Abernathy, William, 205
accountability, 15
adaptation school of strategy, 206–207
adjacency trap, 51
advantage, transience of, 54
aggregators, 214
Agnefjäll, Peter, 25, 95, 119, 121
alignment, 4–5. See also coherence
Alves, Denise, 128
Amazon, 8
capabilities system at, 102
cost allocation at, 146
culture at, 123
expansion at, 43
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
capabilities system at, 45, 47, 78, 79, 102, 175–176
cost allocation at, 146
crises at, 173
culture at, 123, 125, 131, 137
Genius Bar, 79
identity profile of, 35
industry realignment by, 187
ASI-PAC, 96
Bagaria, Amit, 96
banking apps, 102
Bell, Alexander Graham, 109
Bennis, Warren, 193
best practices, 10, 11, 70–73, 78–79
BP, 189
Brodin, Jesper, 26
budget processes, 169–172. See also costs, cutting to grow stronger
Calloway, Wayne, 75
Campbell Soup Company, 140
at Apple, 33
culture alignment with, 121
defining, 82
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
logistics, 49
mergers and acquisitions for, 87, 103–107
research on building, 7–10, 209–212
technology disruptions and, 92–94
unconventional leadership acts and, 10–19
value propositions and, 44
capabilities systems
business case for, 84
culture alignment with, 123
fit among capabilities in, 84–85
functional boundaries and, 108–112
leadership in developing, 134
of supercompetitors, 185
tacit and explicit knowledge in, 108, 112–117
CEMEX, 8
capabilities system at, 47, 176
crises at, 173
critical-few approach at, 140
expansion at, 43
identity profile of, 183
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
conventional wisdom on, 11
critical-few approach to, 138–144
of culture, 16, 119–120, 138–144
leadership in, 198
Chicago Pneumatic, 61
code-division multiple access (CDMA), 99–102, 156–157
five acts of unconventional leadership and, 10–19
identity assessment and, 37
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
consolidators, 215
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
differentiating capabilities and, 152–154, 160, 165
effects of failure to, 21
at IKEA, 25
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
advantages/disadvantages of traits of, 138
as asset, 119
capabilities and, 50
celebrating/leveraging, 12, 15–16
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
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
understanding of at IKEA, 24
customizers, 215
capabilities system at, 79, 178
culture at, 15–16, 122–123, 125
executive teaching/learning at, 134–136
identity profile of, 147
knowledge codification at, 114
mergers and acquisitions at, 103, 105–106
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
disintermediators, 215
disruption, from digital technologies, 58–60, 94
Doolin, Charles Elmer, 73
Dow Chemical, 41
Duijnhoven, Henk van, 135
Durkee, 53
Edison, Thomas, 109
critical-few approach and, 139–140
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
emotional engagement of, 15–16, 124–130
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
Essential Advantage: How to Win with a Capabilities-Driven Strategy (Leinwand & Mainardi), 6, 79
execution
gap between strategy and, 1–29
ExxonMobil, 189
fast followers, 216
feasibility, 45
Ferreira, João Paulo, 129
Fischer, Bill, 38
fit for growth approach, 17–18
five forces framework, 204
Flextronics, 79
Fluke, 106
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
with industry realignment, 173–174, 184–192
by recharging your capabilities system, 174, 175–178
Gap, 175
General Electric, 205
Geographic Enterprise Solution (GES), 76
Gill, Michael Gates, 64, 125, 131, 154
Glidden, 53
golden butt, 80
Good to Great (Collins), 9
Green Berets, 20
growth
capability development and, 57–58
conventional wisdom on, 10
creating demand and, 174, 178–184
cutting costs to fund, 145–172
identity coherence in, 42–43, 51–60
in-market, 57
near-market, 57
through adjacencies, 51, 207–208
growth-share matrix, 204
Hach, 106
capabilities system at, 176–178
critical-few approach at, 143–144
digital technology at, 93
identity profile of, 42
industry realignment by, 187
value proposition at, 38
Hayes, Robert, 205
Heinz, 189
Henderson, Bruce, 204
Hernández, Jesús Echevarría, 99
Hillshire Brands, 189
Howitt, Beth, 180
How Starbucks Saved My Life (Gill), 64
Hubbard, Thomas, 185
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
elements of, 43
emotional commitment and, 124–130
employee understanding of, 31–32
failure to commit to, 21
leadership in, 194, 196–197, 199
at Natura, 27
organizational design and, 108
profiles, 23, 34, 42, 56, 66, 74, 86, 91, 98, 101, 130, 147, 154–155, 183
resource management and, 17
value proposition in, 43–45, 46
Iglesias, Oriol, 115
capabilities at, 22
capabilities system at, 176, 178
capabilities teams at, 111–112
culture at, 15–16, 25–26, 131–133
functional boundaries at, 110
future shaped by, 179–180, 185
identity profile of, 23
identity trigger at, 62
industry realignment by, 185, 187
knowledge codification at, 116–117
mutual accountability at, 131–133
pricing at, 25
value proposition at, 44
of cultures, 121
See also best practices
falling into, 173
functional boundaries and, 109–110
See also coherence
Ind, Nicholas, 115
Inditex, 8
cost allocation at, 146
future shaped by, 19
identity profile of, 98
supply chain at, 49
Inditex, 4
