1. Winning strategies of ‘Market’ driven organizations December 8, 2009

2. Market Driven or Market driving

3. Market Driving firms Market drivers see the world differently and focus on latent or emerging customer needs. Market drivers create new markets or redefine the category in a fundamental way that competitors are rendered obsolete.

4. Market driver’s attributes They trigger industry breakpoints or what Andy Grove of Intel’s “strategic inflexion points”, which change business innovation. Core Values inspire their radical business concept. Rather than learn from existing customers, they often teach potential customers to consume their drastically different value proposition.

5. ‘values’ driven organizations

6. VALUES DRIVEN CHANGE OR CIRCUMSTANCES DRIVEN VALUES

7. “Get better”vs“Get different”

8. A JOURNEY THROUGH WHAT IS FUNDAMENTAL AND WHAT IS CHANGEABLE

9. “NOTHING SPLENDID HAS EVER BEEN ACHIEVED EXCEPT THOSE WHO DARED BELIEVED THAT SOMETHING INSIDE THEM WAS SUPERIOR TO CIRCUMSTANCE”BRUCE BARTON

10. Today We Are In A Brawl With No Rules!

12. The prize money may change at short notice

13. The route and the finish line will likely change after the race starts

14. Bets may be made at any time during the race

15. New entrants may join the race at any time

16. Racers are on line at all the times and may alter their plans based on the most current information

17. Racers may form alliances

18. All creative strategies that are not specifically against the law are allowed

20. Forbes100 from 1917 to 1987[70 years]* 39 members of the Class of 1917 were alive in 1987* 20 of the firms were in list of 100 in 1987 * 18 F100 “survivors” underperformed the market by 20% * Just 2 (2%) GE & Kodak, outperformed the market 1917 to 1987.Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

21. 20 of 267 of top 10*

22. *P&G: Declining domestic sales in 20 of 26 categories; 7 of them belonged to the top 10 categories: The “billion-dollar problem.”Source: Advertising Age 01.21.2002ecurities

23. 2009 …. “They had the unpleasant job of announcing the second straight quarter of losses in their business empire that had never made a loss before.” Mr. Steel's Moment of Truth, Forbes India, June 5, 2009

24. GM files for bankruptcy …… Ford Motor seeks to gain amid Rival’s pain Economic Times, June 1, 2009

25. “There will be more confusion in the business world in the next decadethan in any decade in history. And the current pace of change will only accelerate.”Steve Case [America online]

26. Uncertainty: We don’t know when things will get back to normal.Ambiguity:We no longer know what “normal” means. .

27. Security in an insecure world (existence)?

28. “The greatest dangerfor most of usis not that our aim istoo highand we miss it,but that it istoo lowand we reach it.” Michelangelo Italian Renaissance painter

29. “Beware of the tyranny of making SmallChanges to SmallThings. Rather, make BigChanges to BigThings.”—Roger Enrico, former Chairman, PepsiCo

30. Forget > “Learn”“The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.”Tom Peters

31. “Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product.…”John Chambers, Cisco

32. “These days, you can’t succeed as a company if you’re consumer led – because in a world so full of so much constant change, consumers can’t anticipate the next big thing. Companies should be idea-led and consumer-informed.”Doug Atkin, partner, Merkley Newman Harty

35. “If I’d listened to customers, I’d have given them a faster horse.” Henry Ford 1896 Ford Quadricycle

36. “Our strategies must be tied to leading edge customers on the attack. If we focus on the defensive customers, we will also become defensive.”John Roth, CEO, Nortel

37. Saviors-in-WaitingDisgruntled CustomersUpstart CompetitorsRogue EmployeesFringe SuppliersWayne Burkan, Wide Angle Vision

38. The Dream Manager—Matthew Kelly“An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The question is:What is an employee’s purpose? Most would say, ‘to help the company achieve its purpose’—but they would be wrong. That is certainly part of the employee’s role, but an employee’s primarypurpose is to become the-best-version-of-himself or –herself.… When a company forgets that it exists to serve customers, it quickly goes out of business.Our employees are our first customers, and our most important customers.”

