Core competence, as it is used by many managers, is a dangerously inward-looking notion. Competitiveness is far more about doing what customers value than doing what you think you're good at.

Watching how customers actually use a product provides much more reliable information than can be gleaned from a verbal interview or a focus group.

There needs to be conviction and action behind rules.

Capitalism has taught us that markets are always more efficient than hierarchical managerial coordination. But in a situation where those three conditions aren't met, I can't outsource or partner with you because markets don't function in the absence of sufficient information.

Children build self-esteem by doing things that are hard and learning what works.

Disruptive technology is a theory. It says this will happen and this is why; it's a statement of cause and effect. In our teaching we have so exalted the virtues of data-driven decision making that in many ways we condemn managers only to be able to take action after the data is clear and the game is over. In many ways a good theory is more accurate than data. It allows you to see into the future more clearly.

If you study the root causes of business disasters, over and over you'll find this predisposition toward endeavors that offer immediate gratification.