Going the Distance: Why Some Companies Dominate and Others Fail

Going the Distance Going the Distance......Page 6
Praise Page......Page 2
Title Page......Page 8
Copyright 2003 by Pearson Education, Inc.......Page 9
Contents......Page 14
Foreword......Page 20
Preface......Page 22
Acknowledgments......Page 26
Introduction......Page 28
Overview......Page 34
Eight Predictable Challenges......Page 35
Challenges Can Become Threads of Failure......Page 36
Threads of Failure . . . or of Opportunity?......Page 37
Innovation......Page 42
Product Transitions......Page 43
Strategy......Page 44
Alignment......Page 45
Culture of Learning......Page 46
Leadership DNA......Page 47
Governance Systems......Page 48
Summary of the Eight Challenges......Page 49
Overview......Page 54
Stage 1: Single Focus......Page 55
A Mindset for Change and Disruption......Page 56
Constant Vigilance and Adaptation— A Culture of Learning......Page 58
Leadership for the Future......Page 59
Product Transitions......Page 60
Stage 3: Multiple Product Lines......Page 62
Stage 4: Multiple Lines of Business......Page 66
The Eight Inevitable Challenges and Stages of Growth......Page 71
Momentum through the Four Stages......Page 72
Overview......Page 76
The Example of Manufacturing and Engineering......Page 78
The Example of Sales and Finance......Page 79
When Glare Is Likely to Occur......Page 80
Putting It All Together......Page 81
Overview......Page 84
Market Disruption or Technology Inertia......Page 85
A Closer Look at Market Disruption......Page 87
Elements of Successful Disruption......Page 88
The Choice of Strategic Position......Page 89
An Attitude that Embraces Constant Change......Page 91
Understanding Market Physics......Page 92
Law 1: Disruption Occurs When Driving Forces Align......Page 93
Law 2: Disruption Drives Structural Change......Page 94
Law 3: Kinetic Structures Prevail......Page 95
Law 4: Patterns of Opportunity Are Predictable......Page 96
Action Planning......Page 98
Insertion Strategies......Page 99
Call to Action......Page 101
Overview......Page 104
Customer Demand—Faster, Better, Cheaper......Page 107
The Catch-22 of Product Transitions......Page 108
Developing and Positioning the 3R......Page 109
The Options......Page 110
What to Do?......Page 113
Lessons Learned......Page 115
Two Tools for Planning Product Transitions......Page 117
Vital Signs......Page 120
Overview......Page 122
Components of Cisco’s Success......Page 123
The Cisco A&D Strategy......Page 124
Implementing the Cisco A&D Strategy......Page 126
Successful Versus Misguided Strategies......Page 139
Positioning Error......Page 140
Undersized Strategic Vectors......Page 142
Make Versus Buy......Page 143
The Perils of Misguided Acquisition Strategy......Page 144
Pricing Errors......Page 146
Shallowly Rooted Strategic Vectors......Page 148
Inflexible or Fluid Strategic Vectors......Page 149
More on Timing......Page 151
How Does Misguided Strategy Occur?......Page 152
Vital Signs......Page 154
Overview......Page 156
You Know It When It Is There . . . and When It Is Not......Page 158
Alignment Is More Difficult with Growth......Page 160
Alignment Starts with Clear Goals and a Clear Leadership Model......Page 161
Alignment Maps the Value Chain......Page 162
Alignment of the Value Chain in Large Companies......Page 163
Structure Biases Results......Page 164
Alignment in Later Stage Companies......Page 166
“Siloed” Organizations......Page 167
Billiard Ball Management......Page 168
Misaligned Goals, Metrics, and Rewards......Page 171
Product Portfolio and Sales Channel Capacity Mismatch......Page 173
Conflicting Business Models......Page 174
Few Metrics Span Functions and Make Misalignment Visible......Page 176
Examples of Where Misalignment Can Be Sensed......Page 177
Considerations and Antidotes......Page 178
Overview......Page 182
Culture as a Governing Tool......Page 184
How Culture Governs......Page 185
The Influence of Leaders’ Behavior......Page 186
Culture Neutralizes Complexity......Page 187
Learning Culture: A Competitive Advantage......Page 188
The Elements of a Learning Culture......Page 189
Appetite for Feedback......Page 190
Open and Active Dialogue......Page 193
Planned Experimentation......Page 194
Leaders as Coaches......Page 195
Establishing Cultural Underpinnings......Page 197
Later Learning......Page 198
Maintaining Culture During High Growth......Page 199
Vital Signs......Page 203
Overview......Page 204
Rock Star Leaders......Page 205
The Rock Star Focus......Page 206
A Different Kind of Focus......Page 207
Leadership DNA Ingredients......Page 208
Authenticity......Page 210
A Bias for Learning......Page 211
Levels of “Fit”ness......Page 212
Faster Environments......Page 213
Changes in Leadership DNA Over Time......Page 214
Leadership DNA and Governance Systems......Page 216
Meeting the Challenge......Page 217
Leadership Development......Page 218
A Call to Action......Page 222
Overview......Page 226
A Third Scenario......Page 228
Complexity Drives the Need for Formal Governance Systems......Page 229
How Effective Governance Systems Work......Page 230
Creative Tension......Page 232
Customers as the Unifying Force......Page 233
Feedback Loops......Page 234
Using the Information with Rigor and Discipline......Page 235
An Example of Successful Informational Forums......Page 238
Governance Systems and Culture......Page 239
Vital Signs......Page 241
Summary......Page 242
Overview......Page 244
A Board’s Evolution, from Startup through Stage 4......Page 245
The Role of a Board of Directors......Page 246
Nonaction in the Face of CEO Failure......Page 247
Lack of Guidance through Difficult Passages......Page 248
Protecting Shareholder Assets......Page 249
Why Is Board Oversight Often Weak?......Page 250
Board Subcommittees......Page 251
New Policies......Page 252
Vital Signs......Page 255
Overview......Page 258
Review of Our Thesis......Page 260
Using Complexity to Beat the Competition......Page 261
Turning the Threads of Failure to Advantage......Page 262
Meeting the Challenge in Difficult Times......Page 264
Vital Signs Assessment......Page 265
Measuring through Vital Signs......Page 268
An Integrated Approach—A Tool for Diagnosis......Page 269
Tenets for Managing Vital Signs......Page 270
The Last Word......Page 273
Background: Cisco’s Product Transition History......Page 274
The Development of the User-Access Market......Page 276
Sales and Distribution......Page 277
Background to the Choice for the Right Option......Page 280
Index......Page 282