We are looking out on a dramatically altered business world—with little resemblance to life a few short months ago. In this more complex environment, the ability to anticipate and deal with frequent change, even turmoil, determines survival. Some business leaders have yet to grasp this reality; others are rightly daunted by the challenge. Please view this on-demand video webinar presentation in which we discuss the capabilities needed to manage the complexities of the "new business normal."

1. White Water Management: The Key to
Navigating the „New Business Normal‟
Presented by:
Ron Wince, President & CEO
Guidon Performance Solutions
Michael W. Wright, Co-author
The New Business Normal

2. NEW GLOBAL REALITIES

3. experience technology
change
integrate
brand
competition
temporary balance
innovation
travel
anxiety
differentiation
stress
revolution leadership
strategy
survival outsource
speed
customers
knowledge
competencies transparency

4. 24/7/365

5. Change

6. security

7. innovation

8. Dorothy…I don’t think we’re in Kansas
anymore!

9. speed

10. Good corporate
citizenship

11. competition

12. survival

13. India

14. anxiety

15. speed

16. Those who know
vs. those
who do not

17. competency

18. Innovation has
become the Ante.

19. differentiation

20. Consumers value
the experience,
not the product.

21. experience

22. knowledge worker

23. chaos

24. stress

25. Low-stress family life
is nonexistent.

26. information

27. speed

28. brand

29. Ignorance can
accelerate

31. multi-tasking

32. Mistakes may be
mortal.

33. competition

34. engaged

35. population

36. revolution

37. experience technology
change
integrate
brand
competition
temporary balance
innovation
travel
anxiety
differentiation
stress
revolution leadership
strategy
survival outsource
speed
customers
knowledge
competencies transparency

39. The Boundary Conditions of the
New Business Normal
 Demographics and Debt: US Citizens >65 ratio to working will increase from an average of 16–
19% over the period from 1965–2009 to ~ 32% by 2030; In Japan it will move from about 37% to 57%;
In the Euro area, the percent will shift from roughly 29% to 45% DEBT: We are in unchartered waters
 Speed of Everything
 Complexity of Technology
• Primary (single discipline effects ) research done and fully developed
• Secondary effects (single to low multiple discipline) explored and developed
• Tertiary effects (highly multi-discipline) are now the research and development norm
 Globally Strategized– Locally Exercised
 Rule of Three--- Oligopolies and Boutiques
 Matrix Organizational Structures
• Multi-disciplined, multi-level, multi-cultural environments
 Dynamic
• Change is accelerating
• Adaptation is critical
• Mistakes can be mortal

40. Inexorable Trends
 Mining university and government technology research sources and
accelerating new product introductions, will continue to be timely and
critical as sovereign capital becomes evermore strategically deployed in
the interests of national economic, energy, and military security.
 Collaboratively building technological infrastructure and a culture of
innovation in emerging markets will challenge universities, governments,
financial markets, and businesses.
 Utilizing Nano-technology and building physical products that will change
the nature of manufacturing to offset the cost advantages of low-cost labor,
raw material deposits, lax human rights and environmental laws will
emerge as the next wave of technology based competitive advantage.
 Information based competition will be pervasive and sustainable advantage
will accrue to those who can access, collate, analyze and act on
information faster than the competition anywhere in the world at anytime.

42. INTANGIBLE ASSETS OUTSTRIP
PLANT PROPERTY AND EQUIPMENT (PP&E)
AS THE BASIS FOR VALUATION
 Goodwill
 Brand recognition
 Customer relationships
 Intellectual property
 Systems
 Logistics

44. Those who know
vs. those
who do not

45. Ignorance can
accelerate

47. Primacy
of the
Customer

48. Consumers value
the experience,
not the product.

49. Innovation has
become the Ante.

51. TRENDS IN CYCLE TIME
1995 to present (in months)
1995 2010
Average Average
New-to-the-world 41.7 21.0
Major revisions 18.1 13.2
Incremental 7.6 6.4
Cycle times have been greatly reduced,
especially for new-to-the-world innovations.
Source: PDMA Foundation CPAS Study 2004
baseline 2010 estimate

52. Narrowing Organizational Focus:
Faster, Leaner, Smarter
 Productivity & Predictability
 Supply Chain Rationalization
 Rule of Three
 Redeployment of Assets
 Seamless Coordination of Systems & Processes

