xii • Preface
I remember sketching out our Current State. I will call what we were doing
back in those days Version 1.0 of an evolving Strategy Formulation and
Deployment Approach (Figure P.1). We had a toolbox with some tools. Period.
I was returning home from a trip to Switzerland where I had just met
with the managing director of a company we had recently acquired.
Gerhard and I had talked extensively (well, in retrospect, I talked a lot
while he listened politely) about making signicant changes within his
business unit. I remember having the feeling as I was driving back to the
airport in Zurich that the trip had been an utter failure. Gerhard was going
to keep things the way they were before we had acquired them. I remem-
ber reecting on how the resistance to change was incredible, especially at
some of our newly acquired business units.
However, we couldn’t give up. Gerhard’s business unit’s Return on
Invested Capital (ROIC) was nowhere near our targeted level, and it was
imperative that we (or I) x this. Somewhere over the North Atlantic, aer
a couple of glasses of cabernet sauvignon, I remember drawing another
diagram on the back of a napkin (literally), and this diagram consisted of
a few more boxes. We will call this Version 1.1 (Figure P.2).
e process I drew consisted of four major steps, with Deploy the
Strategy broken into three pieces:
1. FORMULATE STRATEGY: Develop a dierentiating strategy that
results in a set of strategic objectives for the business.
2. CASCADE THE STRATEGY: Flow the strategic initiatives (that
came from the strategic objectives) down into the organization (via
Strategy Creation Tools
Strategy Formulation and Deployment Approach: Version 1.0—A toolbox containing a