the strategist be the leader Cynthia montgomery the strategist be the leader Cynthia montgomery the strategist be the leader Cynthia montgomery the strategist be the leader Cynthia montgomery the strategist be the leader Cynthia montgomery
THE STRATEGIST BE THE LEADER YOUR BUSINESS NEEDS Cynthia A Montgomery Dedication To Anneke, Mathea, and Nils That you may find places where you can make a difference that matters And to Bjørn, forevermore Epigraph In the end, it is important to remember that we cannot become what we need to be by remaining what we are —Max De Pree, CEO of Herman Miller, in Leadership Is an Art Contents Cover Title Page Dedication Epigraph Introduction - What I Learned in Office Hours Chapter 1 - Strategy and Leadership Chapter 2 - Are You a Strategist? Chapter 3 - The Myth of the Super-Manager Chapter 4 - Begin with Purpose Chapter 5 - Turn Purpose into Reality Chapter 6 - Own Your Strategy Chapter 7 - Keep It Vibrant Chapter 8 - The Essential Strategist Author’s Note Frequently Asked Questions Recommended Reading Notes Index Acknowledgments About the Author Credits Copyright About the Publisher Introduction What I Learned in Office Hours YOU’RE ABOUT TO get a revisionist view of strategy It’s not that what you’ve learned is incorrect It’s that it’s incomplete Strategy is a fundamental course at nearly every business school in the world I have been privileged to teach variations of it for more than thirty years—first at the University of Michigan, then at the Kellogg School at Northwestern, and for the last twenty-plus years at the Harvard Business School For most of that time I worked with MBA students, until the center of my teaching shifted to executive education It was this experience, particularly a five-year stint in Harvard’s Entrepreneur, Owner, President program (EOP), that inspired this book.1 Working intimately with leaders from nearly every industry and nation as they confronted their own real-world strategic issues changed not only how I teach strategy, but, more fundamentally, how I think about it The experience led me to challenge some of strategy’s basic precepts, and ultimately to question both the culture and mind-set that have grown up around it Even more important, teaching in EOP forced me to confront how strategy is really made in most businesses, and by whom All of this convinced me that it is time for a change Time to approach strategy in a different way and time to transform the process from a mechanical, analytical activity to something deeper, more meaningful, and far more rewarding for a leader THE ROAD TO HERE Fifty years ago strategy was taught as part of the general management curriculum in most business schools In the academy as well as in practice, it was identified as the most important duty of the president—the person with overarching responsibility for setting a company’s course and seeing the journey through This vital role encompassed both formulation and implementation: thinking and doing combined Although strategy had considerable depth then, it didn’t have much rigor Heuristically, managers used the ubiquitous SWOT model (Strengths, Weaknesses, Opportunities, and Threats) to assess their businesses and identify attractive competitive positions How best to that, though, was far from clear Other than making lists of various factors to consider, managers had few tools to help them make these judgments In the 1980s and ’90s, my colleague Michael E Porter broke important new ground in the field His watershed came in firming up the Opportunities and Threats side of the analysis by bringing muchneeded economic theory and empirical evidence to strategy’s underpinnings, providing a far more sophisticated way to assess a firm’s competitive environment This led to a revolution in both the practice and teaching of strategy In particular, managers came to understand the profound impact industry forces could have on the success of their businesses and how they could use that information to position their firms propitiously Advances over the next few decades not only refined the tools but spawned a whole new industry Strategy in many ways became the bailiwick of specialists—legions of MBAs and strategy consultants, armed with frameworks, techniques, and data—eager to help managers analyze their industries or position their firms for strategic advantage In truth, they had a lot to offer My own academic training and research in this period reflected this intellectual environment, and what