Strategy as Revolution

by Gary Hamel

~ Harvard Business Review

' ..

Re.print 964ns

Harvard Business Review

,JULY .. AUGJIlJS,T I .••• Rep":ln,I' Numberr

GARY HAMEL

STLATEGY' RlYOIUnON

JOHN 0 .. WHITN:E'f

ST,R.AYlliGH: RENEWAlL, rF10R BU51'N155 UNITS

INCREASING RiET>U1RN5AND tHE 'HI,W W,ORI. Of BUSINESS

JAMES A NMUS

AND JAM<ES C, ANDERSON

:DAVI.D M. UfTQiN

AND .ANDREW MQl!.FEc

IROBERT C. S,IATIElERG AND JOHN DEIGHTON

MANAGE MARKil1lIING 'V' "IiHiI ,CUSlIDMER IEGUDV UST

HB.R. CASE STIJDY GROWlING PAINS

~h!li408

JEFfREY' H. DYER

rm;As, AT WORK

Maw C MRY5LJI R CRJlaTE. AN AMEA!lCAN KEllum

HENRY MI'NTZIlERG

THINKING ABOUT •..

,MUSurtiGS ON MANAO:EMEHI

JAMES G.RANT

13.00&:5. IN REVIEW

100, .BEG TO fAU? WAlL:IIR WRISTON .OD CI1iJIlANK:

IiAJRRY lJEVI NSON

HBIR CLASSI'C

WHIiHI EX:I:CUTIYlS BIDIiN DUI'

96406

'by Gary Hamel

Lees admit it. Corporations amend the world ate reaching the limits of Incrementalism. Squeezing another penny om of costs getting a product, to market-a £ewweeks earlier, .Il;espondhl,g to enstomers' inquiries a little bit faster, mtc:heting quality up one more notch" captUring another point of market shere=those are the obsessions of managers today. But pursuing incremental improvementa while d.v,~ls reinvent the Industry is like fiddling while Rome bums.

Look at any industry and you will see three kinds of companies.

FU,s,t are therulemakers, the incumbents thili.tbuilt the Industry, [HM, CBS, United Airlines, Merrill Lynch,. Sears, Cooa~Cola.iaJld the like are the creators and protectors of indusuial'OIthodoxy. They are the oligarchy. N eX!!: are the role. takers, the companies that p~.yhorna,ge. to the mdustrw. "lords. .,' :fujitsu,. 1!.DC, U, 50 . Air, Smith Barney, f.C. Penney, and numerous, ethers are thosepeasants .. Theit Hie is hard, Imagine working at Fuji tsu for 30 years ttyh:l,g to catch mM in the mainframebusiness, 01' being McDonnell Douglas, to Boem.gl or Avis to Hertz. We Try Harder may be a great advertiSing slogan" hut it's depressingly futile as a strategy .. What good will.It do to work harder to, follow the rules when some OOIfi-

Gazy Hamel is I' visit.i:IJgpmfe.ssOL of suat,egy alld international m:aZl'Gg,e,.lllel.lt at ths London Business School ill London, EI18"la'lld; and chlIitn:um of S!;la1:egcM~, 1m intmTl~l:"loJu!l consultiHgfinn bosed. m Menlo P1l'L!c, Califawn. He is cO'lut'lwr. Vlritb C.K PxalJal(rd. of ~CaIIlpm:mg for the: 1"1.:1 .• tule" (HBR fWYcAugum: 1994J. G.a:ry Hame/can bg :U:tlChBd by .a-mail at gh@strQ·i;;ego£nBt.co1l.l.

paniesere re~,ting IDe:mJ ,mEA, rbe Body Shop, Charles Sd3,wab, Dell Computer, SWat:f:hl So]!],iliw.est .l\lr.line:51 andmany m,Ql'~ are the:rol~ breakers, S~k1,ed nel thu by convention nor by [espect. for p.reredieD.t,. these oompi3JD.:iiJe;S, l3i1Fe: intent flU Qve:nmming th,~ k!.. dnstrial erder, They are the malco:men.Ulr the radicaJ:s~ the moulS-' uy revo1utio:rumes,.

Ne11',er bas the w'OJ:id been more hospltil!>~!e ~Q ffiLi;'w'ltIy rev{J,lutionaries and IDme hostiJ!el!o indlJ!5ttylncumbe:ntt:s.. The nortif:ka:·· dOIlLS that protected theindustrial o.lJigru;ehy are cromJ]lmg undie:r me wei,ght of dere~tionl t:ec1mDlog1!cM 'rupneaval,globalization,. atId secssl chal:i,g;e. Bu.t it~s· I111t j:usttbe: forcesot change W<I:I: are ~,ver~g Otld.i.mdns:ll"i.:ill s:tnlc~mes -itls the ~u:::tio·~ oioom:p:aJ.~ ruesma:,1: .hmrnessthose forces, J6m:we cause ,of .Ie:vo.~.utial!l. (See the msert "Nine ROl!:ltes to mnd.ustry Revo]utiol!l.fll

What if yom: rnmpmily is mere .ml.ing class than revQlru'lion.ary~ Y;bu C<1!.wl ciibcr su:o,~'ndea::th.cfuw:re to ,(evoolutiooM)" c'hillef:lge.:rs or .:revflIhltlOme the way YOlY oomp1ITl!:y creates !lU!lte;gy., Wh~t is requlied is, not a Utt[e. t'W'eak WI thebra:ditioo.u p[aruting prClcr!8.S but a new ph.:n.[osopmcru IOl1I1Jda:lion: s;tta:t~gy.iS .revoJuoo]lj evezythiOig else is w,ctics.

The foUmv:m.g ten principles canhd.p .<J! cDmllliLO:Y Iiberate its remi1l1lionary spirit mnddrrurmncaLlly increase its chanees o£dis~ (lQ1Veringtroly,rewoiu;tioi'J!aty Strategies. Comp<l!nics, .in. indusuie:sas diverse as personal care .p:mdlu:ts,infcr.rmation. services, ]lood.p:roC~$mg, insurance, and teleeommunieadons h av~ mtern,dlzfil;d and acted enthese principles. Every orgroriz.auon, howe'V'~~mus:t inte'ql!ret: and ,appl}f them In its own Wl1Y. These .$'e nota :set of st~p'_l:J<Y·fl:tep m.s~tionshuta w.ay of tWnk:.iD.g about the Gbal~ lemge of creatm,g stmtegy- tbe c.haillleuge [llf be:mmingaIu industry revuLuticU:llM'Y'.

