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March 13, 2014
Kaihan Krippendorff
www.kaihan.net
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Mohammad Yunus
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Ratan Tata
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Thomas Edison
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Ray Kroc
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Betsy Johnson
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Richard
Branson
Oprah
Winfrey
Elizabeth
Arden
Dhirubhai
Ambani
Bill Gates
Charles
Revson
Henry Ford
Sōichirō
Honda
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Martin Luther
King, Jr.
Mother
Teresa
Mahatma
Gandhi
Nelson
Mandela
Rosa Parks Mohammad
Yunus
Margaret
Thatcher
Benjamin
Franklin
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“First they ignore you,
then they laugh at you,
then they fight you,
then you win.”
Mohandas Gandhi
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The option beyond the obvious choices;
the option others do not see, will not
consider, and will not respond effectively to.
The 4th Option®
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Outthinkers are Outliers
“Heavier than air flying machines are impossible.”
Lord Kelvin President, Royal Society, circa 1895
“Who the hell wants to hear actors talk?”
Harry M. Warner, CEO of Warner Brothers Pictures, circa
1927
“There is no reason for any individual to have a
computer in their home.”
Ken Olsen President , Digital Equipment Corporation,1977
“There is no likelihood man can ever tap the power of
the atom.”
Robert Millikan, Nobel Prize in Physics, 1923
“The phonograph … is not of any commercial value.”
Thomas Alva Edison (Inventor of the Phonograph), circa
1880
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Elon Musk
CEO, Tesla Motors
Tom Adams
CEO, Rosetta Stone
Mark Zuckerberg
CEO, Facebook
Arianna Huffington
CEO, Huffington Post
Robert Keane
CEO, Vistaprint
Wayne Gattinella
CEO, WebMD
Sabrina Herrera
Cofounder, Genomma Lab
Marissa Mayer
CEO, Yahoo
Larry Page
CEO, Google
Mark Vadon
Founder, Blue Nile
Josh Linkner
Founder, ePrize
Ann Hand
CEO, Project Frog
Susan Lyne
CEO, Gilt Groupe
Cory Booker
Mayor, Newark, NJ, USA
Jeff Bezos
Founder, Amazon.com
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Some Victims
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2000
1. GE
2. Microsoft
3. Dell
4. Cisco
5. Wal-Mart
2005
1. Dell
2. GE
3. Starbucks*
4. Wal-Mart
5. Southwest A.*
2010
1. Apple*
2. Google*
3. Berkshire H.*
4. J&J*
5. Amazon*
Most Admired Companies Replaced
Source: Fortune Magazine, Most Admired Companies
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Fortune 500 Survival is Falling
Source: “What Does Fortune 500 Turnover Mean?” Dane Stangler and Sam Arbesman Ewing Marion;
Kauffman Foundation, June 2012
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S&P Lifespan Shortening
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How to we create our
4th Option®?
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Alexandra Kosteniuk
How Do Great Strategists See the
“Winning Move?”
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Source: Baddeley model of short term working memory
Consciousness
Phonetic loop
Visuo-special
sketchpad
Episodic buffer
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Relative number of narratives chess players recognize:
Grand master Master Expert
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Europe & Americas –
Fairy tales
Japan – Koan
India – Puranas
China – 36 stratagems
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Identifying Outthinkers
Value creation
(TRS)
Revenue growth
(CAGR)
(EBITDA)
Profit margin
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Core Research
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Narratives to Find a Fourth Option
#7 Force two-front battle
#32 Create something out of nothing
#22 Move early to the next battleground
#34 Coordinate the uncoordinated
#33 Be good
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Move Early to the Next Battleground22
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Move Early to the Next Battleground22
“I just think a future in
which anyone can shoot
stuff into space is more
exciting than one which
only the government
can.”
Elon Musk, founder,
Space-X
(2003 interview)
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Move Early to the Next Battleground22
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Move Early to the Next Battleground22
1st year
employment:
65%
Education:
3years to 2
Teaching law
firms
Every lawyer
a sole
practitioner
Technology
(e.g., Big
Data)
Unbundling
of legal
services
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Identify and move early to the next
battleground.
Where is the next battleground?
- Technological trends?
- Social shifts?
- Geographies?
- Buying patterns?
- Needs?
