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Create Marketplace Disruption: How to Stay Ahead of the Competition

Book Description

Master the #1 Principle for Long-Term Market Dominance! The Phoenix Principle

Create Marketplace Disruption is as thought-provoking as it is entertaining. Adam Hartung offers business managers and leaders new insights to long-term success that apply across markets and industries.”
–Steve Burke, President, Comcast Cable Communications, Philadelphia, PA

"Talking innovation is easier than practicing innovation. Adam offers an excellent approach for corporations to identify how to innovate to gain competitive advantage. A must read.”
–Praveen Gupta, Editor-in-Chief, International Journal of Innovation Science and Chairman, Accelper Consulting, Schaumburg, IL

Some companies can’t change in response to market disruptions. Those companies die. Other companies do respond...eventually. They survive, but they see their profits squeezed, their growth flattened. Then,there are the long-term winners: companies that create their own disruptions and thrive on change. In Create Marketplace Disruption, Adam Hartung shows how to become one of those rare companies, creating lasting growth and profits.

This book reveals why so many companies behave in ways that are utterly incompatible with long-term success...and why even “good to great” companies are struggling for air. You’ll discover how to reposition your organization away from the Flats and Swamps of traditional Defend and Extend Management and back into the Rapids of accelerated growth. Hartung demonstrates how to attack competitors’ Lock-ins, make their Success Formulas obsolete, and create the White Space needed to invent your own new formulas for success.

Create Marketplace Disruption shows how disrupting yourself is critical to reaping the benefits of market changes, and part of a process that executives and strategists can reproduce over and over again for improved results.

How we got into this messand how to get out of it

The myth of perpetuity and the dark side of success

Reinventing success: no more Defend and Extend
Creating your new Success Formulas and keeping them competitively advantaged

Why “thinking outside the box” doesn’t work
First, get outside the box. Then, think!

Maintaining ”The Phoenix Principle” for long-term success
Practicing Disruption until it comes naturally