PMlciple 1: Stt:lite~cp,l:;lnlnh!ll~: isn't :5ti',a.1!:e.g~lc. CO!llsider your cQmpanyl.sp[~ proCe8i5. Which describes itl'les1;-co[umn A, em the L.eftl or mi,tmJIj] H, on clu:: right ~

Umess yom compl;l!JlI.y is trwy ~ep!tjjonaJ!. ~l'()]l;'Y~ prolbably .adJ·· mJ.tted t.lli:ta:t. the words m. mlunm A are .more .fi:ttiAg than th.QS(: in

column, lB. In the V2t: ma:.Jarityof compeaies, Stni.tegic .A plann lug is <I caJeIildaJr~driveJ]] ntilJal~ .liJ.Qt an exp:liorntio;Iru. ,~f the pot~tia] fOE !,evo~utiaD .• The sti';;ttegy.making pltu:e8S tends 'Woe I'edl1!lctionist~ based on

simple rules and lleurisdcs. It wcrks from~a- B daly .fiOFVi!'udjHot ±'rom the futuleDackj. impHcidy ~su~g;. wb.<ll~ev,u the ~vide:llce to the t.OilIlttti)l'~lfrnt the fnmrewill be mme. mr less lik~ the .pf\~~mt. Omy ~~jl pe~C~fit<lge of aIL inrlLlSny'S eenveatinns are ever ehallerngedJ .Iiende:rmg strn:.megy making largely' exttapobtiVie. 1u1indu.stry's boundaries aretaken as a give'fii thus the question is .ho'li\It 'IdD poSliti.(]([1 prDducts and s~rvk;e:s within tQoSJe: bODDdari.es;tatllilJer thruJ. how to, in-

Hi tuaiistie Reduct.hlnist Extrapolative Positioning Elitist Easy

Inqu.:isi1l:ive Expru1Sive Prescient

lo:venting Inclusive Demanding

,·ent new, Ulil!oon:testeo competi.ti:ve spsee. ilr'lWl:ll.e.r1me planmng P'IC!Oe:Ss,];sgmenill.y e]jtis~~ hMn.e;s:sing only a Simall pwporli.an of :an. o:~I.iOJ!l!is erestive po~eJllrtiaL

:Pero.aps mw,t distummg .. stta-tegy m;a:Jtirnig' is: ohm a:S!8I.ml.~d to be. easyl .es~e.ciall.y in compari!lon 'With implem.e'IlI.:m:.g strategy. ,B'l!M

of course strategy :malting is easy whenthe process limits the scope of discov'e:rJI' the breadth of lavol vemeut/ and the amoun t of intellecruai effort expended. Of COurse the process is easy when its goal is something far short o,f revolution. How often. has strategic

plruming produced. true Sl:rnte,gi.c llm.Dva't:i.on~ N 0 W-o:n~ .'. .'. . ..'.

derthat in manry ol'g,ani.zations,. eorporaee planning de- N ot surprisingly,

par.~e .. :n~ .•. s ar .. e b~g .. diSh<l'll.' ded N.Q .. : wonder .. th .. at Ol)~- ~-, . .. ~. -. S.tf.a·.tegy.

sultingfirms are d01;ng less. and ~e:S8, II s~ tegyll wol'.k. " [' makin ,seems

and more and :mOle U lmplementaeicn" work ',' ~ , g " .

T~e euen~a!. pro~~em in ~rgan!Z;a,tioilli to?at.y is ,~" , ':a.:rwhe~ rts goal

3, failure; to dlsungulshplann.mg frcHln sttateglZUlg. L 15 something far

P:~aru:mg is ab?ut programming. nat dis~(]~e:ring, .P1M,- ,short of revolution, rung IS for technocrats, not dreamers. G.i.vtng planners ,.-=iOi'

responsihility for cr,e.ating Sua tegy is like askfnga bricklayer to

create 1V1ichelali1,g,~lol:s Fieta.

Most executives know a strat,egy when tbey eee one .. Wa]-NWt has a. clear s.t:ra:tegyi so does FederalBxpress. But recognizing a strategy that already exists is not enough .. Where do strategies come from? How ille th,ey created! Stra.t;egi.zin,g is nat a. rote proeedure - it is a quest. Any company tlmt believes, tha t planning can yidd strategy will find i tseIf under the curse of merementalism whil'e freethinking newcomers lea.d s'Uo(:elisfulinsmrootiolls.

EJincipl'e 2! Snat,egy making must ()Ie: ,mbversiv,e. GaIHeo challenged the centrality of Barth and man in the COSIDOIS. The Amen,C<l,Q colonists challenged the feudal dependencies a.nd inherited privileges of E1Iropeansociety .. PiC;i):SSo and other modernists chalIengad representational art, Einst'ein challenged. Newtonian physics. Revolutionaries are eubversive, but their goal is not. subversion. Wl'la t the defenders of orthodoxy see as subver,siveneses, the champions Gf new th:inkin,g see as erilightenment.

If there is to be any hopeof industry revolurion, the creators of strategy mU&t cast off industrial conventiona. FDr instance" . .!'\rum Roddick, the founder of the Body Shop, turned Charles Revson's hope-in...a-botde formula on its head Inste-ad of assuming; as the cosmetics industry always had, that women Iack self-confidence and will. ~ay infla,tied pricesfer simple formulauonsif t]:u~:y believe that they-will make them more attractive, Roddick assumed that women. have self-esteem and iusrwant lighthearted, environmentall y responsibleprodncts. Roddick wasrr't kidd:in,g' when she said, ifK watch where the ecsmetics m.dnsuy is going and then walk in the CippOiiite direction,"

Identify the 10 'Or 210' most fundamentalbeliefs that ineurn bents in yIOU! mdustry .s.h:a.1;e. What new oppormnlries present 'themselves when you relax those beliefs! COll,siderthe hotel fndust:J:Ys ,definition of a da'Yr whiclr begins when you eheck in and ends at noon, when. you must checkcur, Em if YOll check in at 1 A.M. ,atter a grue Ung~m.lmeYf why should you. lui ve to check out at ehe same time or pay the same amountas the person who arrived at 5 the previous afternoon! If a rental-car company can manage a. fleet: of cars '011,;;1 mtatIDg 24.hom basis, why can't a hotel do exacdy the same with a fleet of rooms.?