I did in the classroom for many years thereafter was a living embodiment of this “new” field of strategy In time, though, a host of unintended consequences developed from what in its own right was a very good thing Most notably, strategy became more about formulation than implementation, and more about getting the analysis right at the outset than living with a strategy over time Equally problematic, the leader ’s unique role as arbiter and steward of strategy had been eclipsed While countless books have been written about strategy in the last thirty years, virtually nothing has been written about the strategist and what this vital role requires of the person who shoulders it It wasn’t until years into this shift that I fully realized what had happened It was classic Shakespeare: As a field, we had hoisted ourselves on our own petard We had demoted strategy from the top of the organization to a specialist function Chasing a new ideal, we had lost sight of the value of what we had—the richness of judgment, the continuity of purpose, the will to commit an organization to a particular path With all good intentions, we had backed strategy into a narrow corner and reduced it to a left-brain exercise In doing so, we lost much of its vitality and much of its connection to the day-to-day life of a company, and we lost sight of what it takes to lead the effort Teaching in the EOP program drove these insights home for me When I first started working with the group, I used a curriculum that was much like one I would use in any executive program Through a series of class discussions and presentations, we discussed the enduring principles of strategy, the frameworks that capture them, and a series of case studies that brought the concepts and tensions alive We still do that—and it’s a valuable part of what we do But in between class sessions, the EOP students—all accomplished executives and entrepreneurs— started to ask if they could meet me in my office to talk about various situations they were facing in their companies These conversations often took place at unusual hours, and sometimes lasted far into the evening Most started out predictably enough: We talked about the conditions in their industries, the strengths and weaknesses of their own companies, and their efforts to build or extend a competitive advantage Some discussions ended there, and a thoughtful application of whatever we’d been doing in class seemed to meet the need Often, though, these conversations took a different turn Alongside all the conventional questions were ones about what to do when the limits of analysis had been reached and the way forward was still not clear; questions about when to move away from an existing competitive advantage and when to try to stay the course; questions about reinventing a business or identifying a new purpose, a new reason to matter Even though many of the companies at issue were remarkably successful (one had grown from a start-up to $2 billion in revenue in just nine years), almost none had the kind of longrun sustainable competitive advantage that strategy books tout as the Holy Grail Working with these managers, typically over three years, and hearing the stories within the stories, I came to see that we cannot afford to think of strategy as something fixed, a problem that is solved and settled Strategy—the system of value creation that underlies a company’s competitive position and uniqueness—has to be embraced as something open, not something closed It is a system that evolves, moves, and changes In these late-night one-on-one conversations, I also saw something else: I saw the strategist, the human being, the leader I saw how responsible these executives feel for getting things right I saw how invested they are in these choices, and how much is at stake I saw the energy and commitment they bring to this endeavor I saw their confidential concerns, too: “Am I doing this job well? Am I providing the leadership my company needs?” And, more than anything, I saw in these conversations the tremendous potential these leaders hold in their hands, and the profound opportunity they have to make a difference in the life of a company In those moments together, we both came to understand that if their businesses were going to pull away from the pack, to create a difference that mattered, it had to start with them A NEW UNDERSTANDING In all our lives there are times of learning that transform us, that distance us from the familiar, and make us