PALEY Business & Management Harnessing the power of technology is one of the key measures of effective leadership Leadership Strategies in the Age of Big Data, Algorithms, and Analytics will help leaders think and act like strategists to maintain a leading-edge competitive advantage Written by a leading expert in the field, this book provides new insights on how to successfully transition companies by aligning an organization’s culture to accept the benefits of digital technology After reading this book, you will be able to • Develop a human interface with employees to make digital tools work to the full benefit of the organization • Apply big data to target market segments, which results in more precisely tailored products and services • Utilize data analytics to maneuver successfully against aggressive competitors • Align your leadership style, corporate culture, and competitive strategies with digital age tools The author emphasizes the importance of creating a team spirit with employees to embrace the digital age and develop strategic business plans that pinpoint new markets for growth, strengthen customer relationships, and develop competitive strategies Understanding how to deal with inconsistencies when facts generated by data analytics disagree with your own experience, intuition, and knowledge of the competitive situation is key to successful leadership K29007 ISBN-13: 978-1-4987-6414-8 90000 781498 764148 Leadership Strategies in the Age of Big Data, Algorithms, and Analytics Leadership Strategies in the Age of Big Data, Algorithms, and Analytics Leadership Strategies in the Age of Big Data, Algorithms, and Analytics Norton Paley Leadership Strategies in the Age of Big Data, Algorithms, and Analytics Leadership Strategies in the Age of Big Data, Algorithms, and Analytics NORTON PALEY CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2017 by Norton Paley CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S Government works Printed on acid-free paper Version Date: 20170127 International Standard Book Number-13: 978-1-4987-6414-8 (Hardback) This book contains information obtained from authentic and highly regarded sources Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint Except as permitted under U.S Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or 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FL : CRC Press, 2017 Identifiers: LCCN 2016035603 | ISBN 9781498764148 (hardback : alk paper) Subjects: LCSH: Strategic planning | Leadership | Management Statistical methods | Big data Classification: LCC HD30.28 P2853 2017 | DDC 658.4/092 dc23 LC record available at https://lccn.loc.gov/2016035603 Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com To the next generation: Zeke, Natalia, Isaiah Contents Introduction xv Section I Digital Technology Chapter Developing Effective Leadership: The Human Interface with Big Data, Algorithms, and Analytics Leading Your Staff and Organization for the Digital Age .7 Digital Technology Competitive Strategy Corporate Culture 10 Organizational Structure .11 Physical 11 Psychological 13 Strategic Business Plan 15 Characteristics of a Successful Leader 17 Levels of Leadership .18 Direct Leadership .18 Organizational Leadership .19 Strategic Leadership 19 Chapter Integrating Business Intelligence and Security with Competitive Strategy 23 Managing Business Intelligence 24 Managing Data Security 26 The People Part of Intelligence 28 Unintentional Agents 29 Competitors’ Agents 30 Double Agents 30 Broadcasting Agents .31 Credible Agents .31 vii viii • Contents Where Your Data Resides 32 Customers 33 Intermediaries 34 Competitors 34 Government/Environment 35 Internal Sources 36 Where Your Data Applies 36 Internal Planning 37 Organizational Procedures and Processes 38 Competitive Strategy 39 Competitive Problems 39 Competitor’s Performance 40 Your Company’s Performance 40 Chapter Neutralizing a Competitor and Creating a Competitive Advantage 43 Neutralizing a Competitor .49 Weaken the Rival 49 Prepare Successive Campaigns 51 Reduce the Competitor’s Effectiveness 52 Make the Campaign Costlier for the Rival 54 Wear Down the Competitor 54 Neutralization Plan 57 Section II Competitive Strategy Chapter Apply Analytics to Concentrate at Decisive Points 63 Origins of Strategy 64 Strategy Applications 68 Concentration 68 Guidelines to