Rule makers and rule takers are the. ind!ustry. Rule breakers set Out to re d!d .. l..ne: the indu . .s:tryr to invent the new by challenging th~ old, Ask YDUIs,eU, What: are the fundamental convenetons we have examined and abandoned in. our company? Can you think of more

G'aless FQualie Il1i ±nlQi~-9try' leader w.i rh an unas-saiLa:ble position- a. status, that, give-n the; les>p@ns of b!iseIOW; not ieven M':l1;:r~s[)ft WCIl:ud be ~e to claim - yeu probably have a,g;,¥a:teI sta.ke J:n sta,giUfj a re,vollltionl:h~.in p.J'($~lI:'I.i'fu.g die ·st'atus· q:lJO. Tbe·Q·pponn. nines-fe:r· :riC~olution are .many

and mostly un~lor~, HlilW "S)lQi!ilQ4I wmild.:fle,~h:lrlruiD=Y: b~grR ~ By tookto.g:rm::

Wily!? to :t~~ products and Seem ees, rrul'ik:et iIlace, and. even the enm~ ~t:tl.r¢ oJ,an industry.

"t

~eco[\ceivtn9 til P'roclwt~f' or Service

L.1l:~1Il' 1m:JiIlO\".m.s~the V.nlllle..:BqUalllJ'1!l, In ~ m.~1:tY" tb.¢te ja.n; .f'atia~)J.t<;[d~tes :p:d.G¢ tcpedQtm:ri~t:e:' X 1:I1I!i'tS ,Ql.~K liuv y lDlitS"of'vBl~ TJ1e dipJi~~ is to' jinp.td: _ etJ!Iari vadl.lil tlrti.e clnd to do'SC) ma1- caflx- 5001% or 1.000%, UO- W'$, Cli!" !W%,Suth a fim.dam.el'lltall'edclinitiom. o:Fthe-.wru:U!e eq_U6!IDn. lfu'iltl"es ill. :recoocepjrlon ,of'lliepmd'L1Ct"O£;se.Dfh::e;;;

praeu~ Insestmeats, feLi.J;!slmlce, wQn~1l why a I~en;onc:pullhi't IDV6it in fQlrei'gp, e:q:uiw' matk~w fOr 1iun~ds'lilf d~llamJ..ailierlhaD. t1in.uSmdl5. 'a'l1

. ,t:lli,~t, fhl5a:riL~~e fllPi:~,auenA~lIt'sa~' ~lall: otber,. "T jti!St :t;rlcoved,siame: obn,yiqvestmeni' . from. tne; ~:e FUnd. tUl the ~a.ci1ic ."Bash;!" F.uuiili/'· .'Su.c:b;.~. ~. ment.,,'%!'du:ljl have I}-een moonbf,i.v!lJble; a,.de~a'de·O"! t.W'Cl ~ .• but Fidelit)· arrd o~heF mnt:tml-[llnd" revolutionane;sha:ve J.ill:dlliffu.ed tb~ in.dllStf.yiS vab.l!c e~nati!on.. He:.Wl.e:tt".Pac,k~d's primer gusines:l and IUd al!~ ®me:ll v,aJ.'uE. "t.e;v-6hrn:~e$,

2. Sepm'anng .. fu:lu::fi'l'l -aud.lbmI.. Anrnrll.'er waY" ~o

E:l:lallenjg~ the ~tih:gt~lJ¢pt'oEa ~~ . se::nricy

is, t:cI"sep~tece-l'e oenefitS'.fful1:l;ctwqJ·' e W;lfll,m_

which ti1bs'e hend.i.t9 aft C1.ll];~y e..moo~eGl ina~IDdvet-lilt service (farm) .. Ate oig~'Zarion that is- ahle-1lQ dis~sh form. from. .funetion and dJen reconceive one.O".:I; ho-ili has {h~ppp{iJr~uq tG ~te:an:·.h1alliS.UY .revolution •.

.Co,n,sid.er '[IT'edl;l: ~9l.'rls, W}nCD perform twa funct11jrlJs,. £litr.s~.a: ct;.dit.C<!l"d j~nres-a mm'£hfl.Il:Jt ~il trust rllat:YQu~"",,':tw i±u~'~sil5:i~·~00 ,are;,'Iii'II<: n.a.m.R,.4; eniboss'ed on the. 11;o:ru:, You sign;lt.wi! app.citri on, the ba'f1:k, and YOUT. pboto. may· even a.ppear m the EOFl!leT. Nev,erthe1ess, c:wOit. caxd .fraud is-a rapidl:y (l;S~al::iJ1g [l:IBh~.!1Rwhat mrm ''fil:l ""tmffi,t"'billli dlillbt:eretl. in the furure? Probably dlwug'b,biometrl,e data.:;a harndlprln 1;, Vl:iiceprim, prT~Hmil. scam. Any i:.'I:·rlit~Md m::liktt mat

l~ not investing m tOO15e \~eDfut{)lQgi~ nbaay may be su:qutsed br interlof)ers. S!'lcon.ri, a crelijt .,card· ~ves you- permisfiiOll to: charge. up to your credi"t limit. What ~~w oRPort:iJ:J;Li.nes:.-apPftaI if you di$ti.Il~is.b permisillnn 1nSa.-gen:ertd .. :fo:Il!otion hom the P.1llItlcillhrr case Qf p~~n. to Ch~:t:ge~ Ii!! ma:ny hote1sj a: c,a:rd v;itb. a ~eti~ stripe .gi~ gue:Si:S ''PeI:IJii..9;sll\l.n.~'~o 6D'~er; th.eil"l"9om&. DJ,a: ,~~dit Card .:tD;a:ki<lts se.~ the.. OPP'Dml,p mzy bir use:thetar.ds fu dtrs :y.rayJ. N 01, tiji;:;'@l'd,security lIwketj,s owned liirpLy b). IlewcoJneIoS.