see it in new ways For me, the EOP experience was one of those times It not only changed some of my most central views about strategy; it gave me a new perspective on the strategist, and on the power and promise of that role In these pages I will share with you what I have learned In doing so, I hope that you will gain a new understanding about what strategy is, why it matters, and what you must do to lead the effort I also hope that you will come to see that beyond the analytics and insights of highly skilled advisors and the exhortations of “how-to” guides, there is a need for judgment, for continuity, for responsibility that rests squarely with you—as a leader Because this role rests with you, The Strategist is a personal call to action It reinstates an essential component of the strategy-making process that has been ignored for decades: You The leader The person who must live the questions that matter most That’s why my ultimate goal here is not to “teach strategy,” but to equip and inspire you to be a strategist, a leader whose time at the helm could have a profound effect on the fortunes of your organization Author’s Note The examples and stories in this book are based largely on five years’ teaching in one of the comprehensive executive programs at Harvard Business School In the pages of this book, I refer to this program as the Entrepreneurs, Owners, Presidents program (EOP), though the actual name of the program is different You can find more information about various executive programs the school offers at www.exed.hbs.edu In some cases, companies’ locations or certain details about them or individuals have been changed or composites of student experiences have been created so as not to violate the privacy of former students Where names of companies or individuals are disclosed, it is done with express permission, and the details in the accompanying discussions have been approved for release by the firms In some instances, I have presented cases in class in a different way than they are described here or used other cases than the ones in this book to make the same important points Chapter 1 Strategy and Leadership Does your company matter? That’s the most important question every business leader must answer If you closed its doors today, would your customers suffer any real loss?1 How long would it take, and how difficult would it be, for them to find another firm that could meet those needs as well as you did? Most likely, you don’t think about your company and what it does in quite this way Even if you’ve hired strategy consultants, or spent weeks developing a strategic plan, the question probably still gives you pause If it does or if you’re not sure how to respond, you’re not alone I know this because I’ve spent the better part of my life working with leaders on their business strategies Again and again, I’ve seen them struggle to explain why their companies truly matter It’s a difficult question Can you answer it? If you cannot, or if you’re uncertain of your answer, join me as I explore this question with a group of executives now gathering It is evening on the campus of the Harvard Business School The kickoff orientation to the Entrepreneur, Owner, President program (“EOP” for short), one of the flagship executive programs at the school, is about to begin Along with five of my fellow faculty, I sit in the “sky deck,” the last and highest row of seats, in Aldrich 112, an amphitheater-style classroom characteristic of the school, and watch as the newest group of executives stream into the room I see that there are considerably more men than women, and that the majority appear to be in their late thirties to mid-forties Most exude an air of seasoned self-confidence That’s no surprise—they’re all owners, CEOs, or COOs of privately held companies with annual revenues of $10 million to $2 billion—the kind of small- to medium-size enterprises that drive much of the global economy Most arrived on campus within the last few hours and have had just enough time to find their dorm rooms and meet the members of their living groups before heading here to Aldrich The information they provided in their applications tells part of their stories: Richard, a thirdgeneration U.S steel fabricator; Drazen, CEO of a media firm in Croatia; Anna, founder and head of one of the largest private equity groups in South America; and Praveen, the scion of a family conglomerate in India But this is just a taste of their diversity and accomplishments