

table stakes and, 154–157, 165

creativity, 87, 113–114, 117. See also innovation

critical-few approach, 138–144

crowdsourcing, 72

culture, 5, 119–144

advantages/disadvantages of traits of, 138

as asset, 119

capabilities and, 50

celebrating/leveraging, 12, 15–16

changing, 16, 119–120

collective mastery and, 116, 133–138

conventional wisdom on, 10

critical-few approach to changing, 138–144

critical-few intervention in, 16

cutting costs to grow stronger in, 148

definition of, 120

emotional power of, 122, 124–130

employee fit with, 137

as enemy of change, 15, 138–139

fostering distinctive, 121–125

at IKEA, 25–26

as impediment to change, 119–120

lack of commitment to, 21

leadership in, 194, 197–198, 200

mutual accountability and, 130–133

power of, 120

storytelling in, 120

customers

relationships with key, 18

support of at Haier, 40–41

understanding of at IKEA, 24

customizers, 215

Danaher Corporation, 4, 8

capabilities system at, 79, 178

cost cutting at, 145–146

culture at, 15–16, 122–123, 125

executive teaching/learning at, 134–136

identity profile of, 147

identity trigger at, 61–62

knowledge codification at, 114

leadership at, 27–28

mergers and acquisitions at, 103, 105–106

Dassler, Adolf, 114–115

demand creation, 174, 178–184

Deming, W. Edwards, 205

differentiation

capabilities systems in, 45, 47

coherent vs. incoherent, 5

cost cutting and, 159

table stakes and, 156

value propositions and, 45

digital technologies

capabilities innovation and, 102–103

capabilities interventions and, 93–94

disruption from, 58–60

disintermediators, 215

disruption, from digital technologies, 58–60, 94

Doolin, Charles Elmer, 73

Dow Chemical, 41

Duijnhoven, Henk van, 135

Durkee, 53

Eagle Snacks, 149–151

ecosystems, 173–174, 184–192

Edison, Thomas, 109

elite groups, 20, 107–108

emotional commitment, 124–130

critical-few approach and, 139–140

leadership in, 197–198

from parking-lot exercise, 162–163

employees

awareness of capabilities and value among, 14

collective mastery and, 133–138

culture as attraction for, 122, 124–130

developing/retaining, 48–49

emotional engagement of, 15–16, 124–130

identity understood by, 31–32

recruiting for capabilities system development, 85

recruiting for culture fit, 135

of supercompetitors, 187

training and development of, 134–136, 163, 198

Endomondo, 104

engagement, 117

Enrico, Roger, 75, 149–151

enthusiasm, 15–16

Essential Advantage: How to Win with a Capabilities-Driven Strategy (Leinwand & Mainardi), 6, 79

