The business world is a fast-changing one. Companies need to be nimble-footed to stay in the race and, in order to remain competitive, have to put in something extra in order to accelerate. If we look at some industries, like newspapers or technology, preferences are changing and so are practices. At the same time, there is an increase in competition, which makes conditions more challenging. This is where we need to change our mindset and probably go back to the basic principles when strategising for tomorrow.
XLR8: Accelerate is a book by John P Kotter and is all about knowing how to move ahead in the uncertain world of business. Let us think of a start-up company, which has commenced operations. The structure is fairly chaotic where everyone contributes to the growth of the company not through action, but through ideas. Almost everyone who wants to convey a thought is welcomed in this set-up, as the feeling is that more minds work better. Then the organisation evolves and hierarchies are created because, with size, certain structures are considered inevitable. This, as per Kotter, though necessary and inevitable, creates distances. Such hierarchies invariably leave important things to seniors. It is here that strategising is important, but it invariably tends to be confined to a fixed set of people.
Here, we need to distinguish between management and leadership, which are two different roles. It is not unusual that these roles get mixed when hierarchies, which are based normally on seniority and age, intermingle. Hence, we get stuck in the dual role taken on by the hierarchy, which does not help the organisation move ahead. The management is involved with planning, budgeting, organising, staffing, measuring, problem-solving and so on, which is done well by the established hierarchy. However, leadership requires a higher level of thinking, as it involves establishing direction, aligning people, motivating and inspiring them, and propelling the organisation to the next level.
In fact, invariably, organisations set up a strategic thinking group, which has two or three persons with the hierarchy deciding who should lead. But there are serious limitations here, as it once again boils down to the senior-junior syndrome where the senior’s view prevails based on the position. We need to differentiate between leaders who are thinkers and managers, and, while both are important, the former is more critical as organisations evolve for future growth.
Therefore, Kotter talks of creating a dual structure where both groups exist and, what he calls a network, is created laterally across the organisation. This consists of all the thinkers who do not report to the senior-most person, so that there is freedom in thinking. With a strong hierarchy in place, the execution part is addressed by the managers and hence this dual network system’s ethos would resemble the start-up company’s, and the company is able to think ahead.
In fact, a dual operating system takes in the advantages of both the sides. The management-driven hierarchy is known for reliability and efficiency, and can address issues of current importance. Hence, we are talking of an agile network-like structure that operates with the hierarchy and hence is called a dual-operating system. It is dynamic and free from bureaucratic influences.
As per the author, there are essentially five principles that have to be followed to make this happen. First, there should be many people who drive this change. Therefore, it should not be restricted to a handful of people or chosen ones, which is normally the case. They should all be able to initiate ideas and not just execute them. This is important because thinking right makes execution easier.
Second, the mindset should be ‘get-to’ rather than ‘have-to’. The latter is looked at as being a compulsion, while the former is more out of passion, which is what is required for the company to succeed. When we get stuck in hierarchies, it becomes more a case of have-to, as it lacks the same enthusiasm, which comes in when the attitude is get-to.
Third, this desire must come from the heart and not head. Therefore, it should not all be just numbers and targets. It should talk of a bigger cause of how to make the company the best or an ideal player in the business. Fourth, there should be more leadership and less management. It is a case of creating a vision, opportunity, inspired action, passion, innovation and celebration.
Last, there has to be an inseparable partnership between the network and hierarchy where there is a constant flow of information and they work as a single unit. It should lead to better integration between these two separate silos.
As per Kotter, the network’s processes resemble closely the activity, which is witnessed in any successful enterprise, especially where change is required at, what he calls, ‘bullet’s’ pace. Here, the author lists eight accelerators for leading the change, which should come from the top.
Let us look at these eight accelerators. First, there is a need to create a sense of urgency around a big opportunity. The dual system works here because those who are in a traditional organisation will think this is not possible. More importantly, one needs to realise that speed is all that matters or else organisations lose momentum. Second, one has to build a guiding coalition. These are people from all silos and levels who want to help to make the big thing happen. All of them want to lead and be change agents. They should have the drive and emotional commitment. This, as per Kotter, is actually easy. All we have to do is throw them in a room and they will create the spirit that is needed to go along.
Third, the organisation has to form a change vision that fits with the big strategic opportunity they are looking for. This may already exist, but has to be recreated and reiterated. In fact, often the management-driven hierarchy may not be equipped to handle this fast enough by itself. Fourth, one needs to enlist a volunteer army, which would be constantly communicating information about the change vision and the strategic initiatives to a larger section of the workforce. This acts as a pull factor to drag more people into the orbit.
Fifth, we need to remove barriers to allow this to function seamlessly. This is not easy, but has to be done in order to speed up the process. The sixth accelerator is to create an ongoing flow of strategically-relevant wins, both big and small. Their celebration can carry great psychological power and play a role in sustaining the dual system, as it communicates to the staff that things are working, which reinforces the common cause.
The seventh accelerator would be the sustenance of acceleration. Normally, one tends to sit back after a couple of wins. But this has to be maintained, as the momentum cannot be lost. A larger initiative loses steam unless related sub-initiatives are completed successfully. Last, we need to institute change, as this helps in consolidating wins and integrating them into the hierarchical processes, systems and procedures. As this happens, there is a cumulative effect to the point that after a couple of years, such actions drive the entire dual-operating system approach into the DNA of the organisation.
The book is largely prescriptive and more of a help-book for organisations, but not quite inspirational. It would have been a bit more interesting if examples were given of companies, which changed their approach or made use of these principles to move ahead. It may not be possible to follow everything that is written, as organisations run on impulse and the view of the CEO. But the major takeaway is to have the involvement of all when strategising for the future, as such wisdom may not necessarily lie with those in the hierarchy. That, probably, is the final takeaway from Kotter’s XLR8.
