David against Goliath: How can
Estonian companies grow by
challenging bigger global competitors
and conquering new markets
Professor Costas Markides
London Business School
March 2006
My First Key Point
A tree will not grow tall unless it has healthy roots and
a solid foundation
My First Key Point
A tree will not grow tall unless it has healthy roots and a
solid foundation
The same applies to a company: A company will not
succeed in growing unless it first puts in place
“healthy roots”.
My First Key Point
A tree will not grow tall unless it has healthy roots and a
solid foundation
The same applies to a company: A company will not
succeed in growing unless it first puts in place “healthy
roots”.
By “healthy roots” I mean the company’s strategy
My First Key Point
A tree will not grow tall unless it has healthy roots and a
solid foundation
The same applies to a company: A company will not
succeed in growing unless it first puts in place “healthy
roots”.
By “healthy roots” I mean the company’s strategy
A company will not succeed in growing unless it has a
healthy strategy in place
My First Key Point
A tree will not grow tall unless it has healthy roots and a
solid foundation
The same applies to a company: A company will not
succeed in growing unless it first puts in place “healthy
roots”.
By “healthy roots” I mean the company’s strategy
A company will not succeed in growing unless it has a
healthy strategy in place
This healthy strategy is the platform from which a
company can grow
Therefore:
Before I talk to you about Growth, I’d like to
spend a few minutes talking about the
characteristics of a “good” (or healthy)
strategy.
What Makes for a Healthy Strategy?
Strategy is nothing more than the choices
you have made on 3 issues:
(1) WHO shall we target as customers and who shall we not?
(1) WHO shall we target as customers and who shall we not?
(2) WHAT shall we offer these customers and what shall
we not?
(1) WHO shall we target as customers and who shall we not?
(2) WHAT shall we offer these customers and what shall we
not?
(3) HOW can we do all this effectively? (what activities
do we perform and what activities do we not perform)
The answers to these questions are
not immediately obvious and there are
no right or wrong answers.
You must therefore make choices:
what to do and what not to do.
Please Note
 Strategy is not a Goal (e.g. we aim to be
the best or no.1 in our Business)
 Strategy is not motherhoods (e.g. our
strategy is to be a Leading-Edge
Provider to our customers, a good
employer to our employees and a
responsible citizen in our community)
 Strategy is not plan or budget.
Strategy is all about Making
Difficult Choices
(1)
The Who decision is all about customer
segmentation and geography.
(2)
The What decision is all about what
products/services to offer and what
product characteristic to emphasize.
(3)
The How decision is all about what
activities to perform.
Traps to Avoid
(1) The worst strategic mistake that companies
make is failure to make choices
(2) The second worst strategic mistake is to dilute
your choices in an attempt to grow
(3) The third worst strategic mistake is failure to
differentiate ourselves: to be successful a
company must find a unique position in the
market.
What is a Unique Position?
Nothing in life is 100% unique but your goal
should be to create as much differentiation
relative to your competitors as possible.
Creativity is Difficult!
Unfortunately, most human beings
and companies find it difficult to be
creative
We are all “blinded” by our own
assumptions, beliefs and things that
we take for granted.
Can you think of a word?
__ ANY
Can you think of a word?
MANY
Can you think of a word?
MANY
__ENY
Therefore
Think creatively about the Who-What-How
questions and come up with a unique
positioning for you.
A Test for You
(1) Can you write down your strategy (that
is, your WHO-WHAT-HOW choices) in
half a page?
(2) If you ask your employees, can they
write down your strategy in half a page?
And Now, Let’s Talk about Growth
After Making your Strategic Choices, how
do you Grow?
(1) Very few companies actually have the courage to
make the difficult choices that strategy requires.
(2) Even those that succeed in their markets by
making the necessary choices will eventually face
the question: “How do I grow my business?”