. 3'. Achievm1: Tor of u..~e. we- live in. a 'WOrM:. ithil:t t:li:k~ eJas,e of use rot" ~,tea. rrhe·:ruW""gl!Ja1. is jmy 1.'l!i' use, We W'lmt QUl; pl:Qducw ana Sll:IN-)ic:es t"i1l ]j e WmIDsj,. c.al, tactile, ~o~tilRi, and jUst plain fun, .. i\nycom. • . P.<lllY that 'Can ~rn,p :thd~t!: ~ttJ:;ijJm.re_s;.arolJnda.mUEi:dm~ R.litrn®~t pr"lSer>'.(ce.}ilis the ~~J::e: to El"e~ rndl1c~tty;' Ie.vtltUti:h:iMry_

'Wh~ 's-cilc...:m:09tpmfital.)le t91;ild retiliferpe:r9trN~e rotltt in the trmte.d S.tat.e4J Frob-iib ry ;:rm.d~:rJoel~1 a, ,cross; b~tween ,at9~>Jnet cl:e:t;f !lnd' 31 di!;coun't v>,aiehcuse, \,iruc.h·ltSiClEO, John "SIbietds, ctill8'~a '~Shicm read JlIeta:ll.el'." ES-B'~nliaJ.l¥ wit.l.lou.t.eampe;tid.on, it~ 74 smr~ w~ .a'\ler~g.antrIJ.81 sah:;s-·&!,f'$ rmp plil.f s-Q.uare'fi5at m.U'§l5.-'tW"lCi6 ~ fij;~e of 'onal S!U!t!~ 'ts.an~ID!rmi'iliail.. dt'r"ee tilD.e&,,~~ of:mdst s~,cialt"¥ itibrl. shrij'~ i~1J,stQw,er.!i·.i:!h,?~ Tl';;llder. J9.e~~ as Dlll.ai.:ft!lJr 'fut~lElt -as ro,f wst n.a'Ja~'. "Filii \StOle stocks. cLtlZ&'Il;S of otfbe!l.t fonds - jasmi:n.e.£rMd. ri'Ce u. salmcn, lm~e:rs:.r m(l~mspbetty ~tlialsa -as w:e]l·B.s\)l!.tefullx sdec.red, cOlll!1petitiv~ly pri:Q~~ staples :By tlllm:i:n,g, sbkP;P:imr,w I:m:(m.a c.n:o,w intp)"il QuJfu:arq,: tife:~U(oe b,~t, .. Tfiider fG:e!$~.'IDOre..th:a:[1L ,dbtililiMl its sales over.tlle kiStnve Y:~~1iO' $~(l5 million...

R,edeJfi [1i~Jg Ma(k~r Space

4. PUti~ the :BDUD~ D£ 'Qm~~[Salit.Y. "E-erj comp,ru;y ~~ ~T ~~cj:t qtl~bn :of 11~~._s~~(I. '111~~et:ffie tY;p,eg; ot,m,cli'ia.dd,s a;r;ld mstJtlltl,fd]S that!: ,are -SiI1Ii1J m:e not- oos:t:om.e~ .. ·_R.e.,"Qfuti!!lrul.~·'CQmpaIrie..t, how'ev,ei', m=:;r not just (1) thetr :s.eni'ea market bQ.t, all. I::H@.-tQ{tal

].magLnable-ma~et. .. .

4. ~w. yeJIXS .hackiwll;o wO'l.rld ha'V'e JilomideI\ed ·1dhi1,. dren likely ma:rklit for as-millimeter: filmJ Would 1'00. liave ~VenYO'!.lL'$5mj ~ikonto an',eI-gJ:it.y~~I1l~ P:miJ:(bl'y n~ Far"lnts tiJ~ hi:j~ver" iliinit nothiug_ cfgiyj:ng a.~O'Sabh: ,Camet~ to a. clilld fG.r: a day ali:. die. DeI!I£:p, II birthday Il~ oithie·.fu~~is V.$rutiQll .. The. smsl;e-Il.se cruUeni.. "has l'l .. :t~de ac"cle:s.s· to !phnt;9gJ;~!lh~ vi:nua11:y w;ii'VersaL In 1:995, ~bie s~k.JljSe~{l;ame.-m ~at.ket reac:h)~d: 50·m:iilloD untt$i wetlili cl@5'~ to S 1 bil~ liol'u1,t:J:eltiU:L:Fr:om class to ma.s:;;,...aduldQ·t:hild, p.I:o:ies,.

72

slizlD1tal to cQlll;SlI1Dler;anii o:adofilll to global.r die tr,afu· DOnal bowr,dmes, of i:lli.trket space Me 'bemgrede.ffned. by r,e:volutio,nazycomparues. -

5.,mvingjrn:mdiWl,ua_lity.·ND.One. W~ts to be 'J,l1lrt of a. ~ znarket, We'll, allJm;y thname tllings ~ but 6nly if w~ 1ip_vetn. Deep. mtm:I1; P;i'!~.d. 1.1Qb_e Qumel~ to h~ UIl.iqlIle, a:;r:l::, ilie::see-dsotiniilla ~ l:eV0:t uti,on..

A ~~'Gman wbe wants' a p.erk~t.,-:a~, ~aIt of jearu;, f£ll: ex;;rmple, can nO'''''ffit measured.at opt· 0:£ Levi Stnl.l.~ss';8 ·Personal Pair ,ol1Ue,tS:r ~1'lU: It eempuner will ph~k. OUt ezac-dy the right ~,ize: 'flJe1WOID.'Ui!/:s'Specilic!l.tions ~K sen);; 00 tevi.~$;~yOl[ll;lmP!l.te.:J); ;oo.d-h>el' mllW;:-ro~. QI,t1bt jea:ns am:v:_e a (ew days hU:e.{. The p'ri.ee? Tllst .ahout $lQ"IlliflI'e·tI:ia.P an:QH,.'1he..sij'illptill. :Levi'~ plana to . inriocmce tIl/ii: Pe.t15o:n.d''Pm system.. 'til ~1Y;!lr;M1 s PreS in the- Unltt'!d Stait~ liy ili., 3iId oi the decade:

Th~ c ~mpany .Is cop;n t:i:n.gM, its, .e,oimioDll11" ';lI'~p;W1\Ich W-put a oon$'itlfua:bic:iil.,~:nt in theJgm.wm.g mal"-' kee f0I'.Priwte~1a:he1 jea1'l'S:_ .

