INDEX

Abercrombie & Fitch, 18. See also L Brands

AB InBev, 29–31, 38, 95–97, 156

accountability at, 97

agility at, 179

workforce at, 95–97, 99, 154, 169

zero-based budgeting at, 98–99, 166

Abraham, Jack, 119

accountability, 4, 179

at AB InBev, 97

customer experience and, 68, 72–73

erosion of, 66

mission and, 73–74

ACT (Accelerated Cisco Transformation), 110–111

agility, 177–179

AIG, 56

Air China, 11

alignment, 32

Amazon, 55, 106, 130, 158, 167

Ambani, Dhirubhai, 167

Ambani, Mukesh, 167

American Customer Satisfaction Index, 53

Ameritrade, 58

Apollo Investment Corporation, 48

Apple, 7, 38, 141, 156

complexity reduction at, 70

core capabilities developed at, 145

focus on detail in, 27

insurgent focus at, 23

market value of, 131

redefined insurgency at, 140

refounding team at, 132

shrinking to grow at, 137

Arison, Ted, 47

Arista Networks, 109

attitudes. See founder’s mentality

Avon, 159

Bain & Company, 8–9, 50–51, 73, 161, 177

Barnack, Oskar, 145–146

Barnes & Noble, 159

Bath & Body Works, 18, 92. See also L Brands

Bennis, Warren, 163–164

Berkshire Partners, 138

best practices, 79

Bezos, Jeff, 158

Bhambal, Poornima, 25–26

bias to action, 28

Monday meetings and, 91–93

self-assessment of, 35

Biesbroeck, Jo Van, 96–97, 169

big-bang approach, 141

Blake, Frank, 54, 102–104

blame, 130–131

Blank, Arthur, 52, 103

Blockbuster Video, 55, 56

boards, 12

Bogle, John, 165

Bosack, Leonard, 108

bottlenecks, 80, 178

bottom-up perspective, 158

Brahma, 29

Brenneman, Greg, 54, 101–102

Bristol-Myers Squibb, 51

British Association of Toy Retailers, 134

Brito, Carlos, 97, 154, 156

Buckley, George, 115–117, 154

budgets

balkanization of, 28–29

zero-based, 95, 98–99, 166

bureaucracy

aversion to, 28, 31, 35

campaigning against, 123

council of franchise players and, 94

at HP, 74

in matrix organizations, 68, 70–72

self-assessment of, 35

stall-out and, 50–54

struggling, 39

talent development and, 169

business life cycles, 10–11

business models, 2

building new capabilities for, 170–173

developing core capabilities for adapting, 132, 144–147

disruption of, 62–65

in free fall, 3, 54–60, 125–129, 129–131

obsolescence of, 65

in stall-out, 105–106

Capa, Robert, 146

capabilities, building, 132, 144–147, 170–173

capability matrix, 172–173, 174

Carnival Cruise Line, 47

Cartier-Bresson, Henri, 146

CavinKare, 23

Centennial Funds, 138

Chambers, John, 108

chaos, embracing, 164

Charles Schwab, 56–60, 125–129, 132, 137

Charles Schwab: How One Company Beat Wall Street and Reinvented the Brokerage Industry (Kador), 57

