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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, ILSome 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 mess-and how to get out of itThe myth of perpetuity and the dark side of successReinventing success: no more Defend and ExtendCreating your new Success Formulas and keeping them competitively advantagedWhy "thinking outside the box" doesn't workFirst, get outside the box. Then, think!Maintaining "The Phoenix Principle" for long-term successPracticing Disruption until it comes naturally
Contents
Fo> About the Author xviiiPreface xixPart I Understanding How We Got Into This Mess 1Introduction Overcoming Schumpeter 3Who Is Schumpeter, and What Did He Say? 3What Is Business Success, and What Creates It? 5The Sad Tale of AM 6AM Is Not Alone 10Chapter 1 The Myth of Perpetuity and Lifecycle Realities 17The "S" Curve Theory of Business Lifecycle 17The Myth of Perpetuity 19We Keep Repeating the Same Cycle 32Chapter 2 The Value and Power of Success Formulas 35Companies Rise in the Rapids on the Strength of Their Success Formulas 35Strategies and Tactics Come from Identity 39Winners Create Success Formulas in the Rapids 40Vertical Success Formula Alignment Leads to Great Results 42Success Formulas Are Very Good Things-and Define Success 45Chapter 3 The Power of Lock-in 47Businesses Use Lock-in to Implement Their Success Formulas 47Success Formulas Are Locked-in Behaviorally and Structurally 51Understanding the Status Quo Police 63The Really BIG Environmental Shift 68Chapter 4 The Dark Side of Success-Defend & Extend Management 71The Focus on Defend & Extend Management 74The Road to D&E Management Acceptance 77The Outcome of D&E Management 83The Lock-in Cycle 86The New Definition of Business Success 93Information Transparency Affects Everyone 95Part II Reinventing Success 97Introduction The Phoenix Principle for Managing in an Uncertain World 99There Is a Better Approach to Management 99Success Today Is About Keeping a Success Formula Evergreen-Rather Than Defending & Extending It 101Four Steps to Achieving Sustained Success in a Dynamic World 104Organizations of Any Age or Size Can Utilize The Phoenix Principle to Achieve Breakthrough Performance 106Chapter 5 Don't Defend and Extend 111Recognize the Problem 111Plan for the Future Rather Than the Past 114It's Not Hard to Stop Defending & Extending if You Change Your Planning Approach 129Chapter 6 Attack Competitors' Lock-in 131It's Easier to See Problems in Others' Success Formulas Than in Your Own 131Seek Out Alternative Competitive Tactics Rather Than Compete Head-to-Head 134Look at How Competitors Define Their Business 138Identify Your Competitor's Advantage and Do Something Else 140When Competitors Lock-in to Differentiating Features, Use Standards 143Stall Competitors Whenever Possible 147Chapter 7 Disruptions Are Key to Becoming a Phoenix Principle Organization 151Disruptions Enable Long-Term Superior Performance 151It's Not Possible to Change a Success Formula Directly 153Disruptions Are Not Well Understood nor Taught 153Good Leaders Are Good Disruptors 157Avoiding Disruptions Creates Long-term Problems 166Disruptions Produce Anxiety But Are Necessary 168Chapter 8 Develop New Success Formulas via White Space 171Develop New Success Formulas via White Space 171White Space Is Where Success Formulas Evolve or Are Created Anew 171There Are Requirements for Effective White Space 176White Space Management Must Be Accountable for Results 185White Space Is Not the Wellspring 186Old Success Formulas Must Migrate Toward White Space 189Endnotes 192Chapter 9 Maintain the Phoenix Principle for Long-Term Success 193Practice Makes Perfect 193Phoenix Principle Companies Are Often Hard to Define Traditionally 194Phoenix Principle Companies Are Willing to Fail 196Disruptions Only Appear Painful 197Strategists Must Change Their Roles to Promote The Phoenix Principle 199Phoenix Principle Companies Help Customers Find and Use White Space 202The Phoenix Principle Isn't Hard to Practice-It's Just Different 205Now Is the Time to Implement The Phoenix Principle 206Epilogue Phoenix Principle People 209You Are the Top of the Pyramid 211Do You Disrupt Your Lock-in and Use Personal White Space 214Applying Personal Disruptions and White Space to Work 219Organizations Can Help Develop Phoenix Principle People 221The Phoenix Principle Is Available to All of Us 222Index 223