39. “Business has to give people enriching, rewarding lives, or it's simply not worth doing.”—Richard Branson

40. “We are a ‘Life Success’ Company.”Dave Liniger, founder, RE/MAX[Real Estate]

41. “The role of the Director is to create a space where the actors and actresses canbecome more than they’ve ever been before, more than they’ve dreamed of being.”—Robert Altman, Oscar acceptance speech

42. Organizing Genius / Warren Bennis and Patricia Ward Biederman“Groups become great only when everyone in them, leaders and members alike,is free to do his or her absolute best.”“The best thing a leader can do for a Great Group is toallow its members to discover their greatness.”

43. “free to do his or her absolute best” … “allow its members to discover their greatness.” Tom Peters, May 28, 2009

44. “You have to treat your employees like customers.”—Herb Kelleher, complete answer, upon being asked his “secrets to success” Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-page ad in USA Today thanking HK for all he had done; across the way in Dallas American Airlines’ pilots were picketing the Annual Meeting)

45. “Get better”vs“Get different”

46. SUCCESSFUL HABITS OF VISIONARY FIRMS COMPANIES HAVE THEIR CORE VALUES AND CORE PURPOSES FIXED WHILE THEIR BUSINESS STRATEGIES AND PRACTICES ENDLESSLY ADAPT TO CHANGING WORLD

47. VISIONARY FIRMS UNDERSTAND THE DIFFERENCE BETWEEN WHAT SHOULD NEVER CHANGE AND WHAT SHOULD BE OPEN FOR CHANGE WHAT IS VISION? Mission?

48. VISION AND MISSION VISION : WHAT YOU WOULD LIKE TO BE KNOWN FOR? MISSION:WHAT BUSINESS YOU WOULD LIKE TO BE IN?

49. Mission Statement components: Customer/Marketing Product or Service Geographic Domain Technology Concern For Survival Company Philosophy Self (Business) Concept Public Image

50. VISIONARY FIRMS Collins & Porras, 1996

51. 44

52. Built to LastCriteria for a Visionary Company Premier institution in its industry Widely admired by knowledgeable business Made an indelible imprint on the world Had multiple generations of chief executives Been through multiple product life cycles Founded before 1950 It is more than “successful”, more than “enduring” Displays resiliency and ability to bounce back from setbacks and mistakes

53. Selection Process Surveyed 700 CEOs at leading corporations from a cross section of industry, size, location and type/ownership Identified distinguishing essential differences (rather than commonalities) with a similar Comparison Company Examined how they started and evolved (responded to historical circumstances)

54. Research Results and Comparison Companies Visionary Companies 3M American Express Boeing Citicorp Ford General Electric Hewlitt-Packard IBM Johnson & Johnson Marriott Merck Motorola Nordstrom Philip Morris Procter & Gamble Sony Wal-Mart Walt Disney Comparison Companies Norton Wells Fargo McDonnell Douglas Chase Manhattan GM Westinghouse Texas Instruments Burroughs Bristol-Myers Squibb Howard Johnson Pfizer Zenith Melville RJR Nabisco Colgate Kenwood Ames Columbia

55. List of Visionary & comparison companies …

59. Visionary Company Premier Institution Widely Admired Indelible imprint on the world 50+ year track record Multiple generations of CEOs Multiple product/service cycles

60. Vision Core ideology Vision Envisioned future

61. Core Ideology Core values Core Purpose Essential, enduring Tenets (beliefs) Reason for being What the organisation offers to society What is important? Dominant aspiration

62. YOU DISCOVER CORE IDEOLOGY BY LOOKING INSIDE. IT HAS TO BE AUTHENTIC. YOU CAN’T FAKE IT

63. What are Core Values? A set of beliefs that influence the way people and groups behave They are the “soul” of the organization Effective values are deep rooted

65. “We have a hierarchy of responsibilities: customers first, employees second, society at large third, and shareholders fourth”

66. Individual opportunity and reward based on merit

70. Why are Core Values Important? Influence behavior Communicate what we really believe Core values are sacred, they do not change They provide a moral compass Provide continuity through change Help people make tough decisions They help to decentralize decision making Help people to be more proactive

71. National interestThe Tata group is committed to benefit the economic development of the countries in which it operates. No Tata company shall undertake any project or activity to the detriment of the wider interests of the communities in which it operates.

72. Tata Code of Conduct Gifts and donations A Tata company and its employees shall neither receive nor offer or make, directly or indirectly, any illegal payments, remuneration, gifts, donations or comparable benefits that are intended, or perceived, to obtain uncompetitive favours for the conduct of its business. The company shall cooperate with governmental authorities in efforts to eliminate all forms of bribery, fraud and corruption. However, a Tata company and its employees may, with full disclosure, accept and offer nominal gifts, provided such gifts are customarily given and / or are of a commemorative nature. Each company shall have a policy to clarify its rules and regulations on gifts and entertainment, to be used for the guidance of its employees.

