vii
PREFACE ................................................................................................... xi
ABOUT THE AUTHOR ............................................................................xiii
CHAPTER 1 Growth Is Everywhere ...................................................... 1
Lessons ......................................................................................... 8
Reflection Exercise ......................................................................... 10
CHAPTER 2 Growth Comes in Four Colors ........................................ 13
The Competing Values Framework for Growth ...................... 19
The CVF, Leadership, and Organizational Alignment ........... 24
Lessons ....................................................................................... 25
Reflection Exercise ......................................................................... 27
CHAPTER 3 The Competing Values Framework Growth
Strategies and the Stock Market ................................. 29
Designing the Empirical Tests ................................................. 31
Lessons ....................................................................................... 37
Reflection Exercise ......................................................................... 38
CHAPTER 4 How to Know Which Color Your Growth
Strategy Should Be ....................................................... 41
The Seven-Step Strategy Formulation Process ....................... 42
Step 1: Understand “What’s a Growth Strategy?” ..................... 42
Step 2: Define Value Driver—What It Is ....................................... 43
Step 3: Value Driver—Understand What It Is Not ....................... 44
Step 4: Develop a Shared Understanding of
Core Competence ....................................................................... 44
Step 5: What Is a Core Competence? ........................................... 44
Step 6: Use Examples of Value Drivers and Strategies ............... 45
Step 7: Develop a Simple Strategy Statement and
Communicate, Communicate, and Communicate ................... 47
Two More Steps ............................................................................. 49
Lessons ....................................................................................... 51
Reflection Exercise ......................................................................... 51
Contents
Contentsviii
CHAPTER 5 Alignment for Growth: The CVF’s Power in Aligning
Organizations through a Common Language ............... 53
The Power of a Common Language ......................................... 56
When the Power of a Common Language Is the Greatest ......... 58
Lessons ....................................................................................... 64
Reflection Exercise ......................................................................... 65
CHAPTER 6 Ideas for Yellow Growth Strategies ............................... 67
How to Become a Better Yellow ............................................... 68
Why Positive Factors Don’t Get More Attention .................... 70
Beyond Abundance—Other Aspects of a
Yellow Culture and Growth Strategy ................................... 74
What a Strong Yellow Culture Does for Organizations .......... 75
Tools for Developing Leaders ................................................... 77
A Very Strong Corporate Culture .................................................. 78
Organizations Develop Employees as Leaders ........................... 78
Commit to Employee Development .............................................. 78
Lessons ....................................................................................... 79
Reflection Exercise ......................................................................... 79
CHAPTER 7 Ideas for Red Growth Strategies .................................... 81
What Good Red Companies Do To Grow................................. 83
What Leaders Need To Understand About Execution ........... 84
What Is a Culture Focused on Execution? ............................... 86
Putting the Right People in the Right Place ............................ 88
Performance Metrics and Alignment ....................................... 90
Metrics Are Linked to Value Creation .......................................... 90
Metrics Are Linked to the Growth Strategy ................................ 90
Performance Metrics Are Not Plentiful ........................................ 91
Lessons ....................................................................................... 91
Reflection Exercise ......................................................................... 92
CHAPTER 8 Ideas for Blue Growth Strategies ................................... 95
Growth Strategies of Blue Companies ..................................... 96
Mergers and Acquisitions ............................................................. 97
Divestitures .................................................................................. 102
Establish a Market Niche and Develop a Brand ........................ 106
Extend Products and Services to New Markets ........................ 108
Develop New Products and Services .......................................... 110
Respond to Market Changes in Your Value Driver ............... 112
Lessons ..................................................................................... 113
Reflection Exercise ....................................................................... 114
CHAPTER 9 Ideas for Green Growth Strategies .............................. 117
Green’s Breakthough Ideas .....................................................120
What Is Innovation? ..................................................................... 120
Why Is Innovation So Difficult? ................................................... 121
Does Innovation Have Any Generalizable Principles? ......... 121
Principle 1: Combine and Hitchhike to Innovate ...................... 121
Contents ix
Principle 2: Diversity of Viewpoints Facilitates Innovation ..... 124
Principle 3: Innovation Depends on How Many Shots
You Take at the Basket ............................................................ 125
Principle 4: Set Up Your Reward–Punishment
System to Punish Inaction, Not Failure and/or Defiance ........125
Principle 5: Shelter Creative Work .............................................. 126
Principle 6: Create a Sense of Destiny and Don’t Let
the Creative Team Get Too Comfortable ................................ 127
Principle 7: Remember the SPSS Rule of Innovation ................. 128
Principle 8: Hire People You Don’t Need .................................... 129
Principle 9: Create Organizational Slack .................................... 130
Principle 10: Innovation Pays Off, Often in Unpredictable
Ways through Secondary Applications ................................... 131
Principle 11: All Innovation Challenges and Discards
a Well-Accepted Assumption—Rule? Truth? ......................... 133
Principle 12: Excessive Expertise Inhibits Innovation ............. 135
The Process of Innovation ...................................................... 136
Some Thoughts on Innovation Opportunities
for the Future ....................................................................... 137
Solar Panels .................................................................................. 137
Gasoline Garden ........................................................................... 138
Wind Power from the Stratosphere ............................................ 138
Ubiquitous Sensors ...................................................................... 138
Bacterial Toothpaste .................................................................... 139
Lessons .................................................................................... 139
Reflection Exercise ....................................................................... 140
CHAPTER 10 Wrapping Up ................................................................. 141
Interpenetration of Opposites: Embracing the Paradox ..... 142
Designing and Implementing a Growth Strategy ................ 144
Concluding Message .............................................................. 145
Reflection Exercise ....................................................................... 146
APPENDIX ............................................................................................... 149
RESOURCES AND ADDITIONAL READINGS ...................................... 157
INDEX ...................................................................................................... 161
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