The richer details and the breadth of the class will emerge in the weeks ahead As the clock ticks past the hour, some last-minute arrivals burst through the door They are typical first-time EOPers in their lack of concern about being late Most of these people hail from worlds where meetings don’t start until they arrive That will change in the coming days, as they make the adjustment from the top-of-the-line leather chairs in their offices back home to the standard-issue return to Apple, 119, 130–31 revival and recreation of Apple, 124–31 Sculley removes from Apple, 116 K Kamprad, Ingvar, 39–46, 54, 138, 146 “A Furniture Dealer ’s Testament,” 46 philosophy of, 41–42 statement of purpose, 45–46 Kay’s Kloset, 90 Kohl, Jerry, 88, 138 L Lance! Sports Group, 96–97, 106–7 strategy statement, 101–2 leadership See also strategist being a “Man of Action,” 136 CEO as “guardian of organizational purpose,” 143, 173n 17 commitment and passion in, 135 communication and, 142, 143 companies that lack leaders as strategists, 147–48 corporate rebirth or renewal and, 140–41 developing a system of strategy and, 141–43, 156, 157 EOP program and new understanding of, 144 executing strategy and, 136 facing and interpreting economic reality and, 142–43 fighting the status quo, 135–36 fire starting and, 134–36, 142 flexability, adaptability and, 139 four basic questions confronted by, 133–34 frequency of strategy review, 158 getting a team on board, 141–43, 156, 157 maintaining strategic momentum and, 138–41 Mary Oliver poem and, 146, 147 meaning of what a leader does, 146–47 motivation, 136 openness to new ideas, 134, 139 prioritizing time and activities, 135 recommended reading, 161 setting a course for a company and choices, 136–38 strategist as leader, 12–14, 133–48 strategy as a way of life and, 143–47, 174n 18 Zen story and, 134 Louis Vuitton company, 64, 66, 71 low-cost producers, 154–55 Ludlow, 25 LVMH (Louis Vuitton Moët Hennessy), 75 M Manoogian, Alex, 16–17 Manoogian, Richard, 15–22, 35, 39, 120, 142 Marchese, Eugene, 83 Marchese Partners, 83 Masco Corporation, 15–22, 31, 32, 120 about the company, 16–17, 165n 2 acquisitions of furniture companies, 20 competitive advantage in faucets, 34 exiting furniture business, 22 expansion of business into furniture decision, 16 failure of expansion, 21–22, 24 failure to consider industry forces, 17–20, 29, 40 myth of the super-manager and, 23–24, 33–36 purpose in furniture lacking, 46 strategic plan for expansion and, 32–35 successful brands, 17 “Masco Fiasco, The” (Financial World), 35 McGahan, A.M., 166n 4 McKee, Robert, 42 Mead, 25 Mello, Dawn, 63, 64 Mengel Company, 24–25, 32 Microsoft, 74, 113, 120, 126, 128, 131 Windows, 118, 119 mission statement, 153 Moltke, Helmuth von, 138 music industry, 126 See also Apple N Nalebuff, Barry, 165n 1; 168n 16, 17, 20; 174n 22 Napoleon Bonaparte, 142 National Semiconductor, 118–19 Nike, 110 statement of purpose, 84 nonprofits, 151 Nozick, Robert, 145, 146 Nussbaum, Martha, 139 O Oliver, Mary, 146, 147 P pharmaceutical industry How Firms Differ: Firm Effects in Four Different Industries, 48 Piceu, Geoff, 82–83 Pinault, Franỗois, 76 Pixar, 123 Disney and, 123 IPO, 123 Jobs and, 123, 124, 126 strategy statement of, 105 Toy Story and, 123 Plutarch, 127 Polaroid, 129 Porter, Michael E., 2, 27-28, 50, 5960, 159, 160, 161, 165n 1; 166n 3,4,5,6,7; 167n 12; 170n 36, 42 Productivity Frontier, 59–60, 168n 4 three generic strategies and, 154–55 “Portrait Project,” Harvard Business School, 146 PPR (Pinault Printemps Redoute), 75–76 Procter & Gamble, 84 profit frontier, 59–60, 60 best in class and, 60, 168n 16 purpose, 49–56 AmREIT, purpose as steering strategy, 85–87, 86, 87 articulation of, basic questions to answer, 99 BP’s definition of, 87 care and commitment to a business and, 50 CEO as “guardian of organizational purpose,” 143, 173n 17 choices that involve trade-offs and, 50–51, 67, 73–74, 103 clarity of, 83–84, 103 competitive advantage and, 4, 46–47 as core organizing principle, 52, 121 difference of business vs others, 34, 56 differentiation and, 4, 39, 51–52, 85, 133 differentiation that matters and, 53, 54, 155 “does your company matter” question, 7, 40, 56, 103, 121, 127, 133 effective purposes, 49–52 elements of, 46 as ennobling, 49–50 evolution and change of, 121–22, 134 examples of good statements, 84 existentialism and, 137–38 firm effect and, 49 “going back to the core,” 69 Gucci and, 64–66 identifying, 11 identifying valuable firm resources and, 161–62 “identity-conferring commitments and,” 73 IKEA and, 45–46, 49, 53, 57 implementing, 57–78, 80, 80–81, 96 (see also strategy wheel) importance of, 138 Ink for Less, 93 meaningful life and, 145–46 nonprofits and, 151 out of sync with industry forces problem, 121 putting a stake in the ground with, 50–51 refining and clarifying, 87–88 reinventing, 4 Sartre’s “possibility of choice” and, 137–38 serving an unmet need and, 47, 49 slogan that captures, 85, 87 staying with original, 4 strategy and clear statement of, 33 strategy wheel and, 73, 92, 96 success as result of a compelling purpose, 156 Theseus’s boat as metaphor for changing, 127, 130 value creation and, 52–55 vision or mission statement vs., 153 writing down, 81, 87, 99 R Relative Industry Profitability: 1990–2010 graph, 26 Reynolds American, 47 RHR International, 142 Rilke, Rainer Maria, 174n 18 Rivkin, Jan W., 154, 160, 168n 19 Rockwell International, 118 Rukstad, Michael G., 170n 1 Ryanair, 47 S Saporito, Thomas, 142, 157 Sartre, Jean-Paul, 137, 146 scarcity, role of, 74, 133 as “economic moat,” 74 Schumpeter, Joseph, 119, 127, 129, 135, 136, 138, 173n 5 Scott Paper, 25 Sculley, John, 115–16, 117 Sloan, Alfred, 129 soft drink industry How Firms Differ: Firm Effects in Four Different Industries, 48 Sony, 126 Southwest Airlines, 47 strategy of, 31 Spindler, Michael, 117–18 Starbucks, 31 strategy of, 31 strategist, 3 adapting to change, 107, 110–11, 130, 131–32, 134, 139–40 (see also Jobs, Steve) adapting to change, recommended reading, 162 building stategic skills, 81 companies that lack leaders as strategists, 147–48 corporate rebirth or renewal and, 140–41 daily decisions and, 11 “does your company matter” question, 7 economic factors to consider, 28–29 economic forces, predetermination of industry conditions as, 29–30, 36–37 economic forces, understanding of, 27–30 effect on lower tiers in company, 11 exercise, applying tools of strategy to one’s own business, 79–107, 170n 1 firm effect and, 47 four basic questions confronted by, 133–34 the future as concern of, 134 “identity-conferring commitments and,” 73 implementing strategic thinking, 80, 80 as key to company, 4 leadership and role of, 3–4, 5, 12–14, 133–48 (see also leadership) lessons from Apple’s experience, 119–22 number-one job of setting an agenda and implementing strategy, 77 on-going role in implementation of strategy, 109 overconfidence and myth of the super-manager, 23–24, 35 power of realism and, 36–37 purpose and, 56, 78, 80–81 role to make a business matter, 56 Steve Jobs as, 110–31 test of strategic thinking, 15–22 “what does it take for the company to endure?” and, 111 strategy Brighton Collectibles and, 88–92 change, not stasis, and, 129, 131–32 choices, unanticipated, 109 choices that involve trade-offs and, 50–51, 131, 167n 12 clear choices and, 103 clearly defined, 81–82 as a company’s campaign in the marketplace, 10 competitive advantage and, 47 confronting problems and, 103–4 costs of unclear strategies, 81–82 customer identification and, 88 defining moment, 24 as democratic process, 157 developing, duration of process, 157 developing, steps in, 156 differentiation and, 47 discovering where the company is now and, 65 “does your company matter” question and, 103 as duty of company leader, 2, 3, 5, 12 (see also strategist) as dynamic, 13, 131–32 EOP program and, 4, 10–11 evolution and change, Apple and, 110–31 evolution and change in, 110–11 exercise, applying tools of strategy to one’s own business, 79–107, 170n 1 formulation vs implementation, 3 frequency of review, 158 generic good practices and, 78 as group effort, 141–43 Gucci, De Sole, and, 57–78 Gucci’s and redefined purpose, 70–72 hallmarks of great strategies, 103 Ink for Less and, 93–95 intangibles as particularly valuable, 75 internal working steps of, 97 as job of specialists, 2–3, 13 as a journey not a destination, 13 management and, 76–77 Masco Corporation example, 16–22, 32–35 metrics (data) over intuition and, 66, 85–86, 95–97, 103, 142–43 mystery inherent in, 109–10 new perception of, 1, 2 Nussbaum’s “fragile integrity” and, 139 old view of: as long-run, sustainable competitive advantage, 47, 111, 129, 130 as organic, 4, 130 origins of word, 10 passion and, 103, 135 picking a winning playing field, 31 (see also industry forces) Porter ’s innovations, 2 Porter ’s three generic, 154–55 positioning and, 47 purpose, clarity needed in, 4, 78, 103 purpose, reinventing and changing the company, 4, 64–66 purpose, starting with statement of, 