Christensen, Clayton, 65

churn, 10–11

Cimpress, 175–176

Cisco, 108–111

Coe, Nick, 92

commitment, 88

communications, 79

Compaq, 74

compass, creating a, 161–163

complexity, 1–2

attacking from top down, 108

as killer of speed, 177

loss of founder’s mentality from, 33

in overload, 45–46

owner’s mindset and, 28–29

reducing, as way of life, 69–70

stall-out caused by, 106

complexity doom loop, 69–70

conflict, 71–72, 92–93, 178

consensus, 130–131

core business

divestment of noncore and, 31

focus on/around, 8

focus on the core of the, 131, 133–137

investing in new capabilities for, 132, 144–147

limitless horizon for, 23

rebuilding in stall-out, 105–106, 107–111

rediscovering confidence in, 115–117

saying no to say yes to, 165–166

at 3M, 115–117

Corporate Executive Board, 51

costs

controlling, 2

at DaVita, 142

focus on, 28, 35

at Home Depot, 54

at Norwegian Cruise Line, 49–50

reducing, 107–111

self-assessment of, 35

of stall-out, 105

zero-based budgeting and, 95

council of franchise players, 94

Crown Castle, 137–140, 145

culture, 2, 42

at Charles Schwab, 59

at DaVita, 143–144

disruptions to founding, 67

curse of the matrix, 70–72

customer advocacy, self-assessment of, 35

customers

change in needs/buying behaviors of, 62–65

at Charles Schwab, 126–128

experience fragmentation, 68, 72–73

front-line obsession with, 24–27

at Home Depot, 52–54, 102–104

losing touch with, 67

mission defined around serving, 139–140

ownership and experience of, 178

DaVita, 7, 85, 140, 141–144, 155, 158, 163

decision making, 160

accountability in, 66

bias to action and, 28

conflict and, 92–93

Janusian thinking for, 164–165

in matrix organizations, 71

in resource allocation, 166–167

rights of, 177

root cause identification in, 167–168

saying no to say yes in, 165–166

skills for, 163–175

speed and agility in, 177–179

delegation, 96

Dell, 93–94, 149–151, 153, 157

Dell, Michael, 94, 148–151, 153

detail, attention to, 24–27

differentiation, 160

capabilities in, 172–173, 174

front-line obsession in, 24–27

at 3M, 115–117

at Yonghui Superstores, 22

digital technologies, 130

disruptions, 62, 65, 106, 129–131. See also external vs. internal factors

distribution, 82–83

Distribution Center 6094, 179–183

diversification

at Charles Schwab, 59, 60

divesting from, 118

focusing on the “core of the core” and, 131, 133–137

Donahoe, John, 118–120, 154

double hating, 93

eBay, 118–120, 154

Einstein, Albert, 164

EMC, 151

emotional intelligence, 25

empowerment, 87–94

employee, 25

at Home Depot, 53–54

self-assessment of, 35

Endeavor, 38

The End of Competitive Advantage (McGrath), 170

energy vampires, 71–72, 177

engagement, 28, 68, 73–74

at Home Depot, 53–54

renewing, 114–117

Enterprise Rent-A-Car, 8, 38

entrepreneurship, 97–98, 116, 118–120

entropy, 167

E*Trade, 58

experimentation, relentless, 35

Express, 18. See also L Brands

external vs. internal factors

at Charles Schwab, 57–58

in free fall, 57–58, 125–129, 129–131

on growth, 1–2, 42

interaction between, 62–65

in performance, 1–2, 42, 55–56

in stall-out, 105–106

failure

external vs. internal factors in, 1–2

rate of founders’, 77

Fairchild Semiconductor, 147

Ferguson, Niall, 106

“five whys,” 167–168

flexibility, 51

Floyd, Jabo, 179–183

FM100, 8–9, 63, 88, 89–90

focus, 3–4. See also mission

complexity reduction and, 70

on constant improvement, 79, 97

on/around core business, 8

on cost, 28

on long-term goals, 173, 175–176

at Norwegian Cruise Line, 48–50, 80

saying no to say yes and, 165–166

self-assessment of, 35

Fortune, 134

The Founder’s Dilemmas (Wasserman), 12–13

founder’s mentality, 15–43. See also front-line obsession; insurgent’s mission; owner’s mindset

