Dec 4

Engine 2: A Conversation in Mumbai

By | December 4th, 2018|Insurgency, The path to Scale Insurgency|0 Comments

I just returned from a trip to India, where I had the opportunity to spend an afternoon with P.R. Kothari, who leads strategy for Indian conglomerate Larsen & Toubro (L&T).

As my colleague and The Founder’s Mentality co-author Chris Zook noted nearly six years ago in the Harvard Business Review, L&T is one of about 100 companies that has managed to consistently deliver sustained, profitable growth over the past two decades or more. In India, as Chris noted this year in The Economic Times, it’s one of only three companies—along with Tata Group and Aditya Birla Group—that have remained among the top 15 companies by market cap or the equivalent since 1970.

Mr. Kothari has been there almost all that time. Having worked at L&T for 45 years, he has one of the longest tenures there, though not as long as L&T Chairman A.M. Naik, who has served for more than 50 years in the company. Started by two Danes (you guessed it, Henning Holck-Larsen and Søren Kristian Toubro) in 1938, L&T holds leading positions across several strong businesses in technology, engineering, construction, manufacturing and financial services. With $17 billion in revenue, it has grown by over 15% annually in the last 10 years. Oh, and one fun fact: L&T’s first bridge was built for the 1957 movie The Bridge on the River Kwai.

Although most of his businesses are enjoying double-digit growth, Mr. Kothari is already thinking about next-generation businesses that will take the company forward for years to come. In other words, he’s thinking about what we call Engine 2.


Oct 9

The Winning and Scaling Workbook for Micro-battle Teams

By | October 9th, 2018|Micro-battles|0 Comments

As we’ve worked with individual micro-battle teams on their prototyping, a key question has emerged: “What is the best way to plan each round of prototypes to help us move closer to a scalable, repeatable model that can be deployed across the organization?”

It’s the micro-battle leaders’ job to focus on creating a repeatable model to scale a new innovative idea. (We’re assuming you know the basics of micro-battles; If you don’t, please start with this overview.) A scalable, repeatable model demands that these leaders aggressively test a new failure point at each cycle. In other words, they aren’t creators, confirming an idea is a good one and handing it off to another team to scale. They are mobilizers, committed to systematically testing implementation and scaling issues as they go. When they declare victory, the micro-battle is already on the road to full-scale deployment. We’ve found that the best micro-battle leaders take several actions, with the help of a few proprietary tools, to do this.


Aug 22

Closing the Gap: Transitions in Family Leadership

By | August 22nd, 2018|Uncategorized|0 Comments

By André Castellini and James Allen

Behind the early success of family-owned companies is a team of talented individuals who have a clear understanding of the company’s insurgent mission and passionately implement it. Family members have often been involved since founding, or they learned directly from the founders themselves. For this reason, many family businesses have an advantage when it comes to scaling.

Take Luiza Helena Trajano, chairwoman of Magazine Luiza, a leading Brazilian retailer. Luiza’s aunt and uncle founded the company in 1957. Luiza Helena started working in her aunt’s store when she was 12 and began running the company in 1991, when it had 30 stores. Magazine Luiza now has more than 800 stores and more than 26,000 employees.


Jul 26

A Profile of the Scaling Community: Phase One

By | July 26th, 2018|Micro-battles|0 Comments

By James Allen and Roger Philby

Lately, we’ve spent a lot of time thinking about the issues of scaling. In particular, we’ve been focusing on the people who help organizations scale big ideas—or the scaling community. But how did we move from Founder’s Mentality to the scaling community? Well, it took a few steps.