execution

coherence and, 4–10

combining with strategy, 2–4

gap between strategy and, 1–29

leadership in, 193–201

school of management, 205–206

strategic intent and, 69–70

experience providers, 43, 216

experimentation, 93–94

ExxonMobil, 189

fast followers, 216

feasibility, 45

Feld, Charles, 73, 75

Ferreira, João Paulo, 129

Fischer, Bill, 38

fit for growth approach, 17–18

Fit for Growth index, 161–162

five forces framework, 204

Flextronics, 79

Fluke, 106

focus, 52, 87, 117

Frito-Lay, 4, 8

capabilities system at, 70–77

cost allocation at, 146, 149–152

culture at, 123

functional boundaries at, 110

future shaped by, 19

identity profile of, 74

knowledge codification at, 114

supply chain at, 49, 70–73, 74–76

functional boundaries, 108–112, 158–165

future, shaping, 12, 18–19, 173–192

creating demand and, 174, 178–184

at Danaher, 28

at IKEA, 25–26

with industry realignment, 173–174, 184–192

leadership in, 198, 200

by recharging your capabilities system, 174, 175–178

results of failure to, 21–22

Gap, 175

General Electric, 205

Geographic Enterprise Solution (GES), 76

Gill, Michael Gates, 64, 125, 131, 154

Glidden, 53

goals, 193–201

golden butt, 80

Good to Great (Collins), 9

Green Berets, 20

Greenwood, Kim David, 56–58

growth

based on capabilities, 56–58

capability development and, 57–58

conventional wisdom on, 10

creating demand and, 174, 178–184

cutting costs to fund, 145–172

disruptive, 58–59

identity coherence in, 42–43, 51–60

in-market, 57

near-market, 57

through adjacencies, 51, 207–208

growth-share matrix, 204

Hach, 106

Haier, 4, 8

capabilities system at, 176–178

critical-few approach at, 143–144

digital technology at, 93

identity at, 13, 36, 38–42

identity profile of, 42

industry realignment by, 187

value proposition at, 38

Hamel, Gary, 207, 209

Hansen, Søren, 132–133

Hayes, Robert, 205

Heckmann, Peter, 166, 167–169

Heineken, 8–9

Heinz, 189

Henderson, Bruce, 204

Hernández, Jesús Echevarría, 99

Hernández, Luis, 119, 182

Hillshire Brands, 189

Howitt, Beth, 180

How Starbucks Saved My Life (Gill), 64

Hubbard, Thomas, 185

identity, 5, 31–67

at Apple, 32–35

assessment tool for, 37

capabilities innovation and, 96–99

capabilities system blueprinting and, 78

choosing, 32

company profiles on, 8

culture and, 16

culture in, 124

at Danaher, 27–28

defining your, 42–51

elements of, 43

emotional commitment and, 124–130

employee understanding of, 31–32

failure to commit to, 21

growth, change, and, 51–60

at Haier, 36, 38–42

at IKEA, 22–24, 26–27

leadership in, 194, 196–197, 199

at Natura, 27

organizational design and, 108

personal, 196–197

profiles, 23, 34, 42, 56, 66, 74, 86, 91, 98, 101, 130, 147, 154–155, 183

resource management and, 17

at Starbucks, 34–36

triggers of, 60–67

value proposition in, 43–45, 46

Iglesias, Oriol, 115

IKEA, 2–3, 8

capabilities at, 22

capabilities system at, 176, 178

capabilities teams at, 111–112

coherent leadership at, 22–28

culture at, 15–16, 25–26, 131–133

demand creation at, 179–180

functional boundaries at, 110

future shaped by, 179–180, 185

identity at, 13, 22–24, 26–27

identity profile of, 23

identity trigger at, 62

industry realignment by, 185, 187

innovation at, 44, 95–96

knowledge codification at, 116–117

mutual accountability at, 131–133

pricing at, 25

value proposition at, 44

imitation, 50, 78–79

of cultures, 121

See also best practices

incoherence, 5–6

falling into, 173

functional boundaries and, 109–110

See also coherence

Ind, Nicholas, 115

Inditex, 8

cost allocation at, 146

culture at, 123, 126

future shaped by, 19

identity profile of, 98

innovation at, 96–99

supply chain at, 49

Inditex, 4

Industria de Diseño Textil (Inditex). See Inditex

industry realignment, 173–174, 184–192

innovation

in capabilities, 87, 95–102

at CEMEX, 44

codification of knowledge and, 112–114

identity and, 96–99

at IKEA, 44, 95

at Inditex, 96–99

at Qualcomm, 44, 96, 99–102

innovators, 43, 217

The Innovator’s Dilemma (Christensen), 47–48

In Search of Excellence (Peters), 9, 206

inspiration, 79

Isaacson, Walter, 32–33

Jacobs Brake Company, 61–62

Jacobs Douwe Egberts, 190

Jäggi, René, 115

JCI Automotive Systems Group, 8, 79–86

identity profile of, 86

leadership at, 136

Jobs, Steve, 19, 32–34, 176

Johnson Controls Inc. (JCI), 79, 189

Johnson & Johnson, 88, 89

Jordan, Michael, 75–76

Joyce, Tom, 135–136

just-in-time manufacturing, 80

Kamprad, Ingvar, 22–24, 62, 95. See also IKEA

Katzenbach, Jon, 131, 139

Kay, Alan, 184

Kiechel, Walter, 203

Kiva Systems, 49, 104

