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1 pi-ii added quote caused rewrap “Using key concepts from The Spider’s Strategy, Amit led the capstone session of our Leadership Excellence Series Program. As the leader of the Program, I received the 2008 The Vanguard Award silver medal (for large companies) in the Chief Learning Officer magazine’s Learning in Practice competition. LES attendees found the discussion stimulating and took away essential tools for managing in today’s networked economy.”
—Lucy Dinwiddie
Vice President, Organizational Development, ConAgra Foods
10/16/2008
1 pvi update print line Second Printing, october 2008 10/16/2008
1 p9 The Principles are as follows: The Principles are: 10/16/2008
1 p10 Companies also must consider major organizational changes in order to marshal and deploy people with the skills needed to design, create, and manage their networks. Companies must also consider major organizational changes in order to marshal and deploy people with the skills needed to design, create, and manage their networks. 10/16/2008
1 p18 Table missing bottom line fixed 10/16/2008
1 p25 In 1999, Ericsson had a market (sales) presence in an astounding 140 countries and expanded its distribution network. It had 38 active production facilities in 15 countries. In 1999, Ericsson had a market (sales) presence in an astounding 140 countries and expanded its distribution network concomitantly. It also had 38 active production facilities in 15 countries. 10/16/2008
1 p29 Any company that fails to appreciate this fact will find itself well cocooned in the breast of the Execution Trap: the company will focus ever harder on brilliant execution but still will not be able to substantially improve performance. Any company that fails to appreciate this fact will find itself well cocooned in the breast of the Execution Trap: the company will focus ever harder on brilliant execution but will still not be able to substantially improve performance. 10/16/2008
1 p30 Plans developed, often with the help of powerful computers, are unable to envision the textured, inconsistent complexity of the network. Plans developed, often with the help of powerful computers, are unable to envision the textured, inconsistent complexity of the new business environments. 10/16/2008
1 p33 In terms of the network model, not only do the numbers of workgroups and flows expand, but the actual information, monies, and material that have to flow also change. Should be in italics. 10/16/2008
1 p37 I tried, but I could not reach anyone senior at Ericsson to share their views, so I will offer on their behalf the only defense I can. I tried, but I could not reach anyone senior at Ericsson to share his or her views, so I will offer on their behalf the only defense I can. 10/16/2008
1 p39 Unfortunately, they did not pursue far enough the implications of their understanding. Unfortunately, they did not pursue the implications of their understanding far enough. 10/16/2008
1 p41 So, at the very least, changes that you think you need may make your own business unit an Adaptive Business. At the very least, changes that you think you need may make your own business unit an Adaptive Business. 10/16/2008
1 p45 Once in a while, one of these sayings actually comes true and pokes its finger in our eye. Once in a while, one of these sayings actually comes true and pokes its finger in the eye. 10/16/2008
1 p52 Indeed, defining who is (and why) is a critically important managerial task. Indeed, defining who is important (and why) is a key managerial task. 10/16/2008
1 p54 Doing so is very difficult for two reasons: ex ante, it may not be apparent what insights might be needed, and as the autonomy of the other workgroups rise, sensing will require their active cooperation. Doing so is very difficult for two reasons: ex ante, it may not be apparent what insights might be needed, and as the autonomy of the other workgroups rises, sensing will require their active cooperation. 10/16/2008
1 p56 Additionally, objective data may not be available at the required level of granularity to assess whether a company (say, HP) has implemented effective network management across some, but not all, business areas. Additionally, objective data may not be available at the required level of granularity to assess whether a company (say, HP) has benefitted from effective network management practices implemented across some, but not all, business areas. 10/16/2008
1 p58 Kevin Hendricks and Vinod Singhal conducted a fascinating study that showed that such a pummeling is common. Professors Kevin Hendricks and Vinod Singhal conducted a fascinating study that showed that such a pummeling is common. 10/16/2008
1 p58 Their initial study covered 519 North American companies from 1989 to 2000 (as the latest epoch emerged). Their initial study covered 519 North American companies from 1989 to 2000 (i.e., as the latest epoch emerged). 10/16/2008
1 p60 Moreover, the markets may need extended periods of time to absorb the information they have been given. Moreover, markets may need extended periods of time to absorb the information they have been given. 10/16/2008
1 p60 Moreover, the shares showed no inclination to rise up to two years after the announcement!