54. EMERGING MARKETS
 Taiwan  A World Bank paper uses simulations to predict
some amazing shifts in the global middle class
 Korea  Thanks to emerging markets, by 2030, an
estimated 16.1% of the world population will be
categorized as middle class, up from 7.6% in
 India 2000
 Over the same period, emerging markets will
 Japan account for 750 million new entrants into the
middle class
 Russia  While in 2000, 13.5% of the global middle class
was Chinese and only a negligible amount Indian,
by 2030 these two groups will account for an
 China estimated 44% of the global middle class— with
Indians moving from virtually zero to 6%
Source of data: Bussolo, De Hoyos, Medvedev, van der Mensbrugghe, Global Growth and Distribution: Are China and India
Reshaping the World? Policy Research Working Paper 4392,11/1/2007.

55. The 4 most feared words in the
new business normal world
What‟s “the China price”?

57. Unrelenting Challenges
for Global Business Leaders
 Risk management – clear risk/reward ratios
 Intellectual property management (IP) – variation by country
 Setting up first-rate information technology (IT) and knowledge management
(KM) systems – the basis of future competition
 Managing geometrically slopping cost curves-cost denominated competition,
opportunity management, and rapidly moving market windows
 Managing risk through strategic customer relationships and partnerships-seeing
the customer as the primary source of learning
 Strategy Execution: human factors – developing and managing cross-functional
and cross-border high performance teams
 Working with and through capital markets

58. Effective Leadership in the NBN
 Required leadership capabilities in the new business normal include:
 Making disciplined (data driven) and knowledge management based
decisions
 Communicating effectively internally and externally across multiple
cultures
 Working with external resources in the financial, technical, government,
university and business communities
 Leading people by influencing behaviors, stimulating creative activity in
others, and successfully managing small and large group dynamics
 Innovating, marketing, planning, forecasting, and adjusting to succeed
 Anticipating, intercepting, and harnessing technology based growth
opportunities

59. A NBN LEADERSHIP REPORT CARD
 Strategic customer relationships
 Technological health
 Market position
 Global culture
 Process disciplines
Constant innovation

Knowledge management systems


60. Good corporate
citizenship

61. Take-Away Principles for Thriving in the
New Business Normal
 Performance is the residual of behaviors
 Corporate agility and performance hinges on the collective direction of individual
behavior and attitude
 People and values count
 Speed = The Competitive Advantage: accessing, collating and acting on information faster than
the competition anywhere in the world at anytime
 Primacy of the customer
 Listening for the functionality
 Access & Mobility
 Intangible Assets
 Brand
 IP
 Knowledge networks
 Innovation
 Organization
 Processes
 Products
 Scaling

63. In the New Business Normal the
difference between an opportunity

64. …and a threat
Is the time horizon in which you see it.

65. THRIVING IN THE AGE OF
UNCERTAINTY

66. The Reality...
We are in a White Water World

67. A White Water World…
 Complex
 Turbulent
 Uncertain
 Risky
 Unforgiving
 Real Time

68. Thriving in a White Water World
Four Principles for Navigating the New Normal
1. Purpose & Core
Values Are The Only
Constants
2. Compete in Dog Years
3. ―HOW‖ Matters More
Than ―WHAT‖
4. People are the
Linchpin

69. Principle #1
Purpose & Core Values Are The Only
Constant
• Purpose and Core Values are the COMPASS which ―harmonizes‖
individual orientations into an organizational orientation.
• Military organizations build common orientation through their long
basic and advanced training programs and by studying a common
doctrine.
Adapted from Certain to Win
Dr. Chet Richards

70. The Functions of Purpose
 Providing a context for decision-making
 Providing a yardstick for performance
 A motivator of excellence
 Everyone agrees to make his or her actions serve
organization's intent in terms of what is to be
accomplished.
 Providing a focus for collaboration and shared
responsibility
From High Performance Teams by Buckholz and Ross

71. The Functions of Core Values
 Emotionally energize people and ―provide a moral
compass for the organization.‖
 Guide attitudes and actions
 Acts as an immune system which deploys the
corporate antibodies

74. Principle # 2
Compete In Dog Years
A time-compressed company does the same thing as a
pilot in an OODA loop… It’s the competitor who acts
on information faster who is in the best position to win.
George Stalk, Jr. & Tom Hout,
Competing Against Time