There are Many Ways that you Can Grow
(1) Grow with the Market (even if you don’t increase
your market share)
There are Many Ways that You Can Grow
(1) Grow with the Market (even if you don’t increase your
market share)
(2) Grow by increasing your market share relative to
competitors (by being better than them)
There are Many Ways that you Can Grow
(1) Grow with the Market (even if you don’t increase your
market share)
(2) Grow by increasing your market share relative to
competitors (by being better than them)
(3) Grow by diversifying into other product markets
There are Many Ways that you Can Grow
(1) Grow with the Market (even if you don’t increase your
market share)
(2) Grow by increasing your market share relative to
competitors (by being better than them)
(3) Grow by diversifying into other product markets
(4) Grow by going into foreign markets
There are Many Ways that you Can Grow
(1) Grow with the Market (even if you don’t increase your
market share)
(2) Grow by increasing your market share relative to
competitors (by being better than them)
(3) Grow by diversifying into other product markets
(4) Grow by going into foreign markets
(5) Grow by Acquisitions
There are Many Ways that you Can Grow
(1) Grow with the Market (even if you don’t increase your
market share)
(2) Grow by increasing your market share relative to
competitors (by being better than them)
(3) Grow by diversifying into other product markets
(4) Grow by going into foreign markets
(5) Grow by Acquisitions
(6) Grow by Creating New Markets
….. and so on
Many Ways to Grow
There is no right or wrong way!
Each one of the options that I listed on
the previous page has advantages and
disadvantages.
I could spend days talking about each
one of these!
For Example
(1) What do we know about the strategy
of growing through Acquisitions?
THE TRACK RECORD
Cumulative Abnormal Return
30%
Acquirors
0
Acquirees
-20%
Three years
Before
Date of
Acquisition
Three Years
After
What Do We Know about Acquisitions?
Acquirers on average do NOT gain anything
from acquisitions!
RULES for the acquiring firm to “beat” the market
Rule # 1: Search for UNIQUE synergies
Rule # 2: Keep information away from other bidders
Rule # 3: Keep information away from target about its full
value
Rule # 4: Never win a bidding war
Rule # 5: Close the deal quickly (… but integration problems!)
Rule # 6: Search for thinly traded markets
On Average, These are the Acquisitions that
Create Value
(1)
Friendly ones
(2)
No other competitive bids
(3)
Unique synergies exist
(4)
Targets have had good corporate governance
(5)
Smaller targets
(6)
Acquirer has experience in acquisitions
(7)
Acquirer comes from concentrated industries
(8)
Cash acquisitions
(9)
Acquirer has good corporate governance
(10) Acquisitions made in countries where the market for corporate
control is weak.
What Do we Know about the Strategy of
Entering New Markets?
You can enter a new market by diversifying from
one industry to another
You can enter a new market by moving into
another country
Market entry = Attack
1. On average, MANY firms enter a given industry in any
given year (200 - 400 firms per year)
2. A large number also exits in any given year (150 - 300)
3. Most entrants FAIL within a year (85% in 4 years)
4. Average market share penetration of about 5% in 5 years
The probability that the No. 1 firm will survive as No. 1 was
about 96% -- an almost certainty
Why such a bad record?
First-mover advantages
1. LEARNING!
2. Economies of scale
3. Control of scarce assets (e.g tech. space)
4. Switching costs
5. Resources to attack
Successful Market Entry
1. To successfully attack an industry leader:
• Do not attack head-on
• Re-define the market (e.g USA today)
• Create competitive variety by changing the value chain (e.g. Canon)