Developing and Monitoring Concentration 70 What Lessons Emerge from the Alibaba Case? 72 Strategy Applications for the Small and Midsize Organizations .73 Step 1: Establish a Vision .74 Step 2: Select, Monitor, and Concentrate 75 Contents • ix Step 3: Sustain Innovation 75 Step 4: Deliver Growth 80 Chapter Initiate Speed to Maintain a Digital Advantage 83 Market, Competitive, and Corporate Conditions Related to Speed 85 Implementing Speed 88 Align Big Data with the Corporate Culture 88 Require Managers at All Levels to Submit Proposals Based on Data Analytics 89 Reduce the Chain of Command and Increase the Speed of Communications 89 Maintain Reliable Market Intelligence 90 Uphold Your Indispensable Role as a Leader 90 Barriers to Speed 91 No Confidence by Employees in Their Leader’s Ability to Make Accurate Decisions 93 Ineffectual Support from Senior Management 94 Confrontations among Line Managers about Objectives, Priorities, and Strategies .94 A Highly Conservative and Plodding Corporate Culture Places a Drag on Speed 95 Lack of Urgency in Developing New Products to Deal with Short Product Life Cycles 95 Fear of Hardline Competitors Can Damage Morale and Suspend Plans 96 Millennials of the Digital Age 96 Maslow’s Hierarchy of Needs 97 Herzberg’s Motivation-Hygiene Theory 98 McGregor’s XY Theory 98 Speed: A Core Rule of Strategy 101 Chapter Activate Indirect Maneuver to Create Surprise 103 Emotions 107 Anxiety 109 Frustration 109 Stress .110 Fear .110 Index Page numbers followed by f and t indicate figures and tables, respectively A Abercrombie & Fitch, 56 Accenture, 46 Action, 18 Active cross-functional teams, 181 Active participation, 191 Additional market, 213, 229, 242 Aeropostale, 88 Agents assessment, 29 broadcasting agents, 31 competitors’ agents, 30 credible agents, 31–32 double agents, 30–31 related questions, 32 unintentional agents, 29 Aggressive competitor, 245 Aggressively led firm, 134, 136 Agile organization and effective performance barrier removal, 185–186 collaboration, 184–185 decision making, 188–189 empowerment to act, 189 failure functions as learning experience, 190–194 mobilization speed, 183–184 nimbleness, 184 resilience, 190 responsiveness, 187–188 overview, 179–180 and preparedness, 180–182 Agility about, 11 defined, 179 loss of, 191 Ahrendts, Angela, 126 Airbnb, 36 Alertness, 192 Algorithms behavior of competitors, 7–8 consumer preferences, Alibaba, 71–73, 77, 79, 80 Alliance, 17 Alphabet, 83 Amazon, 16, 45, 71, 77, 83, 87, 133, 146 Amazon Web Services (AWS), 133 Ambition, 22 American Apparel, 56 American Management Association, 90 American Superconductor, 27 Analytical software, consumer preferences, Ann Taylor, 88 Anxiety, 109 Apple Computer, 17, 113, 118, 120, 123, 125–126 case study, 184 data security, 26–27 innovation, 45 Apple Pay, 125 Apple University, 125 Apple Watch, 125 Applications usage, data, 36–42 company’s performance, 40–42 competitive problems, 39–40 competitive strategy, 39 competitor’s performance, 40 internal planning, 37–38 organizational procedures and processes, 38 The Art of War, 63, 170–171 Assembly line, 167 Assumptions, 215–216; see also Tactical objectives AT&T, 177 Attacker, 154–155 Attributes for activation of organization, 182 (exh) 271 272 • Index Authoritarian leadership style, 98, 164 Automotive industry, 180 Awareness, 130–131 AWS, see Amazon Web Services (AWS) B Bankruptcy, 44, 64–65, 86 Barbie dolls, 50 BASF, 176 Beliefs, 128–129 Bell, Alexander Graham, 76 Bell Lab, 76–77 Belonging needs, 97 Bergh, Chris, 85 Bezos, Jeff, 133 Big data; see also Data business intelligence, 24 competition, consumer preferences, corporate culture and, 88, 136–141 organizational structure, 12 Birdseye, Clarence, 76 Blankfein, Lloyd, 129 Blocking, defensive strategy, 152–153 BMW, 113, 114, 118, 176 Boeing, 132 Boeing/Rockwell, data security, 27 Boldness, Boston Consulting Group, 169 Bounty, Boyd, John, 104–105 Brennan, Megan, 87 Broadcasting agents, 31 Budgets, 219–221 Burberry, 126 Business intelligence, 24–26 common issues, 25 functions, 25 people part of, 28–32 questions for employing agents, 32 Business–military connection, 65, 66, 169–171 Business plan developing, 3, 15–16 guidelines, 16 strategic, see Strategic business plan Business secrets; see also Agents college classrooms, 29 professional meetings, 29, 30 revealing, 29 stealing, 26–27 