22 Move Early to the Next Battleground
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Narratives to Find a Fourth Option
#7 Force two-front battle
#32 Create something out of nothing
#22 Move early to the next battleground
#34 Coordinate the uncoordinated
#33 Be good
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Coordinate the Uncoordinated34
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42
Coordinate the Uncoordinated34
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Coordinate the Uncoordinated34
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Coordinate the Uncoordinated34
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Coordinate the Uncoordinated34
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Combine and coordinate independent
elements within your environment to
orchestrate much greater power.
Who would we like to coordinate?
- Customers
- Experts
- Employees
- Real estate
- Regulators
- Competitors
- Driveways
- …
Coordinate the Uncoordinated34
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Narratives to Find a Fourth Option
#7 Force two-front battle
#32 Create something out of nothing
#22 Move early to the next battleground
#34 Coordinate the uncoordinated
#33 Be good
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Force a Two-Front Battle7
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7 Force a Two-Front Battle
Cloud
providers
Cloud
services
Retail
“There is no physical analog for
what Amazon.com is becoming.”
- Jeff Bezos
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7 Force a Two-Front Battle
Shoes
Shoes
Customer
service
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7 Force a Two-Front Battle
Traditional
CPA firms
Projects
Resources
(Accnts)
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7 Force a Two-Front Battle
Traditional
law firms
Traditional
model
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Force a two-front battle7
Project your unique capability into a new
area.
What is your unique advantage/
capability?
Into what new area could you project this?
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Narratives to Find a Fourth Option
#7 Force two-front battle
#32 Create something out of nothing
#22 Move early to the next battleground
#34 Coordinate the uncoordinated
#33 Be good
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Environment
Employees
Community
Govern-
ment /
country
Share-
holders
Customers
Corporation
33 Be Good
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33
58
Be Good
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33 Be Good
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The Holstee
Manifesto
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Adopt a strategy that Benefits others.
How can you profitably benefit key
stakeholders that you are not now
considering?
Be good33
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Narratives to Find a Fourth Option
#7 Force two-front battle
#32 Create something out of nothing
#22 Move early to the next battleground
#34 Coordinate the uncoordinated
#33 Be good
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Create Something Out of Nothing32
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Create Something Out of Nothing32
Julie Pickens
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Ingvar Kamprad
Create Something Out of Nothing32
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Create Something Out of Nothing32
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Create Something Out of Nothing32
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Add a new piece the board.
What would you like to create/ add
to the game?
- New categories?
- New occasions or needs?
- New customers?
- New suppliers?
- New distributors?
- New regulations?
Create something out of nothing32
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Find More Stratagems at www.kaihan.net
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Narratives to Find a Fourth Option
#7 Force two-front battle
#32 Create something out of nothing
#22 Move early to the next battleground
#34 Coordinate the uncoordinated
#33 Be good
How can you project into a new sector?
What can you create?
Where is the next battleground?
Who could you coordinate?
How can you be good?
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“Impossible is a word to
be found only in the
dictionary of fools.”
Napoleon Bonaparte
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Selecting your 4th Option
High
Low
Crazy ideas Winning moves
Wastes of time Tactics
Impact
• How far would
this get me
toward my
goal?
• How long
before the
competition
responds?
Difficult Easy
• Can we do this quickly?
• Is this inexpensive?
• Do we have the capability?
73. 2013 Kaihan Krippendorff All Rights Reserved.www.kaihan.net
Selecting your 4th Option
High
Low
Crazy ideas Winning moves
Wastes of time Tactics
Impact
• How far would
this get me
toward my
goal?
• How long
before the
competition
responds?
Difficult Easy
• Can we do this quickly?
• Is this inexpensive?
• Do we have the capability?
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“It's not that I'm so
smart, it's just that I
stay with problems
longer.”
- Albert Einstein
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Make the impossible possible
Don’t build
handsets
Risk of no
WiFi
Customer
Service too
costly
“Each of these
looked like show
stoppers”
Motorola
Early
adopters
No one
provides
service
David Morken, CEO Bandwidth.com
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Objectives
Imagine and
commit to
realizing a
different
future
Imagine
Choose
leverage
points others
overlook
Dissect
Generate
more
potential
strategies
Expand
Choose
strategies
competitors
will not copy
Analyze
Build buy-in
from key
stakeholders
Sell
How to Apply Strategic Narratives:
The Outthinker Process
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Mohammad Yunus
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Ratan Tata
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Thomas Edison
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Ray Kroc
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Betsy Johnson
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kk@outthinker.com
www.outthinker.com
www.kaihan.net
@kaihan
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