73. Integration of Core Values Effective core values are integrated into all levels and functions of the organization Practicing the core values in all areas, all the time creates integrity

74. Norstan Inc. Integration of Core Values Employees Customers Stakeholders Owners 1. Be Ethical 2. Be Responsive 3. Be Profitable

75. Characteristics of Effective Core Values Clear and succinct Usually no more than 6 Thought about and iterated a lot They stay the same through time, they are sacred Widely and frequently communicated Provide substantial guidance Profitability is not the primary ingredient

76. Leading with Core Values Communicate to assure that people understand the values and believe in the values. Standardize the values: define what they mean and give examples of the value, tell value stories. Practice using the values: daily, weekly, monthly. Encourage people to use the values to make decisions.

77. Leading with Core Values Align to practices and systems with the values: rewards, information sharing, measures, meetings, teams, etc. Recognize people and groups that practice the values. Inform others about how the values were used to make a decision. Correct those who do not use the values or violate them.

78. CORE VALUES: EXAMPLES MERCK Corporate social responsibility Unequivocal excellence in all aspects of the company Science-based innovation Honesty and integrity Profit, but profit from work that benefits humanity

79. CORE VALUES: EXAMPLES PHILIP MORRIS The right to freedom of choice Winning – beating others in a good fight Encouraging individual initiative Opportunity based on merit; no one is entitled to anything Hard work and continuous self improvement

80. CORE VALUES: EXAMPLES SONY Elevation of the Japanese culture and national status Being pioneer – not following others; doing the impossible Encouraging individual ability and creativity .

82. Never being satisfied

84. What would you tell your children?

85. If you have enough money to retire, would you continue to live those values?

86. Can you envision them being as valid for next 100 years?

87. Would you hold them even if they become disadvantageous?

89. Core Purpose is a company’s raison d’etre, not a goal or business strategy 3M : To Solve unsolved problems innovatively Hewlett-Packard : To make technical contributions for the advancement and welfare of humanity Mary Kay Cosmetics: to give unlimited opportunity to women Nike: to experience the emotion of competition, winning, and crushing the competition McKinsey: To help corporations and Govts. be more successful in 100 years Merck : To preserve and improve human life Wal-Mart : To give ordinary folk the chance to buy the same things as rich people Walt Disney : To make people happy

90. ROLE OF CORE IDEOLOGY IS TO GUIDE AND INSPIRE, NOT TO DIFFERENTIATE Core ideology needs to be meaningful and inspirational to people inside the organization; it need not be exciting to outsiders.

91. A CLEAR AND WELL ARTICULATED IDEOLOGY ATTRACTS TO THE COMPANY PEOPLE WHOSE PERSONAL VALUES ARE COMPATIBLE WITH THE COMPANY’S CORE VALUES CORE VALUES AND PURPOSES CANNOT BE IMPOSED ON THE PEOPLE

92. Envisaged Future BHAGS Vivid Description Huge, daunting goals Making goals ‘imaginable’ Clear & compelling, tangible The ‘mind’s eye’ Unifying, inspiring, engaging Hopeful, passionate, inspiring images & symbols Difficult Target Common enemy Role-model Internal - transformation

93. ENVISIONED FUTURE Big, Hairy, Audacious Goals : Aid Long Term Vision BHAGs can be quantitative or Qualitative Target, common enemy, role-model or internal transformation Become a $125 billion company by 2000 (Wal-Mart) Democratize the automobile (Ford Motors, 1900) Common-enemy Crush Adidas (Nike, 1960) Yamaha wo tsubusu! We will destroy Yamaha! (Honda, 1970)

94. ENVISIONED FUTURE Vivid Description Vibrant, engaging and specific description. In 10-20 yrs. What would we love to see? What will a writer say? Passion, emotion and conviction are essential parts of the vivid description

96. CORE VALUES

97. Elevation of Japanese culture & national status

98. Being a pioneer-not following others, doing the impossible

99. Encouraging individual ability & creativity

100. PURPOSE

102. Become the company most known for changing the worldwide poor-quality image of Japanese products

103. VIVID DESCRIPTION

104. We will create products that become pervasive around the world.

106. Thanx + ?