83–88 recommended reading, 160–61 role of scarcity, 74, 133 serving an unmet need and, 47, 49 statement of, 97–102 stay the course or move away, 4, 131 Strategy and Added Value chart, 53, 168n 16 strategy wheel: Brighton Collectibles, 92 strategy wheel: Gucci, 73 SWOT model, 2, 152, 152 team support for, 141–43, 156, 157 as traditionally taught, 1–2 value creation and, 4, 49, 72–77, 73, 78, 88–91, 103, 130, 139, 155 as way of life, 144, 174n 18 World War I generals, 33 writing down, 81, 109 (see also strategy statement; strategy wheel) strategy statement, 97–102 articulation of company’s purpose and, 99 Doctors Without Borders, 98–99 Economist magazine, 98 Four Seasons Resorts, 97–98, 99 Lance! Sports Group, 101–2 mistakes in creating, 105 as public document, 157–58 qualities of, 100–101, 101 strategy wheel, 92–93 Brighton Collectibles, 92 format, 91 Gucci, 73 implementing purpose and, 74 Ink for Less, 93–94, 106 as internal company document only, 158 Lance! Sports Group, 96, 107 purpose at center, 73 reality check for, 95–97 unique to specific business, 92 “Style Wars” (Time), 69 “Summer Day, The” (Oliver), 147 super-manager myth, 23–24, 29–30, 36 Apple and, 116–19 economic forces and, 27, 30–31 Masco Corporation and, 23–24, 33–38 Mengel Company and, 24–25 military equivalent, 33 why it lives on, 31–32 Stuart, H.W., 168n 16 suppliers Apple and, 121 availability of substitute products, 28 computers, two suppliers dominate, 120 “does your business matter” question and, 56 furniture industry, 29 Gucci and, 67–68, 71, 73, 75 IKEA and, 42–43, 55 Ink for Less and, 94 Porter on, 27 power of, analyzing, 28 Strategy and Added Value chart, 53, 53 willingness to supply and value creation, 54, 54, 55 Swanson, Rick, 69 Swedberg, Richard, 135, 136, 173n 3, , 1615 SWOT (Strengths, Weaknesses, Opportunities, and Threats) model, 2, 152, 152 T Taylor, H Kerr, 85–87, 104, 140, 143 teams AmREIT and implementing management strategies, 86, 143 analyzing industry and, 153 Gucci, rallying team to support purpose, 66, 142–43 on board with leader ’s strategy, 62, 141–43 developing strategy and, 81, 156, 157 Theseus’s boat story, 127, 130, 139–40 Tilles, Seymour, 136–37 tobacco industry average profitability of, 26 firm effect, 47 How Firms Differ: Firm Effects in Four Different Industries, 48 Tognazzini, Bruce, 115 Torekull, Bertil, 40 Toyota, 110 Twain, Mark, 100 U United Paint and Chemical, 82–83 V Valentine, Don, 111 value creation, 4, 49, 52–55 BMW and, 55 Brighton Collectibles and, 91, 92 De Sole and Gucci, 58 developing a system of, 88–91 Disney, 55 Gucci’s strategy and, 72–77, 73 how to do it, 55 IKEA and, 52, 55 Ink for Less and, 93–95 intangibles and, 75 as priority for a business, 155–56 purpose and linkage with, 96 “the secret sauce,” 90 Strategy and Added Value chart, 53, 168n 16 strategy and, 4, 49, 72–77, 73, 78, 88–91, 103, 130, 139, 155 strategy wheel and, 91, 91–93 unique to specific business, 92 Value Creation: Expanding the Pie, 54 Wal-Mart, 54 vision statement, 153 IKEA, 51–52 W Wal-Mart, 74 value creation and, 54 Walton, Sam, 54 Welch, Jack, 30, 31, 36 Wilde, Oscar, 109 World War I, 33 Wozniak, Steve, 111, 112, 121–22 Y Yoffie, David, vi, 168n 1, 3; 169n 10,12,18, 19, 34; 170–71n 1; 171n 22 Young, Laura, 88, 138 Z Zen story (openness to new ideas), 134 Acknowledgments A CLOSING LINE FROM Huckleberry Finn often came to mind as I worked on this manuscript: “If I’d a knowed what a trouble it was to make a book I wouldn’t a tackled it.” Looking back on the process from this side of the finish line, I’m more impressed by the communal aspect of the project, and the good people it has brought my way I am grateful for financial support from the Division of Research at Harvard Business School, and for permission from Harvard Business Review to use parts of an article I had previously published there I am grateful, too, for the opportunity to work with Lynda Applegate, Jackie Baugher, and Kathleen Mara in Executive Education; Cathyjean Gustafson in Morgan Hall; Imelda Dundas in Faculty Development; and Chris Allen and others at the Baker Library One of my most rewarding collaborations was with Sharon Johnson and David Kiron as we batted around early ideas for the book My colleague David Yoffie’s cases on Gucci and Apple are mainstays in my executive education courses and jumping off points for two chapters in this book More generally, the intellectual community at HBS and in particular in the Strategy group has had an enormous influence on how I