Strategy For The 21 st Century Prometheus Process venturist ® incorporated Target For Success: Identify Centers of Gravity Design the Future Target for Success Campaign to WinFinish with Finesse Map the Relevant Systems Identify the Centers of Gravity Determine the Desired Effects

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX Centers Of Gravity (COGs) The Leverage Points In The System Between You And Your Future Picture Have Disproportionate Impact High Return On Energy Investment Resources Limited? Attack Centers Of Gravity

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX Entities Unlikely To Be COGs Entities Almost Certain To Be COGs Network Theory Behind Centers Of Gravity Number of Links Number of Nodes with Links Distribution of Node Linkage From Barabasi & Bonabeau

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX Impact Of Centers Of Gravity As A Function Of Links Number of Links Number of Nodes with Links Distribution of Node Linkage From Barabasi & Bonabeau + - -

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX System Components Person State Company/ Market Leadership Processes Infrastructure Population Action Units Brain Circulatory, Neuro System Bones, Muscle Cells Leukocytes President, Key Media, Policy Makers Communications Energy Highways Demographic Groups Military, Police, Merchants, Agencies CEO, Board, Market Leaders Innovation, Finance, Communications Plants, Value Networks, Installed Base Employee Groups, Customers Sales, Buyers, Retail Outlets

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX The Leadership Ring Those Elements Of A System That Try To Move It In A Particular Direction –Almost Always Several Leadership Elements –Rarely Will They Have Same Motivations –Relatively Autonomous –May Not Have Formal Titles –May Be Individuals Or Entities –Normally Provide Very High Leverage Examples Include: President, CEO, Board Of Directors, Key Media, Key Financiers, Key Influencers

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX The Processes Ring Those Elements Of A System That Convert Energy From One Form To Another Examples Include: Internal And External Communication, Innovation, Recruiting, Training, Financing, And Production The Processes Ring Offers Great Leverage For System Change Because A Change In This Ring Will Affect The Rest Of The System Color Photo of iRobot Roomba Vacuum

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX The Infrastructure Ring Those Elements Of A System That Are Relatively Stationary And Constant Examples Include: Buildings, Roads, Rivers, And Wires And Cables

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX The Population Ring The Demographic Groups That Categorize The People Who Are Part Of A System Demographic Groups Tend To Respond To Similar Stimuli (Publications, Messages, Rewards) Color Photo Group of Construction Workers Color Photo Group of Musicians Color Photo Group of Medical Personnel

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX The Action Units Ring Those Elements In A System That Do Tactical Jobs –Action Units Have Latitude In How To Do A Job, But Not Whether To Do It –Action Units Execute Policy But Do Not Have The Authority To Create It –Action Units Are The Instruments Of The System Examples Include: The Sales Force, A Fighter Squadron, The West Coast Division, The Repair Group, The Accounting Department Action Units Are Important But Are Difficult To Change And Keep Changed So The Leverage Tends To Be Low For Overall System Change President Dean Instructors Instructor Dean Curriculum Dept Head Military History Dept Head International Relations Dept Head Budgeting Dept Head Logistics Administration Personnel Supply Budget

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX Normal Leverage By Ring Return On Investment Leadership Ring 1 Low High Processes Ring 2 Infrastructure Ring 3 Population Ring 4 Action Units Ring 5

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX Using The Five Rings To Find Centers of Gravity Review Future Picture and Desired System Effects Start With Leadership Ring –Identify Elements In This Ring Which Will Have A Disproportionate Impact and Which Will Advance Realization of Future Picture After The Leadership Ring, Do The Same Thing For The Remaining Four Rings: Processes, Infrastructure, Population and Action Units –Remember To Look For Links A Key Center of Gravity May Not Exist; If So, Create It Once The Five Ring Methodology Is Understood, It Is Easy To Find Centers Of Gravity For Any System

