Business Book Review Presentation to Strategic Capability Network February 21, 2007

1. Business Book Review Presentation to Strategic Capability Network February 21, 2007

2. Presentation Content Part 1 The BBR Library Descriptionof Library Categories of Business Books Criteria for Selection Part 2 Key Concepts from the Best Books on: Strategic Capability Organization Effectiveness Leadership in Action

3. The Business Book Review Library • Over 700 Summaries, 50+ added annually, each containing: • 100-word introduction • 300-word abstract • 600-word abstract • Full 4,500-word Summary & Review • Each 4,500-word Summary & Review includes: • Summary – Chapter-by-chapter synopsis • Key Concepts – Outline. Author/publisher links. Related readings • About the Author – Author biography • Remarks – Evaluation of the quality and value of the book • Reading Suggestions – How to effectively read the entire book • Direct link – To www.amazon.com for ease in purchasing

4. The Business Book Review Library All aspects of business skills development • Business Biographies • Business Strategy • Customer Satisfaction • Economics • Entrepreneurship • Finance • Diversity • Global Business • Human Resources • IT / Internet • Innovation • Leadership • Major Works • Management • Marketing • Personal Growth • Productivity • Social Responsibility

5. The Business Book Review Library Stringent Selection Process • 5,000+ business books published annually • BBR selects and evaluates 20% • Only 2% are chosen as best • Criteria for Selection • Significance to the subject • Author’s body of work • Advance praise, foreword • Meets with the interests and needs of our readers

6. SCN Themes Strategic Capability • Activities with people that drive effective innovation and growth • Strategic capabilities of the complete organization Organization Effectiveness • Activities with people that make change management more effective • Process improvement, facilitating alignment, sustaining excellence Leadership in Action • Activities that produce more leaders who are effective at all levels • Leadership development and the impact of effective leaders

7. Key Concepts from the Best Business Books Strategic Capability Organization Effectiveness Leadership in Action

8. SCN Theme Strategic Capability • Activities with people that drive effective innovation and growth • Strategic capabilities of the complete organization

9. Strategic Capability Driving Growth Through Innovation How Leading Firms Are Transforming Their FuturesBy Robert B Tucker “A Growing Growth Gap” • Companies understand why they need to innovate. They don’t know how. • Innovation is - • not synonymous with creativity – only implies coming up with ideas • bringing of ideas to life • Increasing number of companies improving how they innovate.

10. Strategic Capability Driving Growth Through Innovation How Leading Firms Are Transforming Their FuturesBy Robert B Tucker Innovation Vanguard Companies • Innovation is a comprehensive, enterprise-wide process • CEO-driven • Supported with goals, metrics, rewards, resources • Cultural commitment to bottoms-up innovation Their 21st Century approach to Innovation involves… • Leading innovation • Creating an innovation culture • Empowering the Idea Management Process • Mining the Future • Fortifying the “Idea Factory” Results - powerful products, growth, commitment

11. Strategic Capability Driving Growth Through Innovation How Leading Firms Are Transforming Their FuturesBy Robert B Tucker The 5 “Right Things” in building an all-enterprise innovation capacity • Design and implement an innovation strategy • Establish a common definition of what innovation means • Spell out the growth goals to be reached • Provide a process in every area of operations for channeling ideas • Outline a plan to overcome barriers • Imbed innovation into the culture • Identify a leader to be in charge of the process • Spread the responsibility for making innovation happen • Spell out expectations regarding innovative behavior • Publicize and promote the kind of behavior sought • Create a “curriculum” of innovation • Provide basic training in creativity • Provide more advanced innovation training to select groups

12. Strategic Capability Driving Growth Through Innovation How Leading Firms Are Transforming Their FuturesBy Robert B Tucker The 5 essential “Right Things” in building an all-enterprise innovation capacity • Commit resources and decide on levels of risk • Allocate time, money, and talent to the innovation process • Have a method to decide ideas to fund, people to involve, time to spend • Manage risk to minimize the number of unproductive pursuits • Establish innovation metrics • Measure the percent of revenue from new products/services • Instill metrics that motivate rather than create disunity • Measure the number of new and promising ideas in the pipeline • Reward innovation • Careers on the line must be met with reward and encouragement

13. Strategic Capability Driving Growth Through Innovation How Leading Firms Are Transforming Their FuturesBy Robert B Tucker With the right leadership, culture can be reshaped to catalyze the innovation process Eleven key strategies… • Assess where the company is and where it needs to be for growth • Identify the structural and cultural barriers to innovation • Assess the company’s current innovation process for barriers to ideas • Address the “lack of time” barrier • Institute practices that create openness • Balance the mix of people for diversity of thinking styles and perspectives • Do not segregate mavericks into skunk work units • Achieve the right mix in creative styles - adapters and innovators • Don’t underestimate the innovative potential of ordinary people • Identify and develop champions • Identify and recruit innovators