• Exploit opponent’s weaknesses
• Attack opponent’s blind spots
• Attack areas where competitor cannot respond
• Be focused and consistent
• Get allies
• Do not imitate
• Be very good in something
• Impede retaliation
• It takes time
• Get to know your competitor
2. It takes time to build up skills and competencies
3. Focus your efforts by having a clear superordinate goal, that has been
communicated to your employees
4. Size is not important. It is momentum that counts.
The Global Organization
(1) Values drive behaviour (e.g. Charles Schwab’s e.schwab decision)
… and values get diluted as we expand abroad
•
•
•
•
“adapt” values abroad
grow by making compromises
Physical distance: out of sight, out of mind
Other priorities
(2) It takes time to build an international operation … you will not do
in 5 years what took you 50 years to do at home
• Inappropriate mindsets
• Inappropriate measurements & time-frames
The Global Organization
(3)
Yes, you have a successful strategy at home but we need to
adapt to the local environments…
Yes, you need to adapt to the local environments but beware
of the NOT invented here syndrome (e.g Dove soap)
(4)
Companies make the same “mistakes” again and again!
(Why? What drives behaviour is the “underlying structure of
the system”.
(5)
People will make all the difference: give your people the
freedom and autonomy to challenge the status quo and take
the initiative … BUT:
* all this must take place within certain parameters
(values & strategic decisions) which are (few) and
clear to all … AND
* these parameters get diluted as you go global!
Let’s Focus on One of these Growth Options
Like I said, I can spend days on each one of these
strategies for growth but I’d like to focus on one of
them.
One option that you have is to create new markets.
The question is: “How can you adopt this Growth
Strategy Successfully?”
How Can you Create New Markets?
(1) The first point to appreciate is that to create a
new market, you do not necessarily have to
discover a new product or service!
(2) Often, companies create huge new markets
using the same product as everybody else.
Consider this Example
Which company is the biggest car-rental
company in the world?
Hertz/Avis
Enterprise
Location
Airports
Downtown
Push Marketing by
Travel Agents
Mechanics and
Insurance
Companies
Delivery:
Airport Parking Lots
Home Pick-up
Car Drop-off:
Airport
Home
Organisation:
Centralized
Decentralized
Customer Segmentation:
Business and Pleasure
Travellers
Replacement and
Discretionary
Age of cars in fleet:
Mainly New
High Average age
Price:
On average, high
Low
Value-chain activities
The Secret of Success
Compared to the traditional car-rental
companies, Enterprise has a different
customer in mind.
They have strategically innovated
because they discovered a new WHO
(customer segment)
Enterprise Rent-A-Car
replacement
travellers
discretionary
Creating Huge Markets by Redefining
Who Really is the Customer
(1) Enterprise
(2) Bright Horizons
(3) Canon
(4) Honda
(5) IKEA
(6) CNN
(7) Edward Jones
(8) Wal Mart
(9) Progressive
(10) easyJet
How Can You Create New Markets?
(1)
Obviously you can create new markets by
redefining who the customer is in an existing
market.
(2)
But you can also create new markets by
redefining what you really offer the customer.
For Example
(1) Did Swatch discover the watch?
(2) Did Starbucks discover coffee?
(3) Did LVMH discover handbags?
(4) Did Nespresso discover the coffee machine?
These companies did not discover new products!
Yet, they created huge markets by redefining what
benefits they were offering the customer.
Other Examples of companies that Created New
Markets by Redefining what they offered the
Customer
(1) Charles Schwab
(2) The Body Shop
(3) Apple i-Mac
(4) Krug Champagne
(5) Rosenbluth Travel
(6) USA Today
(7) Federal Express
How Can You Create New Markets?
(1) So far, I’ve said that you could create new
markets by redefining who the customer is and
what you offer the customer.
(2) But you can also create new markets by
redefining how you play the game in your
market.
How Do You Play the Game?
Dell Computers
Toyota
Taco Bell restaurants
Cemex
Wal-Mart
K-Mart (in the 1960s)
General Motors (in the 1940s)
Apollo Synthetic Diamonds
easyCinema
Summary So Far
(1) So far, I have said that you can create new
markets by thinking creatively and redefining:
a) Who really is your customer?
b) What really you offer the customer?
c) How you play the game in your industry?
