Notes
Preface

1. W. Kiechel, The Lords of Strategy: The Secret Intellectual History of the New Corporate World (Boston: Harvard Business Press, 2010); B. D. Henderson, “The Experience Curve Revisited,” bcg.perspectives 229, 1980; M. Porter, Competitive Advantage: Creating and Sustaining Superior Performance (New York: The Free Press, 1985).

2. R. G. McGrath and I. C. MacMillan, The Entrepreneurial Mindset: Strategies for Continuously Creating Opportunity in an Age of Uncertainty (Boston: Harvard Business School Press, 2000), xv, 380; R. G. McGrath and I. C. MacMillan, MarketBusters: 40 Strategic Moves That Drive Exceptional Business Growth (Boston: Harvard Business School Press, 2005); R. G. McGrath and I. C. MacMillan, Discovery-Driven Growth: A Breakthrough Process to Reduce Risk and Seize Opportunity (Boston: Harvard Business Press, 2009).

3. R. A. Burgelman, “A Process Model of Internal Corporate Venturing in the Diversified Major Firm,” Administrative Science Quarterly 18, no. 2 (1983): 223–244; K. Eisenhardt and B. Tabrizi, “Accelerating Adaptive Processes: Product Innovation in the Global Computer Industry,” Administrative Science Quarterly 40, no. 1 (1995): 84–110; Z. Block and I. C. MacMillan, Corporate Venturing: Creating New Businesses within the Firm (Boston: Harvard Business School Press, 1993), x, 371.

4. R. G. McGrath and I. C. MacMillan, “Discovery-Driven Planning,” Harvard Business Review, July 1995, 44–54.

5. D. Rigby, “Management Tools and Techniques: A Survey,” California Management Review, January 2001, 139–160.

6. A. Humphrey, “SWOT Analysis for Management Consulting,” SRI Alumni Newsletter, December 2005.

7. I. C. MacMillan, “Seizing Competitive Initiative,” Journal of Business Strategy 2, no. 4 (1982): 43.

8. R. A. D’Aveni and R. E. Gunther, Hypercompetition: Managing the Dynamics of Strategic Maneuvering (New York: The Free Press, 1994); I. C. MacMillan, “Controlling Competitive Dynamics by Taking Strategic Initiative,” Academy of Management Executive 2, no. 2 (1988): 111–118.

9. M. Boisot, Information Space: A Framework for Learning in Organizations, Institutions and Culture (London: Routledge, 1995).

10. C. M. Christensen, The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Boston: Harvard Business School Press, 1997), xxiv, 225.

11. S. D. Anthony, The Little Black Book of Innovation: How it Works, How to Do It (Boston: Harvard Business Review Press, 2011).

12. R. G. McGrath, “A Real Options Logic for Initiating Technology Positioning Investments,” Academy of Management Review 22, no. 4 (1997): 974–996.

13. R. G. McGrath, “Falling Forward: Real Options Reasoning and Entrepreneurial Failure,” Academy of Management Review 24, no. 1 (1999): 13–30; R. G. McGrath, “Failing by Design,” Harvard Business Review, April 2011, 76–83; R. Gunther and K. Thomas, “The Value Captor’s Process: Getting the Most out of Your New Business Ventures,” Harvard Business Review, May 2007, 128.

14. McGrath and MacMillan, MarketBusters.

15. C. MacMillan and R. G. McGrath, “Crafting R&D Project Portfolios,” Research-Technology Management 45, no. 5 (2002): 48–59.

16. Anthony, The Little Black Book of Innovation; A. Ulwick, “Do You Really Know What Your Customers Are Trying to Get Done?” Strategy and Innovation, March 2003; I. C. MacMillan and R. McGrath, “Discovering New Points of Differentiation,” Harvard Business Review, July–August 1997, 133–145.

17. R. G. McGrath, “Finding Opportunities in Business Model Innovation,” European Financial Review, June–July 2011, 14–17; R. McGrath, “Business Models: A Discovery Driven Approach,” Long Range Planning, April–May 2010, 247.