bringing back, 102–104

common ambition in, 159–161

creating a compass in, 161–163

data on, 33–34

defining traits of, 19–32

definition of, 3–4

diagnostic survey on, 33–36

erosion of in overload, 65–67

infusing in your organization, 32–36

journey north and, 40–42

keeping, 19–20

loss of during growth, 5–7, 36–37

managing as an asset, 160

mapping, 36–40

as necessity vs. luxury, 154

net benefits of, 37–40

personality vs., 32

power of, 78–81

research methodology on, 8–9

self-awareness and, 157–159

taking for granted, 46

franchise players, 94, 100, 133, 180

free fall, 3, 54–60, 125–152

building new refounding team for, 131, 132–133

causes of, 55–56

at Charles Schwab, 56–60, 125–129

core capability development in, 132, 144–147

external vs. internal factors in, 125–129

focus on the core in, 131, 133–137

importance of overcoming, 10

prevalence of, 55, 131

redefining insurgency in, 131, 137–141

refounding the company in, 131, 141–144

reigniting insurgency in, 107–114

stall-out compared with, 129–131

steps in reversing, 131–132

storms in, 63, 65, 130

systemic dysfunction in, 63, 65

time to reverse, 137

value creation and, 60–62

front-line obsession, 4, 19, 24–27. See also workforce

embedding, 87–94

heroes/systems balance and, 89–94

loss of voices from, 66, 157–158, 160–161

Monday meetings and, 91–93

at Norwegian Cruise Line, 48–50

performance impact of, 33

putting the front line first, 88–89

renewing, 114–117

self-assessment of, 35

Fujifilm, 145

functional agendas, 89–90

future, building the, 132–133

Gardemann, Alessandro, 38

Gateway, 56

Gazprom, 39

General Electric, 120, 178

General Motors, 39, 56

GEO Energética, 38

Gerstner, Lou, 136–137, 145

GlobeScan, 163

goals, long-term, 173, 175–176

Godrej, Adi, 28

Godrej Group, 28

Goldman, Charles, 58, 59, 126–127

Google, 7, 38

Grove, Andy, 158

growth

achieving profitable, at scale, 40–42

complexity and, 1–2

crises of, 2–3, 45–75

free fall in, 3, 54–60, 125–152

internal vs. external factors in, 1–2, 42, 62–65

loss of founder’s mentality during, 5–7

overload in, 45–50, 77–100

pace of, 10–11

paradox of, 1–14, 41–42

shrinking to create, 136–137

stall-out in, 2–3, 50–54, 101–123

sustainable, 13–43

value creation in, 60–62

Gunning, Tex, 160–161

Haier, 8, 38

Harvard Business Review, 74

Hastings, Reed, 145

Heinz, 30

Henri Bendel, 18. See also L Brands

heroes and heroics, 79, 89–94

Hewlett, Bill, 73–74

Hewlett, Walter, 74

Hewlett-Packard, 73–74

The Home Depot, 52–54, 73, 101–104, 115, 157–158

Home Depot Expo, 103

The HP Way (Packard), 74

Huawei, 109

hypermarkets, 21

IBM, 136–137, 145

IKEA, 8, 23–24, 38, 163

improvement, continuous, 79, 97, 156

incumbency

on founder’s mentality map, 39

stall-out in, 50–54, 67–74

incumbent bar, 61

incumbent mindset, 32

industry churn, 11

innovation

defending the past vs., 132–133

at eBay, 119–120

owner’s mindset and, 32

at 3M, 115–117

at Yonghui, 86–87

INSEAD, 175

inspiration, 159

Instacart, 167

insurgent bar, 61

insurgents

competition from new, 125–129

on founder’s mentality map, 37

new business models of, 55

insurgent’s mission, 3, 4, 19, 20–24