trade shows, 29, 30 Business unit competitive strategy, 1, 9–10 corporate culture, 1, 10–11 digital technology, 1, 7–8 organizational structure, 1, 11–15 perceptions and attitudes, 14 strategic business plan, 1, 15–17 working environment, 15 Buyer behavior, 227–228; see also Segmentation on customers/competitors C Campaign plans, 241–246 Canon, 144 Careerbuilder, 97 Caterpillar, 148 Central markets, 235 Challenging market, 235, 237t Chambers, John, T., 16–17, 52, 60, 126, 159 Character, 21–22 Chevrolet, 168 Chicago Mercantile Exchange, 27 Chinese consumers, 71–72 Chip manufacturing operations, 17 Chrysler, 167 Cisco Systems, 16–17, 24, 52, 60, 126, 159 Cloud renting system, 133 Coaching, Coca-Cola, 143 Cognizant, 46 Coke, 143–144, 152 Collaboration, 21, 134, 184–185; see also Agile organization College classrooms, business secrets and, 29 Commitment, 242 Communications defensive/offensive strategies, 152 digitization and, exchanges of information, 131 review, 212 Index • 273 skills, 187 speed and, 89, 99–100, 116 Company’s performance, 40–42 Comparative analysis, 69, 229 Competitive assumptions, 216 Competitive campaigns, 43, 46, 246 defensive, see Defensive strategies destabilizing effect, 116–119 failed, causes, 107–108 increasing competitor’s expenditure, 54 offensive, see Offensive strategies preparing successive campaigns, 51–52 primary elements, 147–149 types of, 119 Competitive encounters, 245, 246 Competitive marketplace, 187 Competitive problems, 39–40 Competitive strategy, 1, 9–10, 39; see also Digital age applications, 68 bold action and shifting to the offensive, concentration at a decisive point, 9, 63–81 corporate strategy, 67–68 lower-level strategy/tactics, 68 maneuver by indirect approach, midlevel strategy, 68 military strategy, 65–67 origins of, 64–68 positioning, see Positioning for small and midsize organizations, 73–81 speed, see Speed terminology, strategy, 64 Competitor analysis, 213 Competitors, 34–35 agents, 30 aggressive, 138 agile organization and, 180, 181, 188 decision-making capabilities, 105 destabilizing, 116–121 effectiveness, reducing, 52–54 expenditure, increasing, 54 intelligence, 153 neutralizing, 43, 49–57 performance, 40 psychological dimension, 105–106 strength of, 49–50 weakening, 49–51, 70 wearing down, 54–57 Competitor’s weaknesses, 242 Complacency, 84 Concentration; see also Competitive strategy at decisive points, 63–81 developing and monitoring, 70–73 ineffective application, 71 neutralization and, 59 overview, The Concept of the Corporation, 169 Confidence, 13, 93–94 Confidential information, 26–28 Confrontations, 64, 94–95 head-on, 69–70 Conservative firm, 134 Consumers/customers, 33 Chinese, 71–72 loyalty, 85, 111, 113 need, 53, 88 preferences, problem solving, 78 Contingency plans, 14, 181 Cook, Tim, 123, 125–126, 128 Corporate culture, 1, 3, 10–11, 194, 249; see also Digital age attributes, 128–133 beliefs, 128–129 big data and, 88, 136–141 defensive, see Defensive strategies defining, 126–127 employee treatment and expectations, 129–133 energizing, 137–141 Google, 10–11 offensive, see Offensive strategies profile, developing, 133–136 speed and, 95 values, 128–129 Corporate strategy, 67–68; see also Competitive strategy Cost, of competitor, 54; see also Neutralization, competitors Costco, 6, 72 Courage, 157, 189 Creativity, 137 Credible agents, 31–32 Credit, 218 274 • Index Crest, Critical thinking, 115 Cross-functional teams, 78 duties and responsibilities, 130 C-suite leaders, 19, 89, 94, 129 Culminating point, applications, 241–247; see also Leadership at culminating point of competitive campaign Culture, corporate, 194 Customers, 202–203, 224–225 Cybersecurity, 23, 24; see also Data security D Data applications, 36–42; see also Applications usage, data big, see Big data management’s participation, 38 reliability, 26 resides, 33–36; see also Operating arena Data analytics, 229 business intelligence, 24 concentration at decisive points, 63–81 market intelligence, 90 market vulnerabilities, organizational structure, 12 planning process, 38 proposal submitting, 89 Data security, 26–28; see also Business intelligence; Business secrets broadcasting agents, 31 competitors’ agents, 30 credible agents, 31–32 cybersecurity, 23, 24 double agents, 30–31 maintaining, 28 unintentional agents, 29 Decision making, 186, 188–189 Decisive points