(2) From now on, I will refer to this way of creating
new markets as “Strategic Innovation”
(3) But obviously, this is not the only way to create
new markets!
How Can you Create New Markets?
1) Sometimes markets get created in a “supply-push”
manner when we discover a new technology which
is then used to create a new product
examples
The Television Market
The Post-It note market
The i-pod Market
The handheld computer market
The car market
2) Please note that this is a different kind of innovation
from “Strategic Innovation”.
3) I will call this kind of innovation: “Radical Product”
Innovation.
How to Create New Markets
1) What you need to do to create new markets
through “strategic Innovation” is different from
what you need to do to create new markets
through “radical product” innovation.
2) Let’s examine each one in turn.
How to Achieve STRATEGIC INNOVATION
How to Achieve Strategic Innovation
(1) There are many things you can do to help your
company become more innovative.
(2) Probably the most crucial thing you can do is to
put in place an “Organizational Environment” that
promotes innovative behaviors from everyone in
the company
(3) Let me explain what I mean
To Understand How you Could Promote Innovation
in your companies, consider the following exercise
You have a cake and a knife. You are allowed
to cut the cake four times in straight lines.
What is the maximum number of pieces that
you could cut the cake into (in one minute)?
What Determines Behaviours?
Time-pressure
Solving the exercise individually
What Determines Behaviours?
Time-pressure
Mindsets, assumptions,
beliefs
Solving the exercise individually
What Determines Behaviours?
Time-pressure
Mindsets, assumptions,
beliefs
Solving the exercise individually
Psychological pressures
What Determines Behaviours?
Time-pressure
Mindsets, assumptions,
beliefs
Psychological
pressures
Structure
Solving the exercise individually
What Determines Behaviours?
Time-pressure
Mindsets, assumptions,
beliefs
Solving the exercise individually
Psychological
pressures
Structure
Incentives
Putting it all Together
There is a reason why people behave
the way they do.
If we want people to change their
behaviours, we should not just tell
them. We should change the
underlying reasons that drive their
behaviours.
The question, then, is: “What drives
human behaviour in organizations?”
What Drives Behaviours in
Organizations?
Sumantra Ghoshal
Downtown Calcutta
Versus
Downtown Fontainebleau
The Moral of the Story
The underlying environment of your
organization creates the behaviours that
we/you see in your organization.
The Right Underlying Environment for your
Organization
Culture and
Values
Structures
and
Processes
How we
Behave in
our
company
People,
(skills, attitudes,
mindsets
Measurement
and
Incentives
The Importance of Incentives
What gets measured gets done
The Importance of Values
Imagine being behind enemy
lines. Would you shoot innocent
children & women?
The Importance of Structures &
Processes
The priest experiment
The Importance of People
(a) Attitudes
Attitude
“They” will do it
OR
“We” will do it
OR
I thought somebody else will do it
Social Loafing
Sound pressure per person
5
= shouting
X = clapping
4
3
X
2
X
X
X
1
X
1
2
3
4
5
6
Group Size
7
8
9
Examples of Social Loafing
(1) The murder of Kitty Genovese, New York
City, 1964
(2) The death of Marco Moretti in an Italian
tunnel and the “adventures” of his 6-year
old daughter, Vanessa
(3) Experiments by Latané & Dabbs (1975) in
elevators
The Importance of People
a) Attitudes
b) Mindsets
By the Way – The Answer to the Cake
Exercise is not 8 Pieces!
It is Not Eleven Pieces!
1
2
11
10
7
9
8
6
3
4
5
It is Not Twelve Pieces!
It is Not Sixteen Pieces!
Cut the cake into two pieces.
Put one piece on top of the other and cut in two again.
Put all pieces on top of each other and cut in two again.
Put all pieces on top of each other and cut in two again.
24 = 16 times
SUMMARY
What have I really said so far:
(1) The Underlying Environment of your
organization drives the behaviours that
you see in your organization.
