Notes – Lead from the Future

 

Notes

A Tribute to a True Visionary

  1. 1.  “Business Roundtable Redefines the Purpose of a Corporation to Promote ‘An Economy that Serves All Americans,’ ” Business Roundtable (website), August 19, 2019, https://www.businessroundtable.org/business-roundtable-redefines-the-purpose-of-a-corporation-to-promote-an-economy-that-serves-all-americans.

Introduction

  1. 1.  Joseph Schumpeter (1883–1950). “The opening up of new markets, foreign or domestic, and the organizational development from the craft shop to such concerns as U.S. Steel illustrate the same process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one incessantly creating a new one. This process of Creative Destruction is the essential fact about capitalism.” Schumpeter, Capitalism, Socialism, and Democracy (New York: Harper Perennial Modern Thought, 2008), 83.

  2. 2.  Proprietary Survey conducted by Innosight, summer 2019 (unpublished).

  3. 3.  Clayton M. Christensen, The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Boston: Harvard Business Review Press, 2016).

  4. 4.  Wendell Weeks, from the transcript of Innosight’s CEO Summit, Boston, MA, August 8, 2019.

  5. 5.  Christensen, Innovator’s Dilemma, 13.

Chapter 1

  1. 1.  Herbert A. Simon, Administrative Behavior (New York: Macmillan, 1997), 119.

  2. 2.  Daniel Gilbert, “If Only Gay Sex Caused Global Warming,” LA Times, July 2, 2006, https://www.latimes.com/archives/la-xpm-2006-jul-02-op-gilbert2-story.html.

  3. 3.  Clayton Christensen, The Innovator’s Dilemma (Boston: Harvard Business Review Press, 2016).

  4. 4.  A. G. Lafley, telephone interview with the authors, August 16, 2019.

  5. 5.  Clayton Christensen and Derek van Bever, “The Capitalist’s Dilemma,” Harvard Business Review, June 2014, 60–68.

  6. 6.  Roger L. Martin, “The Age of Customer Capitalism,” Harvard Business Review, January–February 2010, 59–65.

  7. 7.  Scott Cook, telephone interview with the authors, September 6, 2019.

  8. 8.  Charles E. Hummel, Tyranny of the Urgent (Downers Grove, IL: InterVarsity Press, 1994).

  9. 9.  Michael E. Porter and Nitin Nohria, “How CEOs Manage Time,” Harvard Business Review, July–August 2018, 42–51.

  10. 10.  Sandi Peterson, telephone interview with the authors, April 17, 2019.

  11. 11.  Cook, telephone interview.

  12. 12.  Cook, telephone interview.

  13. 13.  Roger Martin, from the transcript of Innosight’s CEO Summit, Lexington, MA, 2015.

Chapter 2

  1. 1.  Steve Jobs, “You’ve Got to Find What You Love,” Stanford News, June 14, 2005, https://news.stanford.edu/2005/06/14/jobs-061505/.

  2. 2.  Walter Isaacson, Steve Jobs (New York: Simon & Schuster, 2011), 532.

  3. 3.  See, for example, Tim Brown, Change by Design: How Design Thinking Transforms Organizations and Inspires Innovation (New York: HarperBusiness, 2009); Roger Martin, The Design of Business: Why Design Thinking Is the Next Competitive Advantage (Boston: Harvard Business School Publishing, 2009).

  4. 4.  See also Mark W. Johnson and Josh Suskewicz, “How to Jump-Start the Clean Tech Economy,” Harvard Business Review, November 2009, 52–63.

  5. 5.  Thomas P. Hughes, “The Electrification of America: The System Builders,” Journal of Technology and Culture 20, no. 1 (January 1979), quoted in Johnson and Suskewicz, “How to Jump-Start the Clean Tech Economy.”

  6. 6.  Peter F. Drucker, “The Theory of the Business,” Harvard Business Review, September–October 1994.

  7. 7.  Wendell Potter, “Analysis: The End of Health Insurance as We Know It?,” The Center for Public Integrity, March 5, 2012, https://publicintegrity.org/health/analysis-the-end-of-health-insurance-as-we-know-it/.