'I)" :IJt;c:reSls;m.g A;¢cessiba~t1' Most maeket S'p$.c,es, have temporal and S~Qg.Laph~t. boundS:CiT:J:~tJom'er,';. must gO'1l!!i< ,spet1fill: :sftrIU, at .. a ~ecifi~191!;:<!ti;on be~e:e:Il ce!1'tali1liQurs~ B:t.1t m;iik;e.t ~.ce is ~acl!llm~ j;.yD'~paee, :ruro. ~v,e:r;' (]ay .frld~·13:f re:vrll1;i.tion~rie$ ru::e: ~ese~cbMID:Ii~rs' ruq,edati?flS~i1:loni'ac~eiS5iliili~.

COB:SIGe:J,' .Enst Dimct;. .a. bank that c.lIll i!j;reB,ched Qruy' b)1 tek-plione. Toe fas,tBSt~~v.jl'j!g ba.liIt ill :Gieal; Dntain, F'ttst.Dhec.t::w:as ~enin,g 1. 0,000 aew ace-ounti pet moom-m rnd.d.1Q'9p:- t::me' eq,ut:V;aJ,~CJitof;tli.q,a :ar-t1!ree btancbes. The: pro essjonab' <lnd warlt'aheUes 'who malte up FmtDi~~S' .h{il_i, mi~Oll tat~~pniers can:)', an '3,v:it:~ .a. balance tIlat'~ ten un ~.s h~~e:r thantha !lIvtntge b,:Mance a1;:.Nfi~g.i<m~~irst nid:ct?s:pli:i:m~ while ovl?iF.<nll c.0sfu];l$. iCi1.ent ate 61 % less. tOne m-th.~ :ti1st IT. K. ban.k-I> to' ex]il~rim:e.ll~ Wii.,tru 8U,OalJ£i:l. dii:eer han.krl:ng esti'mates that it will uItimat~l be able' to dose at !eas:.t b!!l£ oJ:U;s fu:an.ches.

Red rowingl I ndusr.ry Boundcries

1.11;, s~~ lD'mrt:!l!:i.~.As mril.!lSUf r,~o.1ll.tlit:l:nilriti ~elik om :mli ~lott: IlieW Mti~ ·i.'Illd"~o:bal ~C:iJ'IlIi:JTIries oi'scal:e, mdustljes,i!roond tire w:oddd'\!\en ,o.flil::;e clean ng <IUd hllil1cllt~-3te ronBeIiCtarin,g aft. a .• aarsome paee.· MY mGUstry'thllt was tocal~suc'h as. amsum~t' ·b~n.g;. Is b'~Qoi:i:lfng nanonaL Ji:nlmdustry th.d w.ao.s ~tion.al, su¢li all, tlle airline 'II}Usrnes.!!, is' be~ming globaL

'E.yery mll;l;u.tie linda, Balfj' .service C(lrptlra:ti!l,m1ii:tel'~ooii bUJ:ies or C~~Il.-S: somt!:o[!ei somewhere in. the :w-ti'diL Perlo'nnm~ 3;20;OOQ ~ltWs,l;'eI X,81l1;', SG] has become dli wocldll lIirg,i.st f~ Ope:raJ:C1:!' ±ct, all

indus:I:~}i" that 't['siclitiaruilly has ibe:en~,ry fragmented Jl,;'ibs'c ,funeral o~tol'S have. been famifyliusinesses. By Dlillying up.small Op{i:taltors1 SCll:w.s r-eapeil' ecenomies o~ scale- in purcl!.asingj· C!i!ptmi utiJliza;tio.n [s,ha:r. lng Mamg;s :p:m:!ng o}W.ratou;< fQr emmp.l:=li rnark:et'ing. a:ncLJ;ldmiIDS1::!rn,EW,n..

OIcoIlIl!!e; ~ iodu.s'ttYcanhe a'~il11ed a:~.....m.2S welle;!>, up . .Bea·;8nJl~'brieElkfa_.s-t inns, ;rn:ioiobri!i~r:I:ri~sl iocall.l:ak'Elri~;llnd spetialty retailers ,a~th.~zesU1t.Qfigdu:smeB tim.t have' .scitl~d dO'iiVD: to' S€ll!i'e nmmv pr-ltmal cus·

remer 6Cg.nlmtS' mm::e effectiv:e1 " ' .

8.-Cl1l'm,p~amg.the:Su"'pI~ ,Cham. Th,e., c()!Wostenti tlS<El' the, \!lotdtdlSittt~ edftlitiml in fts litet:a1 sense: the ~~o'val of wer,mediades. W~l.Mart.. fQI' iostancel' esseuti~ll¥ t1.1m!edi':he W:n.ghDI1S~ into a S~0~ thus. ilisi1iJtlenn~a~gthe.;'ttailliia~.:;s ~.i'I'n~sme lIel1a.ilijL

Anid x:erpx:h¢pes to r~yeITt the/. c1~.m.p,am!!s· dis·

trib ure p'ifu:ped do!i:ttrn en.t;s t~.rm '. ~Un$

trudting'oo.mj!!lanie~ h:pm die printing bUSlq.ess, Wbj, xell'QXa:sh,.should annua] r.epol'ts, USIei' rDa"m:t.11s, eattatogr.; em.pkty~e"DandbQoksi a-nd.OIt.her printed matteL b e b:i,u1~.aL!m"sl$ the ~[)Illli:Iy m. t:n1ckt;1 "Wh;y. not se:n.d

lli:e -_ ... ~ R dlgitaliy,<arid prin It clese ~o wh.e:reJt

. . OPs.,w'o:I\1ng wjtiJt;a~el;J!' <l£.pa:r:tnel'.s

to ':Sta'~ t~§ .re,vcilutilJn!