Jun 29

The Changing Question of China

By | June 29th, 2018|Insurgency|0 Comments

I’ve been visiting China for many years, and it’s amazing to watch how the “China question” keeps changing for Western multinational companies (MNCs). Here’s a 20-year perspective:

  • Twenty years ago, the question was “Is China important?” I would argue that most MNCs took about 10 years to answer “yes.” By 2008 or so, everyone realized that winning in China was critical.
  • Ten years ago, the question shifted to “Is China different?” It took another decade, but eventually most MNCs answered “yes.” Rather than treating China as any other market, companies began to shift strategies and allow their Chinese operations to do whatever it took to win. While I still don’t believe most MNCs have created real tailwinds to help their business, I’ve seen tremendous efforts to at least reduce the headwinds of “corporate support”!
  • Today, the question has shifted to […]
Jun 21

Chinese Founders and the Scaling Community

By | June 21st, 2018|Consumer Products, Micro-battles|0 Comments

I was recently in Shanghai, meeting with both founder-led domestic companies and global multinational companies (MNCs). During this trip, I had the opportunity to talk with the senior management team of M&G Stationery, a market leader in stationery in China. M&G was established in 1996 by cofounder and CEO Huxiong Chen. He started working in stationery at the age of 17, as a salesman. After a decade in sales, he founded the company with his brother, Huwen Chen, and sister, Xueling Chen.

During the management meeting, we got on the topic of innovation and the issues companies often encounter. Huxiong Chen noted, “Currently, M&G has a couple of small-scale innovations (less than 50 million RMB). As I consider these innovations, I realize they are really just expenses to M&G rather than real business. We are treating these innovations as a hobby, because we are not investing time to ensure that these innovations can scale.”


Apr 23

Transformation Through Technology: A Vision for Embedding Micro-battles

By | April 23rd, 2018|Micro-battles|0 Comments

We’ve talked to roughly 800 companies about the Founder’s Mentality® and micro-battles. We’ve also been involved in hundreds of micro-battles ourselves. Patterns emerge. We’ve used these blogs to discuss those patterns in detail. Now we want to step back and give you our latest views on how the journey of micro-battles will transform your organization over time. As you embed micro-battles into your ways of working, you’ll begin to challenge your operating model. This will occur in a series of steps, based on four big themes. View this blog as a teaser—it’s going to be short, but we’ll delve more deeply into these themes in our next release.

The micro-battles journey consists of your point of departure, your point of arrival and the journey to get there. It’s simple, but let’s briefly reacquaint ourselves with each part.


Apr 19

The Embedding Challenge

By | April 19th, 2018|Micro-battles|0 Comments

Congratulations. You’re running a number of micro-battles and beginning to address some tough scaling issues, where you’ve had to:

1. Convert individual prototypes into Repeatable Models® that can be rolled out across the company.
2. Amplify the impact of the portfolio of micro-battles to help you achieve full potential for the business as a whole.


Apr 18

Communicating the Micro-battles Journey: Six Lessons from the Masters

By | April 18th, 2018|Micro-battles|0 Comments

In our blog on the micro-battles training agenda, we refer to our Leadership training workshop, where we help leaders better understand how to manage the portfolio of micro-battles. A key issue that comes up repeatedly is “communication”: How should we talk about our journey to embed micro-battles in our ways of working? To gather some best practices, we interviewed management teams that we consider to be the most proficient at this. Here are six lessons that we hope you’ll find useful.


Apr 17

Interventions: The 10 Most Common

By | April 17th, 2018|Micro-battles|0 Comments

You’re frustrated. Your company is surrounded by insurgents, who are constantly innovating, disrupting and occasionally picking off some of your most important customers. Yet, internally, there’s no sense of urgency. Meetings come and go. Initiatives are launched with great fanfare, only to repeatedly underperform, yet never quite die. You lose top recruits that hint you’re yesterday’s company, but these losses are explained away. Some longstanding customers drift away, but again, the organization produces perfectly satisfactory explanations.

You decide to shake things up. You like this Founder’s Mentality® thing, and you like the idea of becoming a scale insurgent. You recognize this demands you rediscover your original insurgency, your frontline obsession and your owner mindset. And you’re compelled to launch micro-battles, to rediscover the art of getting things done. You’re tired of the complacency that surrounds you and love the idea of a minirevolution to wake everyone up. So you launch micro-battles and “trust the system”—your micro-battle teams will work according to the Win-Scale cycle and your leadership team will manage the portfolio of micro-battles through the Amplify cycle.


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