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Index
Cover Page Title Page Copyright Page Dedication Contents Preface to the second edition Introduction Part 1 Winners and losers
Firms outperform their competitors by aiming to be different, not better Winning is a singularity, whereas losing conforms to a pattern Losers look to competitive benchmarks rather to their own imagination for their model of success Losers define strategy as cost competitiveness and seek efficiency through cost reduction Success is best measured by added value, not profit The best benchmark is the competition, not the plan Winners are motivated more by meeting a need than a target The difference between winners and losers is less their aims and more their methods The greatest threats to corporate performance are internal, not external It is better to be first than it is to be better Losers are typified by the “catch up” strategy of “a better product at a lower price” Incompetence explains performance differences better than competence Markets are self-structured to produce few winners and a long tail of losers Success is its own multiplier Most marketing efforts serve only to reinforce the status quo
Part 2 Strategy and tactics
A strategy is not a plan of attack but an idea under study The measure of a strategy is not its ambition but its truth The greatest barriers to competition are not structural or economic, but personal or cognitive Wealth-creating actions are driven more by curiosity than by targets Effective strategy is as likely to flow from action as to lead to action Strategy belongs more naturally to the crowd than to the professional The true strategist resembles an experimental scientist rather than a clairvoyant planner There cannot be a method of strategy just as there cannot be a method of science Plans deliver greater value if they are propositions to be tested rather than commitments to be met Strategic breakthroughs are more likely to arise from adhocracy than a formal planning process Our understanding of strategy owes more to capital markets than to product markets Most discoveries in business are the result of accident rather than design Creative people give themselves more time to solve problems An organisation’s “bullshit quotient” is directly proportional to its disregard for the truth Strategy is more dependent on courage and humility than talent and charisma Competition compensates for its own wastefulness by the pace of innovation that it spawns
Part 3 Organisation and management
The horns of the managerial dilemma are the need to be in control and the need to be continuously learning The primary role of management is to motivate employees and co-ordinate their activities Six operating principles underpin the managerial model of most organisations The dark side of the standard model of management is increasingly constraining performance Six global forces are reducing the need for management The internet is disintermediating management The double bind is the defining condition of organisational man Paranoia is the dominant mood of management The need for extraordinary management suggests a poorly designed organisation Managers need to better exploit the benefits of heterarchy Catalytic mechanisms point the way forward Everything important happens “at the edge of chaos” Companies underestimate the power of intrinsic motivation Tapping the collective intelligence of the organisation creates value The smallest changes – if well chosen – can have the biggest effects The spectre of bankruptcy serves to tame “animal spirits” more effectively than the restraints of the regulator Morality is not possible without the freedom afforded by the market
Part 4 Biases and remedies
New problems call for new methods The logic of business decision-making should emulate the logic of scientific discovery Statements of corporate values trivialise ethics and demean employees Change programmes deliver greater change when focused on weakness of will rather than clarity of intent Business is increasingly equated with being busy There are greater returns on simplicity than on scale Progress results from wise insights rather than grand designs Many strategic decisions would be better made by a plebiscite than by an elite Firms underestimate the collective wisdom of their employees Firms would benefit from becoming more open societies Most of the important things are happening at the periphery A sense of fairness is the glue that holds an organisation together The pace of progress would be accelerated by greater corporate disclosure Visualising the connection between decisions and outcomes enhances the quality of management All progress emanates from the freedom to make mistakes in the pursuit of organisational learning Conversations, rather than meetings, are the units of organisational effectiveness Good conversation is founded upon good manners Listening without judging creates the context for enables organisational learning Learning how to learn more effectively is the challenge of our times
Part 5 Applications and examples
The challenge of Discovery The future and strength of the Discovery process The subversive nature of the Discovery process The Discovery process depends on an open and subjective agenda The important flavour of unpredictability and ambiguity Emotional engagement is crucial
Final words Acknowledgements
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