knowledge, tacit and explicit, 108, 112–117

The Knowledge-Creating Company (Nonaka & Takeuchi), 112

Knudstorp, Jørgen Vig, 65–66, 165–166

Kocak, 175

Koenigsaecker, George, 61–62, 134

Kraft, 187–188, 189

La Boulange, 104

Lago, Umberto, 38

Lashinsky, Adam, 78, 131

leadership

acts of unconventional, 10–19

commit to an identity, 10–11, 12–13, 31–67

conventional wisdom vs., 10–11, 20

cut costs to grow stronger, 12, 16–18, 145–172

at IKEA, 22–28

interconnection of, 19–28

at Natura, 27

personal analogs to, 196–201

put your culture to work, 12, 15–16, 117, 119–144

shaping your future, 12, 18–19, 173–192

translate strategic into everyday, 12, 13–15, 69–117

assessment of, 37

bold, 193–201

in capabilities blueprinting, 78

in collective mastery, 133–138

cost allocation and, 163–164

critical few in, 138, 141

management vs., 193–194

questions and behaviors tool for, 199–200

lean management, 40, 134, 205

Lego, 4, 8

capabilities system at, 79, 102

cost allocation at, 146, 165–169

crises at, 173

culture at, 123, 125

digital technology at, 59

expansion at, 43

identity at, 13

identity profile of, 66

identity trigger at, 65–67

Leinwand, Paul, 6, 79

Lico, Jim, 106, 123, 135

Liebherr, 40

lights-on expenses, 157, 159, 165

Listerine, 88, 89

Liu, Fang 38

logistics capabilities, 49

Lööf, Torbjörn, 24, 117

Lundgren, Gillis, 95

Mainardi, Cesare, 6, 79

management

boldness and, 193–194

books on, 9

history of theory on, 203–208

at IKEA, 27

incoherence from, 5

lean, 40, 134, 205

mutual accountability and, 131–133

in strategy-to-execution gap, 1–2

“Managing Our Way to Economic Decline” (Abernathy & Hayes), 205

MapMyFitness, 94, 104

Marathon, 189–190

Maresch, Montserrat, 25, 131–132

market leadership, 173–174, 184–192

mastery, collective, 116, 133–138, 197–198

McDonald’s, 8–9, 92–93, 185

Mendes, Alessandro, 126

mergers and acquisitions

in capabilities development, 86–87, 103–107

coherence premium from, 7

enhancement deals, 104–105, 106–107

leverage deals, 103–104, 106

limited-fit deals, 104–105

of supercompetitors, 186–187, 188

Michelangelo, 193

Microsoft, 33

Mintzberg, Henry, 206

mission statements, 31

Mitchell, John, 125

Mock, Dave, 99, 156–157

Mondelez, 189

Montgomery, Cynthia, 34

Moore, Peter, 115–116

Motorola, 205

Murphy Oil, 189–190

MyFitnessPal, 104

Natura Cosméticos S.A., 3, 8

capabilities system at, 176

capabilities teams at, 111

culture at, 15–16, 122, 123, 125, 126–130

digital technology at, 59–60

emotional commitment at, 125, 126–130

identity profile of, 130

leadership at, 27

Navy Seals, 20

Neilson, Gary, 108

Nestlé, 187, 189

niche markets, 40

Nicorette, 88, 89

Nonaka, Ikujiro, 112, 209

North American Free Trade Agreement (NAFTA), 64–65

Ohlsson, Mikael, 25–26

Oliver, Keith, 166, 167–169

Omnitracs, 107

on-demand production, 40–41

opportunities, 1–2

conventional wisdom on, 10–11

cutting costs to grow stronger and, 16–18, 21

identity and, 51–54

selecting based on identity, 44–45

organizational structures, 108–112

Ortega, Amancio, 97

outsourcing, 164, 166–167

Ovesen, Jesper, 167

parking-lot exercise, 152–169

peeling the onion, 80–81

PepsiCo, 70, 73–74, 76. See also Frito-Lay

performance, conventional wisdom on, 10

perspectives, 197

Peters, Tom, 9, 206

Pfizer Consumer Healthcare, 8, 88–92

communities of practice at, 111

identity profile of, 91

Plank, Kevin, 94, 184

platform providers, 217

Porter, Michael, 204, 206

portfolio reviews, 50, 52

position school of management, 204–205

Prahalad, C. K., 207, 209

Pratt & Whitney, 8–9

premium players, 217

processes, 14

Procter & Gamble, 79, 187, 188–189

Procter-Silex, 53

products and services

alignment with, 4–5

at Apple, 35

in coherence, 4–5

defining your, 50–51

identity and, 36, 50–51

identity based on, 37

at IKEA, 23

portfolio reviews of, 50, 52

profitability

from coherence premium, 6–7

value proposition and, 45

prototyping, 93–94

puretones. See value proposition

purpose statements, 31

Putnam, Robert, 114

Qualcomm, 4, 8

cost allocation at, 156–157

culture at, 16, 123, 125

divestments by, 106–107

future shaped by, 185

identity at, 13

identity profile of, 101

industry realignment by, 185, 187

innovation at, 44, 96, 99–102

licensing at, 99–102

value proposition at, 44

Qualcomm Equation, The (Mock), 99

quality movement, 134, 205

Rales, Mitchell, 61–62, 135

Rales, Steven, 61–62

regulation navigators, 218

regulatory management, 89–92

Reinventing Giants (Fischer, Lago, & Liu), 38

relationships, 18, 126–130

relevance, 45, 160, 179–180

reputation players, 218

