Performance: Faster, Higher, Stronger

Think:Act40 InthIsIssUE "Weneedtransformativetechnologytohelpdigusoutoftheholewe'rein." TONYFADELL Engineer,designerandserialentrepreneur ·page66 Think:Act40 3 "Nobusinessexecutiveisevergoingtosaythatcomplacencyisagoodthing." ALISONLEVINE Mountaineerandleadershipconsultant ·page40 photos:Williamsonadams,harryKiKstra 2 PERFORMANCE INTHISISSUE FASTER 4 Think:Act40 INthISISSUE "Let'snotassumethatbecauseacompanyisdoingwell,itmustbeinnovative." PHILROSENZWEIG AuthorofTheHaloEffect ·page22 STONGR GHER it's2023.WehavemadeitoutoftheworstyearsofCovid-19.Nowit'stimetogetbacktobasics.Performanceliesatthecoreofasuccessfulbusiness. HI Butinaworldofchangingvaluesandideas,doweneedtoreassesswhatwemeanbyperformance?We,atThink:Act,havetakensometimetostepbackandlookatthebigpicture–aswellaschallengeafewideas. ThisissueofThink:Actissuedrillsdownonwhatperformancereallyisandwhatitmeansintermsofthecapabilitiesanorganizationneedstohone.Beyondthat,wedistilllessonsfromtheteamdynamicsinFormula1andshowyouwhyclimbingMountEverest(literally)offersyouvaluablelessonsinwhymakingthesummitisnottheonlymeasureofsuccess.AndinaworldofincreasingautomationandAIcomingtothefore,weaskwhethertheCEO'sdaysarenumberedintheboosttoachievetopperformance. Fromtheindividualtotheteam,frommetricstomanagement,wewantto giveyouanewlenstoviewperformancewithsoyoucanthriveinthepost-pandemicbusinesslandscape. photo:Jérômesessini/magnumphotos RE 6Think:Act40inthisissue Think:Act40 Infocus FASTER inthisissue Think:Act407 Wideangle SGER Wideangle Think,actandstayinformed 76 Gutinstinct Someofthebestbusinessdecisionshavebeenbasedonakindofintuitionthatyoucanlearntoleveragetoyouradvantage. 60Webuiltthiscityonrockandroll TheAmishcountrytownofLititzhasbecomehometoaone-stopshopwhereworld-classperformerspreparetotourtheglobe. 66Givingpeoplesuperpowers FormeriPodengineerandserialentrepreneurTonyFadellexplainsrisingtothechallengeofbuildingthethingsthatpeoplereallywant. 72Thoughtleader FormerMedtronicCEOBillGeorgeonhowuncertaintimescallfor anewgenerationofleaderswhoaren'tafraidofthefrontlines. HIGHER PERFORMANCE PERFORMANCE illustration:cristinadaura|photos:kellyrichmondpope,gettyimages/afp/andrejisakovic,gettyImages/redbull/markthompson,pellecass 12 TRON 18MakingyournumbersWhenitcomestoimprovingperformance,itpaystolookatwhatisbehindthefigures. 22Reflectionsofperformance AuthorPhilRosenzweigonTheHaloEffectandwhybusinessstillneedsmorecriticalthinkers. 40ThesummitstrategyClimbingMountEverestmakesforarivetingstory,butalsoofferslessons tohelpteamsscaletheirownmountains. 46BotsreplacingbossesTheCEOmaybethenextestablishedroletofeelthethreatofAItechnology. 82Threequestionsto...ForensicaccountantKellyRichmondPopeweighsinonhowtoprotectyourselffromwhite-collarfraud. "Companiesshouldestablishaculturewherereportingiscelebratedandembraced." —KellyRichmondPope,page82 BELIKEAN ATHLETE Inbusinessoradecathlon,theartofsuccessmeansreachingforpeakperformanceacrossseveraldisciplines. 52 Digital Think:ActIdeasforActionSignuptoreadthisissue'sIdeasforActiononlinewithinsightsonhowtoboostyourmarginbycollaboratingsmartlyalongyourvaluechain:rolandberger.com/subscribe-ifa MorefoodforthoughtwiththeThink:ActHubGetanoverviewofthetopthemescoveredacrossThink:Actandfilteryourwaytoyourfavoritetopics:rolandberger.com/en/tam THEWINNING FORMULA IntheworldofFormula1racing,beingthebestmeansacombinationofbravery,fitnessandstrengthofmind. TRY,TRY 28 AGAIN Organizingacompanytoembraceacultureoftrialanderrorcouldopenupnotjustexcitingnewprospects,butincreaseprofitsaswell. coverandbackcoverillustrations:jennegrabowski 8Think:Act40 AtAglAncE Think:Act409 Think innumbers Puttingafigureon…energyprices 1.5% Foodforthought Forbreakthroughinnovation,howdoes thequantityofideasdrivequality? byJeremyUtley Thoughts toliveby "Youcannot rectify Re-thinkingbuzzwords Gettogripswithnewindustrylingoinaflashwithourstripped-downexplanationsofthe decline TheforecastedimpactoncorporateprofitsacrossEuropein2023asaresultofrisingenergycosts,whichwouldamountto$27billioninGermanyalone. 14x • higher TheaverageincreaseinwholesalegaspricesacrossEuropebetweenthethirdquarterof2019andthethirdquarterof2022.USgaspricestripledduringthesameperiod. 3.8% • increase Themedianestimatedriseinglobalhouseholdexpendituresdrivenbytotalpercapitaenergycostincreasesintherangeof62.6%and112.9%. 2.1% • ofpeople Thehighestprojectionoftheglobalpopulationthatcouldenterextremepovertyasaresultofdirectenergypriceincreasescoupledwithindirectpriceincreases. researchbyour colleagueDr.Bob SuttonandhisPhD student,Andrew Hargadon,illuminatesa factthatfewrealize:It takesthousandsofideas tohaveacommercially successfulinnovation. KeithSimonton'sfamous ThisaccordswithDr.Dean "equal-oddsrule"–to producequalityideas, oneshouldgeneratea largequantityofmaterial. Therefore,weadvocate ashiftinfocusfrom qualitytoquantity:from photos:GettyimaGes/sebastianisrael,patrickbeaudouin|illustration:Juliazimmermann "agoodidea"to"lots ofpotentialsolutions." What'sthebestwayto comeupwit