John Wells 
Strategic IQ 
Creating Smarter Corporations

In today’s world, only the smartest survive. The competitive landscape is littered with graves of well-known firms whose revenues, profits and stock prices rose for decades until they suddenly imploded.

In fast-changing business environments, firms must adapt their strategies and innovate to remain at the top. But many successful firms fail to do so. Instead, they succumb to inertia, hesitate, or stick blindly to their old strategies, until it is too late.

The ability to adapt to change is a measure of intelligence; so why do firms demonstrate such low Strategic IQ? What causes inertia and why is it so deadly? How can leaders help their firms to act more intelligently?

This book identifies the key sources of inertia – strategic, structural and huma – and provides practical advice on how they can be overcome to create smarter corporations. It is both a wake-up call for successful firms and a lifeline for firms struggling to succeed.

To successful firms – beware! You may already be dead!

To struggling firms – have hope! It is possible to pass powerful competitors by raising your strategic, structural and human IQ.

Praise for Strategic IQ

‘Hard-hitting and stimulating, Wells’ thesis carries a robust message that should make business leaders the world over sit up and think.’
–Archie Norman, Chairman of ITV, UK

‘Wells makes a compelling case for dramatic change.’
–Ron Sargent, CEO of Staples, USA

Table of Content

Preface xi

Introduction xv

Part One Smart Strategy 1

Chapter 1.1 The Need for Smart Strategy 3

Chapter 1.2 Low Strategic Intelligence 13

Chapter 1.3 What is Strategy? 35

Chapter 1.4 Moderate Strategic Intelligence 59

Chapter 1.5 High Strategic Intelligence 87

Part Two Smart Structure 107

Chapter 2.1 The Need for Smart Structure 109

Chapter 2.2 Smart Asset Management 119

Chapter 2.3 Formal Architecture – Navigating the Architecture Labyrinth 143

Chapter 2.4 Informal Architecture – Leveraging Social Mechanics 169

Chapter 2.5 Towards Smarter Structure 191

Part Three Smart Minds 201

Chapter 3.1 The Need for Smart Minds 203

Chapter 3.2 What is a Mind? 209

Chapter 3.3 Hiring Smart Minds 229

Chapter 3.4 Addressing Basic Human Needs 241

Chapter 3.5 Harnessing Insatiable Human Needs 255

Bibliography 277

Index 293

About the author

John Wells is Professor of Management Practice at Harvard Business School. He teaches many courses on strategy innovation and change in the MBA and Executive Development programs, including his own courses on Strategic IQ.
Dr Wells graduated with a double first in physics from Oxford University, specializing in nuclear and solid state. He received his MBA and DBA from the Harvard Business School, where he was a George F Baker Scholar, graduating first his class, and a Dean’s Doctoral Fellow.
Dr Wells has combined a career in academia with extensive business experience. He has been a senior executive, a director, a business school president, and a CEO. He has also been an advisor, a coach and a facilitator to senior executives and firms, large and small, in numerous sectors of the economy. He has also advised governments on competitiveness.
Dr Wells has written over 50 cases on strategy and innovation and speaks regularly on the subject around the world. His wide-ranging research interests include business model innovation, social strategy, responsible leadership, relevant learning and family capitalism.