(2) The underlying Environment is made up
of four inter-related components:
incentives, culture, structure and
people.
Why is this Important for Innovation?
You will not get innovation in your companies
unless you first put in place an Organizational
Environment that supports Innovation:
Culture and values
Measurement and Incentives
Structures and Processes
Mindsets and Attitudes
A LAUNDRY LIST OF IDEAS
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
13)
Allow people to experiment
Do not punish failure
Learn from mistakes
Remove bureaucracy
Reward good ideas
Work in project teams
Flat structures
Facilitate the flow of info
Risk-taking attitudes
Open & questioning culture
Make your strategy process democratic
Bring capitalism inside
Encourage ambidextrous mindsets
What innovative companies do?
Innovation at 3M
Culture
Structure
• 3M utilizes cross-functional teams
to work on research projects
• Each team is headed by a
“product champion” who is
responsible for building culture.
• One of 3M’s top managers
becomes a “management
sponsor” who helps the team
secure resources and overcome
bureaucratic obstacles
• Divisions within 3M are run as
separate companies. Divisional
VP’s have the same responsibility
as a CEO in many other
companies.
• Hierarchies within divisions are
kept flat.
• The Annual Technology Fair
allows scientists to showcase
their latest research findings and
exchange ideas and information.
• 3M policy allows employees to spend 15 percent
of their time developing projects of their own
choosing
• Employees are encouraged to take the initiative
and are empowered to make decisions. Failure is
accepted.
• The pervading culture is characterized by the rule
that you have to kiss a lot of frogs to find one
prince
• A flat hierarchy makes people feel responsible for
everything that goes on in their divisions.
Innovation
Incentives
• The company has established career ladders for
scientists that are separate from those for managers
• Teams that introduce successful new products are
rewarded.
• Successful new products can be spun off as
separate divisions with their own profit and loss
statements. The original product champion becomes
divisional president
• 3M has set a formal goal that 25 percent of sales
must come from new products. Managerial
performance is measured and rewarded according to
this goal.
People
• By virtue of its incentives and
culture, 3M attracts top scientists
and engineers
• The company is able to recruit and
retain creative people with an
entrepreneurial mindset
• Because of its dual career ladder,
top scientists can coexist with top
managers without internal
competition
What Else Can You Do to Promote Innovation?
Remember from the cake exercise how the
assumptions that we make condition how we
think and how we behave.
To promote Innovation, we must challenge and
question the things that we take for granted in
our markets (i.e. question our assumptions and
sacred cows).
Remember the Cake Exercise?
How many Assumptions Did we Make in thinking about
this exercise?
This is an individual exercise
The pieces have to be equal
The cuts are vertical
You cannot move the pieces
The shape of the cake
The shape of the knife
Just Think: In such a simple exercise, we made all these
assumptions! Can you imagine how many assumptions
we carry in our heads every day?!
Three Key Points
1) The assumptions that we make determine what we
do.
Three Key Points
1) The assumptions that we make determine what we do.
2) We make our assumptions based on past experiences
& past knowledge.
Three Key Points
1) The assumptions that we make determine what we do.
2) We make our assumptions based on past experiences &
past knowledge.
3) Most of these assumptions are Implicit: we are not
aware of them until someone points them out to us.
Exercise
Arm-wrestle for 30 seconds. The winner will be
the one that manages to push his/her opponent’s
hand down most times in the 30 seconds.
The Winner is …
Those people who do not compete with
one another but cooperate instead.
Assumptions or corporate
orthodoxies are not necessarily bad.
They simply act as the filters through
which information passes. As a
result, they determine what we “hear”
or “see” and so influence how we
behave.
Strong Assumptions and Beliefs
Help us decide quickly (and act). In other
words, they make us Efficient.
Unfortunately, Strong Assumptions
also have negative side effects
For example, answer the following
question in 30 seconds.
30 SECOND EXERCISE
If I count between 1 and 100,
how many times will I find a
number that has a 9 in it?