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX Centers of Gravity In Sustaining And Disruptive Environments Sustaining Environment –Most Centers Of Gravity Already Exist And Will Not Change Dramatically Over Time –Main Task Will Be To Refine And Reshape Centers Of Gravity To Achieve Desired System Effects (Internal And External) Disruptive Environment –Many Centers Of Gravity Will Not Exist And Must Be Created –Many Centers Of Gravity Will Change Dramatically Over Time –Main Task Will Be To Identify And Rapidly Attack New Or Changed Centers Of Gravity To Achieve Desired System Effects (Internal And External)

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX Iraq: Finding Centers of Gravity Air & Missile Offense Saddam Hussein National Communications Railroads military officers Air Defense Baath Party Electrical System Bridges shiiites Ministry of Defense Petroleum System sunnites Weapons of Mass Destruction Programs middle class tikritis clerics

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX Iraq And American Centers of Gravity LeadershipProcessesInfrastructurePopulationAction Units Sadam Hussein National Communications Railroadmilitary officers Air Defense Key BaathistsElectrical System BridgesshiitesAir and Missile Offense Ministry of Defense Petroleum System sunnites Weapons of Mass Destruction Program Middle class tikritis clerics George Bush Communications Key Buildingsown peopleUS Police National Leaders US Transporation other citizensUS Military US CongressUS Research and Development US Intelligence

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX Disneyland Finding Centers of Gravity E-Airlines B of A E-Market Communications E-Zoning Regulations e-travel agents Maintenance Group E-LA Times E- Transport E-Roads e-parents Walt Disney Construction e-reporters Financing e-children artists cast members

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX Disneyland Market And Company Centers of Gravity LeadershipProcessesInfrastructurePopulationAction Units ABC TV Market Communications RoadsparentsAir Lines Famous Actors Actresses FinancingZoningchildren Los Angeles Times Vacation Planning travel agents reporters Walt Disney Communications WeiniesengineersMX Group Bank of America Constructioncast membersSuppliers Venture Capitalists Flow

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX Fidelity Mutual Fund Office Depot Store Stock Analyst Morgan Stanley VC Computer User Software Programmers Microsoft Internet Service Provider Chip Company Supplier #2 Chip Company Supplier The Market System Intel Compaq Chip Company #3 AMD

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX The Generic External (Market) System Centers of Gravity LeadershipProcessesInfrastructurePopulationAction Units Market LeadersCommunicationsIT Installed BaseCustomersRetail Outlets Lead CustomersInnovationValue NetworksconsumersNon-Lead Suppliers Lead Associations PurchasingOrganizationdecision makersNon-Lead Customers Media LeadersFinancingPhysical Facilities professionalsEvangelists Finance LeadersDistributionTransportation Net owners, stockholders Government Agencies Standardsemployees innovators

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX Generic Internal (Organization) System Centers Of Gravity LeadershipProcessesInfrastructurePopulationAction Units Chairman-BODCommunicationsOrganizational Structure genderOutlets Board Of DirectorsIdeationInstalled BaseprofessionalMaintenance and Security Chief Executive OfficerCommercializationPhysical FacilitiescustomersVendors Chief Operating OfficerProductionOperating InstructionstechnicalDivisions Vice PresidentsPurchasingmanualEvangelists Chief Finance OfficerDistributionsalariedBrand Image Owners/PartnersSellinghourlyOutsourcers Key StockholdersFinancinglanguage/ethnicPurchasing Groups Major JV PartnersStaffingmanagement Union LeadersQualityclerical Executive Committees & Councils Collaborationconsultants Informal LeadershipStrategic Planning Peripheral Leaders Driving Customers

Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc – All Rights Reserved Licensed To Advanced Micro Devices, Sunnyvale, CA and Austin, TX System Strategy The Essence of System Strategy Understand The Relevant Systems Identify The Centers of Gravity Decide Effect To Impose Analysis Leads To What, Not How “The Enemy Of Change Is The System”

Strategy For The 21 st Century Prometheus Process venturist ® incorporated Prometheus Process Identify The Centers Of Gravity Insights and Discussion