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Library of Congress Cataloging-in-Publication Data

Lowy, Alex.

The power of the 2×2 matrix : using 2×2 thinking to solve business

problems and make better decisions / Alex Lowy, Phil Hood ; foreword by

James H. Gilmore and B. Joseph Pine II.

p. cm.— (The Jossey-Bass business & management series)

Includes bibliographical references and index.

ISBN 0-7879-7292-4 (alk. paper)

1. Problem solving. 2. Decision making. 3. Industrial management.

I. Hood, Phil, 1951- II. Title. III. Series.

HD30.29.L69 2004

658.4'03—dc22

2003026851

Printed in the United States of America

FIRST EDITION

HB Printing 10 9 8 7 6 5 4 3 2 1

This page constitutes a continuation of the copyright page.

Fig. 1.1, "Alignment versus Autonomy," and Fig. 7.19, "Learning and Change," used by permission of Hubert Saint-Onge.

Figs. 1.5 and 8.17, "Time Management Matrix," and Fig. 8.18, "Influence and Concern," used with permission of Dr. Stephen R. Covey.

Ch. 2 epigraph, from "Dialectics for Kids," first stanza of the song, Everything Changes Bit by Bit by Jack Lucero Fleck from the Web site Dialectics for Kids. Used with permission of Jack Lucero Fleck.

Figs. 2.4 and 7.26, "Double Helix Model," and Fig. 7.23, "Make versus Buy," from Clock-speed: Winning Industry Control in the Age of Temporary Advantage by Charles H. Fine. Copyright © 1998 by Charles H. Fine. Reprinted by permission of Perseus Books Publishers, a member of Perseus Books, L.L.C.

Fig. 6.2, "Beyond Customer Led," adapted and reprinted by permission of Harvard Business School Press. From Competing for the Future by Gary Hamel and C. K. Prahalad. Boston, MA, 1994, p. 103. Copyright © 1994 by Gary Hamel and C. K. Prahalad; all rights reserved.

Fig. 6.4, "Discontinuity and Life Cycle," from Inside the Tornado by Geoffrey A. Moore. Copyright © 1995 by Geoffrey A. Moore Consulting, Inc. Reprinted by permission of HarperCollins Publishers, Inc.

Figs. 6.7, 6.9, and 6.11, "How Customers Choose," adapted with the permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group, from Managing Customer Value: Creating Quality and Service that Customers Can See by Bradley T. Gale. Copyright © 1994 by Bradley T. Gale. All rights reserved.

Fig. 6.12, "1980s Automotive Scenario," from Global Business Network.

Fig. 6.13, "Librarian Scenario," adapted from Tom Wilson, The Role of the Librarian in the Twenty-First Century, www.shef.ac.uk/~is/wilson/publications/21stcent.html

Fig. 6.14, "Gartner Magic Quadrant," copyright © Gartner, Inc. All rights reserved.

Fig. 6.15, "Magic Quadrant for Supply Chain Software," copyright © Gartner, Inc. All rights reserved.

Fig. 6.16, "Magic Quadrant for Portal Software," copyright © Gartner, Inc. All rights reserved.

Fig. 6.18, "Problem and Solution," from The Visionary's Handbook by Watts Wacker and James Taylor, with Howard Means, p. 31. Copyright © 2000 by Watts Wacker and James Taylor. Reprinted by permission of HarperCollins Publishers, Inc.

Fig. 6.23, "Generic Strategy," reprinted with permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group, from Competitive Advantage: Creating and Sustaining Superior Performance by Michael Porter. Copyright © 1985, 1998 by Michael Porter. All rights reserved.

Fig. 6.26, "Global Product Planning," from Global Marketing Management, 7th edition, by Warren Keegan. Copyright © 1999 by Prentice- Hall, Inc. Reprinted by permission of Pearson Education, Inc., Upper Saddle River, NJ.

Fig. 6.28, "Mass Customization," adapted and reprinted by permission of Harvard Business School Press. From The Experience Economy by B. Joseph Pine and James H. Gilmore. Boston, MA, 1999, p. 30. Copyright © 1999 by B. Joseph Pine II and James H. Gilmore; all rights reserved.

Fig. 6.30, "Attentionscape," adapted from Thomas H. Davenport and John C. Beck, The Attention Economy: Understanding the New Currency of Business. Harvard Business School Press, 2001.

Fig. 6.31, "Choosing a Loyalty Strategy," reprinted by permission of Harvard Business Review. From "The Mismanaging of Customer Loyalty," by Werner Reinartz and V. Kumar. Harvard Business Review, July 2002, p. 88. Copyright © 2002 by the Harvard Business School Publishing Corporation; all rights reserved.

Fig. 6.32, "Likelihood to Buy," from The Essence of Marketing by Simon Majaro. Copyright © 1993 by Prentice- Hall International (UK) Limited. Reprinted by permission of Pearson Education, Inc., Upper Saddle River, NJ.