concentration at, 63–81 selecting, 69 Defender, 245 Defensive strategies, 3, 6, 117; see also Offensive strategies advantages and disadvantages, 145–147 applying, 151 blocking, 152–153 moving to offensive, 153–155 overview, 143–144 phases, 149–155 relationship with offensive, 147–149 time and, 144 waiting, 150–152 De Jomini, Baron Antoine-Henri, 65, 157 Deletion, 217 Delivery network, 87 Dell Computer (case study), 120, 133, 235 Deloitte, 46 Denim market, 84–85 Determination, 189 Detroit, 65 Development, 217 Differentiation, 217 Difficult markets, 236, 237t Digital age business intelligence, 24–26 changes of operating, competitive strategy, 1, 9–10; see also Competitive strategy considerations, corporate culture, 1, 10–11; see also Corporate culture digital technology, 1, 7–8 millennials of, 96–101 organizational structure, see Organizational structure strategic business plan, 1, 15–17; see also Strategic business plan Digital camera, 44, 118 Digital communications, 187 Digital marketing, energy of, see Energy of digital marketing Digital organization, 177–178; see also Organization Digital photography, 44, 86 Digital technology, 1, 7–8; see also Digital age business intelligence, 23–42 data security, 26–28; see also Business secrets; Data security developing effective leadership, see Leadership, effective morale with, 251–254 neutralization, competitors, 49–60 Digitization, 7–8, 12, 181 Dignity, 13 Direct approaches, maneuver, 103–104 Index • 275 Direction, 18 Direct leadership, 18–19; see also Leadership, effective Discipline, 20–21 Disco Corp., 127 Disney, 50–51, 52, 56 Dissatisfaction, factors leading to, 98 Dissatisfiers, 98 Diversification, 46, 210, 217 Dorsey, Jack, 53–54 Double agents, 30–31 Dow AgroSciences, 27 Dow Chemical, 12 data security, 27 Drucker, Peter, 13, 115, 168–169 DuPont, data security, 27 Dynamic competitive environment, 137–138 E Eastman Kodak Co., 44, 86, 118–119 Economic assumptions, 216 Edison, Thomas, 76 Ellison, Marvin, 103, 111–112, 113, 116 Emotions, 107–112 anxiety, 109 fear, 110–112 frustration, 109–110 negative, 109 positive, 108–109 stress, 110 Employee morale, 247; see also Morale, building Employee ownership, 140 Employee treatment and expectations, 129–133 key listening areas, 132 Empowerment to act, 189; see also Agile organization Encircled markets, 236, 237t Energy of digital marketing; see also Segmentation on customers/competitors monitoring of digital systems, 226 success measurement, 226–227 technology application, 225–226 understanding customers, 224–225 Espionage, 26–28; see also Business secrets Estee Lauder, 71 Esteem needs, 97 Executive summary in plan, 219 Exhaustion, 184 Expenditure, of competitor, 54; see also Neutralization, competitors Expertise, 201 Exploratory campaigns, 244 F Facebook, 83, 132 Failed campaign, 107–108 Failure, as learning experience, 190 Fairlife, 143 Fear, 110–112 Feedback, 140 Feedback loop, 226 Fiat Chrysler Automobiles (case study), 180 Field managers, 186 Financial controls and budgets, 219–221 Flexible managerial style, 6; see also Leadership, effective Ford (example), 180 Ford, Henry, 76, 166–167 Ford Motor, data security, 27 Forecast models, 220 Foxconn, 154 Frederick the Great, 67, 121 Friction, 184, 185 Frustration, 109–110 Fujifilm (case study), 44, 200–202 Functional objectives, 216–218; see also Tactical objectives FunLab, 51 Fuze, 143 G Gap, 88 Genentech, 132 General Electric, 18, 19, 45, 89, 93, 137, 145–146, 151, 169 General Motors, 167–168 business strategy, 180 case study, 183 industry forecasts and, 180 276 • Index German automakers, 120 Gillette, Globalization, 181 Goldman Sachs, 129 Goldner, Brian, 50 Goodyear Tire & Rubber, data security, 27 Google Inc., 1, 16, 77, 80, 113, 118, 134, 176 culture, 10–11, 13, 129 data security, 27 innovation, 45 GoPayment, 53 Government/environment, 35–36 Growth, 80–81 H Hackers, 26 Haier Group, 91–92, 93 H&M, 88 Hardworking, 134 Hart, B H Liddell, 65, 103, 169, 170 Hasbro, 50–51, 52 Hawthorne effect, 162 Hawthorne Works, 162 Head-on confrontation, 69–70 Henderson, Bruce, 169, 170 Herzberg, Frederick, 97 Herzberg’s motivation-hygiene theory, 98 Hewlett-Packard, 134 High-risk culture, 136 Historical review, organization, 171–176; see also Organization 1950s, 171–172 1960s, 172 1970s, 172–174 1980s, 174–175 1990s, 175–176 2000s, 176 Honda, 94, 96 Honest Tea, 143 