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Ram Charan - The Attackers Advantage: Turning Uncertainty into Breakthrough Opportunities

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Ram Charan The Attackers Advantage: Turning Uncertainty into Breakthrough Opportunities
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*A Wall Street Journal bestseller*
The forces driving todays world of structural change create sharp bends in the road that can lead to major explosions in your existing market space. But exponential change also offers exponential opportunities. How do you leverage change to go on the offense? The Attackers Advantage is the game plan for winning in an era of ambiguity, volatility, and complexity, when every leader and every business is being challenged in new and unexpected ways.
Ram Charan, harnessing an unequalled depth and breadth of experience working with leaders and companies around the globe, provides tested, practical tools to help you:
Build the perceptual acuity to see around corners and detect, ahead of others, those forcesespecially people, who are the catalysts of changethat could radically reshape a company or industry
Have the mindset to see opportunity in uncertainty
Commit to a new path forward despite the unknowns, positioning your business to make the next move ahead of competitors
Break the blockages that can hold your company back
Know when to accelerate and when to shift the short-term and long-term balance
Make your organization agile and steerable by aligning people, priorities, decision-making power, budgeting and capital allocation, and key performance indicators to the new realities of the marketplace
The Attackers Advantage provides a stark and simple challenge: stay in a legacy world of incremental gains or defensiveness, or be an attacker by creating a new world, scaling it up quickly, ahead of the traditional players.

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THE
ATTACKERS
ADVANTAGE

Copyright 2015 by Ram Charan Published in the United States by - photo 1Copyright 2015 by Ram Charan Published in the United States by - photo 2

Copyright 2015 by Ram Charan.

Published in the United States by PublicAffairs, a Member of the Perseus Books Group

All rights reserved.

Printed in the United States of America.

No part of this book may be reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles and reviews. For information, address PublicAffairs, 250 West 57th Street, 15th Floor, New York, NY 10107.

PublicAffairs books are available at special discounts for bulk purchases in the U.S. by corporations, institutions, and other organizations. For more information, please contact the Special Markets Department at the Perseus Books Group, 2300 Chestnut Street, Suite 200, Philadelphia, PA 19103, call (800) 810-4145, ext. 5000, or e-mail .

Library of Congress Cataloging-in-Publication Data

Charan, Ram.

The attackers advantage : turning uncertainty into breakthrough opportunities / Ram Charan.

pages cm

Includes bibliographical references and index.

ISBN 978-1-61039-475-8 (e-book)

1. Uncertainty. 2. Strategic planning. 3. Organizational change. I. Title.

HB615.C583 2015

658.4'012--dc23

2014035570

First Edition

10 9 8 7 6 5 4 3 2 1

Dedicated to the hearts and souls of the joint family of twelve siblings and cousins living under one roof for fifty years, whose personal sacrifices made my formal education possible.

CONTENTS

WE FEEL UNCERTAINTY in our bones competitors that appear in an instant and - photo 3

WE FEEL UNCERTAINTY in our bones competitors that appear in an instant and - photo 4

WE FEEL UNCERTAINTY in our bones: competitors that appear in an instant and scale up almost as quickly, the algorithmic revolution, a growing pool of economic contenders from virtually every part of the world, a global financial system that will not be reformed. These are just a few of the many forces that can permanently alter moneymaking for a company, industry, or entire economic sector and make uncertainty the fundamental leadership challenge of our time. The question we all ask is: How can I make decisions and lead when things change so unpredictably and fast?

In this book I explain the capabilities you need to succeed in this new era of frequent sharp bends in the road. The attackers advantage is the perceptual acuity to detect ahead of others forces that could radically reshape a market space so that you can position your business to make the next move first. It is the mind-set to overcome fear of uncertainty and find the opportunities in it and the courage to move forward despite the unknowns. It is the ability to gain the advantage with speed, with focus, and without breaking morale.

By pinpointing the sources of uncertainty, defining a path forward, and making the necessary frequent adjustments to steer your organization along it, you will see that uncertainty is not something to fear. On the contrary, by immersing yourself in it you can discover possibilities for creating something new and immensely valuable. The more you embrace uncertainty and practice the skills to deal with it, the more self-confidence you will develop and the better prepared you will be to lead.

TAKING CONTROL OF uncertainty is the fundamental leadership challenge of our - photo 5

TAKING CONTROL OF uncertainty is the fundamental leadership challenge of our - photo 6

TAKING CONTROL OF uncertainty is the fundamental leadership challenge of our time.

This is not a hypothesis extrapolated from arms-length research. It emerges from what I have learned in working as an advisor with hundreds of business leaders, ranging from board members to business unit managers, in scores of companies and multiple industries around the world. I have had close relationships with many of them over the course of several decades. These relationships have enabled me to track actions and decisions as they unfold. I talk regularly with hundreds of other leaders, always asking questions and exchanging information. Against this backdrop of experience, I can say with confidence that the immense uncertainty I see todays business leaders facing is something truly unique. In its scale, its speed, the ferocity of its impact, and its increasing ubiquity, it is qualitatively differentby orders of magnitudefrom anything that has gone before.

We all know that life is full of uncertainties, of course. Most of those that businesses face are familiar. Some are operational, such as optimizing production for shifts in demand, launching a new product, or adjusting to changing interest rates. Others are career uncertainties that can affect your job security or future opportunities, such as bad decisions made by bosses who favor less competent rivals. Some are macro: geopolitical conflict (on the upswing these days), climate change, and a seriously unstable global financial system.

Whats new is structural uncertainty. It is structural because the forces now at work can explode the existing structure of your market space or your industry, putting it at risk of being drastically diminished or completely eliminated. These forces are long term and irresistible. For those who are unprepared, the massive changes they bring are sudden bends in the road that appear seemingly without warning to obscure whatever future you envisioned for your business. But in a world economy projected to grow a net $30 trillion in the coming decade, human needs and wants are always changing. The opportunities are boundless for those who can anticipate and take control of them to create new businesses, new business models, new market segments, and even new industries.

Structural uncertainty is global and yet at the same time atomistic. A growing army of change creators everywhere is empowered by the Internet and low-cost wireless communication. In theory there are potentially seven billion of them: the entire population of the world. One could be Amol Bhave, a seventeen-year-old from Jabalpur, India, who is among the more than 800,000 people around the world

Every day more of the seven billion have instant access to any and all knowledge and insights that exist, as well as the ability to collaborate with others as never before. Their ideas can be scaled up swiftly, because capital is readily available to fund promising ideas. For digital companies, the scaling can be accomplished extremely fast and at low incremental cost. On the other side of the coin, consumers have acquired great new powers because of digitization and online connectivityincluding social media, reviews, and instant price comparisonsthat give them information and options they never had before. Their preferences can shift en masse, even globally, destroying or diminishing whole industries and creating new onesadding yet another dimension to the uncertainty. Finally, every uncertainty is magnified by quantum increases in the speed of change, largely brought about by the revolutions in computer and communications technologies.

The Essentials for Leading in Uncertainty

Steering your business through structural uncertainty will call for a distinctly different type of leadership than the one you were trained for and are likely currently exercising, requiring a radically different mind-set and new skills for anticipating events and going on the attack.

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