The following is an edited abstract from the CEO Thought Leader podcast featuring Ram Charan, a world recognized authority on business practices, and Jack Sweeney, co-host of CFO Thought Leader.

CFOTL: Your latest book is called “Attacker's Advantage,” so tell is why do attackers love these uncertain times?

CHARAN: The key point here is that uncertainty is such that today we have major bends in the road. And if you don't cross those bends, the penalty is very harsh. For example, we have companies that were number one since they were in business, and they eventually disappeared – Kodak, Motorola, Nokia. Many of the retailers in book-selling have disappeared or are barely heard, Borders, all declined, Barnes and Noble. So this uncertainty is different. If you see it, if you have the courage to see it and then have the courage to go on the attack, on the offensive and not remain on the defensive, that's what matters.

CFOTL: What is it then that separates a leader who is capable of seeing bends in the road, your metaphor for seeing uncertainty and recognizing it more as an opportunity?

CHARAN: That is the key. I have been taught by many successful businessmen that whenever you see an adversity, whenever you see a major change, whenever you see a major break in continuity, take that as information. Find information in it; convert it into your advantage by thinking of new options, new ideas, new paths, new goals and new talent.

CFOTL: You talk about the algorithmic revolution and the rise of the math house, and we’re hearing so much about big data, data analytics and how many companies are rediscovering how to look at their businesses through data. Is this really the mathematical corporation concept you write about, the bend in the road?

CHARAN: Great question, number one in the world today. Logic number bends in the road are being created by those who are using algorithms, who are digitizing their operations, who are connecting with the consumer without anybody in between, and predicting what the consumer really wants. All that is driven by algorithms, by sensors, by clouds, by digitization. For example, Apple created an iPhone. That iPhone has created major bends in the road for many industries. IPod created bends in the road for the music industry, they're all doing it by the algorithms, digitization, sensors. All these are used in the analysis of big data. So, all the companies in the world bar none, of any size, have to come to terms that the corporations must have a core capability of algorithm digitization, and use those to analyze data, predict customer behavior, change new business models.

CFOTL: Does all this begin with talent, with hiring those people who understand data and are capable of building these models?

CHARAN: Number one, the leader of the corporation has to come to terms that power has been passed to the consumer. The consumer today has an iPhone, can compare prices, behavior has changed, needs are changing. Second, then the leader of the corporation has to come to terms how the business model needs to change, and how to develop that. Then you need talent that knows these algorithms, but not just scientists, but how to use them, to develop new ideas, to deliver new ideas. But also to learn about the consumer, how that is changing and then influence the consumer behavior like Amazon is doing it.

CFOTL: In talking about the attacker's advantage and what you, I believe, called a joint practice session where you teach organizations to confront their own rigidity, how does that work exactly? What dynamic are you looking to create?

CHARAN: It starts with the top team. And this top team first defines what their goals are for the year and for the quarter. Then each person on the team defines for each quarter what are the five most difficult tasks that must be initiated, partially completed, and then fully completed. Then they get together weekly and they show with total honesty which task is red, which task is yellow, which task is green. Green is done, yellow is in-between, red has major problems. Then they get together and they change the whole culture beginning with the person who has to ask for help. So there are three questions: Why is the task red, what help is needed and who's help is needed? So this way they can make a good decision, and they adjust whatever adjustments have to be made like budget adjustments, people adjustments, and sometimes key performance indicator adjustments. You practice like a basketball team every week and you will remove the core rigidity of the company.