!,\I. Ddrlng (;::oDYa'gence l\WGlIUtitllllaiff;8 not oiUly: t.adic.-aIlt CJJ.ange the v~--ada.M .s~lu::rUIi~ ~ -Indiusme:s'b'I:It also ll:luJ;ilie-·fiClli.mda:rfes 'h~tw'~en i1id.us. -cries. D1El.[.e~titm', toe ubi.qllitl of 'W.6IlmtLtiOlil, and ne~ Cl.sl~wme,r aem.an.ds' gitv,e;;re,voluti:Qlnm1eS 'the chance, tg.t:wlsceOO lin ind:u.sb:Y.:'s:'bo'J!)ndarl~;

For ·emih~le .. a c~sume:t..c.::m nowg&'a m.e,dil: card 1h?m Gel'lryW Mo'oors., .' mf'~~!!. 'nom:. Pmden:tiaI PI'

G'E Ca:pits,~ a (rec~,emeD.tc. . 'at ~~l~Hty !r.I!1i':e~t-

m:erl'e~,';aJ:l.da. ,I:lb¢t!lfbon tID . . bade'Sp~w.a1fl. ;mnd-

vs'Hv·e htis:pllhls ,II Mpii:ife" RVeS, g:u.Fll'atl'!:~eib!t Ul 'WGvide an individual with lIcfuU rru:Jge of heald:]: serWiCes. for a, fiEei,! S1::1m I1et·1ca~.m:smao;ce 'compames, such ,a:"s AJe.t.na, .re..::;pond by [ew:s,:hiooing th~m.sdyes 10.1:0 h~;ilih. ,QUe pm1iFl,~~, lliOS,llOl) ~.ket' ®fkA~ bot f~]l'l.:sty}1EI m~ls t6.r ~ebut" sndsup e:~mar1ret:s: re.~RO:od bY OHe~:lUI.!!c~er"Wid¢rseret;\-

'lilln of prep!!ied rooas, further

blurring, 'the- .boundary. be-

~'e;en. f;he-gl'OBery and Ms:tf00d uu!ust.n.e5"

ln d u.s:.tty revcolm l;tHla'li e s

deDit ask whl,t .i.ndus.!ry they I;' t"

-are in. TIie:~1uimv that an ,~ ,

1ndll-B'try's ,bonnd#i.as toiiay

are a.'b·Ollt ~9 In eaDin.gfnL as,

bci:rdel'13 fn the: BlllKane:.

73

than one or two~· eim you tl:mik of .mya:t ill ~ If ICH:}t1 why not? M;9. ~t":nior ~ecujj.ve, 1ll1e. you wiJJ!hl_,g-m tembrace ,~. SUbVet.s;l V~ iti'3itegya m~!J;pmce5s~'

p:rmci.piJe 3: The flI~ttJeneek ~ at thew, IOf me bottle. Inmost companies, strategic orthodoxy :ha:s. some verypowe:nm defendess: s~~ managus. Imagine an OJ::'g·a:~6orJiail.pyraro:id 'With serum maaagers at the apex. ~Tt hasbeecme lasruDnable to ,draw th~ p}'l!'amJd with cuswm.e.ts at taerop <lind senior mWla~s, at th.ebot&

tern, But ,aSr}[)]]g &:5; senior .managers re:ral:n.r:beirprivi· leges -CI)I:p()late mcmft, spacious suites, aIIld 80 on ~ ill p'l1e~e:r to lea:vethepo:mty encl.aJt the top.] Where .a:reyQl!1 lik1trly tofuld people withtill:. Ieatt diversity of experi· ,ence~th.e ]arg,e;:;;.t _:1nve.s;tmentw the ~tt !lOd the gre~t· est reverence for mduiSuial do,gmaJ At 'me tUfl .. And. ~".here will you fumd the peap]e n:s;poDsible for aeating,

eVe'lil da.nO'erous.. ~tnI:teID"~A~am~i3IJtrnet(lp ..

1:1 __ ., The 'or,g01~tiO.!JaJl pym.midis a p:yra:iilI'lld oj'lZXperl~

eaee, ill:flll,l: experience is valuable tlruy to theexten.t t:.h.atme .h.llJ~lli"e, iii: like the past, In mdmtryafter ind:u!iuYiilietJer:r~n is chOlinging sofars:t mat e;xperielJ.Ce is b eCDm:mg irrelevant and even dangerous. Un]1ess the stratf;gy.m~g f1j))ces;s ~ freed from 1the tyr,<llI1L11IY ,of expetience~ there is liwe chance o,findus:try r,evolutimJ. Uyou're a senior executive, ask YOlllse.Hm.ese qIiles.ticw.s: Hais· adeeade Or two Q~ el!:ffi)erienoe madememore willli.Ilfl' or lesswillmg to ehalle'.Jlge my indmuy's co:ovention8~Haf''\\'e i: become more curieus or 1es s curieus a b,[llut what is happening beyond therraditienal b01!U1d~es OlE my ind'wuy.? Be hQlil!es~ • .luI RJdpbJ WaIdo ~en;OIil. \WTote~ "There are wwarys .t'W'Q'pMlies, the party of the palStancl."l:rn.e "fhnt'J of the rulL1(ll'e;me es.taJhli~bm,~'l'lit~cl. the movemen t. ,i Th wmehparty doyou.bclong?

Prmci.ple 4: R.evo.llIlRgmllliies t~st in leviIl:l('f tcomp3JUy. Itf: is oftelil s~id that you cannot find a pm-t:.h.aJilge constituency in. a suecesa.RaJ company. ill m:sagree .. lEt is mope aeenrsae to iii;]}, tbaJ.t in a. $1[[t~ ~~fu1 oomp~.y ),'Oll OU~ !J$J.ikelym fiJld :;l.pICI·ch~e con:sti;W~ eaq amOillgwe w'p dozen ,or S![l1 OlliCeIS.

MHe no mistake. th~ mrf:revolntkm~es in yo~ compacny. If you go down md. out intn yoruoq:amzation - Oll.t rnLilD the ranks of mueh maligned mid.dlemanage'(,sJ for ~tantoe-ylou.will find peQ~ pie s~ng alailultllie hit of indliJ$tnial o:rt:hodoX}'. Ali. too ortenl however, there is: DQ process that. lets th.o.sel!:,~v;o,lutioouiesl be heatd. Thtir voices are m:uffiedby the Jayeu Qif ctI.u:U01l8 bureaucrats who separate them :&'(0) . .s!e:tl!.k)[Dil31']J_~. They are ioo.t"aitioo and impo,oont, diseenneeeed kom eehers who ahare theirpaeaiens, SOj ltke eeanoaric refugees SCIfl:.king greater (lPPO);'tl!1nity' in new lands .• mdus.try revoluuoaanes often abandon.their em~loY'e:rn to find mOle .i:maJginative spo:rumr:s.