Industria de Diseño Textil (Inditex). See Inditex
industry realignment, 173–174, 184–192
innovation
at CEMEX, 44
codification of knowledge and, 112–114
The Innovator’s Dilemma (Christensen), 47–48
In Search of Excellence (Peters), 9, 206
inspiration, 79
Jacobs Douwe Egberts, 190
Jäggi, René, 115
JCI Automotive Systems Group, 8, 79–86
identity profile of, 86
leadership at, 136
Johnson Controls Inc. (JCI), 79, 189
just-in-time manufacturing, 80
Kamprad, Ingvar, 22–24, 62, 95. See also IKEA
Kay, Alan, 184
Kiechel, Walter, 203
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
La Boulange, 104
Lago, Umberto, 38
leadership
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 Natura, 27
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
in capabilities blueprinting, 78
in collective mastery, 133–138
questions and behaviors tool for, 199–200
capabilities system at, 79, 102
cost allocation at, 146, 165–169
crises at, 173
digital technology at, 59
expansion at, 43
identity at, 13
identity profile of, 66
Liebherr, 40
lights-on expenses, 157, 159, 165
Liu, Fang 38
logistics capabilities, 49
Lundgren, Gillis, 95
management
books on, 9
at IKEA, 27
incoherence from, 5
mutual accountability and, 131–133
in strategy-to-execution gap, 1–2
“Managing Our Way to Economic Decline” (Abernathy & Hayes), 205
Maresch, Montserrat, 25, 131–132
market leadership, 173–174, 184–192
mastery, collective, 116, 133–138, 197–198
Mendes, Alessandro, 126
mergers and acquisitions
in capabilities development, 86–87, 103–107
coherence premium from, 7
enhancement deals, 104–105, 106–107
of supercompetitors, 186–187, 188
Michelangelo, 193
Microsoft, 33
Mintzberg, Henry, 206
mission statements, 31
Mitchell, John, 125
Mondelez, 189
Montgomery, Cynthia, 34
Motorola, 205
MyFitnessPal, 104
capabilities system at, 176
capabilities teams at, 111
culture at, 15–16, 122, 123, 125, 126–130
emotional commitment at, 125, 126–130
identity profile of, 130
leadership at, 27
Navy Seals, 20
Neilson, Gary, 108
niche markets, 40
North American Free Trade Agreement (NAFTA), 64–65
Omnitracs, 107
cutting costs to grow stronger and, 16–18, 21
selecting based on identity, 44–45
organizational structures, 108–112
Ortega, Amancio, 97
Ovesen, Jesper, 167
PepsiCo, 70, 73–74, 76. See also Frito-Lay
performance, conventional wisdom on, 10
perspectives, 197
Pfizer Consumer Healthcare, 8, 88–92
communities of practice at, 111
identity profile of, 91
platform providers, 217
position school of management, 204–205
premium players, 217
processes, 14
Procter & Gamble, 79, 187, 188–189
Procter-Silex, 53
products and services
at Apple, 35
identity based on, 37
at IKEA, 23
profitability
value proposition and, 45
puretones. See value proposition
purpose statements, 31
Putnam, Robert, 114
future shaped by, 185
identity at, 13
identity profile of, 101
industry realignment by, 185, 187
value proposition at, 44
Qualcomm Equation, The (Mock), 99
regulation navigators, 218
Reinventing Giants (Fischer, Lago, & Liu), 38
reputation players, 218
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
Rise and Fall of Strategic Planning, The (Mintzberg), 206
risk absorbers, 219
Ritz-Carlton, 79
San Agustin, Juan Pablo, 140
scale and scaling
of capabilities systems, 77, 107–117
at IKEA, 24
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
Smalltalk, 184
Smith, Douglas R., 131
Smith, Stan, 116
Smith-Corona, 53
solutions providers, 219
Standard Industry Classification (SIC), 50–51
capabilities system at, 102, 176
crises at, 173
culture at, 15–16, 123, 125, 131, 136–137
expansion at, 42
future shaped by, 185
industry realignment by, 185
knowledge codification at, 116
mergers and acquisitions at, 103
storytelling, 120
Strasser, Rob, 115
strategic intent, 207
strategy
capabilities in driving, 49–50
cost management and, 16–18, 159
culture and, 16
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
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
unconventional leadership acts and, 10–19
Strauss Group, 41
strengths, weaknesses, opportunities, and threats (SWOT) analysis, 204
success, coasting on past, 18
supercompetitors, 18–19, 21–22
industry realignment by, 173–174, 184–192
See also future, shaping
sustainability
culture and, 123
at Frito-Lay, 76
SWOT analysis, 204
table stakes, 154–157, 159, 165
teams
mutual accountability in, 130–133
Teece, David, 209
Tektronix, 106
tools
capabilities view of portfolios, 52
capabilities visioning, 85
critical-few elements identification, 141–143
for identity assessment, 37
questions and behaviors for leaders, 199–200
supercompetitor workshop, 191–192
value proposition analysis, 46
training and development
cost allocation for, 163
in leadership, 198
Tweed, David, 166
Tyson Foods, 189
Under Armour, 8–9, 94, 104, 184
US military, 20
value chain, 204
value networks, 47–48. See also capabilities systems
capabilities interventions and, 92
capabilities systems and, 45, 47, 77
criteria for, 45
culture and, 124
cutting costs based on, 145–146, 148–149
at Haier, 38
identity based on, 12–13, 31, 37, 43–45, 46
at IKEA, 22
ongoing efforts toward, 176
rewards/incentives alignment with, 201
of supercompetitors, 185
Vista Equity Partners, 106–107
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
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