  8. 8.  “Who We Are,” Aetna, accessed November 8, 2019, https://www.aetnastory.com/who-we-are.html.

  9. 9.  Satya Nadella, Hit Refresh: The Quest to Rediscover Microsoft’s Soul and Imagine a Better Future for Everyone (New York: HarperBusiness, 2016), 15.

  10. 10.  Though numerous versions of the quote have been attributed to Edison, the most accurate, according to a fascinating article in the online Quote Investigator (https://quoteinvestigator.com/2012/04/10/rich-burn-candles/), appeared in the New York Herald on January 4, 1880: “ ‘After the electric light goes into general use,’ said he, ‘none but the extravagant will burn tallow candles.’ ”

  11. 11.  Macmillan Dictionary Online, s.v. “vision,” accessed November 7, 2019, https://www.macmillandictionary.com/dictionary/american/vision.

  12. 12.  Nadella, Hit Refresh, 92.

  13. 13.  Carol Dweck, Mindset: The New Psychology of Success (New York: Random House, 2006), 46–47.

  14. 14.  Warren Bennis, On Becoming a Leader (New York: BasicBooks, 2009), 197.

  15. 15.  Quote shared by David Garvin with Mark Johnson, source and date unknown.

  16. 16.  Bernard C. Kummerli, Scott D. Anthony, and Markus Messerer, “Unite Your Senior Team,” Harvard Business Review, November 2018, 60–69.

  17. 17.  Peter Drucker, Managing for Results (New York: HarperCollins, 1986), 87–88.

  18. 18.  Wendell Weeks, from the transcript of Innosight’s CEO Summit, Boston, MA, August 8, 2019.

  19. 19.  Rita Gunther McGrath and Ian MacMillan, “Discovery-Driven Planning,” Harvard Business Review, July–August 1995, 44–54.

  20. 20.  Clay Christensen, The Innovator’s Solution: Creating and Sustaining Successful Growth (Boston: Harvard Business School Press, 2003), 78.

  21. 21.  Clay Christensen, Karen Dillon, Taddy Hall, and David S. Duncan, Competing against Luck: The Story of Innovation and Customer Choice (New York: HarperBusiness, 2016), 29.

Part Two

  1. 1.  Innosight has a long-standing relationship with William Hait. The authors carried out a formal telephone interview with him on April 19, 2019.

  2. 2.  Hait, telephone interview.

Chapter 3

  1. 1.  Cyberpunk, directed by Marianne Trench (Intercon Production, 1990).

  2. 2.  Anthony R. Tersigni, “Healthcare, Disrupt Thyself: How Ascension Makes Changes Today to Thrive Tomorrow,” Journal of Healthcare Management 63, no. 6 (November–December 2018): 370–373.

  3. 3.  “Ascension Health formed Ascension in 2012 to further its Mission of serving all persons, especially those living in poverty and who are struggling the most, and to deliver compassionate, personalized care and lead healthcare transformation in the United States.” Ascension, “About Us—History,” accessed December 3, 2019, https://ascension.org/about/history.

  4. 4.  Proprietary and confidential Janssen strategy document, 2016.

Chapter 4

  1. 1.  Scott D. Anthony, Clark G. Gilbert, and Mark W. Johnson, Dual Transformation: How to Reposition Today’s Business while Creating the Future (Boston: Harvard Business Review Press, 2017).

  2. 2.  A. G. Lafley, telephone interview with the authors, August 16, 2019.

Chapter 5

  1. 1.  David Jacquemont, Dana Maor, and Angelika Reich, “How to Beat the Transformation Odds,” McKinsey & Company, April 2015, https://www.mckinsey.com/business-functions/organization/our-insights/how-to-beat-the-transformation-odds

  2. 2.  Ben Wiegand, telephone interview with the authors, June 18, 2019.

  3. 3.  Leigh Buchanan, “The CEO’s Most Important Job, According to Panera’s Ron Shaich,” Inc. Magazine, July–August, 2014, https://www.inc.com/magazine/201407/leigh-buchanan/a-ceos-most-important-job-according-to-paneras-ron-shaich.html.

  4. 4.  A. G. Lafley, telephone interview with the authors, August 16, 2019.