No, on~dou.bts t.ha t J01!ck W~lcb of Gen.eral El!ecmc4 Percy Bame'Vik of ~'\BB ABa RwW'lll Bove:ri~ aad Ray S1:Illtb. o~ fleU At~ la:n:rnlc Me pIa-change leaders "But r~the-I"thotn oe]lebr~dng ehe ~ce,ptiGo:sJ-the liewt:r"UlyuamlfQnlll.a1tl!Dnal exeeutives who popula,te every tome o:nleadel1'5mp-is:rn't the geaterehall.enge tD .help tbepnHl:h:mge 't!nnstif1;uency th:u exisu m lenry 1CQ.mi]lrul'Y find its v0iCie;~ Sure, theeeere !Some-ra:dica] c.o.rpotlOl.te .1ead~-l'S OUi!1t there, But weren 'tfuey alwaysrevolutiorumes at hean~Wlty CioiUldiIJI.'trn.ey have had a .muJChgreatE:l' imP2.c.t. (Ill! theirc:opil.pa:ru~ eadier in. their

In ill,dustrv afte.r industry, the ~--'~-.;~.

terrain is changing so I ... .:- ' fastthat e.'tpell'ience/ . is irrelevant a_ndl

!\U too often. change is simplya code word for something nasty: a wrenching restructuring OJ[" - reorganization,

careers! F'erhaps tneYI' too, found it ill1£icwt to Challenge the combilled forces or precedence, position" and power. rt would be sad to conclude that a company can ftilly,exploit the: ernodonal and intellectual energy of a revolutionary only if .he or she succeeds in .navigati.ng the tortuous TOU te, to the top. How many revelutten,aries will wait patiently for such a chance?

As a corporate Ieader, de you know where the revolntionaries are ill your own orgwza ti(m.~ Have you given them a say in the st.r,ategy-makin,gprm:ess¥ One thing is certain: if yon don't let the revolutlenaries challenge; you from within; they will eventually en allenge you from without in the marketplace ..

Principle 5:: Ic:him,g)e i:s not th.e prohlem, ,engagemeat is. Senior executives assume tWD things about change thai: squ,eJch revolutionary strategies, The first. assumption is that "people" ~that is, middle managers ,and. all the rest - are against change, The second assumption follows from the first: lomy a hero-leader ean force a t.imid and baclc.lov:ard·loolting organisation into the future. All too often, ehsnge epics portray the chid executive dragging the Q:q;a~ ruzatio:n kicking and sct~aming into 'the twenty-first century. Enough of top-management ,g.r.andst~dmg. Humankind. would net hi!. 'lie accornplished what it has over the: past .tniJl.ennium if it: was ambivalent about ,c.ha:nge or 1£ the resporlsihili ty £'or' change wasvested in, the socially or politieall y elite.

Imagine that I coax a flatiru:uie:r to the eop 0.£ a snow-covered mountain. After strapping two well-waxed skis onto the flatlander's feet, I give the ne:rv,OHS and unprepared nonskier a mighty push. He or she goes screaming overa precipice, I'm booked for murder, One ,CQu.1d well understand how the novice might not app:reci.ate the Ifchaugell I~ought 00 engineer .. Now Imagine that the nonskier tal~es lessens fur a. f,EW da.ys,. The now fledgling skier m,ay ascend the same mountain and, though. full efcantion, vohmtarily point the skis downhill. WhiiLt haa ch:nn,ged? Even ,,'lit.h a bit of U'ilining, skiing is not without risks. cBut in the second scenario, the skier has been given a. modicum of conrrcl-can a.blliqr to in£I:u~ ence speed and direction.

Alltoo eften, when sentormenagers talk about cbang;el they are talking about fear-inducing change, which they plan to impose on unprepared and. unsuspecdng employees, su CaD ahel1; change is simply a code word [OJ: something nasty: a WI\e:Uchin,g restructuring OI" renrganizadon. This sort ,of change is not about opeDing up new opportunities but aboutpa ying for the past: mistakes of COrpOI!1!Jte leaders.

Tin: objective is not to get people to 5UpPDrt ch~n_ge ·but to give them responsibility for engendering change, some control Over their desrinp. You must engage therevalutionmes, wherever they are in your company, ill a dialogue about the future. Does yOill' str.ategy-making process do this! Do yous~cretiybe1ieve that change is betser served. by a more eomplisnt organizattcn than by 3 more vnciferous one~When senior managers. engage their organization in a quest fur revolutiOnary stra.tegies,tbeyare Invariably surprised to find out iust how big thepro- change eonsti tuency o1,CruaUy is,

PrInciple 1(1,: Sttateg-y mmng !BUist be d'e:m:oCla:tic. Despite years of implnringpeople to 'bring their brains to work, to get involved

75

in q~ty eircles, prceess roell,gineer.iJJ,g,and,·the 1ikie, senior manBlli~s ha:ve seLd,om mF d tbJe.m. to ])M"l:Jidill8;Til~ in. the precess 0:1: :!l;ti!Categy ,c;re;IDtiOiD. ]3uJt:jfsen,klif m~ge:(S cow~t ~ddresstb,e challeDge of op er<:u]!nnai imJpmvemel!1tsby themselves -'I,vlmessti1e.ir reltance OO! quality cireles, S!l:ggll:: inion sys~em:s, ,.:IiIild processimp.mvemer:n taskroroes; -why would tb.eybe lIMe to take OLIL the challenge of indusu--y revolution r Alter all, what. do a compaIly~8 top 40 Of 50 executives have 1;'0 learn :&0'00, @ne :ilnothel"~ They've been tru:k.]ngartt O'm,caJlI,oifi.er fO:I years. T.ItJ,eir positions are well rehearsed, and they canfinlis'h enemDt'bi..er's seerenees. ,[rn fllct, there is o.ften <l! lti.nd ,o! mtelleeeualiaeese amo~ me top offioers of a large 'CiC'lmpmy.

