Building Business Capability Conference
November 15, 2013
John Mansfield
SVP, Business Architecture
For conference use only. Not for public distribution.

•   Introduction
•   How can process “destroy” innovation?
•   Why do some companies “not care”?
•   What process fundamentals impact innovation?
•   Is innovation a process?
2 For conference use only. Not for public distribution.

A Division of Fidelity Asset Management
450
400
Provides a broad range of investment management services seeking to achieve its clients' investment objectives:
Ø   Multi-asset class portfolio construction
418
476
350
Ø   Global asset allocation research
332
350
300 Ø   Third-party manager research
250
Ø   Risk management 263
232
200
150
Ø   Financial planning solutions
177
182
100
50
0
137
110
88
0 1 2
5
16 21 23 25
33
42
52
58
62 62
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sep '13
3
Note: GAA assets under management as of 9/30/2013.
For conference use only. Not for public distribution.

Mechanical Metronome Demonstration
•   Focusing on efficiency
•   Creating a common “platform”
•   Standardizing
•   “Culture”
4 For conference use only. Not for public distribution.

Base Description
Social Proof We tend to follow the crowd and look at how others behave to determine how we should behave
Commitment We want others to perceive that we behave consistently, so we are inclined to keep commitments once we’ve made them
Similarity We are more apt to go along with people who are similar to us in some fashion
Reciprocation We are inclined to reciprocate when others do something for us, even if we have not asked for their favor
Authority We tend to respect authority & allow ourselves to be influenced by it
Logical Proof We tend to believe something that appears logical
Liking
Scarcity
We allow ourselves to be influenced more by people we know and like than by strangers
We are inclined to place more value on scarce things and to be influenced by scarcity
5
Source: Terry R. Bacon, Interpersonal and Interactive Skills . Self-Management Institute; 1996: 22, 30.
For conference use only. Not for public distribution.

Product Leadership
“Best Product”
Best in Class
M Minimum to compete
The
“Average”
Company
M
M
M
Customer Intimacy
“Best Solution”
Operational Excellence
“Best Cost”
6
Source: Michael Treacy & Fred Wiersema, The Discipline of Market Leaders . Perseus Publishing; 1995: 31-45.
For conference use only. Not for public distribution.

A
Pros:
•   Stable & Cheap
•   Speed & Throughput
•   Automatable
B C
Cons:
•   Quality & accuracy
•   Environment & assumptions
•   Time to think
7 For conference use only. Not for public distribution.

A B
Pros:
•   Quality & accuracy
•   Tacit learning
•   Stabilizing
•   Response time
8 For conference use only. Not for public distribution.
C
Cons:
•   Complexity
•   Non-value add
•   Destabilizing
•   Non-automatable

Global Example
Receive
Data
Prepare
Data
Evaluate
Portfolio
Construct
Portfolio
Generate
Order
Trade
PESTL
•   P olitical
•   E conomic
•   S ocial
•   T echnological
•   L egal
OR
OR
OR
OR
(Future)
Post
Trade
9 For conference use only. Not for public distribution.

•   Process can destroy innovation: often unintended
•   Some companies don’t want (or need) “business process excellence”: set expectations
•   Process can not innovate: it can help enable innovative environments
•   Large company vs. many companies
10 For conference use only. Not for public distribution.

The views and opinions expressed by John Mansfield are as of November 15, 2013 and do not necessarily represent the views of
Fidelity Investments. Any such views are subject to change at any time based upon market or other conditions. These views should not be relied on as investment advice. Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be relied on in making an investment or other decision. Information presented herein is for discussion and illustrative purposes only and is not a recommendation or an offer or solicitation to buy or sell any securities.
The information contained in this material is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons. The information provided by third parties has been obtained from sources believed to be reliable as of the date presented, but Fidelity makes no representation as to its accuracy or completeness. Data is unaudited. The information contained herein is subject to change without notice.
© 2013 FMR LLC. All rights reserved .
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11
For conference use only. Not for public distribution.