Human nature, 252 Human relations school, 164–165 Human resource development and training, 218 Hygiene factors, 98 I IBM, 45, 46, 77, 120, 133, 146 “Imagination Breakthrough” proposals, 89, 137 Immelt, Jeffrey, 145–146, 151 Impulsive micromanaging, 125 “Incredibly scrappy” (culture), 10 Indirect maneuver, 103–104, 148, 149, 169 activating, 112–121 Information, free flow of, 187; see also Agile organization Innovation, 45–46, 137 criteria, 76 morale interfaces with, 249–250 sales life of a product and, 87 sustaining, 75–80 vision and, 74 Innovative thinking, 192 Innovators, 188 Insecurity, 183 Integration, information, 115 Intel, 77, 86 Intellect, 189 Intelligence, 233 competitors, 153 people part of, 28–32; see also Business intelligence Intermediaries, 34 Internal communications network, model, 257–267 Internal planning, 37–38 Internal sources, 36 Internet of things, 203 Intuition, 190 Inward-focused firm, 136 iPhone, 17 iPhone 6, 125 iPhone Plus, 125 Itochu Corp., 127 J J Crew, 88 Japanese automakers, 120 JCPenney, 103, 111–112 Jeans, 84 Jobs, Steve, 125 Job satisfaction, 98 Index • 277 John Deere & Co., 24–25 Johnson, Ron, 111 Johnson & Johnson, 21 Joint venture, 242 Joint venture obligations, 117 K Kalil, Tom, 43 Key accounts, 218 Key markets, 233–234, 237t Key performance indicators (KPIs), 18, 37 Kohl’s, 21, 56 Kotler, Philip, 77, 170 KPI, see Key performance indicators (KPIs) Kroger, L Lafley, A G., 5–6 Leadership, 192, 193, 195 Leadership, effective; see also Digital age ambition, 22 challenges, character, 21–22 characteristics of, 17–22 communications, 89 competitive strategy, 1, 9–10 corporate culture, 1, 10–11 digital technology, 1, 7–8 direct leadership, 18–19 discipline, 20–21 flexible role, function as, key areas, levels of, 18–22 Nadella on, 24 organizational leadership, 19 organizational structure, 1, 11–15 as pivotal factor, 4–5 strategic business plan, 1, 15–17 strategic leadership, 19–22 Leadership and strategic business planning components of about, 199–200 financial controls and budgets, 219–221 market opportunities, 214–215 objectives, 204–207, 205t–206t, 215–218 portfolio of products and services, 208, 210–211 situation analysis, 212–214 strategic direction or vision, 200–204 strategies, 207–208, 209t strategies and tactics, 218–219 overview, 197–199 Leadership at culminating point of campaign culminating point, applications, 241–247 morale, building about process, 247–249, 250t morale interfaces with innovation, 249, 250 morale with digital technology, relationship of, 251–254 overview, 239–241 Leadership role Chambers, John, 16–17 Cook, Tim, 125–126 Dorsey, Jack, 53–54 Ellison, Marvin, 111–112 Ford, Henry, 76, 166–167 Immelt, Jeffrey, 145–146 Lafley, A G., 5–6 Liveris, Andrew, 12 Robbins, Chuck, 16–17 Rockefeller, John D., 166 Sloan, Alfred P., 167–168 Welch, Jack, 18–19 Leadership style authoritarian, 98, 164 flexible, 6; see also Leadership, effective participative approach, 98 Leading-edge markets, 115, 233, 237t Lee, 84 LEGO Group, 80, 81 Levi Strauss & Co., 84–85 Life cycle, product, 87, 95–96 shortening, 114 stages of, 232 Limited-term campaigns, 245 LinkedIn, 97 Linked markets, 234–235, 237t Live-and-let-live approach, 48, 53 278 • Index Liveris, Andrew, 12 Liz Claiborne, 113 Lockheed Martin, 21, 27 Lonely Crowd, 162 Longhi, Mario, 91 Long-term strategic objectives, 119 Loss of interest, 48 Loss of morale, 47–48 Loss of physical resources, 47 Lower-level strategy/tactics, 68; see also Competitive strategy Loyalty, 15, 17, 50, 85, 111, 113 M Ma, Jack, 72 Machiavelli, Niccolò, 65, 66 Mackey, John, 6–7 Macy’s, 71 Management seminars, 29 Managerial chain of command, 186 Maneuver aim of, 105 direct vs indirect approaches, 103–104 emotions, 107–112 by indirect approach, indirect maneuver, activating, 112–121 psychological effect, 104–106 Manufacturing, 218 Market background, 213–214 competitiveness, 203 development, 210 extensions, 46 intelligence, 90 penetration, 210 segments, 152 vulnerabilities, 8, 69 Marketing planning, 175 Marketing research, 218 Marketing Warfare, 170 “Marketing Warfare in the 1980s,” 170 Market opportunities; see also Leadership and strategic business planning present markets, 214–215 targets of, 215 Market position building, 138 competitive campaign and, 147, 149 lost, 116 reclaiming, 241 weakening, 111 Market segment selection, techniques