Table of Contents

  1. Copyright
    1. Dedication
  2. Praise for Create Marketplace Disruption
  3. Foreword
  4. Acknowledgments
  5. About the Author
  6. Preface
  7. I. Understanding How We Got Into This Mess
    1. Introduction: Overcoming Schumpeter
      1. Who Is Schumpeter, and What Did He Say?
      2. What Is Business Success, and What Creates It?
      3. The Sad Tale of AM
      4. AM Is Not Alone
        1. A New Explanation for What Goes Wrong and How to Fix It
    2. 1. The Myth of Perpetuity and Lifecycle Realities
      1. The “S” Curve Theory of Business Lifecycle
      2. The Myth of Perpetuity
        1. The Wellspring—Find Something that Floats
        2. The Rapids—Paddle Fast and Stay Afloat
        3. The Flats—Don’t Run Aground
        4. The Swamp—Trying to Get Unstuck (While Fighting Alligators and Mosquitoes)
        5. The Whirlpool—Paddle Like Crazy
      3. We Keep Repeating the Same Cycle
    3. 2. The Value and Power of Success Formulas
      1. Companies Rise in the Rapids on the Strength of Their Success Formulas
      2. Strategies and Tactics Come from Identity
      3. Winners Create Success Formulas in the Rapids
      4. Vertical Success Formula Alignment Leads to Great Results
      5. Success Formulas Are Very Good Things—and Define Success
    4. 3. The Power of Lock-in
      1. Businesses Use Lock-in to Implement Their Success Formulas
      2. Success Formulas Are Locked-in Behaviorally and Structurally
        1. There are Several Ways Organizations Lock-in Behaviorally
          1. Rigid Adherence to an Historically Defined Market
          2. Sacred Cows
          3. “Not Invented Here” Mentality
          4. Rewarding Farmers While Punishing Explorers
          5. Hierarchy
          6. Financial Machinations
        2. Structurally, Organizations Have Several Lock-in Mechanisms
          1. Strategic Bias
          2. Correlating Decision Size with Strategic Value
          3. People Practices
          4. Architecture
          5. Best Practices
          6. Resource Allocation
      3. Understanding the Status Quo Police
        1. Lock-in Is Good in the Rapids
      4. The Really BIG Environmental Shift
    5. 4. The Dark Side of Success—Defend & Extend Management
      1. The Focus on Defend & Extend Management
      2. The Road to D&E Management Acceptance
      3. The Outcome of D&E Management
      4. The Lock-in Cycle
      5. The New Definition of Business Success
      6. Information Transparency Affects Everyone
  8. II. Reinventing Success
    1. Introduction: The Phoenix Principle for Managing in an Uncertain World
      1. There Is a Better Approach to Management
      2. Success Today Is About Keeping a Success Formula Evergreen—Rather Than Defending & Extending It
      3. Four Steps to Achieving Sustained Success in a Dynamic World
        1. Stop Defend & Extend Mentality and Behavior
        2. Attack Competitors’ Lock-in
        3. Implement Disruptions That Overturn Lock-in
        4. Implement White Space to Create a New Success Formula
      4. Organizations of Any Age or Size Can Utilize The Phoenix Principle to Achieve Breakthrough Performance
    2. 5. Don’t Defend & Extend
      1. Recognize the Problem
        1. Improving Organizational Performance Starts by Changing Lock-in
      2. Plan for the Future Rather Than the Past
        1. Break Down Barriers to Alternative Option Consideration
        2. Don’t Try to Think Outside the Box—Get Outside the Box, Then Think!
        3. Plan for What You Don’t Know Rather Than What You Do
      3. It’s Not Hard to Stop Defending & Extending if You Change Your Planning Approach
    3. 6. Attack Competitors’ Lock-in
      1. It’s Easier to See Problems in Others’ Success Formulas Than in Your Own
      2. Seek Out Alternative Competitive Tactics Rather Than Compete Head-to-Head
        1. Do Not Overlook the Obvious When Defining Competitor Success Formulas
      3. Look at How Competitors Define Their Business
      4. Identify Your Competitor’s Advantage and Do Something Else
      5. When Competitors Lock-in to Differentiating Features, Use Standards
      6. Stall Competitors Whenever Possible
    4. 7. Disruptions Are Key to Becoming a Phoenix Principle Organization
      1. Disruptions Enable Long-Term Superior Performance
      2. It’s Not Possible to Change a Success Formula Directly
      3. Disruptions Are Not Well Understood nor Taught
      4. Good Leaders Are Good Disruptors
        1. The CEO
          1. Metric Changer
          2. Investment Shifter
          3. Hierarchy Thwarter
          4. Sacred Cow Shooter
        2. Disruptions Are Not Limited to CEOs
          1. Disruptions Should Be Institutionalized
          2. Managers Can Make a Huge Impact
          3. Marketing Can Be Critical to Success
          4. IT Leaders Can Play a Critical Role
          5. HR Leaders Can Be Important Disruptors
      5. Avoiding Disruptions Creates Long-term Problems
      6. Disruptions Produce Anxiety But Are Necessary
    5. 8. Develop New Success Formulas via White Space
      1. White Space Is Where Success Formulas Evolve or Are Created Anew
      2. There Are Requirements for Effective White Space
        1. Permission
        2. Resources
      3. White Space Management Must Be Accountable for Results
      4. White Space Is Not the Wellspring
      5. Old Success Formulas Must Migrate Toward White Space
      6. Endnotes
    6. 9. Maintain The Phoenix Principle for Long-Term Success
      1. Practice Makes Perfect
      2. Phoenix Principle Companies Are Often Hard to Define Traditionally
      3. Phoenix Principle Companies Are Willing to Fail
      4. Disruptions Only Appear Painful
      5. Strategists Must Change Their Roles to Promote The Phoenix Principle
      6. Phoenix Principle Companies Help Customers Find and Use White Space
      7. The Phoenix Principle Isn’t Hard to Practice—It’s Just Different
      8. Now Is the Time to Implement The Phoenix Principle
  9. Epilogue: Phoenix Principle People
    1. You Are the Top of the Pyramid
    2. Do You Disrupt Your Lock-in and Use Personal White Space
    3. Applying Personal Disruptions and White Space to Work
    4. Organizations Can Help Develop Phoenix Principle People
    5. The Phoenix Principle Is Available to All of Us