| As we see it, there are three challenges every business has: Differentiation. Why is our SUV different from their SUV? Why is our soda pop different from theirs? Our healthcare, better than the hospital down the street. Especially in an age with so much choice, where we’ve gotten so good at ironing out inefficiencies in the supply curve. Innovation. The process of creating new, better stuff, quicker and more often than the next guy. What Microsoft CEO Satya Nadella says is what the world rewards the most. Culture. The collection of beliefs, mindsets, etc., That allows both Number 1. and 2. To happen. Fix the culture, and a lot of Numbers 1. and 2. fall into place. On the latter point: it is where leaders can have the most impact, and create leverage, expand their authority. It's the organizational Butterfly Effect. As we alluded to recently, culture is the strategy that delivers the strategy. | 