18. R. G. McGrath, I. C. MacMillan, and M. L. Tushman, “The Role of Executive Team Actions in Shaping Dominant Designs: Towards the Strategic Shaping of Technological Progress,” Strategic Management Journal 13, issue S2 (1992): 137–161; I. C. MacMillan and R. G. McGrath, “Nine New Roles for Technology Managers,” Research-Technology Management 47, no. 3 (2004): 16–26; R. G. McGrath, “The Misunderstood Role of the Middle Manager in Driving Successful Growth Programs,” in The Search for Organic Growth, ed. E. D. Hess and R. K. Kazanjian (Cambridge, England: Cambridge University Press, 2006), 147–171; R. G. McGrath, “Early Warnings of a Pending Disruption in an Existing Business Model: A Leader’s Responsibility,” in The 2009 Pfeiffer Annual Leadership Development, ed. D. Dotlich et al. (San Francisco: John Wiley & Sons), 264–276.

Chapter 1

1. B. Trumbore, “The Hunt Brothers and the Silver Bubble,” BUYandHOLD, 2012, http://www.buyandhold.com/bh/en/education/history/2000/hunt_bros.html.

2. S. McGee, “The Index’s Dark Days in 1980,” Wall Street Journal, 1996.

3. L. M. Fuld, The Secret Language of Competitive Intelligence: How to See Through and Stay Ahead of Business Disruptions, Distortions, Rumors, and Smoke Screens (New York: Crown Business, 2006).

4. I. M. Kunii, G. Smith, and N. Gross, “Fuji: Beyond Film,” BusinessWeek, November 21, 1999, 132–138.

5. L. Fuld, “How to Anticipate Wrenching Change,” Chief Executive, August 1, 2004.

6. S. Hori, “Fixing Japan’s White Collar Economy: A Personal View,” Harvard Business Review, November–December 1993, 157–172.

7. K. Inagaka and J. Osawa, “Fujifilm Thrived by Changing Focus,” Wall Street Journal, January 20, 2012.

8. Hoover’s Inc., Fujifilm Holdings Full Report Company Profile, 2012.

9. W. Dabrowski, “Update 1—RIM Co-CEO Doesn’t See Threat from Apple’s iPhone,” Reuters, February 12, 2007.

10. A. Troianovski, “Cellphones Are Eating the Family Budget,” Wall Street Journal, September 28, 2012.

11. World Bank, “World Development Indicators and Global Development Finance,” World DataBank, 2012.

12. M. F. Guillén and E. García-Canal, The New Multinationals: Spanish Firms in a Global Context (New York: Cambridge University Press, 2010).

13. V. Mahanta, “How Aditya Puri Has Managed to Pull Off 30% Plus Growth for HDFC Bank,” Economic Times, June 29, 2012.

14. S. Srinivasan and K. Vasanth, “‘Giving Back to Society Is What You Are About’: Francisco D’Souza, CEO, Cognizant,” Outlook India, 2012, http://business.outlookindia.com/print.aspx?articleid=470&editionid=18&catgid=13&subcatgid=26.

15. Mahanta, “How Aditya Puri Has Managed to Pull Off 30% Plus Growth for HDFC Bank.”

Chapter 2

1. D. Searcey, K. B. Dennis, and A. Latour, “Verizon to Shed Phone-Book Unit; A Deal That Could Exceed $17 Billion Reflects Shift in Focus to TV, Internet,” Wall Street Journal, December 5, 2005, A3.

2. FundingUniverse, “Milliken & Co. History,” www.fundinguniverse.com/company-histories/milliken-co-history/.

3. T. J. Minchin, “Us Is Spelled U.S.: The Crafted with Pride Campaign and the Fight Against Deindustrialization in the Textile and Apparel Industry,” Labor History 53, no. 1 (2012): 1–23.

4. J. Bussey, “The Anti-Kodak: How a U.S. Firm Innovates and Thrives,” Wall Street Journal, January 13, 2012.

5. G. Beaubien, “Now Playing: Netflix Consumer Backlash,” Public Relations Tactics 18, no. 10 (2011): 4.

6. Grupo ACS, “Corporate Strategy,” www.grupoacs.com/index.php/en/c/aboutacs_corporatestrategy.

7. A. Mehta, “A Report on Organizational Behaviour of HDFC Bank,” July 7, 2009, www.scribd.com/doc/17163923/A-Report-on-Organizational-BEHAVIOUR-of-HDFC-Bank.

8. Senn-Delaney Leadership Consulting Group, “Interview with Atmos Energy CEO Bob Best,” www.senndelaney.com/bobbestarticle.html.

