2. Logics of value creation Change
Unpredictable world Action Plan
Agile organization Conclusion
Active inertia
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3. Value through superior position
Value through superior resources
Value by seizing fleeting opportunities
3
4. Identify an attractive market
Establish a secure position
Erect defenses to prevent competitors
4
5. Specialized factories or prime real estate
Brand
Technology
Knowledge possessed by an organization
5
6. Identifying a gap in the market
Inherently uncertain
Novel combination of resources that
satisfies an unmet market need
New resources combinations are also
fleeting
6
7. Competitive environments
Rapid and unforeseen changes in multiple
factors
Global integration
Technological change
Managers must act with low visibility into
the future
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11. Executives cling to strategic formulas that
brought success in the past
Past strategic frames become blinders
Processes harden into routines
Relationships become shackles
Values turn into dogmas
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12. Make revisions Make sense
• Compare initial
• Develop a shared
estimates with
mental map of a
actual ,make mid
turbulent situation
course corrections
Make it happen Make choices
• Agree on clear
• Ensure people
priorities, resource
make good on their
allocation and
commitments
action
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13. Routinely introduce new revenue streams
Introduce a new service in response to a
competitor in three months or less
Plan for strategically cannibalizing existing
revenues with new offerings
Core team learn where to create disruption
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14. Use disruption for competitive advantage
Leaders lead with organizational kinetic
energy
Use organization structure as a flexible
device to adjust to and drive new strategies
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15. Organizations do not have a lifecycle
Opportunities have a lifecycle
Organization
Takes on a lifecycle when they tie their future to a
single set of opportunities
Avoids the lifecycle by being willing to use their core
competencies to handle multiple opportunities
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16. Luck and the right circumstances have a
greater impact on company success than the
well-laid plans of executives or their foresight
Companies that are prepared are the ones
who can take advantage of their luck
Recognize the limitations of linear planning
and move into iterative management
Key is never to lose hope as a leader
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