at Charles Schwab, 57

disrupting your own, 85–87

in free fall, 131, 137–141

great statements of, 23–24

as group effort, 82–85

linking new workers to, 90

loss of during growth, 5–7, 159–161

performance impact of, 33

rebuilding in overload, 82–87

redefining, 55, 131, 137–141

rediscovering the past’s, 111–114

reigniting in stall-out, 107–114

threat from competing, 10

Intel, 158

Interbrew, 30

investors and shareholders, 12, 166–167

long-term horizon for, 173, 175–176

owner’s mindset in, 31–32

private ownership and, 132, 147–151

Janusian thinking, 164–165

Jobs, Steve, 27, 70, 137, 145, 156

journey north, 40–42

Juniper Networks, 109

Juris Technologies, 161

Kador, John, 57

Kaufmann, Andreas, 146–147

Keane, Robert, 173, 175–176

Kelly, John, 138–139, 145

Kloster, Knut, 47

Kmart, 39, 53

Knudstorp, Jørgen Vig, 134–136, 155

Kodak, 39, 56, 130, 145

Kraft, 30–31

Kristiansen, Ole Kirk, 134

Kroc, Ray, 158

Lang Ping, 22

La Senza, 18. See also L Brands

L Brands, 8, 15–19, 20, 24, 36, 40, 91–92, 164

leaders and leadership, 12, 153–183

accountability of, 66

in building capabilities, 146–147

building new capabilities and, 170–173

building new refounding teams for, 131, 132–133

complexity doom loop and, 69–70

creating a compass in, 161–163

decision skills for, 163–175

as entrepreneurs, 97–98

as guardians of speed and agility, 177–179

at Home Depot, 53–54

investing in next-generation, 168–169

Janusian thinking for, 164–165

as learnable skill, 154

long-term focus of, 173, 175–176

mission and, 159–161

Monday meetings and, 91–93

owner’s mindset in, 31–32

personality vs. owner’s mindset in, 32

in rebuilding founder’s mentality, 7

re-empowering, 127

resource allocation in, 166–167

reverence and responsibility of, 117

root cause identification and, 167–168

saying no to say yes in, 165–166

scale insurgency and, 154–155

self-awareness and, 157–159

sharing across the organization, 179–183

stall-out and, 50–54

throughout the organization, 154

time management and, 158

who you listen to and, 157–158

lean organizations, 95–98

The Lean Startup (Ries), 12

legacy, 117

LEGO Group, 134–136, 155, 163–165

LEGOLAND, 135

Lehman Brothers, 56

Leica, 145–147

Leitz, 145

Lemann, Jorge Paulo, 29–31

Lerner, Sandra, 108

Lever, William, 163

The Limited, 15–19

limitless horizons, 23

self-assessment of, 35

lines in the sand, 93–94

listening, 168

Lloyd, Geoff, 112–114

Love Story (movie), 17

Lowe’s, 53

managers, 28–29, 142

accountability of, 66

at Home Depot, 53

leaders vs., 163–164

Marcus, Bernard, 52, 103, 157–158

Marico, 82–85, 163

Mariwala, Harsh, 82–85

market churn, 10–11

markets

creating new, 20

switching, 141

market value, 61–62, 129, 131

in free fall, 56, 60

Marvel Entertainment, 141

matrix, curse of the, 68, 70–72

Mazda, 51

McDonald’s, 158

McGrath, Rita Gunther, 170

McGraw, Ali, 17

McMillon, Doug, 180

McNabb, Bill, 165

meritocracy, embracing, 84–85, 96, 97, 169

metabolisms, of industries, 10–11

metrics, 157

at Charles Schwab, 60

external vs. internal factor focus in, 42

at Home Depot, 54

lines in the sand and, 93–94

