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
at AB InBev, 97
customer experience and, 68, 72–73
erosion of, 66
ACT (Accelerated Cisco Transformation), 110–111
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
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
Barnes & Noble, 159
Bath & Body Works, 18, 92. See also L Brands
Berkshire Partners, 138
best practices, 79
Bezos, Jeff, 158
bias to action, 28
self-assessment of, 35
Biesbroeck, Jo Van, 96–97, 169
big-bang approach, 141
boards, 12
Bogle, John, 165
Bosack, Leonard, 108
bottom-up perspective, 158
Brahma, 29
Bristol-Myers Squibb, 51
British Association of Toy Retailers, 134
budgets
bureaucracy
campaigning against, 123
council of franchise players and, 94
at HP, 74
in matrix organizations, 68, 70–72
self-assessment of, 35
struggling, 39
talent development and, 169
business models, 2
building new capabilities for, 170–173
developing core capabilities for adapting, 132, 144–147
in free fall, 3, 54–60, 125–129, 129–131
obsolescence of, 65
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
Coe, Nick, 92
commitment, 88
communications, 79
Compaq, 74
attacking from top down, 108
as killer of speed, 177
loss of founder’s mentality from, 33
reducing, as way of life, 69–70
stall-out caused by, 106
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
Corporate Executive Board, 51
costs
controlling, 2
at DaVita, 142
at Home Depot, 54
at Norwegian Cruise Line, 49–50
self-assessment of, 35
of stall-out, 105
zero-based budgeting and, 95
council of franchise players, 94
at Charles Schwab, 59
disruptions to founding, 67
customer advocacy, self-assessment of, 35
customers
change in needs/buying behaviors of, 62–65
experience fragmentation, 68, 72–73
front-line obsession with, 24–27
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
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
delegation, 96
Dell, 93–94, 149–151, 153, 157
Dell, Michael, 94, 148–151, 153
differentiation, 160
front-line obsession in, 24–27
at Yonghui Superstores, 22
digital technologies, 130
disruptions, 62, 65, 106, 129–131. See also external vs. internal factors
Distribution Center 6094, 179–183
diversification
divesting from, 118
focusing on the “core of the core” and, 131, 133–137
double hating, 93
Einstein, Albert, 164
EMC, 151
emotional intelligence, 25
employee, 25
self-assessment of, 35
Endeavor, 38
The End of Competitive Advantage (McGrath), 170
entrepreneurship, 97–98, 116, 118–120
entropy, 167
E*Trade, 58
experimentation, relentless, 35
Express, 18. See also L Brands
external vs. internal factors
in free fall, 57–58, 125–129, 129–131
in performance, 1–2, 42, 55–56
failure
external vs. internal factors in, 1–2
rate of founders’, 77
Fairchild Semiconductor, 147
Ferguson, Niall, 106
flexibility, 51
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
creating a compass in, 161–163
infusing in your organization, 32–36
loss of during growth, 5–7, 36–37
managing as an asset, 160
as necessity vs. luxury, 154
personality vs., 32
taking for granted, 46
franchise players, 94, 100, 133, 180
building new refounding team for, 131, 132–133
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
redefining insurgency in, 131, 137–141
refounding the company in, 131, 141–144
reigniting insurgency in, 107–114
stall-out compared with, 129–131
systemic dysfunction in, 63, 65
time to reverse, 137
front-line obsession, 4, 19, 24–27. See also workforce
heroes/systems balance and, 89–94
loss of voices from, 66, 157–158, 160–161
at Norwegian Cruise Line, 48–50
performance impact of, 33
putting the front line first, 88–89
self-assessment of, 35
Fujifilm, 145
Gardemann, Alessandro, 38
Gateway, 56
Gazprom, 39
GEO Energética, 38
GlobeScan, 163
goals, long-term, 173, 175–176
Godrej, Adi, 28
Godrej Group, 28
Goldman, Charles, 58, 59, 126–127
Grove, Andy, 158
growth
achieving profitable, at scale, 40–42
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
stall-out in, 2–3, 50–54, 101–123
Harvard Business Review, 74
Hastings, Reed, 145
Heinz, 30
Henri Bendel, 18. See also L Brands
Hewlett, Walter, 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
improvement, continuous, 79, 97, 156
incumbency
on founder’s mentality map, 39
incumbent bar, 61
incumbent mindset, 32
industry churn, 11
innovation
defending the past vs., 132–133
owner’s mindset and, 32
INSEAD, 175
inspiration, 159
Instacart, 167
insurgent bar, 61
insurgents
on founder’s mentality map, 37
new business models of, 55
insurgent’s mission, 3, 4, 19, 20–24
at Charles Schwab, 57
linking new workers to, 90
loss of during growth, 5–7, 159–161
performance impact of, 33
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