  5. 5.  Steve Nordlund, from the transcript of Innosight’s CEO Summit, Boston, MA, August 8, 2019.

  6. 6.  Mark Johnson, Reinvent Your Business Model: How to Seize the White Space for Transformative Growth (Boston: Harvard Business Review Press, 2018), 152–166.

  7. 7.  Wiegand, telephone interview.

  8. 8.  Roy Davis, personal conversation with Josh Suskewicz, date unknown.

  9. 9.  Logan Jones, from the transcript of Innosight’s CEO Summit, Boston, MA, August 8, 2019.

  10. 10.  Rita Gunther McGrath and Ian MacMillan, “Discovery-Driven Planning,” Harvard Business Review, July–August 1995,: 44–54; Scott D. Anthony, The First Mile (Boston: Harvard Business School Press, 2014).

  11. 11.  Clark Gilbert, Mark Johnson, and Scott D. Anthony, Dual Transformation (Boston: Harvard Business Review Publishing, 2017).

  12. 12.  Johnson, Reinvent Your Business Model.

  13. 13.  William Hait, telephone interview with the authors, April 19, 2019.

  14. 14.  Avrum Spira, telephone interview with the authors, August 21, 2019.

  15. 15.  Hait, telephone interview.

Chapter 6

  1. 1.  Jeffrey Bezos, “2005 Annual Shareholder Letter,” Amazon, accessed October 18, 2019, https://ir.aboutamazon.com/static-files/2eb4e2f3-fcaa-4bbe-8347-9900c904ab4f.

  2. 2.  Charles A. O’Reilly III and Michael L. Tushman, “The Ambidextrous Organization,” Harvard Business Review, April 2004, 74–81.

  3. 3.  See, for example, Gary Hamel and Bill Breen, The Future of Management (Boston: Harvard Business School Press, 2007).

  4. 4.  Udit Batra, interview with the authors, Burlington, MA, September 24, 2018.

  5. 5.  Arthurian Chronicles Represented by Wace and Layamon (New York: E. P. Dutton, 1921), 55.

  6. 6.  Alice M. Cahill and Laura Quinn, “Are You Getting the Best out of Your Executive Team?,” Center for Creative Leadership, accessed October 18, 2018, https://www.ccl.org/articles/white-papers/getting-best-executive-team/.

  7. 7.  Mike Leavitt, telephone interview with the authors, June 25, 2018.

  8. 8.  Jim Collins, Good to Great: Why Some Companies Make the Leap and Others Don’t (New York: HarperCollins, 2001), 13.

  9. 9.  David Henshall, interview with the authors, Fort Lauderdale, FL, June 25, 2018.

  10. 10.  Terry Crimmins, interview with the authors, Nashua, NH, July 25, 2018.

  11. 11.  Bob Rivers, interview with the authors, Boston, July 3, 2018.

  12. 12.  Chris Chadwick, telephone interview with the authors, September 18, 2018.

  13. 13.  Herminia Ibarra, Act Like a Leader, Think Like a Leader (Boston: Harvard Business Review Press, 2015), 2.

  14. 14.  Rivers, interview.

  15. 15.  Sandi Peterson, telephone interview with the authors, April 17, 2019.

  16. 16.  Rich Bane, telephone interview with authors, May 6, 2019.

  17. 17.  Peterson, telephone interview.

  18. 18.  Chadwick, telephone interview.

Chapter 7

  1. 1.  Admiral James Stavridis, interview with the authors, Cambridge, MA, May 15, 2018.

  2. 2.  World Without Disease Strategic Narrative (proprietary and confidential).

  3. 3.  A. G. Lafley, telephone interview with authors, August 16, 2019.

  4. 4.  Jim Collins, Good to Great (New York: HarperBusiness, 2001), 45–46.

  5. 5.  Jack Dorsey, from the transcript of Innosight’s CEO Summit, Boston, MA, August 8, 2019.

  6. 6.  Lafley, telephone interview.

  7. 7.  Scott Cook, telephone interview with the authors, September 9, 2019.

  8. 8.  Cook, telephone interview.

  9. 9.  Sandi Peterson, telephone interview with the authors, April 17, 2019.