A Simple Exercise
A father and his son are driving on the
motorway. They are involved in a terrible
accident. The father is killed and the son is in
critical condition. The son is rushed to the
hospital and prepared for an operation. The
doctor comes in, sees the patient and
exclaims: “I cannot operate on this boy; he is
my son!”
Is this scenario possible?
What Effect Do Assumptions have on Us?
They make us efficient
They make us “passive thinkers”
What Effect Do Assumptions have on Us?
They make us efficient
They make us “passive thinkers”
They make us reject information that does
not fit with what we already believe in.
Organisational Mental Models
• Just like individuals have mental models, so
do organisations.
• Over time, members of an organisation come
to believe similar things and begin to take the
same things for granted (e.g. LBS faculty).
• These shared, unquestioned beliefs and
assumptions exist, even though nobody tried
to “teach” them to us.
• These unquestioned beliefs and assumptions
are the organisation’s orthodoxies. They
allow employees to behave like monkeys.
Problem: How can we overcome our
pre-existing mindsets and
assumptions
Think Outside the Box
Is this useful advice?
Question your Assumptions
Is this useful advice?
Antony and Cleopatra
Antony and Cleopatra are lying dead on the floor in an
Egyptian villa. Nearby is a broken bowl. There are no marks
on the bodies and they were not poisoned. No person was in
the villa when they died. How did they die?
My Point
 We can’t question what we cannot see!
 We cannot “think outside the box” if we
are not even aware that we are in the box!
 Before we can question our assumptions,
we must find out what these assumptions
are!
Summary: Killer Assumptions
We make assumptions without even
thinking
This means that we are not aware of
the assumptions we make.
This implies that the advice: “Question
your Assumptions” or “Think Outside
the Box” is not useful advice!
We cannot question what we cannot
see.
The Biggest Sacred Cows of Any Company
1. The definition of its Business
2. Its company policies
3. Who it thinks its customer is
4. What it thinks it is offering that customer
5. How it thinks it should play the game in its
industry
Question Your WHO-WHAT-HOW
Companies that “strategically innovate” in their
businesses are those that question the things
that the rest of us take for granted.
In particular, strategic innovators question what
business they are in and their existing
WHO-WHAT-HOW.
How to Achieve “Radical Product” Innovation
Creating Radical New Products
(1) Most radical new products are supply-pushed
onto the market (rather than being demanddriven)
(2) Think, for example, how television or the
walkman got created.
(3) This implies that to create new radical
products, a company must spend money on
R&D.
(4) However …
R&D is not always necessary!
The evidence shows that for many new radical
products, the companies that discovered the
product were not the ones that created the
market for the product.
For examples, who discovered the computer
and who created the market for computers?
Who discovered the handheld computer
(Apple) and who created the market for it
(Palm)
Innovation is two things:
Creating a new
product, that if
successful, grows to
become a niche.
Scaling up this niche
into a big mass market
Examples
Apple vs Palm
Osborne vs IBM
? vs Ford
SCALING UP
It’s not just imitation!
You need to get the idea of somebody else
and convert it from a niche into a big mass
market.
Scaling up a market
Build the product economically and sell at massmarket price (it doesn’t have to be technologically
the best!)
Build consumer confidence in the product
(Brands!)