for; see also Segmentation on customers/competitors about, 231, 237t central markets, 235 challenging market, 235 difficult markets, 236 encircled segments, 236 key markets, 233–234 leading-edge markets, 233 linked markets, 234–235 natural markets, 232–233 Maslow, Abraham, 97 Maslow’s hierarchy of needs, 97 Mass consumption, 167 Mass production, 167 Mattel Inc., 50–51, 52, 56 Mayo, Elton, 164 McGregor, Douglas, 97, 164 McGregor’s XY theory, 98–99 Merger and acquisition (M&A), 235 Metrics in digital age, 226 Mickey Mouse Club, 50 Microsoft Corp., 23, 24, 25, 134, 146, 161 Midlevel strategy, 68, 71; see also Competitive strategy Midsize organizations, strategy applications, 73–81 Military–business connection, 65, 66, 169–171 Military strategy, 65–67 Millennials digital age and, 96–101 overview, 96 Mills, C Wright, 162 Mizorogi, Hitoshi, 127 Mobilization, speed of, 183 Model T, 167, 168 Modern organization, 161–178; see also Organization digital organization, 177–178 evolution, 163–165 historical review, 171–176 Modification, 45, 217 Momentum, 191 Index • 279 Monitoring, 75, 76 of digital systems, 226 Monster, 97 Morale, 50, 51, 96, 154 Morale, building; see also Leadership at culminating point of competitive campaign about process, 247–249, 250t importance of, 247 morale interfaces with innovation, 249, 250 morale with digital technology, relationship of, 251–254 Motivation, 18 Motivators, 98 Motorola, 27 My Little Pony, 50 N Nadella, Satya, 23–24, 32, 36, 161 Napa Valley, 95 Napoleon, 67, 106 Natural markets, 232–233, 237t Needs belonging, 97 consumer, 53, 88 esteem, 97 physiological, 97 safety, 97 self-actualization, 97 Negative emotions, 109 Neutralization, competitors, 49–57 in agile organization, 180, 188, 191 casual approach, 44 concentration, 59 key concepts, 44–45 making campaign costlier for rival, 54 morale, 50, 51 overview, 43–44 plan, 57–60 preparing successive campaigns, 51–52 reducing competitor’s effectiveness, 52–54 speed, 59–60 success in, 47–48 weaken the rival, 49–51 wearing down, 54–57 Nike, 21 Nimbleness, 184; see also Agile organization Nonproduct objectives, 217–218 Nonquantitative objectives, 204 Nooyi, Indra, 111 O Obligatory commitments, 242 Offensive strategies, 3, 6, 137; see also Defensive strategies failure, 156–157 moving to, 153–155 relationship with defensive, 147–149 Okafuji, Masahiro, 127 On War, 48, 63 “OODA loop,” 105 Operating arena competitors, 34–35 customers, 33 government/environment, 35–36 intermediaries, 34 internal sources, 36 Opportunity, 118 Optimum profile for firm, 118, 182f Oracle, 133, 146 Organic groceries, Organization books, 162 digital, 177–178 giants of industry, 165–168 modern, evolution of, 163–165 panoramic overview, 171–176 research studies, 162 thinkings and strategists, 168–171 Organizational Health Index, 181 Organizational layers, 185–186 Organizational leadership, 19; see also Leadership, effective Organizational procedures and processes, 38 Organizational structure, 1, 3, 11–15; see also Digital age aim, 11 defined, 182 modern organization, 161–178 physical, 11–13 psychological, 13–15 Organization Man, 162 280 • Index P Packaging objectives, 217 Pampers, Paramount Pictures, 51 Participative approach, 98 PepsiCo, 111 Performance; see also Agile organization barrier removal, 185–186 collaboration, 184–185 of company, 40–42 of competitor, 40 decision making, 188–189 empowerment to act, 189 failure functions, 190–194 historic, 212 mobilization speed, 183–184 nimbleness, 184 resilience, 190 responsiveness, 187–188 Personality, 183 Physical, organizational structure, 11–13 Physical and psychological strengths, 243t Physical distribution objectives, 217 Physical energy, 185 Physical exertion, 187 Physical vs morale losses, 47 Physiological needs, 97 Planning cycle, 175 Planning process, data analytics in, see Data analytics Positioning, 77 goal of, 79–80 guidelines, 77–79 Positive emotions, 108–109 Power, of competitors, 49–50 Power of segmentation, 229–230 Predictive analytics, 87 Predix, 146 Preemptive campaigns, 117, 242 Preparedness, 180–182 Present markets, 214–215 Press releases, 30 Pricing, 152 Pricing objectives, 217 Primark, 56–57 Primary financial objectives, 216; see also Tactical objectives Princess dolls, 50 Procter & Gamble (case study), 5, 6, 71, 80, 81, 246 Product development, 210 idea, 11 literature, business