14. Strategic Capability Driving Growth Through Innovation How Leading Firms Are Transforming Their FuturesBy Robert B Tucker Idea Management Systems help firms make innovation a discipline. And can work only if - • Solicits ideas from everybody • Is easy to use • Has at least one full-time person to administer • Gives people the permission to bypass the chain of command • Responds promptly to those who contribute ideas • Has innovation experts in place to review ideas • Involves the contributor whenever possible • Gives recognition for an idea, regardless of outcome

15. Strategic Capability Driving Growth Through Innovation How Leading Firms Are Transforming Their FuturesBy Robert B Tucker Innovation Vanguard firms continually “Mine the Future” • Monitor global, economic, technological, social, and regulatory change • Leaders create their own personal future-scan systems by • Reading high-quality material • Connecting with people • Listening to their own intuition

16. Strategic Capability Driving Growth Through Innovation How Leading Firms Are Transforming Their FuturesBy Robert B Tucker What companies should consider before pioneering a new idea • Are there proprietary technology or designs that can be protected? • Can we achieve brand loyalty by going first? • Can we enhance our reputation by going first? • Do we have a vision of the mass market? • Is our management team willing to be persistent over time? • Are we willing and able to relentlessly innovate after launch? Without a strategic approach to the front end of innovation, “fast followers” can benchmark and copy what works and steal a “first mover’s” market.

17. SCN Theme Organization Effectiveness • Activities with people that make change management more effective • Process improvement, facilitating alignment, sustaining excellence

18. Organization Effectiveness Reinventing Strategy Using Strategic Learning to Create & Sustain Breakthrough LearningBy Willie Pietersen Today’s new leadership challenge • Think outside of the box. Move out off comfort zones • Create and lead adaptive organizations • Change and innovate continuously Long-term success depends on: • Improve processes and products through continuous incremental change • Invent better processes/products via discontinuous breakthrough change

19. Organization Effectiveness Reinventing Strategy Using Strategic Learning to Create & Sustain Breakthrough LearningBy Willie Pietersen The Five “Killer” Competencies Fundamental competencies that all successful, adaptive businesses must master • Insight – the ability to make sense of the changing environment • Focus – insights translated into intelligent choices for scarce resources • Alignment – every element of the firm behind the company’s strategic choices • Execution – implementation, to be ready for the next environmental shift • The ability to repeat – a continuous cycle of learning and renewal

20. Organization Effectiveness Reinventing Strategy Using Strategic Learning to Create & Sustain Breakthrough LearningBy Willie Pietersen Strategic Learning Cycle Insight begins with a Situation Analysis that asks and answers penetrating questions: • Customers • Competitors • The firm’s own realities • Industry dynamics • The broader environment Not ritualized analyses that tend to reinforce existing mental models, but deliberately designed to employ divergent thinking. Begins with the assumption that discontinuous change is the norm – a conscious effort to recognize, understand, and respond to change for intelligent choice and creation of strategy.

21. Organization Effectiveness Reinventing Strategy Using Strategic Learning to Create & Sustain Breakthrough LearningBy Willie Pietersen Strategic Learning Cycle Translate insights into key strategic choices • Consolidate situation analysis in a single list. Most important findings • List major threats and opportunities • Explore strategic alternatives • Consider pros and cons of alternatives The final choices should address three fundamental elements • Customer focus – who, why, and with what • The winning proposition – vision comes after strategic choices are made • Ensure resources are focused. Too many priorities will dilute effort.

22. Organization Effectiveness Reinventing Strategy Using Strategic Learning to Create & Sustain Breakthrough LearningBy Willie Pietersen Strategic Learning Cycle Creating alignment behind the key priorities • Develop a clear, overarching focus • Identify system-wide gaps and accountabilities • Align business system to drive the new strategy • Action plan to overcome resistance and inspire Without comprehensive alignment, no amount of project management can carry the organization to success. • Selective interventions – the trap of managing things in isolation – hardly ever work. • The key to success lies in orchestrating the right interrelated actions.

23. Organization Effectiveness Reinventing Strategy Using Strategic Learning to Create & Sustain Breakthrough LearningBy Willie Pietersen Strategic Learning Cycle When strategy changes, culture must also change Wrong assumptions about culture - • Culture is vague and mysterious • Culture and strategy are separate and distinct things • Defining values should be the first step in transforming a culture • Culture cannot be measured and rewarded • Leaders must communicate what the culture is • Culture is the one constant that never changes Culture expresses itself through specific, observable, everyday behaviors that are as tangible as a company’s cash flow. Must be measured and rewarded.