two years should be in italics
fixed 10/16/2008
1 p63 Include these in the map: Include these in the map and also consider: 10/16/2008
1 p70 Indeed, Nokia actively designed his job to produce this outcome. Indeed, Nokia had actively designed his job to produce this outcome. 10/16/2008
1 p79 The workgroup that runs Buy-Sell begins its job once customers (often retailers) have placed their orders and purchase and manufacturing contracts have been negotiated (often, but not always, as discussed in Chapter 5, “Succeed in a Dog-Eat-Dog World”). The workgroup that runs Buy-Sell begins its job once customers (often retailers) have placed their orders, and after purchase and manufacturing contracts have been negotiated (often, but not always, as discussed in Chapter 5, “Succeed in a Dog-Eat-Dog World”). 10/16/2008
1 p84 He continued: “...we can even have influence of the design of one single component in a product. He continued: “...we can even have influence of the design on one single component in a product. 10/16/2008
1 p86 Their executed response routines had been brilliantly embedded in normal plan-and-execute routines. They executed response routines that had been brilliantly embedded in normal plan-and-execute routines. 10/16/2008
1 p90 If this occurs, I suspect businesspeople, technologists, and academics would debate which saying best captures the moment: If this occurs, I suspect businesspeople, technologists, and academics will debate which saying best captures the moment: 10/16/2008
1 p102 They could retaliate by giving some or all of the reverse-logistics business to another provider or bring it in-house, but it would be a while before the new providers (if they were really good) would possibly be able to deliver similar insights as could RevCo. They could retaliate by giving some or all of the reverse-logistics business to another provider or bring it in-house, but it would be a while before the new providers (if they were really good) would be able to deliver insights like RevCo’s. 10/17/2008
1 p104 Patrick Scholler, an HP director, said referring to a multibillion-dollar, multiyear components deal that HP had signed: Referring to a multibillion-dollar, multiyear components deal that HP had signed, Patrick Scholler, an HP director, said: 10/17/2008
1 p112 80% of the companies which are trying to implement Just-in-Time fail because they are just focusing their own interest into this process.... 80% of the companies which are trying to implement Just-in-Time fail because they are just focusing their own interest in this process.... 10/17/2008
1 p112 Without a formal HP-like system, however, Nokia lacks a formal mechanism to compensate its partners if unanticipated changes in its plans cause them difficulties. Without an HP-like system, however, Nokia lacks a formal mechanism to compensate its partners if unanticipated changes in its plans cause them difficulties. 10/17/2008
1 p113 Mr. Markki gave another, referring to the 2000 fire, noting that the changed interactions opened the option of moving some production to other Philips plants: Mr. Markki gave another, referring to the 2000 fire and noting that the changed interactions opened the option of moving some production to other Philips plants: 10/17/2008
1 p113 People in such situations may either feel real pressure to defect or fear that their partner will and act to “protect” himself. People in such situations may either feel real pressure to defect or fear that their partners will act to “protect” themselves. 10/17/2008
1 p115 “The bias towards win-lose,” Mr. Baril said, “is the most difficult thing to unwire.” “The bias towards win-lose,” Mr. Baril added, “is the most difficult thing to unwire.” 10/17/2008
1 p116 Even with true believers leading the charge, companies should address immediate, practical issues of substantial value instead of initiating a crusade to change the world. Even with true believers leading the charge, companies should address immediate, practical issues of substantial value instead of initiating crusades to change the world. 10/17/2008
1 p117 ...very often we get changed orders because a competitor cannot deliver on an order. ...very often we get our orders because a competitor cannot deliver on an order. 10/17/2008
1 p117 Having critical information is of little value unless it can be shared with those who need it to make key decisions.

Having should NOT be italics.
fixed 10/17/2008
1 p118 More generally, if either party in a relationship fails to define success broadly, win-win solutions will not arise naturally and, indeed, relationships will degenerate into a win-lose battle. More generally, if either party in a relationship fails to define success broadly, win-win solutions will not arise naturally and, indeed, relationships will degenerate into win-lose battles. 10/17/2008
1 p121 Competition here tends to have a harder edge than in Europe, and Asia has a long history of cooperation among members of keiretsus26.

moved period.
Competition here tends to have a harder edge than in Europe, and Asia has a long history of cooperation among members of keiretsus.26 10/17/2008
1 p121 Competition here tends to have a harder edge than in Europe, and Asia has a long history of cooperation among members of keiretsus26.

moved period.
Competition here tends to have a harder edge than in Europe, and Asia has a long history of cooperation among members of keiretsus.26 10/17/2008
1 p125 The key term here is critical mass.