secrets and, 29, 30 objectives, 216 and services, portfolio of, 208, 210–211 testing, 5, Product lines dropping, extensions, 45–46 Professional meetings, business secrets and, 29 Profile, corporate culture, 133–136 Profitability, 230 Promotion, 140 objectives, 217 Proposal submitting, 89 Psychological, organizational structure, 13–15 Psychological effect, maneuver, 104–106 Publix, 140 Q Qualcomm, 132 Quality objectives, 216 Quantitative objectives, 204 R Reis, Al, 77, 170 Reliability, data, 26 Remerchandise, 46 Research and development, 218 Resilience, 190; see also Agile organization Responsibilities, 218 Responsiveness, 187–188; see also Agile organization Ricoh, 144 Riesman, David, 162 Risk, 187 Rival, see Competitors Robbins, Chuck, 16–17, 24 Rockefeller, John D., 166 Roosevelt, Theodore, 166 Royal Dutch Shell, 95 Index • 281 S Safety needs, 97 Salary hike, 140 Samsung, 17 Satisfaction, factors leading to, 98 Satisfiers, 98 Schmidt, Eric, 1, 3, Schwab, Klaus, 83 Scrappy culture, 10 Screening, 75, 76 Sears, Secrets, see Business secrets Security, see Business intelligence; Data security Segmentation, 217 Segmentation on customers/competitors buyer behavior, 227–228 energy of digital marketing monitoring of digital systems, 226 success measurement, 226–227 technology application, 225–226 understanding customers, 224–225 market segment selection, techniques for about, 231, 237t central markets, 235 challenging market, 235 difficult markets, 236 encircled segments, 236 key markets, 233–234 leading-edge markets, 233 linked markets, 234–235 natural markets, 232–233 overview, 223–224 power of segmentation, 229–230 Selection, 75, 76 Self-actualization needs, 97 Self-confidence, 14, 17–18 Self-motivation, 91 Service objectives, 217 Share of market, retention, 242 Sharp Corp., 127, 144, 153–155 Sherman Antitrust Act, 166 Singh, Ravi, 170 Situation analysis, 212–214; see also Leadership and strategic business planning competitor analysis, 213 historic performance, 212 market background, 213–214 Skills, 18 Skype, 161 Skype Translator, 162 Sloan, Alfred P., 167–168 Small organizations, strategy applications, 73–81 Smartphone shipments, 184 Smith, Jim, 14 Sociopolitical assumptions, 216 Sound management practice, 245 Speed barriers to, 91–96 communications and, 89, 99–100 complacency and, 84 corporate culture and, 95 delivery network, 87 Herzberg’s motivation-hygiene theory, 98 implementing, 88–91 market/corporate conditions, 85–88 Maslow’s hierarchy of needs, 97 McGregor’s XY theory, 98–99 neutralization and, 59–60 overview, for preemptive campaign implementation, 242 Square, 53–54 St John’s Bay, 113 Staff and organization, see Business unit Standard Oil, 166 Starbucks, 21 Start-up climate, 12 Strategic business plan, 1, 15–17; see also Digital age guidelines, 16 integrating neutralization plan, 58 1970s, 174 Strategic business planning and leadership, see Leadership and strategic business planning Strategic direction or vision, 200–204 Strategic leadership, 19–22; see also Leadership, effective 282 • Index Strategic thinking, 112–116 Strategies, 207–208, 209t; see also Leadership and strategic business planning and tactics, 209t, 218–219 Strength, of competitors, 49–50 Stress, 110 Stubbornness, 22 Stumpf, John, 34–35 Success measurement, 226–227 Sun Microsystems, 133 Sun Tzu, 59, 61, 63, 65, 66, 67, 103, 104, 106, 121, 170–171 Supply chain, 152, 217 Surprise, 147–148 System of control, 186 T Tactical objectives; see also Leadership and strategic business planning assumptions, 215–216 functional objectives, 216–218 primary financial objectives, 216 Tactical section, neutralization plan, 59 Tactics, 208, 209t, 218–219 Tai Jeng Wu, 127 Target, 56 Taylor, Frederick, 163–164, 169 Technical sales activities, 218 Technological assumptions, 216 Technology application, 225–226 Terminology, strategy, 64 Tesla, 45, 113, 118 Testing, product, 5, Theory X, 98, 164 Theory Y, 98, 164 Thinking strategically, 112–116 Thomson Reuters, 14 Thucydides, 67 Tide, Time, defensive strategy and, 144, 145 Top-down structure, 134 Toyada, Akio, 127 Toyota Motor Corp., 127 Toy shopping, 51 Trade shows, business secrets and, 29, 30 Training and orientation, 3, 71, 93, 125 Transformers, 50 Trout, Jack, 77, 170 Trust, 15 U Uber, 35–36, 45, 114 Ullman, Mike, 111 Unintentional agents, 29 Uniqlo, 88 “Universal car,” 167 U.S International