75. Competing in Dog Years
Wasted Time and Activity
Core Process Value
Excessive Excessive Motion Defective Process
Backlog (Walking to Next Task, etc.) (Identifying, Handling, Fixing)
OPERATIONAL LEAD TIME
Missing, Incomplete, Waiting Transformation
Redundant Overprocessing
(Often Result of Complete the
Information
Unbalanced Tasks) application
process
The key is to reduce business processes and effort to
“core value”

76. “At a time when firms in many industries
offer similar products and use comparable
technologies, business processes are among
the last remaining points of differentiation.”
Tom Davenport, Competing on Analytics

77. Principle #3
How Matters More Than What
 Business Processes are the
“HOW”
– Strategic Planning and
Deployment
– Operations
– Talent Development
– Innovation
– Technology Deployment
 Strategies, business models
and entire industries change
rapidly today – business
processes are the key to
adaptation and execution

79. People Linchpin the Process
According to Boyd, a fighter pilot didn’t win by faster
reflexes; he won because his reflexes were connected to
a brain that thought faster than the opponent.
Bing West and MajGen Ray Smith, USMC, Ret.
The March Up, p. 11

80. Question:
What determines the speed of the
organization?
 Ultimately, a moral climate/culture/environment
that encourages people to use and harmonize their
initiatives to further the goals of the organization
 Under such a climate, people will evolve new
ways to solve the technical (and even
organizational) problems

81. People are the Linchpin
Competitive Advantage Through People
 A corporate culture which can respond quickly to the needs of the
business must encourage people to use initiative and creativity – while
also providing consistency and alignment
 Under such a high performing culture, people will solve the technical,
operational and strategic problems
 Creating the culture requires a framework for people to ―operate
within‖ – to retain consistency with ―corporate intent‖ (purpose) but the
freedom to act autonomously
 Active learning through rapid fire reflection and deliberate practice
helps to increase the desired ―cultural competence‖

82.  Abbott recruited entrepreneurial leaders and gave them the
freedom to determine the best path to achieving their
objectives.
 On the other hand, individuals had to commit fully to the
Abbott system and were held rigorously accountable for their
objectives.
 They had freedom, but freedom within a framework.
From Good to Great by Jim Collins

84. “…The two fundamental forces that drive GE…a
common operating system and social architecture…”
Jack Welch
GE 1999 Annual Report

85. Navigating the New Normal
How we execute & deliver results Operating System
Cycles of Use
How we behave and interact Social Architecture
Who we are and what we believe Purpose & Core Values
Success in the New Business Normal will depend on the
ability of the organization to rapidly respond to the
external change and complexity while maintaining
consistency with purpose and core values

86. Navigating the New Business Normal
Architecture of the High Performing Enterprise
Operating System
Business Innovation & Business
Technology & MIS
Intelligence Problem Solving Processes
Cycles of Use
Mission/Strategy
Social Architecture
Common Rewards & Valued
language & Recognition Behaviors
terminology
Purpose & Core Values
• Purpose Statement
• Values Statement
High Performing Organizations will need a Rosetta Stone to continually and
rapidly recognize external change, understand internal capabilities, focus on the
exceptions & disagreements and deliberate practice to embed changes in an
organization’s DNA.

87. Cycles of Use
Learning Cycles of Use
Tiger Woods regularly practices this shot, although he
may only see it under tournament conditions 2-3
times per year
Cycles of Use is the application of Deliberate
Practice at the Enterprise Level – ongoing reflection
and learning

88. Take-Away Principles for A White
Water World
 We are in a world of continuous rapids
frequently interrupted by monsoons
 Four Principles
 Purpose & Core Values provide a
foundation for the world of flux
 Speed is life!
 How is more critical than What
 People enable execution through aligned
behaviors
 Every organization needs a Rosetta Stone
 Winners in the future will
 Read the river
 Pick the line and execute the move
 Learn from every rapid

89. THANK YOU!
White Water Management
Thriving in the Age of Uncertainty
Ron Wince, President & CEO
Guidon Performance Solutions
www.GuidonPS.com
Michael W. Wright, Co-author
The New Business Normal
michael@appliedglobalstrategies.com