critical mass should be italic.
fixed 10/17/2008
1 p126 The key point to take away is, pursue win-win for business reasons, not for altruistic reasons. The key point to take away is: pursue win-win for business reasons, not for altruistic reasons. 10/17/2008
1 p126 Here are a few things for groups of managers and professionals to do: Here are a few actions for groups of managers and professionals to take: 10/17/2008
1 p126-127 What specific things that are within the control of the group dealing with these issues can you fix? What specific things can you fix that are within the control of the group dealing with these issues? 10/17/2008
1 p133 Researchers call the capability I am describing “organizational learning” (see the following sidebar titled “A Primer on Organizational Learning”). Researchers call the capability I am describing “organizational learning” (see the sidebar titled “A Primer on Organizational Learning”). 10/17/2008
1 p160 Realign the process, cultural, and organizational context for your changes! Realign the process, cultural, and organizational context for your changes. 10/17/2008
1 p167 would rise from almost $1.2 trillion in 2006 to almost $1.5 trillion by 2010.

2nd trillion should be in italics.
would rise from almost $1.2 trillion in 2006 to almost $1.5 trillion by 2010. 10/17/2008
1 p176 As the data from my North American survey on behalf of SAP shows (see Figure 7-1), in 2003, companies that made products felt the need to collaborate across multiple tasks. As the data from my North American survey on behalf of SAP shows (see Figure 7-1), companies that made products felt the need to collaborate across multiple tasks. 10/17/2008
1 p181 “The 21st Century at Work” cited primary research that found that 80% of the workforce either worked offsite or worked with others who did!

80% should be italic.
fixed 10/17/2008
1 p182 At the simplest end, in this category are devices like the ones FedEx drivers carry to record the pickup or delivery of packages. At the simple end of this category are devices like the ones FedEx drivers carry to record the pickup or delivery of packages. 10/17/2008
1 p190 If it is impossible to design a simple test of the core ideas, it will probably be impossible to design complex technologies to work on those ideas. If it is impossible to design a simple test of the core ideas, it will probably be impossible to implement complex technologies to work on those ideas. 10/17/2008
1 p197 Earlier in this book, I noted (see, in particular, Table 3-1) that Ramchandran Jaikumar’s research showed that with each epochal change, the following happened:
• Work got transformed.  In the present epoch, this is taking the form of fragmentation of work across time and space. The fragmentation has given rise to the need to embed sense-and-respond capabilities in normal plan-and-execute processes and to foster collaborative action with network partners.
• Consistent with the changes in work, skills and capabilities valued by companies evolved.  In this epoch, the importance of learning is very high due to the need to collect and process vast amounts of information that may enable sensing and responding.
Earlier in this book, I noted (see, in particular, Table 3-1) that Ramchandran Jaikumar’s research showed that with each epochal change:
• Work got transformed.  In the present epoch, this is taking the form of fragmentation of work across time and space. The fragmentation has given rise to the need to embed sense-and-respond capabilities in normal plan-and-execute processes and to foster collaborative action with network partners.
• Consistent with the changes in work, skills and capabilities valued by companies evolved.  In this epoch, learning has become very important due to the need to collect and process vast amounts of information that may enable sensing and responding.
10/17/2008
1 p199 We have become convinced that we need to manage processes, and we have assigned this task to yet more executives. Convinced that we need to manage processes, we have assigned this task to yet more executives. 10/17/2008
1 p202 You must consider how different workgroups inside and outside the company will work together. You also must consider what information needs to flow from whom to whom, when, how, and why. How will different workgroups inside and outside the company work together? What information needs to flow from whom to whom, when, how, and why? 10/17/2008
1 p206 If the CNO does not have the humility to admit he or she does not have all the answers, the CNO will also find it hard to fashion innovative solutions. If the CNO does not have the humility to admit he or she does not have all the answers, he or she will also find it hard to fashion innovative solutions. 10/17/2008
1 p211 More large companies resemble the decentralized HP and not the cohesive, focused Nokia. As such, they should approach adaptive transformation holographically.1 More large companies resemble the decentralized HP and not the cohesive, focused Nokia.1 As such, they should approach adaptive transformation holographically. 10/17/2008
1 p217 Indeed, the initial efforts during each wave should also be limited to one or two challenges (see the next section) and should be broadened only as success and experience accrue. Indeed, the initial efforts during each wave should also be limited to one or two challenges and should be broadened only as success and experience accrue. 10/17/2008
1 p239 Add Safari Business ad added 10/17/2008