[MUSIC] Perviously, we talked about how to focus. We discussed how to unleash the potentially of people, by giving them blank checks. Now, we're going to talk about execution. Thinking big. Starting small. Testing and learning and scaling up what works. In today's fast changing, glodig, globalized and digitized world, execution is more important than ever. Success is 10% strategy and 90% execution. Take the case of Oreo. Oreo is a 100 year old iconic brand, but for 95 years, it was spectacularly unsuccessful outside of the US, and not for a lack of trying. So we gave a virtually connected international team a blank check. We suggested a very high target for the team, and gave them the freedom to figure out what resources they needed. In execution, one of the challenges that team faced was how you get the balance right between mindlessly global, and hopelessly local. The team decided the technology, R&D procurement and processing should be done globally. The team decided that products would be developed, however, to delight local consumers, and countries. For example, the Chinese consumer found the American Oreo too big and too sweet, and therefore the team made the Chinese Oreo less sweet and smaller. And then, the team started experimenting with new products, like green tea Oreos, Oreo wafers, strawberry flavored Oreos. Half these experiments failed, but a few started to gain momentum, which were then scaled up quickly. The whole idea here is to think big, start small, test and learn, and if something starts to gain momentum, scale it up quickly. So what about positioning and advertising? The US has run a very successful campaign for many years linking Oreo with milk and has a ritual of twist, lick and dunk. The question really was what do you do outside the US? The team decided that even though milk is not well known in many parts of the world, like China, to stick with milk, and to stick with the ritual of twist, lick, and dunk while using local characters. Stop the video and take a look at an example of the Oreo campaign that was used successfully in the US and how it was adapted in China. Oreo is a great example of what needs to be done globally and locally. It's a great example of execution and making things happen. As a result, Oreo in developing markets went from a $200 million brand to over $1 billion in six years. And more importantly, gross margins of Oreo in developing markets were healthy. There is no such thing as a perfect strategy or a perfect execution. Get it 70% right and move quickly to make things happen. A key element of execution is learning by doing and doing by learning. As a result of focus, unleashing the potential of people and execution, Kraft developing markets went from a $5 billion business to a 16 billion business in six years, and, with an increase in profitability. To summarize, we've covered three themes. First, how do you focus? How do you pick your bets? How do you actually say no? Second, how do you unleash the potential of people by giving them blank checks? And third, how do you execute? Thinking big, starting small, scaling fast. Complexity happens naturally. We suggest you work really hard to keep focused and simple. Every organization, as well as you, has a choice whether to be cozy, or to fly. We suggest you aim to fly. [MUSIC]