“But the truth is that the management-driven hierarchies which good enterprises use and we take for granted are one of the most amazing innovations of the twentieth century. And they are still absolutely necessary to make organizations work.” But “We have learned how to launch initiatives within a hierarchical system to take on new tasks and improve performance on old ones. We know how to identify new problems, find and analyze data in a dynamic marketplace, and build business cases for changing what we make, how we make it, how we sell it, and where we sell it. We’ve learned how to execute these changes by adding task forces, tiger teams, project management departments, and executive sponsors for new initiatives. We can do this while still taking care of the day-to-day work of the organization because this strategic change methodology is easily accommodated by a hierarchical structure and basic managerial processes.” “Part of the problem is political and social: people are often loath to take chances without permission from superiors. Part of it is simply related to human nature: people cling to their habits and fear loss of power and stature.” “It can be tempting to simply blame the problems on people: the control-obsessed middle managers or the my-career-first MBA staff. But the reality is that the problem is systemic and directly related to the limitations of hierarchy and basic managerial processes.”
In other words, what we need “The processes that run within (a) new network structure look less like systematic management (which creates reliability and efficiency) and more like mobilizing leadership (which creates speed and agility).”
“They create conditions under which people generate not just ideas, but ideas backed by good data from all silos and levels in a hierarchy. They create conditions under which people do not just develop initiatives, but understand that it is their job to implement them.” This is why it's not a free for all.
Management and leadership:
“Leadership is about setting a direction. It’s about creating a vision, empowering and inspiring people to want to achieve the vision, and enabling them to do so with energy and speed through an effective strategy. In its most basic sense, leadership is about mobilizing a group of people to jump into a better future.”
“Management versus leadership Management Leadership Planning Budgeting Organizing Staffing Measuring Problem solving Doing what we know how to do exceptionally well Constantly producing reliable, dependable results Establishing direction Aligning people Motivating people Inspiring Mobilizing people to achieve astonishing results Propelling us into the future”.
“The best communication here will not look routine. It will capture people’s attention in a way that almost compels them to be open minded.” Communication is not routine and connects with people's feelings.
“Wins give credibility to the whole idea of pursuing a new strategic advantage. Celebrations give a needed pat on the back to people who are trying to help. The emotional reward of these pats is positive energy, which not only makes an individual feel good but also has a cumulative effect within the organization.” Reason for short term wins.
“As I use the term here, a “Big Opportunity” is usually the product of changes in an organization’s environment (such as new markets, new advances in technology, or new demands being placed on an enterprise by competition or turmoil), changes inside the organization (such as new products or new people), or both.” In other words it is not about the new thing, but a change in direction as a result of some factor. “People who create successful dual systems center the creation of great urgency around opportunity, not vision, for two basic reasons. Focus on opportunities outside the org and so has less negative reaction (my part of the pie is not getting bigger or smaller). Plus opportunity is not about saying “here is the vision, now you go do it” but rather a discussion about common outward direction.
Characteristics of a Big Opportunity - “The most fundamental are: To create a statement which is memorable, smart, and emotionally compelling. To have a product so good that, when top management is asked if they believe in it, and if they want deeply to take advantage of it, everyone in the room will raise their hands, most of them quickly and with total sincerity. To have a statement so good that a few on the executive committee want to help take it to the rest of their organization in order to create a great sense of urgency around that opportunity. When at least two people on the executive committee truly volunteer to help lead the effort—not even knowing exactly what they are volunteering for, how much time it might take, or the difficulty of the task—then you have a good indicator that you have achieved the task of creating a great TBO.”
Functions of the Guiding Coalition include ”(1) making sure the network has a change vision that is totally aligned with the Big Opportunity; (2) agreeing on what the primary strategic initiatives are at any one point in time and making sure they are aligned with the change vision as well as any left-side strategic plans and strategic initiatives; (3) keeping in tight communication with the executive committee, but not as in a left-side reporting relationship; (4) monitoring, but not controlling, what is happening in the strategy-accelerator network, looking out for unnoticed overlap between initiatives on the right and left, and facilitating communication and problem solving among initiatives; (5) looking for and celebrating wins; and (6) in general keeping the accelerator processes working well.“
On why we can ask people to participate in both the hierarchical work as well as network work “The key issue here is that people’s energy levels are not a zero-sum number. It’s not the case that, if 20% of your capacity goes into network activities, there is only 80% left over for your regular job. People can expand their energy and expertise to 120% or 150% of current levels, and in a well-functioning dual system they do. If you have never seen this, it can, quite logically, be hard to believe. But most of us have seen this, at least within the context of a whole life. Think of the parent who has no spare time but somehow makes time, without shirking other commitments, when his or her child needs tutoring to do well in school. Or the man who is “exhausted” at the end of the workday yet is building a twenty-five-foot boat in his backyard with energy that comes from … where?” In other words, it's not a zero sum “resource” game.