9. Seeking Alpha, “FactSet Research Systems CEO Discusses F4Q 2011 Results—Earnings Call Transcript,” September 20, 2011, seekingalpha.com/article/294798-factset-research-systems-ceo-discusses-f4q-2011-results-earnings-call-transcript.

10. Y. Nan, “Buying a Better Brew: Chinese Top Brewer’s New Business Pattern Under Low Carbon Economy,” ChinAfrica, November 2010, www.chinafrica.cn/english/company_profile/txt/2010-10/27/content_306815_2.htm.

11. V. Mahanta, “How Aditya Puri Has Managed to Pull Off 30% Plus Growth for HDFC Bank,” Economic Times, June 29, 2012.

Chapter 3

1. “RIM Thought iPhone Was Impossible in 2007,” Electronista, December 27, 2010, www.electronista.com/articles/10/12/27/rim.thought.apple.was.lying.on.iphone.in.2007/.

2. P. Nunes and T. Breene, Jumping the S-Curve: How to Beat the Growth Cycle, Get on Top, and Stay There (Boston: Harvard Business Review Press, 2011).

3. A. G. Lafley, “What Only the CEO Can Do,” Harvard Business Review, May 2009, 54–62.

4. R. Foster and S. Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market—and How to Successfully Transform Them (New York: Doubleday, 2011).

5. L. Dranikoff, T. Koller, and A. Schneider, “Divestiture: Strategy’s Missing Link,” Harvard Business Review, May 2002, 75–83.

6. C. Matlack, “Norway’s Schibsted: No. 3 in Online Classifieds,” Bloomberg BusinessWeek, October 14, 2010.

7. C. Goff, “Putting the ‘New’ Back into Newspapers,” Financial Times, February 8, 2005.

8. “Compared to Schibsted’s CEO [in Swedish],” NA24 Propaganda, February 10, 2010, www.na24.no/propaganda/article2534696.ece.

9. K. Lowe, “Kjell Aamot: Johnston Press’ New, Controversial Non-Executive Director,” July 21, 2010, http://kristinelowe.blogs.com/kristine_lowe/2010/07/kjell-aamot-johnston-press-new-controversial-nonexecutive-director-.html.

10. R. G. McGrath, K. Thomas, and T. Taina, “Extracting Value from Corporate Venturing,” MIT Sloan Management Review 48, no. 1 (2006): 50.

11. P. Burrows, “Nokia’s Epic Fail: Stephen Elop’s Nokia Adventure,” BusinessWeek, June 3, 2011.

12. Ibid.

13. S. Rosenbush, et al., “Verizon’s Gutsy Bet,” BusinessWeek, August 4, 2003, 52–62.

14. D. Searcey, K. B. Dennis, and A. Latour, “Verizon to Shed Phone-Book Unit; A Deal That Could Exceed $17 Billion Reflects Shift in Focus to TV, Internet,” Wall Street Journal, December 5, 2005, A3.

15. S. Ward, “You Can Really Hear Them Now,” Barron’s, February 2, 2009, 24.

16. A. Thomson, “Losses Put Cemex Under Pressure,” Financial Times, October 26, 2011, 17.

17. Ibid.

18. S. Crista, “Obsolete Products Fuel a Cottage Industry,” EBN, June 16, 2003, 4.

19. D. S. Nelson, “Emperor of Steel,” Fortune, July 12, 2006, 100.

Chapter 4

1. J. L. Bower, Managing the Resource Allocation Process: A Study of Corporate Planning and Investment (Boston: Division of Research, Graduate School of Business Administration, Harvard University, 1970), xv, 363; J. Pfeffer and G. Salancik, The External Control of Organizations: A Resource Dependence Perspective (Stanford, CA: Stanford University Press, 1978).

2. F. Rose, “The Civil War Inside Sony,” Wired, February 2003.

3. R. G. McGrath and I. C. MacMillan, MarketBusters: 40 Strategic Moves That Drive Exceptional Business Growth (Boston: Harvard Business School Press, 2005).

4. P. Burrows and J. Greene, “Yes, Steve, You Fixed It. Congrats! Now What’s Act Two?” BusinessWeek, July 31, 2000.

5. “CAT, TOT Near 3G Pact,” Bangkok Post, June 26, 2011.

6. R. Cooper, “Leadership Development Program: Knowledge-Intensive Growth at DuPont,” Wharton Leadership Digest, July 2000.