at Norwegian Cruise Line, 80

at Perpetual, 114

team-based, 181–182

Mey Içki, 92–93, 178–179

Microsoft, 39

Miller, Ted, 137–140

Milo.com, 119

mini-founder experiences, 117, 120–122

mission, 3–4

bold, 23

at Charles Schwab, 57

complexity doom loop and, 69–70

at DaVita, 143

embedding, 84–85

loss of, 68, 73–74, 159–161

at Norwegian Cruise Line, 48–50

at Perpetual, 114

professional managers and, 67

rediscovering a past, 111–114

self-assessment of, 35

statements, great insurgent, 23–24

uninspiring, 159

Yonghui Superstores, 22

Modelo, 30

Monday meetings, 91–93, 100, 123, 178

Moore, Gary, 109–110

Naevdal, Ronny Bakke, 120–122

Nardelli, Robert, 53–54, 102

Netflix, 20, 145

Net Promoter Score, 59, 126, 149

Net Promoter System, 128

Nintendo, 56

Nokia, 6–7, 65, 141

Norwegian Cruise Line, 47–50, 60, 77–81, 159, 163

NXP, 147–148, 155

Oberoi, M. S., 24–27, 158

Oberoi, P. R. S., 27

Oberoi, Vikram, 26, 88, 168

Oberoi Group, 24–27, 88–89, 168

Olam, 164, 168–169, 170–172

One Perpetual, 114

openness, 84

Oracle, 8

Orange Apron Cult, 103

organizational structure, 70

at DaVita, 143

growth of complexity in, 5–7

as killer of speed, 177

at Marico, 84–85

matrix, 68, 70–72

overload, 2, 45–50, 77–100

demanding owner’s mindset and, 94–99

disrupting your own insurgency and, 85–87

embedding front-line obsession and, 87–94

group effort in overcoming, 82–85

importance of overcoming, 10

rebuilding insurgency in, 82–87

signs of, 80–81

stress of, 80

value creation and, 60–62

westward winds in, 63, 65–67

ownership. See also owner’s mindset

private, returning to, 132, 147–151

sense of, 117–118

owner’s mindset, 4, 19, 27–32

customer experience and, 68, 72–73

at Dell, 150–151

demanding, 94–99

embedding with zero budgeting, 95–98

going outside to renew, 118–120

performance impact of, 33

recreating, 117–122

self-assessment of, 35

Packard, David, 73–74

Panasonic, 51, 56

PayPal, 119–120

performance. See also growth

accountability for, 97

at DaVita, 143–144

external vs. internal factors in, 1–2, 42, 55–56

founder’s mentality in, 4–5, 33–34

in free fall, 55–56

Perpetual, 111–114, 165

Philips, 51, 147–148

politics, 68, 70–72

Polman, Paul, 161–163

portfolio simplification, 107–111

potential, searching for full, 156

private equity industry, 31

problem-solving, 91–93, 117

processes/systems, 2

addition of complex during growth, 5–7

complexity doom loop and, 69–70

at Norwegian Cruise Line, 48–50

overload and, 47–50, 80–81

rediscovering lost, 115–117

at Yonghui, 85–87

product substitution, 129–130

professionalization, 85–87, 89–94, 159–161

profitability

at Charles Schwab, 128

external vs. internal barriers to, 63–65

founder’s mentality in continued, 8–9

mission and, 159

organization structure and, 70

scale and, 41–42

profit drivers, 62–65

profit pools, 130

Project Renaissance, 58–59

raki, 92–93

refounding teams, building, 131, 132–133

Reichheld, Fred, 128

Reliance Industries, 167

repeatable models, 172, 175, 178

research methodology, 8–9

resources

allocating, 166–167

balkanization of, 28–29

focus on long-term goals and, 175–176

resources (continued)

