They are:

Anticipation

Innovation

Excellence

When I ask my audiences if they agree with the importance of three "keys," they always do. It is hard to argue with them. And yet many organizations think one or two of the three are enough.

All three are necessary.

Let me tell you why.

Excellence is at the base of the list because it is the base of the twenty-first century. Many in my audiences justify the importance of excellence (or Total Quality Management, as it is also called) because they believe it will give them a competitive edge in the twenty-first century. 1 don't believe that. I say it will give them a competitive edge only until the end of the decade. After that, it becomes the necessary price of entry.

If you do not have the components of excellence--statistic process control, continuous improvement, benchmarking, the constant pursuit of excellence, the capability of knowing how to do the right thing the first time (all of these derive from the same philosophy created by W. Edwards Deming and O. M. Juran and universalized by them and people like Philip Crosby)--then you don't even get to play the game.

Innovation is on the list because it is the way you gain competitive edge. Innovation coupled with excellence--which the Japanese have done so well--is a powerful combination. In the twenty-first century, no one will always be the leader. The top four or five positions within an industry will change frequently. But it is in the top four or five positions that you want to be. Lower than that will require you to price your copycat products at a commodity level, and that will leave you with insufficient margin to pay for the research and development necessary to work your way up to the top level.

However, excellence and innovation are not enough.

Anticipation provides you with the information that allows you to be in the right place at the right time with your excellent innovative product or service.

Too many times we have seen great ideas arrive too late: the Univac personal computer, Federal Express Zap mail. And we have also seen great ideas arrive too early: AT&T Picturephone; Apple's Macintosh (lucky for Steve Jobs that Steve Wozniak stuck to the knitting with the Apple II, which allowed the Macintosh to wait for its right time (desktop publishing time).

Anticipation is the final element of the triad. This triad allows you to predict your customer needs, innovate the products or services required to fulfill them, and produce those products and services excellently. With these three attributes you are ready not just to survive in the twenty-first century but to thrive!

This book is about innovation and anticipation. It will make you better at both.