7. S. D. Anderson, “Elevate,” Fast Company, December 2008–January 2009, 46.

8. J. Neff, “TerraCycle Inc. Builds an Empire on a Foundation Made of Compost,” Waste & Recycling News, January 23, 2012, 20.

9. A. Aston, “Now, That’s Really a Turf War,” BusinessWeek, April 23, 2007, 12.

10. T. Szaky, Revolution in a Bottle (New York: Portfolio, 2009); S. Taylor, “Worm Poop Barons Avoid a Legal Mess,” Maclean’s, October 22, 2007, 44.

11. Szaky, Revolution in a Bottle, xviii.

12. D. Roberts, “Under Armour Gets Serious,” Fortune, October 26, 2011.

13. M. Rich, “Weighing Costs, Companies Favor Temporary Help,” New York Times, December 19, 2010.

Chapter 5

1. S. D. Anthony, The Little Black Book of Innovation: How It Works, How to Do It (Boston: Harvard Business Review Press, 2011); Z. Block and I. C. MacMillan, Corporate Venturing: Creating New Businesses within the Firm (Boston: Harvard Business School Press, 1993), x, 371; C. M. Christensen, S. D. Anthony, and E. A. Roth, Seeing What’s Next: Using the Theories of Innovation to Predict Industry Change (Boston: Harvard Business School Press, 2004), xxxix, 312; G. C. O’Connor, Grabbing Lightning: Building a Capability for Breakthrough Innovation (New York: Jossey-Bass, 2008).

2. R. Burgelman and L. Valikangas, “Managing Internal Corporate Venturing Cycles,” Sloan Management Review, July 2005, 26–34.

3. S. D. Anthony, The Silver Lining: An Innovation Playbook for Uncertain Times (Boston: Harvard Business School Press, 2009); C. M. Christensen and M. E. Raynor, The Innovator’s Solution: Creating and Sustaining Successful Growth (Boston: Harvard Business School Press, 2003), x, 304.

4. S. M. Shapiro, Best Practices Are Stupid: 40 Ways to Out-Innovate the Competition (New York: Portfolio/Penguin, 2011).

5. L. A. Bettencourt and A. W. Ulwick, “The Customer-Centered Innovation Map,” Harvard Business Review, May 2008, 109–114.

6. B. Brown and S. D. Anthony, “How P&G Tripled Its Innovation Success Rate,” Harvard Business Review, June 2011, 64–72.

7. R. G. McGrath and I. C. MacMillan, The Entrepreneurial Mindset: Strategies for Continuously Creating Opportunity in an Age of Uncertainty (Boston: Harvard Business School Press, 2000), xv, 380.

8. R. G. McGrath and I. C. MacMillan, Discovery-Driven Growth: A Breakthrough Process to Reduce Risk and Seize Opportunity (Boston: Harvard Business Press, 2009).

9. Christensen and Raynor, The Innovator’s Solution, x, 304.

10. N. S. Vageesh, “HDFC Bank, Vodafone India Launch Mobile Banking Product for Rural Coverage,” Hindu Business Line, November 27, 2011.

11. N. S. Ramnath, “How Cognizant Overtook Infosys,” Forbes India, August 7, 2012.

12. G. C. O’Connor, A. Corbett, and R. Pierantozzi, “Create Three Distinct Career Paths for Innovators,” Harvard Business Review, December 2009, 78–79.

13. McGrath and MacMillan, Discovery-Driven Growth.

14. Brown and Anthony, “How P&G Tripled Its Innovation Success Rate.”

15. S. Adhikari, “Brambles Waits to Exhale,” Business Spectator, February 17, 2010.

16. Macquarie Digital, “Brambles Limited: CEO Interview with Tom Gorman,” October 8, 2012.

17. Block and MacMillan, Corporate Venturing; A. B. van Putten and I. C. MacMillan, Unlocking Opportunities for Growth: How to Profit from Uncertainty While Limiting Your Risk (Upper Saddle River, NJ: Wharton School Publishing, 2009); R. G. McGrath and I. C. MacMillan, “MarketBusting: Strategies for Exceptional Business Growth,” Harvard Business Review, March 2005, 80–92; I. C. MacMillan and R. McGrath, “Discovering New Points of Differentiation,” Harvard Business Review, July–August 1997, 133–145; I. C. MacMillan and R. G. McGrath, “Discover Your Products’ Hidden Potential,” Harvard Business Review, May–June 1996, 58–68; I. C. MacMillan, A. B. van Putten, R. G. McGrath, and J. D. Thompson, “Using Real Options Discipline for Highly Uncertain Technology Investments,” Research Technology Management 49, no. 1 (2006): 29.

