Like Volkswagen, Wells Fargo's avoidable failure was not the result of one bad apple but of a system that demanded hitting targets so ambitious they could only be met by deceit. Employees operated in a culture of fear that brooked no dissent. Rather than manifesting interest in salespeople's experiences while executing the cross-selling strategy and using what was being learned in the field to shift or sharpen the company's strategy, managers sent a clear message: produce – or else.

The responsibility for finding and fixing problems should be assigned to every employee, from the most senior manager to the lowliest person on the production line. If anyone at any level spotted a problem in the manufacturing process, Deming believed, they should be encouraged (and expected) to stop the assembly line. Japanese companies that implemented Deming’s ideas made it easy for workers to do so: They installed a cord that anyone could pull in order to bring production to a halt. Before long, Japanese companies were enjoying unheard-of levels of quality, productivity, and market share.

It starts with changing your attitude about false alarms. Recall that any worker in a Toyota factory can pull an Andon Cord to alert a team leader of a possible error before it turns into a production failure. The team leader and team member examine the potential problem, however small, and together either fix or dismiss the threat. If only one of twelve pulls of the Andon Cord stops the assembly line for a genuine problem, you might think the company would be upset by wasting supervisors’ time chasing the eleven false alarms. It turns out that the opposite is true. A pulled Andon Cord that does not identify an actual error is framed as a useful drill. The false alarm is instead experienced as a valuable learning moment, a welcome education on how things go wrong and how to adjust so as to reduce that possibility. This is not a cultural nuance. It’s a practical approach. Every Andon Cord pull is seen as a valuable episode that in the long run saves time and promotes quality.

With the assistance of Bill Knudsen, who could no longer work for the irascible, autocratic Henry Ford, GM overtook its principal rival to become not only America’s leading automobile company but the largest manufacturing corporation in the world.

Online retailing and the personal computer revolution would have happened even if Bezos,

Gates and Jobs had never been born. These developments occurred around the end of the twentieth century because all the necessary pieces of collective knowledge and collective intelligence were then developed. These individuals and their associates pieced together relevant capabilities. When innovative firms succeed, as Amazon, Microsoft and Apple did but most new firms do not, it is because of the distinctive character of the capabilities of their organisation and the combinations they put together.