Fig. 6.35, "BCG Product Portfolio," and Fig. 6.36, "Dow versus Monsanto," used by permission of Simon Trussler, Vice President, The Bolton Consulting Group, Inc.

Fig. 6.37, "Impact-Uncertainty," used by permission of William K. Ralston, Jr., Vice President, SRI Consulting Business Intelligence.

Fig. 7.2, "Good to Great," from Good to Great: Why Some Companies Make the Leap and Others Don't by Jim Collins. Copyright © 2001 by Jim Collins. Reprinted by permission of HarperCollins Publishers Inc.

Fig. 7.5, "Alliance Drivers," from John R. Harbinson and Peter Pekar, Jr., Smart Alliances. Copyright © 1998. This material is used by permission of John Wiley & Sons, Inc.

Fig. 7.7, "Situational Leadership," copyrighted material. Adapted/reprinted with permission of Center for Leadership Studies, Escondido, CA 92025. All rights reserved.

Fig. 7.9, "Four Power Players," reprinted by permission of the publisher. From The New Organizational Wealth. Copyright © 1987 by Karl-Erik Sveiby, Berrett-Koehler Publishers, Inc., San Francisco, CA. All rights reserved.

Fig. 7.10, "T-Group Leadership," from Group Leadership: A Training Approach by Richard Nelson-Jones. Brooks/Cole, 1992 edition. Used by permission of Richard Nelson-Jones.

Fig. 7.12, "Xerox Repair Technicians SECI," reprinted by permission. From "Organizational Learning and Communities of Practice" by John Seely Brown and Paul Duguid. Organization Science 2, 1991, Institute for Operations Research and the Management Sciences (INFORMS), 901 Elkridge Landing Road, Suite 400, Linthicum, Maryland 21090-2909 USA.

Fig. 7.13, "Human Capital," from Intellectual Capital by Thomas A. Stewart. Copyright © 1997 by Thomas A. Stewart. Used by permission of Doubleday, a division of Random House, Inc.

Fig. 7.15, "Differentiation and Integration," and Fig. 7.20, "Similarities and Differences," reprinted with permission from Jamshid Gharajedaghi and Elsevier from Systems Thinking: Managing Chaos and Complexity, A Platform for Designing Business Architecture by Jamshid Gharajedaghi. Copyright © 1999.

Fig. 7.21, "Four Realms of Experience," adapted and reprinted by permission of Harvard Business School Press. From The Experience Economy by Joseph B. Pine and James H. Gilmore. Copyright © 1999 by Joseph B. Pine and James H. Gilmore; all rights reserved.

Fig. 7.24, "Four Square Model," adapted from Groupware: Computer Support for Business Teams by Jahansen, Charles, Mittman and Saffo. Series in Communication Technology and Society. Copyright © 1988. Published by The Free Press.

Fig. 7.29, "Telematics," used by permission of Bill Buxton, Buxton Designs.

Fig. 8.2, "Johari Window," from Of Human Interaction by Joseph Luft. Copyright © 1969. National Press Books.

Table 8.2, "The 16 Myers-Briggs Types," modified and reproduced by special permission of the Publisher, Davies-Black Publishing, an imprint of CPP, Inc., Palo Alto, CA 94303 from Gifts Differing by Isabel Briggs Myers with Peter B. Myers. Copyright © 1995 by Davies-Black Publishing, Inc. All rights reserved. Further reproduction is prohibited without the Publisher's written consent.

Fig. 8.7, "Learning Styles Inventory," adapted from Experiential Learning by David Kolb. Copyright © The Hay Resources Direct.

Fig. 8.9, "Conflict Mode," from Thomas-Kilmann Conflict Mode Instrument. Reprinted with permission of Marvin Dunnette.

Fig. 8.10, "Social Styles," reprinted with permission from Personal Styles and Effective Performance by David Merrill and Roger Reid. Copyright © 1981 CRC Press, Boca Raton, FL.

Fig. 8.12, "Doing Things Right," reprinted by permission of Harvard Business Review. From "Managing for Business Effectiveness," by Peter F. Drucker. Harvard Business Review, May 1963. Copyright © 1963 by the Harvard Business School Publishing Corporation; all rights reserved.

Fig. 8.13, "Leadership Coaching," from The Dance of Change by Peter M. Senge, Art Kleiner, Charlotte Roberts, and Richard Ross. Copyright © 1999 by Peter Senge, Art Kleiner, Charlotte Roberts, and Richard Ross. Used by permission of Doubleday, a division of Random House, Inc. and The Apieler Agency.

Fig. 8.16, "Payoff Matrix for PC Makers," used with permission from Forio Business Simulations, www.forio.com/pcpricesim.htm.