see the world and what I teach Once the book was under way, a whole new community emerged: Jim Levine, who showed me the many ways good literary agencies create value; my editor at HarperCollins, Hollis Heimbouch, whose judgment I counted on; Charles Burke, whose adept way with words bettered many rough paragraphs; and Karen Blumenthal, Kent Lineback, Susanna Margolis, and Lisa Baker who helped with various drafts of the proposal and manuscript It has been a privilege to work with the business owners and managers from around the world who inspired this book and made me see how much they as strategists add to their businesses I thank them for sharing their stories and encouraging me to share mine On the home front, I thank my husband, Birger, who kept the candles burning when the lights went out About the Author CYNTHIA A MONTGOMERY is the Timken Professor of Business Administration and immediate former head of the Strategy Unit at Harvard Business School, where she’s taught for twenty years For the past six years, she has led the strategy track in the school’s highly regarded executive program for owner-managers, attend by business leaders of midsized companies from around the globe She has received the Greenhill Award for her outstanding contributions to the Harward Business School’s core MBA strategy course Montgomery is a top-selling Harvard Business Review author, and her work has appeared in the Financial Times, American Economic Review, Rand Journal of Economics, Strategic Management Journal, Management Science, and others She has served on the boards of directors of two Fortune 500 companies and a number of mutual funds managed by BlackRock, Inc Visit www.AuthorTracker.com for exclusive information on your favorite HarperCollins authors Credits COVER ILLUSTRATION © ARCHMAN/SHUTTERSTOCK COVER DESIGN BY ROBIN BILARDELLO Copyright THE STRATEGIST Copyright © 2012 by Cynthia A Montgomery.All rights reserved under International and Pan-American Copyright Conventions By payment of the required fees, you have been granted the nonexclusive, nontransferable right to access and read the text of this e-book on-screen No part of this text may be reproduced, transmitted, downloaded, decompiled, reverse-engineered, or stored in or introduced into any information storage and retrieval system, in any form or by any means, whether electronic or mechanical, now known or hereinafter invented, without the express written permission of HarperCollins e-books “The Summer Day” by Mary Oliver, published by Beacon Press Boston © 1990 by Mary Oliver, reprinted by permission of The Charlotte Sheedy Literary Agency Inc Tottering-by-Gently cartoon, © Annie Tempest at The O’Shea Gallery, London LIC Textbook cartoon © Danny Shanahan, The New Yorker Collection, www.cartoonbank.com “Putting Leadership Back into Strategy,” by Cynthia A Montgomery, Harvard Business Review, January 2008, is used by permission of the Harvard Business Review FIRST EDITION Library of Congress Cataloging-in-Publication Data has been applied for ISBN: 978-0-06-207101-9 12 13 14 15 16 ov/qw 10 EPub Edition © MAY 2012 ISBN: 9780062071002 About the Publisher Australia HarperCollins Publishers (Australia) Pty Ltd 25 Ryde Road (P.O Box 321) Pymble, NSW 2073, Australia http://www.harpercollins.com.au Canada HarperCollins Canada 2 Bloor Street East - 20th Floor Toronto, ON, M4W, 1A8, Canada http://www.harpercollins.ca New Zealand HarperCollins Publishers (New Zealand) Limited P.O Box 1 Auckland, New Zealand http://www.harpercollins.co.nz United Kingdom HarperCollins Publishers Ltd 77-85 Fulham Palace Road London, W6 8JB, UK http://www.harpercollins.co.uk United States HarperCollins Publishers Inc 10 East 53rd Street New York, NY 10022 http://www.harpercollins.com ... where meetings don’t start until they arrive That will change in the coming days, as they make the adjustment from the top-of -the- line leather chairs in their offices back home to the standard-issue seats that line the classrooms... happens, I’ve always liked the metaphor of a dance taking place in a great hall.Most dancers spend all their time on the dance floor, moved by the music, jostled by dancers around them, completely absorbed in the flow But it’s not until they extricate themselves from the crowd and move to the. .. takes many days and, in the end, the class votes on a winner, what they consider the “best strategy” in the group This step from the general to the highly particular, from the objective to the subjective,