ROBERT J. HERBOLD is the managing director of the Herbold Group, LLC, a consulting business focused on profitability, strategic, and operational issues. He serves on the board of directors of Neptune Orient Shipping Lines and of Agilent Technologies. Formerly, Herbold was executive vice president and chief operating officer of Microsoft Corporation. He is the author of The Fiefdom Syndrome and Seduced by Success. He lives in Seattle and Phoenix. For more information, please visit www.bobherbold.com

• Introduction 11 The Big Issue: Managers Lacking Courage to Make Tough Decisions 52 Principle I: Devise a Demanding Game Plan to Confront Reality 193 Principle II: Staff for Success 374 Principle III: Clean Up the Sloppiness 595 Principle IV: Institutionalize Tight-Fisted Cost Control 796 Principle V: Insist on Functional Excellence 957 Principle VI: Create a Culture of Innovation 1138 Principle VII: Demand Accountability and Decisiveness; Avoid Consensus 1279 Principle VIII: Exploit Inflection Points 14110 Principle IX: Value Ideas from Anywhere 15311 Principle X: Shake Up the Organization 169Conclusion 185Notes 189Acknowledgments 203About the Author 205Index 207

ROBERT J. HERBOLD is the managing director of the Herbold Group, LLC, a consulting business focused on profitability, strategic, and operational issues. He serves on the board of directors of Neptune Orient Shipping Lines and of Agilent Technologies. Formerly, Herbold was executive vice president and chief operating officer of Microsoft Corporation. He is the author of The Fiefdom Syndrome and Seduced by Success. He lives in Seattle and Phoenix. For more information, please visit www.bobherbold.com

• Introduction 11 The Big Issue: Managers Lacking Courage to Make Tough Decisions 52 Principle I: Devise a Demanding Game Plan to Confront Reality 193 Principle II: Staff for Success 374 Principle III: Clean Up the Sloppiness 595 Principle IV: Institutionalize Tight-Fisted Cost Control 796 Principle V: Insist on Functional Excellence 957 Principle VI: Create a Culture of Innovation 1138 Principle VII: Demand Accountability and Decisiveness; Avoid Consensus 1279 Principle VIII: Exploit Inflection Points 14110 Principle IX: Value Ideas from Anywhere 15311 Principle X: Shake Up the Organization 169Conclusion 185Notes 189Acknowledgments 203About the Author 205Index 207

ROBERT J. HERBOLD is the managing director of the Herbold Group, LLC, a consulting business focused on profitability, strategic, and operational issues. He serves on the board of directors of Neptune Orient Shipping Lines and of Agilent Technologies. Formerly, Herbold was executive vice president and chief operating officer of Microsoft Corporation. He is the author of The Fiefdom Syndrome and Seduced by Success. He lives in Seattle and Phoenix. For more information, please visit www.bobherbold.com

• Introduction 11 The Big Issue: Managers Lacking Courage to Make Tough Decisions 52 Principle I: Devise a Demanding Game Plan to Confront Reality 193 Principle II: Staff for Success 374 Principle III: Clean Up the Sloppiness 595 Principle IV: Institutionalize Tight-Fisted Cost Control 796 Principle V: Insist on Functional Excellence 957 Principle VI: Create a Culture of Innovation 1138 Principle VII: Demand Accountability and Decisiveness; Avoid Consensus 1279 Principle VIII: Exploit Inflection Points 14110 Principle IX: Value Ideas from Anywhere 15311 Principle X: Shake Up the Organization 169Conclusion 185Notes 189Acknowledgments 203About the Author 205Index 207