Preface xi Acknowledgments xvii Chapter 1 Overview 1 Strategy and Strategic Business Transformation 2 Why Another Book on Strategy? 4 If Dinosaurs Had Strategy Tools, Would They Have Survived? 5 Predicting Market Transformation 7 What is Strategic Business Transformation? 12 Importance of the Transformation Effect 15 Markets in Transformation are Re-creating Themselves 16 Summary and Observations 17 Notes 17 Chapter 2 Strategic Business Transformation: Seven Sins to Overcome 19 Ignoring the New Principles of Business Transformation 22 Driving without a Cause 23 Missing Market Momentum 24 Ignoring the Two Orders of Value 24 Overlooking Transformational Servant Leadership 26 Mistaking Capability for Strategic Competence 27 Expecting Flawless Execution without a Performance Platform 28 Seven Sins as a Framework for Strategic Business Transformation 29 Summary and Observations 29 Notes 30 Chapter 3 Sin #1: Ignoring the New Principles of Business Transformation 33 Aligning Transformational Leadership with Corporate Strategy 34 Gaining Integrated Strategic Insight with Transformational Leadership 36 Linking Strategic Insight with Servant Leadership 43 Summary and Observations 45 Notes 45 Chapter 4 Sin #2: Driving without a Cause 47 Transformation Needs Momentum, Not Movement 48 Death of Mission; Birth of Cause 49 Where Do Causes Come From? 53 Can an Organization Transform Markets without a Cause? 54 Summary and Observations 55 Notes 56 Chapter 5 Sin #3: Missing Market Momentum 57 Why is Momentum in Markets Important? 58 Measuring Momentum of Markets and Companies 58 What is Strategic Business Momentum? 59 New Customers in Old Clothing 67 Summary and Observations 72 Notes 73 Chapter 6 Sin #4: Ignoring the Two Orders of Value 75 Low-Order Value 78 Symbolic Value Propositions 81 Summary and Observations 83 Notes 84 Chapter 7 Sin #5: Overlooking Transformational Servant Leadership 85 Increasing Our Choices of Transformational Leaders 88 The Era of the Transformational Leader 90 What is Transformational Servant Leadership? 94 Are Transformational Servant Leaders Born or Made? 103 Conditions That Bring Out Transformational Servant Leaders 105 Diary of a Transformational Servant Leader 115 Summary and Observations 117 Notes 118 Chapter 8 Sin #6: Mistaking Capability for Strategic Competency 119 Strategy as a Portfolio of Competencies 120 Identifying, Isolating, and Enabling Core Competencies 120 Difference between Recipe (Competency) and Ingredient (Capability) 122 Finding the Positive “Aftertaste” for Customers 123 Key Capabilities for Transforming Markets 125 Summary and Observations 142 Notes 143 Chapter 9 Sin #7: Expecting Flawless Execution without a Performance Platform 145 Two Elements of a Performance Platform 146 Four Dimensions of Corporate Performance Management 146 Educating the Enterprise about Transformation with an Eye to the Dominant Subsystem 149 Understanding the Organizational Dominant Subsystem Demands Observations 151 People Subsystem 152 Technology Subsystem 157 Process Subsystem 158 Basics of Business Intelligence 159 Summary and Observations 177 Notes 180 Chapter 10 Tales of Transformation 183 TriQuint Semiconductor 183 Starbucks 184 Southwest Airlines 186 Les Schwab Tires 189 Markets in Transformation or Ready for Transformation 191 Notes 196 Glossary 199 Suggested Reading 205 About the Author 209 Index 211

When markets transform, companies caught unprepared are left behind. But those who recognize that change is in the air, who are prepared for market shifts, not only prevail but soar to new competitive heights. Focusing on the “Seven Deadly Sins” you must avoid in business in order to survive and thrive during market fluctuations, Strategic Business Transformation shows you how to anticipate, understand, and ride on top of transformative market waves. Sharing his extensive strategic advisory experience, author Mohan Nair lays out a framework for understanding and withstanding business transformation, especially when your traditional anchors have become incompatible with the new market waves forming. In Strategic Business Transformation, you’ll discover the new principles of transformation; find your core purpose; refine your understanding of the momentum of the new markets; develop a value proposition that attracts the target customers; build or buy or ally with competencies that produce this value proposition consistently; and form a performance platform so that you can produce this product or service every time, all the time. Showcasing the traits and insights that many companies and leaders have displayed during market transformation, marketing thought leader Nair delves deeply into the art and science of strategic business transformation to help you anticipate transformation in markets and build your business for advantage ahead of time. You’ll also discover that true business transformation is only possible when your corporation is motivated by a greater cause or social issue that will, in turn, inspire your workforce. Through the use of Nair’s insights, strategies, and real-world examples, Strategic Business Transformation shows you how to navigate structurally transforming markets by avoiding the “Seven Deadly Sins” in business: Ignoring the new principles of business transformation Driving without a cause Missing market momentum Ignoring the two orders of valueOverlooking transformational servant leadership Mistaking capability for strategic competence Expecting flawless execution without a performance platform Strategic Business Transformation also examines why a cause greater than the whole propels organizations to generate transformation beyond the speed of lofty, purposeless, or narcissistic goals. Prepare for market shifts before it’s too late. Strategic Business Transformation shows you how to design a business framework that will not only withstand changes in the market, but will also give you the edge to make the competition irrelevant.