  10. 10.  Pierre Gurdjian, “Why Leadership Development Programs Fail,” McKinsey & Company Quarterly (January 2014), https://www.mckinsey.com/featured-insights/leadership/why-leadership-development-programs-fail.

  11. 11.  Lafley, telephone interview.

  12. 12.  Jeffrey Dyer, Hal Gregersen, and Clay Christensen, “The Innovator’s DNA,” Harvard Business Review, December 2009,; Clay Christensen, Jeffrey Dyer, and Hal Gregersen, The Innovator’s DNA: Mastering the Five Skills of Disruptive Innovators (Boston: Harvard Business School Publishing, 2011).

  13. 13.  Gary Wolf, “Steve Jobs: The Next Insanely Great Thing,” Wired, February 1, 1996, https://www.wired.com/1996/02/jobs-2/.

  14. 14.  Graham Winfrey, “Intuit’s Scott Cook on the Surprising Source of Massive Growth,” Inc., July 25, 2014, https://www.inc.com/graham-winfrey/intuit-s-scott-cook-on-savoring-surprises.html.

  15. 15.  Christensen, Dyer, and Gregersen, The Innovator’s DNA.

  16. 16.  Satya Nadella, Hit Refresh: The Quest to Rediscover Microsoft’s Soul and Imagine a Better Future for Everyone (New York: HarperBusiness, 2016), 92.

  17. 17.  David A. Garvin, Learning in Action: A Guide to Putting the Learning Organization to Work (Boston: Harvard Business School Press, 2000).

  18. 18.  Garvin, Learning in Action, 39.

  19. 19.  Satya Nadella, interview by Simon London, “Microsoft’s Next Act,” McKinsey Quarterly, April 2018, https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/microsofts-next-act#.

  20. 20.  Gustavo Manso, “Motivating Innovation,” Journal of Finance 66, no. 5 (October 2011): 1823–1860.

  21. 21.  Peter M. Senge, The Fifth Discipline: The Art & Practice of the Learning Organization (New York: Doubleday Business, 1990).

  22. 22.  Chris Argyris, “Teaching Smart People How to Learn,” Harvard Business Review, May–June 1991.

  23. 23.  Carol Dweck, “What Having a ‘Growth Mindset’ Actually Means” (blog), Harvard Business Review, January 13, 2016, https://hbr.org/2016/01/what-having-a-growth-mindset-actually-means.

  24. 24.  Ferdz dela Cruz, telephone interview with the authors, June 7, 2018.

  25. 25.  Nadella, Hit Refresh, 100.

  26. 26.  Andy Hill, interview with the authors, Hollywood, FL, June 26, 2018.

  27. 27.  Peterson, telephone interview.

  28. 28.  Chris Groscurth, “Why Your Company Must Be Mission-Driven,” Gallup Workplace, March 6, 2014, https://www.gallup.com/workplace/236537/why-company-mission-driven.aspx.

  29. 29.  Scott Anthony, Alasdair Trotter, and Evan Schwartz, “The Top 20 Business Transformations of the Last Decade,” Harvard Business Review, September 2019.

  30. 30.  Anthony, Trotter, and Schwartz, “Top 20 Business Transformations.”

  31. 31.  Senge, Fifth Discipline, 192.

Chapter 8

  1. 1.  Thomas Jefferson, “Letter to John Holmes, April 22, 1820,” Library of Congress (website), accessed October 20, 2019, https://www.loc.gov/exhibits/jefferson/159.html.

  2. 2.  Bradley Sawyer and Daniel McDermott, “How Does the Quality of the U.S. Healthcare System Compare to Other Countries?,” Peterson-Kaiser Healthcare System Tracker, March 28, 2019, https://www.healthsystemtracker.org/chart-collection/quality-u-s-healthcare-system-compare-countries/#item-start.

  3. 3.  Christopher Klein, “The Epic Road Trip That Inspired the Interstate Highway System,” History.com, June 29, 2016, https://www.history.com/news/the-epic-road-trip-that-inspired-the-interstate-highway-system.

  4. 4.  Eric Schmitt, “Iraq-Bound Troops Confront Rumsfeld over Lack of Armor,” New York Times, December 8, 2004, https://www.nytimes.com/2004/12/08/international/middleeast/iraqbound-troops-confront-rumsfeld-over-lack-of.html.