focus on the core and, 131, 133–137

freeing up, 107–111

in matrix organizations, 72

at Perpetual, 113–114

trapped, 72, 178

zero-based budgeting to liberate, 95, 98–99

responsibility, 4

employee, 25

of leaders, 117

reverence, sense of, 117

Ries, Eric, 12

RIM, 56

Robertson, David, 135

root causes, 141, 157, 165, 167–168

Rothenberg, Albert, 164

SABMiller, 30

Samsung, 7

SAP, 39

saying no to say yes, 165–166

scale. See also growth

journey north and, 40–42

net benefits of, 37–38

overload and, 46

pace of, 10–11

problems from, 41–42

reversing benefits of, 67–74

unscalable founders and, 65

scale insurgency, 13–14

scale insurgency model, 38–39

journey north in, 40–42

for leaders, 154–155

Schwab, Charles, 59, 60, 126–128

Sears, Roebuck & Company, 157–158

See Wai Hun, 161

self-awareness, 157–159

Sharp, 51, 56

Sheehan, Kevin, 48–50, 78–81, 159

short term, tyranny of the, 158

shrinking to grow, 134–137

Sicupira, Carlos Alberto, 29–31

Silver Lake, 150

Skype, 118

social contract, 54

Sony, 39, 51

southward winds, 63, 67–74

SpaceX, 20

Spielberg, Steven, 134

“spikiness,” 19, 23, 35, 72, 172–173

in fund allocation, 166–167

in investing, 118

leadership in, 86–87

self-assessment of, 35

stall-out, 2–3, 50–54, 101–123

assaulting complexity costs in, 107–111

bringing back founder’s mentality in, 102–104

complexity doom loop in, 68, 69–70

free fall compared with, 129–131

growth as cause of, 51

at Home Depot, 52–54

importance of overcoming, 10

inability to say no and, 165–166

internal founders in, 117, 120–122

prevalence of, 50–51, 104–105

recreating owner’s mindset in, 117–122

rediscovering past insurgency and, 111–114

renewing front-line obsession in, 114–117

southward winds in, 63, 67–74

speed of, 51, 52

success rate of reversing, 105–106

symptoms of, 67–68

value creation and, 60–62

Star Cruises, 47–48

start-ups, 12–13

internal, 120

as war, 20–24

status quo, 130, 132–133

storms, 63, 65, 130

strategic agenda, 89–90

stress, 130–131

success, external vs. internal factors in, 1–2, 42

supply chain, 21–22, 86–87, 170–172

sustainability, 162–163

SustainAbility, 163

Symbion, 141

Tameer Microfinance Bank, 121–122

TD Waterhouse, 59

Telenor, 120–122

Telles, Marcel, 29–31

Telling, Ed, 157–158

Thiel, Peter, 12

Thiry, Kent, 7, 141–144, 155, 158

3G Capital, 30–31

3M, 115–117, 122, 154

time management, 158

Time Warner, 51

TNT, 160–161

Total Renal Care. See DaVita

Toyota Production System, 27, 29, 167–168

TPG Capital, 92

training, 25

Transformation 2015, 113

transparency, 98–99, 114

Travel & Leisure, 25

Trident Hotel, 26

trust, 89

The Trust Company, 113–114

Uber, 106, 130

Unilever, 39, 161–163

University of Michigan, 53

unscalable founders, 64–65

U.S. Trust, 58, 129, 137

value creation, 60–62, 83, 98

values, 4

ambiguity around, 178

creating a compass for, 161–163

at DaVita, 142–144

embedding throughout the organization, 96–97

hiring and, 88–89

loss of, stall-out and, 73–74

at Marico, 83–84

at Norwegian Cruise Line, 80

professional managers and, 67

at Unilever, 162

Vanguard, 165

Verghese, Sunny, 168–169, 170–172

Victoria’s Secret, 18, 38. See also L Brands

vision. See insurgent’s mission; mission

Walmart, 20, 149, 158, 179–183

The Walt Disney Company, 141

Walton, Sam, 158, 180

Wasserman, Noam, 13

Welch, Jack, 178

westward winds, 63, 65–67, 78

Wexner, Bella, 15

Wexner, Harry, 15

Wexner, Leslie, 15–20, 24, 40, 91

White Barn, 92

workforce, 2

at AB InBev, 95–97, 99

empowerment of, 25, 87–94

engagement levels in, 28

failure to grow, 67

founder’s mentality in attracting/retaining, 155

going outside to renew, 118–120

hiring and training, 88–89, 96

at Home Depot, 52–54, 102–104

influential employees in, 94

leadership development in, 168–169

loss of talent in, 5–7

mission/focus of, 3–4, 159–161

in overload, 80–81

owner’s mindset in, 27–32

personal responsibility in, 4

private ownership and, 147

refounding teams from, 132–133

rewarding heroes in, 79

at 3M, 115–117

Worldwide Developers Conference, 70

WunWun, 167

Yonghui Superstores, 20–23, 85–87, 178

Yorgancioğlu, Galip, 92–93

zero-based budgeting, 98–99, 110, 166

Zero to One (Thiel), 12

Zhang Xuanning, 20–23, 85–87

Zhang Xuansong, 20–23, 85–87