Strategic Business Transformation

MOHAN NAIR is Chief Innovation Officer of a health plan in the Northwest/Mountain region. He founded Emerge Inc., a transformation advisory firm, in 1993 and is the former director and president of ABC Technologies Inc. He has authored two books on cost and performance management. In 2009, the Marketing Leadership Council of the Corporate Executive Board highlighted him as a “Marketing Thought Leader.”

• Preface xiAcknowledgments xviiChapter 1 Overview 1Strategy and Strategic Business Transformation 2Why Another Book on Strategy? 4If Dinosaurs Had Strategy Tools, Would They Have Survived? 5Predicting Market Transformation 7What is Strategic Business Transformation? 12Importance of the Transformation Effect 15Markets in Transformation are Re-creating Themselves 16Summary and Observations 17Notes 17Chapter 2 Strategic Business Transformation: Seven Sins to Overcome 19Ignoring the New Principles of Business Transformation 22Driving without a Cause 23Missing Market Momentum 24Ignoring the Two Orders of Value 24Overlooking Transformational Servant Leadership 26Mistaking Capability for Strategic Competence 27Expecting Flawless Execution without a Performance Platform 28Seven Sins as a Framework for Strategic Business Transformation 29Summary and Observations 29Notes 30Chapter 3 Sin #1: Ignoring the New Principles of Business Transformation 33Aligning Transformational Leadership with Corporate Strategy 34Gaining Integrated Strategic Insight with Transformational Leadership 36Linking Strategic Insight with Servant Leadership 43Summary and Observations 45Notes 45Chapter 4 Sin #2: Driving without a Cause 47Transformation Needs Momentum, Not Movement 48Death of Mission; Birth of Cause 49Where Do Causes Come From? 53Can an Organization Transform Markets without a Cause? 54Summary and Observations 55Notes 56Chapter 5 Sin #3: Missing Market Momentum 57Why is Momentum in Markets Important? 58Measuring Momentum of Markets and Companies 58What is Strategic Business Momentum? 59New Customers in Old Clothing 67Summary and Observations 72Notes 73Chapter 6 Sin #4: Ignoring the Two Orders of Value 75Low-Order Value 78Symbolic Value Propositions 81Summary and Observations 83Notes 84Chapter 7 Sin #5: Overlooking Transformational Servant Leadership 85Increasing Our Choices of Transformational Leaders 88The Era of the Transformational Leader 90What is Transformational Servant Leadership? 94Are Transformational Servant Leaders Born or Made? 103Conditions That Bring Out Transformational Servant Leaders 105Diary of a Transformational Servant Leader 115Summary and Observations 117Notes 118Chapter 8 Sin #6: Mistaking Capability for Strategic Competency 119Strategy as a Portfolio of Competencies 120Identifying, Isolating, and Enabling Core Competencies 120Difference between Recipe (Competency) and Ingredient (Capability) 122Finding the Positive “Aftertaste” for Customers 123Key Capabilities for Transforming Markets 125Summary and Observations 142Notes 143Chapter 9 Sin #7: Expecting Flawless Execution without a Performance Platform 145Two Elements of a Performance Platform 146Four Dimensions of Corporate Performance Management 146Educating the Enterprise about Transformation with an Eye to the Dominant Subsystem 149Understanding the Organizational Dominant Subsystem Demands Observations 151People Subsystem 152Technology Subsystem 157Process Subsystem 158Basics of Business Intelligence 159Summary and Observations 177Notes 180Chapter 10 Tales of Transformation 183TriQuint Semiconductor 183Starbucks 184Southwest Airlines 186Les Schwab Tires 189Markets in Transformation or Ready for Transformation 191Notes 196Glossary 199Suggested Reading 205About the Author 209Index 211