Build the distribution for the mass market
Help grow complementary products
What Do We Know
Innovation requires two activities: (a) coming up
with a new idea and creating the initial market
niche; and (b) scaling up the idea into a mass
market
What Do We Know
Innovation requires two activities: (a) coming up with
a new idea and creating the initial market niche; and
(b) scaling up the idea into a mass market
Both activities are equally innovative. Unfortunately,
there is a cultural bias in favour of creation
What Do We Know
Innovation requires two activities: (a) coming up with
a new idea and creating the initial market niche; and
(b) scaling up the idea into a mass market
Both activities are equally innovative. Unfortunately,
there is a cultural bias in favour of creation
The skills needed for creation are different and often
conflict with the skills needed for scaling up. The
two cannot co-exist in the same organization
What Do We Know
Innovation requires two activities: (a) coming up with
a new idea and creating the initial market niche; and
(b) scaling up the idea into a mass market
Both activities are equally innovative. Unfortunately,
there is a cultural bias in favour of creation
The skills needed for creation are different and often
conflict with the skills needed for scaling up. The two
cannot co-exist in the same organization
Big established firms have the skills of scaling up
What Do We Know
Innovation requires two activities: (a) coming up with
a new idea and creating the initial market niche; and
(b) scaling up the idea into a mass market
Both activities are equally innovative. Unfortunately,
there is a cultural bias in favour of creation
The skills needed for creation are different and often
conflict with the skills needed for scaling up. The two
cannot co-exist in the same organization
Big established firms have the skills of scaling up
Most of the value in a market goes to those that
scale up the market (not those that create them)
A Proposition
Small, start-up firms are good at creation
Big established companies are good at scaling up
Each should focus on what
they are good at!
A division of labour
Big established companies should focus
on exploiting their existing businesses
At the same time, they should develop a
network of “feeder” firms – these are the
small, start-up firms, all trying to
discover new markets.
When promising new markets gets
discovered, the big established firm
should move in and scale them up.
An Example
Procter & Gamble in 2005: Fifty percent of all new
discoveries in P&G must come from outside P&G
Such Division of Labour Already Exists in
Creative Industries
Film/Movies
Theatre
Music
Art Galleries
Book Publishing
Implications for you
If you come from a small firm, don’t try
to be a big one.
If you come from an established firm,
don’t try to be a small one – act your
age!
My final word on Innovation
This does not mean that you should not keep
on trying to make your firms more innovative.
But when it comes to creating new markets
through radical product innovation, you
should focus your firms on that component of
innovation (creation versus scaling up) that
you are good at.
And Now for my Last Word
I have told you many things about
growing your businesses and about
innovation.
Hopefully, you now “know” some new
things that you did not know when you
came here.
However ….
Will you Do Any of this?
MESSAGE
Even though I know that you accept
many of my previous messages you
are still NOT going to anything!
Knowing is not Enough!
Most times, we know what we have to do.
We simply do not do it.
The Knowledge - Doing Gap
Profits
A
Time
B
The Sources of this “Disease”
(1) “Spies” that prevent us from doing
what we already know we should
do.
The Sources of this “Disease”
(1) Spies
(2) Time Pressures = Priorities
The Sources of this “Disease”
(1) Spies
(2) Priorities
(3) Downtown Calcutta vs Downtown
Fontainebleau
The Underlying Environment
of an organisation
• Culture/values
• Incentives
• Structure/processes
creates the
behaviours of
people in that
organization
From Knowing to Doing
Successful organisations talk a lot about changing
but don’t do anything.
To get action, you must create a sense of urgency in
your organisation.
Creating a Sense of Urgency
Exercise – 30 seconds
Add all the numbers from 1 to 100
and tell me the sum total
Stretch Goals
a) If you give people an “impossible” task,
most of them will say: “My God, this is
impossible” and stop doing it
b) Some people will say: “My God, this is
impossible to do if we use the same old
ways. Maybe there is another way to do it”.
The art of leadership is to get people to go from
attitude (a) to attitude (b).
Create a Sense of Urgency
(or a positive crisis)
(1)
(2)
Develop a challenge for your people
Sell it!
Building Commitment in Steps
I know
I understand
Yes I think I can
I will
What are the physical symptoms when you
have actually been successful in winning
your people’s emotional commitment?
•
Energy
•
Passion
•
Fun
•
Pride
•
Working together as a strong team
Is this Enough?
Of course it is not enough! But it is a start.
And Remember: The future belongs to those
who dare take chances!