Trade Commission, 44 U.S Postal Service (USPS), 87 V Values, 128–129 Vision, 74 von Clausewitz, Carl, 48, 63, 65, 67, 81, 170 W Waiting, defensive strategy, 150–152 Walmart, 6, 56, 92, 120, 176 Wavell, Archibald, 106 Welch, Jack, 18–19 Wells Fargo, 34 Whirlpool, 44 White Collar Workers, 162 Whole Foods, Whyte, William, 162 Working environment, 15 Wrangler, 84 X Xerox, 120, 144–145 Y Yamaha Motor, 95 Z Zara, 88 Zico, 143 About the Author Norton Paley has brought his world-class experience and unique approach to business strategy to some of the global community’s most respected organizations Having launched his career with publishing giants McGraw-Hill and John Wiley & Sons, Paley founded Alexander-Norton Inc., bringing successful business techniques to clients around the globe including the international training organization Strategic Management Group, where he served as a senior consultant Throughout his career, Paley has trained business managers and their staff in the areas of planning and strategy development, raising the bar for achievement and forging new approaches to problem solving and competitive edge His clients include • • • • • • • • • • • • • • • • American Express IBM Detroit Edison Chrysler (Parts Division) McDonnell-Douglas Dow Chemical (Worldwide) W.R Grace Cargill (Worldwide) Chevron Chemical Ralston-Purina Johnson & Johnson USG Celanese Hoechst Mississippi Power Numerous mid-sized and small firms 283 284 • About the Author Paley has lectured in The Republic of China and Mexico and he’s presented training seminars throughout the Pacific Rim and Europe for Dow Chemical and Cargill As a seminar leader at the American Management Association, he conducted competitive strategy, marketing management, and strategic planning programs for over 20 years Published books include • Developing a Turnaround Business Plan: Leadership Techniques to Achieve Change Strategies, Secure Competitive Advantage, and Preserve Success • Clausewitz Talks Business: An Executive’s Guide to Thinking Like a Strategist • How to Outthink, Outmaneuver and Outperform Your Competitors: Lessons from the Masters of Strategy • Mastering the Rules of Competitive Strategy: A Resource Guide for Managers • The Marketing Strategy Desktop Guide, 2nd Edition • How to Develop A Strategic Marketing Plan* • The Managers Guide to Competitive Marketing Strategies, 3rd Edition • Marketing for the Nonmarketing Executive: An Integrated Manage ment Resource Guide for the 21st Century • Successful Business Planning: Energizing Your Company’s Potential • Manage to Win† • Big Ideas for Small Businesses On the cusp of the interactive movement, Paley developed three computer-based, interactive training systems: The Marketing Learning Systems; Segmentation, Targeting & Positioning; and The Marketing Planning System Paley’s books have been translated into Chinese, Russian, Portuguese, and Turkish His byline columns have appeared in The Management Review and Sales & Marketing Management magazines * “This book is both intellectual and practical…an interesting vehicle for presenting detailed planning concepts…it is clear and well-organized.” T.J Belich, in CHOICE Also Selected for translation into Chinese and Turkish † “A book too forceful to Ignore.” Review in Business Line, Financial Daily for The Hindu Group of Publications About the Author • 285 The following are excerpts from reviews of books by Norton Paley: A book too forceful to ignore Review in Business Line, Financial Daily for The Hindu Group of Publications about Paley’s Manage to Win This book is both intellectual and practical…an interesting vehicle for presenting detailed planning concepts…it is clear and well-organized T.J Belich, in CHOICE about Paley’s How to Develop a Strategic Marketing Plan .. .Leadership Strategies in the Age of Big Data, Algorithms, and Analytics Leadership Strategies in the Age of Big Data, Algorithms, and Analytics NORTON PALEY CRC Press... staff in the art of strategy and honing their skills in developing defensive and offensive plans 4 • Leadership Strategies in the Age of Big Data and Algorithms Leading an organization, business... number expands the definition of Internet of things to mean everything and everybody connected to everything and everybody else, and generating massive quantities of data in the process Introduction • xvii