  5. 5.  “ ‘Stand-To!’ The Official Focus of the US Army,” Army Futures Command, March 28, 2018, https://www.army.mil/standto/2018-03-28.

  6. 6.  Abigail Hess, “Harvard Business School Professor: Half of American Colleges Will be Bankrupt in 10 to 15 Years,” CNBC, August 30, 2011, https://www.cnbc.com/2018/08/30/hbs-prof-says-half-of-us-colleges-will-be-bankrupt-in-10-to-15-years.html.

  7. 7.  Peter Drucker, Managing in Turbulent Times (New York: Harper & Row, 1980), 45.

  8. 8.  Rodd Wagner, “New Evidence That the Peter Principle Is Real—and What to Do about It,” Forbes, April 10, 2018, https://www.forbes.com/sites/roddwagner/2018/04/10/new-evidence-the-peter-principle-is-real-and-what-to-do-about-it/#54e482691809.

  9. 9.  “Our Credo,” Johnson & Johnson website, https://www.jnj.com/credo/.

  10. 10.  “Tylenol and the Legacy of J&J’s James Burke,” Knowledge at Wharton, October 2, 2012, https://knowledge.wharton.upenn.edu/article/tylenol-and-the-legacy-of-jjs-james-burke/.

  11. 11.  John Maynard Keynes, A Tract on Monetary Reform (London: Macmillan & Co., 1923), 80.

Epilogue

  1. 1.  Jeffrey Bezos, “1997 Shareholder Letter,” Amazon, accessed October 21, 2019, https://ir.aboutamazon.com/static-files/589ab7fe-9362-4823-a8e5-901f6d3a0f00.

  2. 2.  Steven Levy, “Jeff Bezos Owns the Web in More Ways Than You Think,” Wired, November 13, 2011, https://www.wired.com/2011/11/ff_bezos/.

  3. 3.  Netflix, S-1, filed with SEC, March 6, 2002, https://www.nasdaq.com/markets/ipos/filing.ashx?filingid=1785401.

  4. 4.  Google, S-1, filed with SEC, April 29, 2004, https://www.sec.gov/Archives/edgar/data/1288776/000119312504073639/ds1.htm.

  5. 5.  Bob Johansen, from transcript of Innosight’s CEO Summit, Lexington, MA, August 2018.

  6. 6.  Derek Thompson, “The History of Sears Predicts Nearly Everything Amazon Is Doing,” The Atlantic, September 25, 2017, https://www.theatlantic.com/business/archive/2017/09/sears-predicts-amazon/540888/.

  7. 7.  Eugene Kim, “Jeff Bezos to Employees: ‘One Day, Amazon Will Fail,’ but Our Job Is to Delay It as Long as Possible,” CNBC, November 15, 2018, https://www.cnbc.com/2018/11/15/bezos-tells-employees-one-day-amazon-will-fail-and-to-stay-hungry.html.

  8. 8.  Scott D. Anthony, S. Patrick Viguerie, Evan Schwartz, and John Van Landeghem, “2018 Corporate Longevity Forecast: Creative Destruction Is Accelerating,” Innosight Executive Briefing, accessed October 21, 2019, https://www.innosight.com/wp-content/uploads/2017/11/Innosight-Corporate-Longevity-2018.pdf.

  9. 9.  Jeffrey Bezos, “Amazon, 2017 Annual Letter to Shareholders,” SEC (website), accessed October 21, 2019, https://www.sec.gov/Archives/edgar/data/1018724/000119312517120198/d373368dex991.htm.

  10. 10.  Charles Handy, The Age of Unreason (Boston: Harvard Business School Press, 1989), 226–227.

  11. 11.  Seth Klarman, “Hard Choices,” Harvard Business School Alumni (website), December 1, 2018, https://www.alumni.hbs.edu/stories/Pages/story-bulletin.aspx?num=6818.

  12. 12.  Bekele Geleta, “What Is Stewardship, and Should All Great Leaders Practice It?,” New York Times in Education, accessed October 21, 2019, https://nytimesineducation.com/spotlight/what-is-stewardship-and-should-all-great-leaders-practice-it/.