resilience, 12, 51

resistance, 85–86

resource management, 5

conventional wisdom on, 10–11, 12

cutting costs to grow stronger, 16–18, 21, 145–172

fit for growth approach to, 17–18

at IKEA, 25

leadership in, 198

unconventional leadership in, 12

See also culture

rewards and incentives, 201

right to win, 55–56

Rise and Fall of Strategic Planning, The (Mintzberg), 206

risk absorbers, 219

Ritz-Carlton, 79

Rogaine, 88, 89

Samakh, Edouard, 166, 167–169

San Agustin, Juan Pablo, 140

Sara Lee, 187, 188, 189

scale and scaling

of capabilities systems, 77, 107–117

at IKEA, 24

of knowledge, 108, 112–117

Schein, Edgar, 120

Schultz, Howard, 35–36, 62–64, 125, 197. See also Starbucks

Schultz, Majken, 115

Seattle Coffee, 103

Simms, Steven, 79, 134–135, 136

Six Sigma, 205

skunk works, 107–108

Smalltalk, 184

Smith, Douglas R., 131

Smith, Stan, 116

Smith-Corona, 53

solutions providers, 219

Standard Industry Classification (SIC), 50–51

standard practices, 112–113

Starbucks, 4, 8, 190

capabilities at, 48–49

capabilities system at, 102, 176

cost allocation at, 146, 154

crises at, 173

culture at, 15–16, 123, 125, 131, 136–137

digital technology at, 58–59

expansion at, 42

future shaped by, 185

identity at, 13, 34–36

identity profile of, 154–155

identity trigger at, 62–64

industry realignment by, 185

knowledge codification at, 116

mergers and acquisitions at, 103

Steve Jobs (Isaacson), 32–33

storytelling, 120

Strasser, Rob, 115

strategic intent, 207

strategy

alignment of, 4–5

capabilities in driving, 49–50

cost management and, 16–18, 159

culture and, 16

history of theory on, 203–208

leadership in, 193–201

supercompetitors and, 190–191

survey of executives on, 1

technology alignment with, 93–94

translating into everyday, 12, 13–15, 21, 69–117, 197

at IKEA, 24

leadership in, 199

value creation and, 31

strategy-to-execution gap, 1–29

blueprints in closing, 82–85

boldness in closing, 193–201

coherence and, 4–10

coherence premium and, 6–7

companies that have solved, 2–4

conventional wisdom in creating, 10–11

cost allocation and, 146, 148–149

differentiated capabilities in closing, 4

elites in closing, 20

emotional commitment and, 124–130

functional boundaries and, 109–110

management in, 1–2, 5

unconventional leadership acts and, 10–19

Strauss Group, 41

strengths, weaknesses, opportunities, and threats (SWOT) analysis, 204

success, coasting on past, 18

Sudafed, 88, 89

supercompetitors, 18–19, 21–22

becoming, 174–175

industry realignment by, 173–174, 184–192

workshop tool on, 191–192

See also future, shaping

sustainability

culture and, 123

at Frito-Lay, 76

at Natura, 127–129

SWOT analysis, 204

table stakes, 154–157, 159, 165

Takeuchi, Hirotaka, 112, 209

teams

capabilities, 111–112

for cost cutting, 148–149

cross-functional, 110–111

mutual accountability in, 130–133

Teece, David, 209

Tektronix, 106

Tesla Motors, 8–9, 57

tools

capabilities view of portfolios, 52

capabilities visioning, 85

critical-few elements identification, 141–143

for identity assessment, 37

parking-lot exercise, 152–165

questions and behaviors for leaders, 199–200

spending alignment, 160–162

supercompetitor workshop, 191–192

value proposition analysis, 46

Total, 189–190

Toyota, 205, 206

training and development

cost allocation for, 163

of executives, 134–136

in leadership, 198

triple bottom line, 127–129

trust, 15–16, 131

Tweed, David, 166

Tyson Foods, 189

Under Armour, 8–9, 94, 104, 184

Unilever, 187, 188

US military, 20

value chain, 204

value creation, 5, 194–195

value networks, 47–48. See also capabilities systems

value players, 43, 219

value proposition, 4–5

alignment with, 4–5

at Apple, 32–33

budgeting and, 170–172

capabilities interventions and, 92

capabilities systems and, 45, 47, 77

criteria for, 45

culture and, 124

cutting costs based on, 145–146, 148–149

execution and, 69–70

at Haier, 38

identity based on, 12–13, 31, 37, 43–45, 46

at IKEA, 22

ongoing efforts toward, 176

at Pfizer Consumer, 88–89

puretones in, 43–44, 213–219

rewards/incentives alignment with, 201

staying true to, 7–10

of supercompetitors, 185

Vista Equity Partners, 106–107

Warner-Lambert, 89–90

way to play. See value proposition

“What Is Strategy?” (Porter), 206

Wisdom of Teams, The (Katzenbach & Smith), 131

Xerox Palo Alto Research Center, 184

Ydholm, Mikael, 179

Zambrano, Lorenzo, 64–65, 140

Zantac, 88, 89

Zara, 49, 96–99

future shaped by, 175

identity at, 13

identity profile of, 98

Zhang Ruimin, 38–42, 119, 143–144, 177–178. See also Haier

Zyrtec, 88