private ownership and, 132, 147–151
Jobs, Steve, 27, 70, 137, 145, 156
Juniper Networks, 109
Juris Technologies, 161
Kador, John, 57
Kloster, Knut, 47
Knudstorp, Jørgen Vig, 134–136, 155
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
as guardians of speed and agility, 177–179
investing in next-generation, 168–169
Janusian thinking for, 164–165
as learnable skill, 154
long-term focus of, 173, 175–176
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
sharing across the organization, 179–183
throughout the organization, 154
time management and, 158
who you listen to and, 157–158
The Lean Startup (Ries), 12
legacy, 117
LEGO Group, 134–136, 155, 163–165
LEGOLAND, 135
Lehman Brothers, 56
Leitz, 145
Lerner, Sandra, 108
Lever, William, 163
limitless horizons, 23
self-assessment of, 35
listening, 168
Love Story (movie), 17
Lowe’s, 53
accountability of, 66
at Home Depot, 53
Marcus, Bernard, 52, 103, 157–158
markets
creating new, 20
switching, 141
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
at Norwegian Cruise Line, 80
at Perpetual, 114
Microsoft, 39
Milo.com, 119
mini-founder experiences, 117, 120–122
bold, 23
at Charles Schwab, 57
complexity doom loop and, 69–70
at DaVita, 143
at Norwegian Cruise Line, 48–50
at Perpetual, 114
professional managers and, 67
self-assessment of, 35
statements, great insurgent, 23–24
uninspiring, 159
Yonghui Superstores, 22
Modelo, 30
Monday meetings, 91–93, 100, 123, 178
Net Promoter Score, 59, 126, 149
Net Promoter System, 128
Nintendo, 56
Norwegian Cruise Line, 47–50, 60, 77–81, 159, 163
Oberoi, P. R. S., 27
Oberoi Group, 24–27, 88–89, 168
One Perpetual, 114
openness, 84
Oracle, 8
Orange Apron Cult, 103
organizational structure, 70
at DaVita, 143
as killer of speed, 177
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
stress of, 80
ownership. See also owner’s mindset
private, returning to, 132, 147–151
customer experience and, 68, 72–73
embedding with zero budgeting, 95–98
going outside to renew, 118–120
performance impact of, 33
self-assessment of, 35
performance. See also growth
accountability for, 97
external vs. internal factors in, 1–2, 42, 55–56
founder’s mentality in, 4–5, 33–34
portfolio simplification, 107–111
potential, searching for full, 156
private equity industry, 31
processes/systems, 2
addition of complex during growth, 5–7
complexity doom loop and, 69–70
at Norwegian Cruise Line, 48–50
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
profit pools, 130
refounding teams, building, 131, 132–133
Reichheld, Fred, 128
Reliance Industries, 167
repeatable models, 172, 175, 178
resources
focus on long-term goals and, 175–176
resources (continued)
focus on the core and, 131, 133–137
in matrix organizations, 72
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
scale. See also growth
overload and, 46
unscalable founders and, 65
Schwab, Charles, 59, 60, 126–128
Sears, Roebuck & Company, 157–158
See Wai Hun, 161
Sheehan, Kevin, 48–50, 78–81, 159
short term, tyranny of the, 158
Sicupira, Carlos Alberto, 29–31
Silver Lake, 150
Skype, 118
social contract, 54
SpaceX, 20
Spielberg, Steven, 134
“spikiness,” 19, 23, 35, 72, 172–173
in investing, 118
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
importance of overcoming, 10
inability to say no and, 165–166
internal founders in, 117, 120–122
recreating owner’s mindset in, 117–122
rediscovering past insurgency and, 111–114
renewing front-line obsession in, 114–117
success rate of reversing, 105–106
internal, 120
success, external vs. internal factors in, 1–2, 42
supply chain, 21–22, 86–87, 170–172
SustainAbility, 163
Symbion, 141
Tameer Microfinance Bank, 121–122
TD Waterhouse, 59
Thiel, Peter, 12
Thiry, Kent, 7, 141–144, 155, 158
time management, 158
Time Warner, 51
Total Renal Care. See DaVita
Toyota Production System, 27, 29, 167–168
TPG Capital, 92
training, 25
Transformation 2015, 113
Travel & Leisure, 25
Trident Hotel, 26
trust, 89
University of Michigan, 53
values, 4
ambiguity around, 178
creating a compass for, 161–163
embedding throughout the organization, 96–97
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
Wasserman, Noam, 13
Welch, Jack, 178
Wexner, Bella, 15
Wexner, Harry, 15
Wexner, Leslie, 15–20, 24, 40, 91
White Barn, 92
workforce, 2
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
influential employees in, 94
leadership development in, 168–169
mission/focus of, 3–4, 159–161
personal responsibility in, 4
private ownership and, 147
refounding teams from, 132–133
rewarding heroes in, 79
Worldwide Developers Conference, 70
WunWun, 167
Yonghui Superstores, 20–23, 85–87, 178
zero-based budgeting, 98–99, 110, 166
Zero to One (Thiel), 12