18. Macquarie Digital, “Brambles Limited: CEO Interview with Tom Gorman.”

Chapter 6

1. “No Country Has a Company Like Ours,” El Pais, June 17, 2007.

2. C. E. Brett, “Presentation of the Harrell L. Strimple Award of the Paleontological Society to Thomas E. Whiteley,” and T. E. Whiteley, “Response,” Journal of Paleontology 79, no. 4 (2005): 831–834.

3. S. N. Chakravarty and R. Simon, “Has the World Passed Kodak By?” Forbes, November 5, 1984.

4. S. W. Morten and M. W. Ellmann, Yellow Journalism! (New York: Wertheim & Co., 1984).

5. E. H. Bowman, “Strategy and the Weather,” Sloan Management Review, Winter 1976, 49.

6. D. Daye and B. VanAuken, “Category First. Brand Second,” Branding Strategy Insider, www.brandingstrategyinsider.com/2009/09/category-first-brand-second.html.

7. R. C. Alexander and D. K. Smith, Fumbling the Future: How Xerox Invented, Then Ignored, the First Personal Computer (New York: iUniverse, 1999).

8. W. Klepper, The CEO’s Boss: Tough Love in the Boardroom (New York: Columbia Business School, 2010).

9. G. Sargut and R. G. McGrath, “Learning to Live with Complexity,” Harvard Business Review, September 2011, 68–76.

10. E. Ries, The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses (New York: Crown Business, 2011).

11. R. G. McGrath and I. C. MacMillan, “Discovery-Driven Planning,” Harvard Business Review, July 1995, 44–54; R. G. McGrath and I. C. MacMillan, Discovery-Driven Growth: A Breakthrough Process to Reduce Risk and Seize Opportunity (Boston: Harvard Business Press, 2009).

12. S. Key, “The Man—The Legend—John Osher, Inventor of the Spin Brush. Part II,” AllBusiness, 2008, www.allbusiness.com/marketing-advertising/market-research-analysis/7665600-1.html#axzz2DXqrOvbZ.

13. M. A. Whiting and C. J. Bennett, Driving Towards “0”: Best Practices in Safety and Health, Research Report R-1334-03-RR (New York: The Conference Board, 2004).

Chapter 7

1. S. Greenhouse, “A Part-Time Life as Hours Shrink and Shift,” New York Times, October 27, 2012.

2. A. McGahan, How Industries Evolve: Principles for Achieving and Sustaining Superior Performance (Boston: Harvard Business School Press, 2004).

3. S. Tully, “Fortune 500: Profits Bounce Back,” Fortune, May 3, 2010, 32.

4. AFL-CIO, “CEO Pay: Feeding the 1%,” 2011, www.aflcio.org/corporatewatch/paywatch/paywatch2011_indexmore.cfm.

5. P. Gottschalk and S. Danziger, “Inequality in Wage Rates, Earnings and Family Income in the United States, 1975–2002,” Review of Income and Wealth 51, no. 2 (2005): 231–254; M. Morris and B. Western, “Inequality in Earnings at the Close of the Twentieth Century,” Annual Review of Sociology 25 (1999): 623–657.

6. J. Assa, “Inequality and Growth Re-Examined,” Technology and Investment 3, no. 1 (2012): 1–6.

7. R. Safian, “This Is Generation Flux: Meet the Pioneers of the New (and Chaotic) Frontier of Business,” Fast Company, January 9, 2012, 60–97.

8. F. R. Myers, Get the Job You Want, Even When No One’s Hiring: Take Charge of Your Career, Find a Job You Love, and Earn What You Deserve (New York: John Wiley & Sons, 2009).

9. A. Horowitz, “15 People Who Were Fired Before They Became Filthy Rich,” Business Insider, April 25, 2011, www.businessinsider.com/15-people-who-were-fired-before-they-became-filthy-rich-2011-4?op=1.

10. D. Wakabayashi and A. Troianovski, “Japan’s Masayoshi Son Picks a Fight with U.S. Phone Giants,” Wall Street Journal, November 24, 2012.

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