24. Organization Effectiveness Reinventing Strategy Using Strategic Learning to Create & Sustain Breakthrough LearningBy Willie Pietersen Strategic Learning Cycle The drivers of success can be harnessed and aligned • Values must be simple, specific, and directly support strategic priorities • Described as behaviors • Gain commitment, not compliance Behaviors that characterize the adaptive organization include • Teamwork • Risk taking and experimentation • Continuous learning • Knowledge sharing • Candor and trust

25. Organization Effectiveness Built to Change How to Achieve Sustained Organizational EffectivenessBy Edward E. Lawler III and Christopher G. Worley, Foreword by Jerry Porras The message is simple - change or perish Nothing is truly built to last • Competitive advantage • Valuable human capital • Long term success Stagnation, blind stability, and aversion to transformation, no matter how small, leads an organization’s ideals.

26. Organization Effectiveness Built to Change How to Achieve Sustained Organizational EffectivenessBy Edward E. Lawler III and Christopher G. Worley, Foreword by Jerry Porras Part I – Why Build Organizations to Change? Speed of change in business The number of new businesses Yet, companies aren’t getting better at adapting Resistance comes from the belief that stability is the key to performance Companies institutionalize best practices and freeze operations when something works

27. Organization Effectiveness Built to Change How to Achieve Sustained Organizational EffectivenessBy Edward E. Lawler III and Christopher G. Worley, Foreword by Jerry Porras Part One – Why Build Organizations to Change? Before a plan for transformation can even be drawn: • Understand the worth of your human capital • The value of knowledge sharing across employment tiers Old thinking - • Structured business plans, relying on stability, running on rules and regulations • Narrow job descriptions and rewarding consistent behavior • Employees with narrow job descriptions doing repetitious, mind numbing tasks Heroic, “savior” leaders rarely succeed in changing organizations. It takes more than vision. It takes involvement and commitment.

28. Organization Effectiveness Built to Change How to Achieve Sustained Organizational EffectivenessBy Edward E. Lawler III and Christopher G. Worley, Foreword by Jerry Porras Part One – Why Build Organizations to Change? New thinking - • Employees are seen as problem solvers • Organization is structurally fluid and adaptive • Knowledge sharing Workers who see the end result – • Understand that they can make a difference • Become vested in their companies performance • Stay happy, productive, and with their company longer “People aren’t resistant to change, they’ve been blind-sided by it in the past, or haven’t been given a reason to see change as an advantage.”

29. Organization Effectiveness Built to Change How to Achieve Sustained Organizational EffectivenessBy Edward E. Lawler III and Christopher G. Worley, Foreword by Jerry Porras Part Two – The Lexicon of Change The B2Change Model - a diagram that mimics the atom - • Whose center is IDENTITY – core values, behaviors, and beliefs (A set of assets that should remain mostly constant) Contains three primary organizational processes – • Strategizing – resulting in strategic intent – a set of rules that govern choices about how an organization creates value and design • Creating value – through competencies and capabilities • Designing – Social blueprint that deals with human capital – job structures, attracting/retaining key people, information systems, training effective leaders, crafting reward systems. No one can control “environmental scenarios” Unpredictability is reason enough that all businesses should be built to change.

30. Organization Effectiveness Built to Change How to Achieve Sustained Organizational EffectivenessBy Edward E. Lawler III and Christopher G. Worley, Foreword by Jerry Porras Part Two – The Lexicon of Change The Virtual Spiral - the “Holy Grail” of organizational effectiveness Harmony between - • Critical configuration – the junction of identity and strategic intent • Dynamic alignment – when design reflects competencies and capabilities Virtual spirals are characterized by long periods of perpetual motion performance in which success begets more success. The goal is to become an organization that can maintain harmony in the midst of environmental change

31. Organization Effectiveness Built to Change How to Achieve Sustained Organizational EffectivenessBy Edward E. Lawler III and Christopher G. Worley, Foreword by Jerry Porras Part Three – Strategy and Structure for Change Foundation of a structure of change: • An identity that is well-defined and stable • A strategy – and strategic intent* – that is robust Having a strong identity depends first on being able to identify it. “If it’s clear who you are, you’ll know who you’ll become.” • Strategic intent – is “visioning competitive advantage” – five elements - • The breadth of an organization’s activities • The aggressiveness of its operations • The way it orchestrates change • The features that differentiate its products and services • Its logic for making profits

32. SCN Theme Leadership in Action • Activities that produce more leaders who are effective at all levels • Leadership development and the impact of effective leaders

33. Leadership in Action The 360-Degree Leader Developing Your Influence for Anywhere in the OrganizationBy John C. Maxwell Part I: Myths of leading from the middle of an organization • Position myth – must have a title to lead. Build relationships. Show achievement • Destination myth – can only lead from the top. Learn now • Position means influence. Influence is earned over time • Position means control. Control is overrated and overestimated • Position is a ticket to freedom. Always boundaries, increased responsibilities • Can’t reach full potential unless at the top. Greatest impact is from the middle 99% of leadership occurs from the middle of an organization – not the top An effective 360-Degree Leader can learn to lead from the side, from above, and from below, and influence people at every level.

