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, IL
Some 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 it
The myth of perpetuity and the dark side of success
Reinventing success: no more Defend and Extend
Creating your new Success Formulas and keeping them competitively advantaged
Why “thinking outside the box” doesn’t work
First, get outside the box. Then, think!
Maintaining ”The Phoenix Principle” for long-term success
Practicing Disruption until it comes naturally
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About the Author
Adam Hartung has been a successful entrepreneur, executive in three Fortune 100 companies, and business consultant with leading firms such as Boston Consulting Group, Coopers & Lybrand, and Index. For 30 years he has created growth through innovation and breakthrough strategy in positions from middle management to CEO. Currently a strategy consultant and public speaker, he is Managing Partner of Spark Partners strategy and organizational transformation consultancy. He holds an MBA with Distinction from the Harvard Business School. He lives in suburban Chicago.
Read an Excerpt
Praise for Create Marketplace DisruptionPraise for Create Marketplace Disruption
"How do you participate in market disruptions which threaten your current leadership status? In this book, Adam Hartung shows how critical it is to break free from the 'Defend and Extend' thinking that blocks adaptation to the new markets and set forth on an 'Attack and Explore' agenda to engage directly with the new market dynamics. This is just the kind of thinking needed to deal with the creative destruction that underlies global capitalism today."
Geoffrey Moore, Author, Dealing withDarwin: How Great Companies Innovate in Every Phase of Their Evolution, Managing Director TCG Advisors, San Bruno, CA
"Adam Hartung presents a fresh perspective and compelling case that demands business leaders harness the courage of an entrepreneur, always pursuing new markets, thirsting for opportunities to disrupt the status quo. Every business should apply Mr. Hartung's principles when hiringonly hiring those individuals prepared to question the Success Formula creating its corporate culture, and vigorously willing to pursue White Space."
Ken Daubenspeck, Chairman and CEO, Daubenspeck and Associates, Ltd., Chicago, IL
"Adam Hartung offers courageous leaders a new language system and framework for generating long-term profitable growth. Rich with compelling metaphors, stories, and illustrations, CreateMarketplace Disruption explains why even aggressive efforts to reinvent an organization's Success Formula will certainly fail unless leaders create Disruptions and design new White Spaces for action. Hartung's Phoenix Principle for overcoming internal barriers provides leaders with practical tools for designing evergreen business models to keep companies ahead of declining results and obsolescence. The book is scholarly and innovative, persuasive and grounded; an easy read, every leader needs to understand Hartung's framework and heed his advice."
Judi Rosen, Strategic Advisor, former Managing Director, CSC Index and President, The Concours Group, Glencoe, IL
"Adam Hartung blends stunning lessons learned from the fallen giants of business with set-you-back-in-your-seat insights that make this a must read for all business leaders of large and small companies alike. CreateMarketplace Disruption dramatizes why you can't minimize risk without minimizing change and the inherent dangers of perpetuating Lock-in thinking and yesterday's Success Formulas. Hartung provides an intelligent blueprint for achieving what every business cravescompetitive advantage and renewable growth. Smart, sophisticated treatment of a topic that no business executive worth his/her stock options can ignorehow to grow and differentiate your business. Adam Hartung's 20 plus years of consulting, innovation, and strategy expertise are powerfully and clearly presented in this gem of a book."
John Popoli, President Lake Forest Graduate School of Management, Lake Forest, IL
"Create Marketplace Disruption is an engaging, enlightening, frightening, and occasionally upsetting book. The author uses a very wide range of examples to illustrate what kinds of trouble businesses can get themselves into, and how difficult it can be for them to get out. The analysis of these examples is at once deep and clear, allowing readers to readily apply the lessons to their own situations. By emphasizing that managers may need to disrupt their own lives in order for their businesses to succeed, the book explains why some organizations can succeed repeatedly over a long period of time, while others seem to bounce from disaster to disaster until they ultimately fail. Although the book is enjoyable to read, its contents will repay careful thought and periodic revisiting. It's a book to keep in mind, and close at hand, whenever an organization faces the need to move beyond its current Success Formula and develop an effective plan for the future."
Dr. Michael Vitale, Commercialization Director, Monash Asia-Pacific Centre for Science and Wealth Creation, Monash University, Victoria, Australia
"This is a disruptive book. In times of ever accelerating, deep change survival through 'ever better management' is an illusion. Perfecting non-sense is nonsense. The contrarian mind provokes discomfort, seeks unknown land, studies, tries, and learns; that is what the author does. This is the book for the entrepreneur in us. White Space allows us to unite the entrepreneurial soul with corporate resourcefulness. Adam's framework should be tried."
Jost Stollman, Founder, CompuNet Computer AG, former Shadow Minister Economy and Technology Federal Republic of Germany, CEO, Tyro/Moneyswitch, Ltd., Sydney, Australia
"With fresh insight into how previous best practices often led businesses into trouble, Adam Hartung now gives us a new approach to management which can improve performance and long-term success. CreateMarketplace Disruption gives CEOs of small-to-mid-size companies new tools to compete more effectively in today's dynamic, global markets."