XLR8: Accelerate is a book by John P Kotter and is all about knowing how to move ahead in the uncertain world of business. Let us think of a start-up company, which has commenced operations. The structure is fairly chaotic where everyone contributes to the growth of the company not through action, but through ideas. Almost everyone who wants to convey a thought is welcomed in this set-up, as the feeling is that more minds work better. Then the organisation evolves and hierarchies are created because, with size, certain structures are considered inevitable. This, as per Kotter, though necessary and inevitable, creates distances. Such hierarchies invariably leave important things to seniors. It is here that strategising is important, but it invariably tends to be confined to a fixed set of people.
Here, we need to distinguish between management and leadership, which are two different roles. It is not unusual that these roles get mixed when hierarchies, which are based normally on seniority and age, intermingle. Hence, we get stuck in the dual role taken on by the hierarchy, which does not help the organisation move ahead. The management is involved with planning, budgeting, organising, staffing, measuring, problem-solving and so on, which is done well by the established hierarchy. However, leadership requires a higher level of thinking, as it involves establishing direction, aligning people, motivating and inspiring them, and propelling the organisation to the next level.
In fact, invariably, organisations set up a strategic thinking group, which has two or three persons with the hierarchy deciding who should lead. But there are serious limitations here, as it once again boils down to the senior-junior syndrome where the senior’s view prevails based on the position. We need to differentiate between leaders who are thinkers and managers, and, while both are important, the former is more critical as organisations evolve for future growth.
Therefore, Kotter talks of creating a dual structure where both groups exist and, what he calls a network, is created laterally across the organisation. This consists of all the thinkers who do not report to the senior-most person, so that there is freedom in thinking. With a strong hierarchy in place, the execution part is addressed by the managers and hence this dual network system’s ethos would resemble the start-up company’s, and the company is able to think ahead.
In fact, a dual operating system takes in the advantages of both the sides. The management-driven hierarchy is known for reliability and efficiency, and can address issues of current importance. Hence, we are talking of an agile network-like structure that operates with the hierarchy and hence is called a dual-operating system. It is dynamic and free from bureaucratic influences.
As per the author, there are essentially five principles that have to be followed to make this happen. First, there should be many people who drive this change. Therefore, it should not be restricted to a handful of people or chosen ones, which is normally the case. They should all be able to initiate ideas and not just execute them. This is important because thinking right makes execution easier.
Second, the mindset should be ‘get-to’ rather than ‘have-to’. The latter is looked at as being a compulsion, while the former is more out of passion, which is what is required for the company to succeed. When we get stuck in hierarchies, it becomes more a case of have-to, as it lacks the same enthusiasm, which comes in when the attitude is get-to.
Third, this desire must come from the heart and not head. Therefore, it should not all be just numbers and targets. It should talk of a bigger cause of how to make the company the best or an ideal player in the business. Fourth, there should be more leadership and less management. It is a case of creating a vision, opportunity, inspired action, passion, innovation and celebration.
Last, there has to be an inseparable partnership between the network and hierarchy where there is a constant flow of information and they work as a single unit. It should lead to better integration between these two separate silos.
As per Kotter, the network’s processes resemble closely the activity, which is witnessed in any successful enterprise, especially where change is required at, what he calls, ‘bullet’s’ pace. Here, the author lists eight accelerators for leading the change, which should come from the top.
Let us look at these eight accelerators. First, there is a need to create a sense of urgency around a big opportunity. The dual system works here because those who are in a traditional organisation will think this is not possible. More importantly, one needs to realise that speed is all that matters or else organisations lose momentum. Second, one has to build a guiding coalition. These are people from all silos and levels who want to help to make the big thing happen. All of them want to lead and be change agents. They should have the drive and emotional commitment. This, as per Kotter, is actually easy. All we have to do is throw them in a room and they will create the spirit that is needed to go along.
Third, the organisation has to form a change vision that fits with the big strategic opportunity they are looking for. This may already exist, but has to be recreated and reiterated. In fact, often the management-driven hierarchy may not be equipped to handle this fast enough by itself. Fourth, one needs to enlist a volunteer army, which would be constantly communicating information about the change vision and the strategic initiatives to a larger section of the workforce. This acts as a pull factor to drag more people into the orbit.
Fifth, we need to remove barriers to allow this to function seamlessly. This is not easy, but has to be done in order to speed up the process. The sixth accelerator is to create an ongoing flow of strategically-relevant wins, both big and small. Their celebration can carry great psychological power and play a role in sustaining the dual system, as it communicates to the staff that things are working, which reinforces the common cause.
The seventh accelerator would be the sustenance of acceleration. Normally, one tends to sit back after a couple of wins. But this has to be maintained, as the momentum cannot be lost. A larger initiative loses steam unless related sub-initiatives are completed successfully. Last, we need to institute change, as this helps in consolidating wins and integrating them into the hierarchical processes, systems and procedures. As this happens, there is a cumulative effect to the point that after a couple of years, such actions drive the entire dual-operating system approach into the DNA of the organisation.
The book is largely prescriptive and more of a help-book for organisations, but not quite inspirational. It would have been a bit more interesting if examples were given of companies, which changed their approach or made use of these principles to move ahead. It may not be possible to follow everything that is written, as organisations run on impulse and the view of the CEO. But the major takeaway is to have the involvement of all when strategising for the future, as such wisdom may not necessarily lie with those in the hierarchy. That, probably, is the final takeaway from Kotter’s XLR8.
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