34. Leadership in Action The 360-Degree Leader Developing Your Influence for Anywhere in the OrganizationBy John C. Maxwell Part II: Challenges faced by 360-Degree Leaders • Tension – Not sure of where you stand. Learn to communicate • Frustration – From insecurity. Leadership resources • Responsibility – Need to do many things well. Do fewer with outstanding skill • Ego – Expecting credit deserved. Let being noticed come naturally through actions • Greed for position – Right attitude, relationships, desire to win with the team • Vision – Align with it. Align others with it • Influence – To lead others beyond their positions. Become some others would follow

35. Leadership in Action The 360-Degree Leader Developing Your Influence for Anywhere in the OrganizationBy John C. Maxwell Part III: Principles 360-Degree Leaders practice to LEAD UP • Lead yourself first • Help your leader succeed • Do more than expected • Think long term • Connect • Always be prepared • Timing is everything • Be a team player • Keep learning

36. Leadership in Action The 360-Degree Leader Developing Your Influence for Anywhere in the OrganizationBy John C. Maxwell Part III: Principles 360-Degree Leaders practice to LEAD ACROSS • Help others succeed • Control peer-competition • Be a friend rather than find a friend • Avoid office politics. Leave “The Prince” at home • Expand outside the inner circle • Protect creative people’s initiatives, not just your own • Put away pride. “…let them impress you.”

37. Leadership in Action The 360-Degree Leader Developing Your Influence for Anywhere in the OrganizationBy John C. Maxwell Part III: Principles 360-Degree Leaders practice to LEAD DOWN • Connect. Be approachable • Treat people with dignity and respect • Develop everyone differently • Play to their strengths • Communicate. Inspire • Praise. Reward

38. Leadership In Action A Leader’s LegacyBy James M Kouzes and Barry Z. Posner Legacies are the result of determined doing, rather than wishful thinking, And are the sum of daily actions People don’t remember us for what we do for ourselves, but what we do for them Leadership is a relationship between those who aspire to lead and those who choose to follow A lasting legacy is built on a firm foundation of principles and purpose Then leadership development is first, self-development Courage is the virtue that makes all other virtues possible The legacy you leave is the life you lead

39. Leadership In Action A Leader’s LegacyBy James M Kouzes and Barry Z. Posner Should every leader want to leave one? Though all leaders leave a legacy (in spite of themselves), does every leader want to? Is every decision legacy-based? Does legacy exclude the perspective that everyone can make a difference? My legacy, instead of doing the right thing?

40. Leadership In Action A Leader’s LegacyBy James M Kouzes and Barry Z. Posner Legacy is – Significance Through Service • Leaders who see their role as serving others leaves the most lasting legacies Putting the welfare of others before their own – customer or employee • Through Sacrifice • Seeing beyond ones own needs. Demonstrate that you are not in it for your own benefit but what you can achieve for others. • As Teachers • The best teachers are also the best learners. Teaching trickles down. A leader’s legacy is the legacy of many. No one every accomplishes anything extraordinary in life alone.

41. Leadership In Action A Leader’s LegacyBy James M Kouzes and Barry Z. Posner Legacy is – Relationships Leadership is personal • Engage with quality. Quality most determines whether a legacy will be lasting or ephemeral • Become known. People are more likely to trust the individuals they know • Be likeable. People have genuine affection for the leaders they want to follow Trust requires • Openness • Valuing others. listening and respecting their opinions and perspectives • Let go of doing it your way • Self-honesty and being honest with others • Always keeping commitments • Be willing to let others take charge. Trust is the willingness to be vulnerable

42. Leadership In Action A Leader’s LegacyBy James M Kouzes and Barry Z. Posner Legacy is – Aspirations From the inside out • Leadership is first and foremost self-development • Decide on what matter most before living a life that matters • Clarity of values is an essential compass Envision the future • This is the defining competence and the only way to leave a lasting legacy Inspire a shared vision • First must see what others see. Listening closely • Leaders who know their constituents can articulate their vision, and speak to them in a language that engages them

43. Leadership In Action A Leader’s LegacyBy James M Kouzes and Barry Z. Posner Legacy is – Courage Courage provides • The energy to move forward • The confidence to believe one can make it • The strength to sustain one in the darkest hour Individuals can choose to be courageous, but cannot plan for it Rosa Parks Moments [RPMs] • Little acts can have a huge impact • One person can make a difference • Courageous acts flow from one’s beliefs

44. Key Concepts from the Best Business Books Strategic Capability Organization Effectiveness Leadership in Action