Scott Hawkins, CEO, The Hawkins Companies, Atlanta, GA
"Create Marketplace Disruption moves beyond reframing old ideas about business by providing a model for competing more effectively in our constantly changing markets. Leapfrogging tired concepts which have largely focused on doing more of what you've always done, Adam Hartung focuses us on doing what it takes to do better. This is the book that all executives who want to leave a positive legacy must read!"
Ron Kirschner, Chairman, Heartland Angels, Chicago, IL
"The insights provided by Adam Hartung make this book a must-read for all entrepreneurs. This is a blueprint for generating more wealth and getting to investor returns faster by maintaining White Space despite the pull of Lock-in (behaviors that create failure)."
William A Johnson, Founder and CEO, Community Alternative Energy Resources Group, New York, NY
"Create Market Disruption is an outstanding approach for creating and maintaining growth and profitability in an increasingly dynamic and uncertain global economy. More importantly, the book moves beyond concepts with a well crafted set of tools and techniques for implementing changes that are relevant regardless of industry or company size."
Sumeet Goel, Managing Director, HighPoint Associates, Los Angeles, CA
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Table of Contents
About the Author xviii
Understanding How We Got Into This Mess 1
Introduction: Overcoming Schumpeter 3
Who Is Schumpeter, and What Did He Say? 3
What Is Business Success, and What Creates It? 5
The Sad Tale of AM 6
AM Is Not Alone 10
The Myth of Perpetuity and Lifecycle Realities 17
The "S" Curve Theory of Business Lifecycle 17
The Myth of Perpetuity 19
We Keep Repeating the Same Cycle 32
The Value and Power of Success Formulas 35
Companies Rise in the Rapids on the Strength of Their Success Formulas 35
Strategies and Tactics Come from Identity 39
Winners Create Success Formulas in the Rapids 40
Vertical Success Formula Alignment Leads to Great Results 42
Success Formulas Are Very Good Things- and Define Success 45
The Power of Lock-in 47
Businesses Use Lock-in to Implement Their Success Formulas 47
Success Formulas Are Locked-in Behaviorally and Structurally 51
Understanding the Status Quo Police 63
The Really BIG Environmental Shift 68
The Dark Side of Success-Defend & Extend Management 71
The Focus on Defend & Extend Management 74
The Road to D&E Management Acceptance 77
The Outcome of D&E Management 83
The Lock-in Cycle 86
The New Definition of Business Success 93
Information Transparency Affects Everyone 95
Reinventing Success 97
Introduction: The Phoenix Principle for Managing in an Uncertain World 99
There Is a Better Approach to Management 99
Success Today Is About Keeping a Success Formula Evergreen-Rather Than Defending & Extending It 101
Four Steps to Achieving Sustained Success in a Dynamic World 104
Organizations of Any Age or Size Can Utilize The Phoenix Principle to Achieve Breakthrough Performance 106
Don't Defend and Extend 111
Recognize the Problem 111
Plan for the Future Rather Than the Past 114
It's Not Hard to Stop Defending & Extending if You Change Your Planning Approach 129
Attack Competitors' Lock-in 131
It's Easier to See Problems in Others' Success Formulas Than in Your Own 131
Seek Out Alternative Competitive Tactics Rather Than Compete Head-to-Head 134
Look at How Competitors Define Their Business 138
Identify Your Competitor's Advantage and Do Something Else 140
When Competitors Lock-in to Differentiating Features, Use Standards 143
Stall Competitors Whenever Possible 147
Disruptions Are Key to Becoming a Phoenix Principle Organization 151
Disruptions Enable Long-Term Superior Performance 151
It's Not Possible to Change a Success Formula Directly 153
Disruptions Are Not Well Understood nor Taught 153
Good Leaders Are Good Disruptors 157
Avoiding Disruptions Creates Long-term Problems 166
Disruptions Produce Anxiety But Are Necessary 168
Develop New Success Formulas via White Space 171
Develop New Success Formulas via White Space 171
White Space Is Where Success Formulas Evolve or Are Created Anew 171
There Are Requirements for Effective White Space 176
White Space Management Must Be Accountable for Results 185
White Space Is Not the Wellspring 186
Old Success Formulas Must Migrate Toward White Space 189
Maintain the Phoenix Principle for Long-Term Success 193
Practice Makes Perfect 193
Phoenix Principle Companies Are Often Hard to Define Traditionally 194
Phoenix Principle Companies Are Willing to Fail 196
Disruptions Only Appear Painful 197
Strategists Must Change Their Roles to Promote The Phoenix Principle 199
Phoenix Principle Companies Help Customers Find and Use White Space 202
The Phoenix Principle Isn't Hard to Practice-It's Just Different 205
Now Is the Time to Implement The Phoenix Principle 206
Epilogue: Phoenix Principle People 209
You Are the Top of the Pyramid 211
Do You Disrupt Your Lock-in and Use Personal White Space 214
Applying Personal Disruptions and White Space to Work 219
Organizations Can Help Develop Phoenix Principle People 221
The Phoenix Principle Is Available to All of Us 222