The b3pac:ityto think Clea:riV'e[y about sera ~gy is distributed w.ldely i~ am e~tie1pr,~,~:., lit is; 1mI' oss:iblebo' predkt 'ex<llCdy whci'{! a Iev'Dllii ti0llilJ"f id~ is fo:m::ri!:n~;;iliw>m,e[]letmnS't. be C1lSt wid.e. lin lmIny' of the cllmpame.s; 1. work \rithl. b,Wld.:eds and sometimes 'IDOU !lmlld:s of ~e!Jlflle ,g;et, m.v,olved .in craftmg S1nl'~legy. They .a!Ir\~ OllSked. to look d.eeplymoo, potenti...d diiCQlltinuities, belp ·define and elaberate th.e: cn:mp.aD.y':s core: competenciesl ferret Out GOipO~ rate orwodoxi~s.Ia.nd. s,~~cb. fol' un~oI1lveJltion.m :Sb!'a.tegj:c OjpltlOliU., In one ~ompam.YI,the idea IDOl aJil[].u1 dmill:illml.~o:l:l;u 'Dpll0irmillllty came kQm . a t\V,e:mty~somethm .. g :S'5crietary~ .rnan()lthe:r lOompany, some efthe be-St id!~~bout the o~:z,adOIil':S 'O~iI,eCO(m;peoonc~eos came hom a.lfml1ift operatcr,

To [~lp revolll~i[)I!J.ary strategies elI\llJt;!.rge:/seoio:r m:m'.ager.s must. s,upplemm.tthe rueJI'anchy:Of experieace wlth. a hie:.rarohy o:ti:magiD.8I.tiO]]l. Thls CaliJi. be dOEIJe by dramadcan.y extending the stftl1Degy ifran:cl:'llse .. Tb!lr,~e co~tiru~ncie:s that ~.re usuru:my U:I!.d~ep.re,sJetlJitJed .in the iStta:te,gy-mak:i:l!l.g proeess must llaV'e, <1:. dispropm:':tiollate say:. The~:t con:::!ti1tUenc:y is YQUI4gpBopb~- or/more .ae~ura[dy,.p(liaple wiw. a youWfu.l pm.\~:ifitl;:'ctin .. O.r course, some 30-1e~':H)]d:sa'l:e ,ftyow'Jigrogies1 II but most Y01l:1lfl: people live !:Jo:ser to tihe future ilia.__n p~ople wi thgr,aybili, It is :iroruc,tnail:;iliegI:oup wli.tll the biggest stake in. the mruu is the most m:seJiI&,mc:msed .no:m. ehe PI'OO~S of stt:al'i:egy aeati'on.

- My defimbon of sueeess ina strate.gy..c:reatiolJl. ~rocess is exensplifi.em. by an e:x:eE'llHve commift;e.e spending ha.I1: :!l Iclia.y .I.eanrlng

. scmething newfrom 011 :2S-yearr"old. ReCie.ndYI a yD'llJl.t 'f\(h€:nw~ the last telc.hoiiCaJ. empl'o'y:e,e: in an aCI:JOunti:og DOmp,g!l1!Y extime a iGene:rl11ti.on ~X pJ.<rinedwe implkatiCJIlS o:ivill:ual reW.ity liD the :s,e.JJIt1~)r

I· nartners, His ,nitch wen.t .Uk.e.thl.s: 1l1'binkabOiUt :1. com-

emp ovee my'olllJ' J:" !;'

- ,./ pIe-x. set of oo:rpar.ate .acCCI1;mb .. How asHy <Illild. qwckly

comp,an.y e_~clli.ange:d Crul, yOU.lJ!ncover the: $ll.bderdations:hip:9i <l:mor:ugme ideas with numbers ilia tnti1};h:t point to a problem or oppmtum:ty:~ senior managers? V1rtllJru reality w:i!.Uillow you to~fl::t over :8J.tlDPOWap:h,y

mooqlo'(<l:te account'S,_ Tholl!; bigbbck hole crv~ th~ is a r,ev,e:nne. shaTtfullJ and that red. moun tam iSEJruo]d .innntQ.ry:. A f~ small comp~es <tf~ ah~d1 w~king On .~ppl ying 'virtM.am reallity to financial aeenurus, &,e We going' to get On boud. m: .Dsk. getting left bel:rind? II The partners actu,ill,y learned somethl~g DewWt da.y. WheJil was we; bst time a Geneiat.iOl'1-.x ,empLoyee in youJc(J'mpW1ye::tch:anged~deu widl the aecu:tLv·e committee ~

Tb.e 'people at om O1rgamzOIIticlll.':!J, geogwaphl.c pm.phety are dt.e s~rJo<nd. c.~n8titueocy tb,.a:.tdeserves ~.lMga say insttategy m~g:. Tbecapaci ty 101 sn:at.:e,~,c innevarien inereasea proportThoma.tely

76

with each mile )iou.move a,wa/,yrrom .headqulu:ters., Fora. U.S. ' 'Ciompanyjrne peri];lhery might 'he I:odisJ1 Singapore, B:razilJ or eveo, th!eWest Coast~ For ~ J,ap<ln.tlse. CQlllpanyj itmigh.t be Indonesia or the United. Staib~. At the periphery ,of an I)lq~~;:rtkYDj people Me roJfOed to beraereerearive beeause they usuallyltrn,\I"L;: fewer: reSiomces, ~d t:he'1 are e:;tposed.to id~; .and. d~vdopmelJlu that do not WMo.mIl to the company's ort!h.ooO:ries:. Remembe:rth€: old Cb:inese defense ()f ]J~ e;X)oeptions mcenttal nde: The emperor is fur 8lway and the hillsare rug-h. But a~inj In :wany {:oro..;pOl;nJes the periphery has ntde :9<lyin the. :!luOl'tegy-m<l!k:in.g process. If a COmpany aims tn generate 4'0% or 50 %, or ilCS revetmes .inmte:.rnat:iona] ID_:n- kJets, ID1I:elrID'!.tioIll.a:l voices should have a. ,say in. the :SU<litegy~ m.a1ting FOGeSIlIlOmatch.

The tbn:d. ,~tiwenCYWat deserve'S a disip1,l"lpOrntllMltJe :s:ay is newcomers, peop'lJe wb.o have Dot yet been. CQ-.gpwd by at1!mdtlS~ try's cicgma. Pe_f~ps you.'ve Ioeked olltsideyollr cumplmy 0Jr mclusttyfor senior ,exeootives with we;$,b .pecr.'3;p~cti yes. .

But how systJetl1aticaHy have yol.] .scFI.J\ghtme advice 0.£ r!JewICQm~s &taUli~:'vds woo have not y,et .$uccumbed eo tb.e dead.1rnncl of o:rthQdo:q?T~ about .I.aiSt}llem"'s stta:t~gi(O,,:p:larm.ing Pl!iOCJeSS" How mom.y new' '!l'Qiccs were ~? How hard did you work to creare liIe O(:lportu~ , m.ty tiD be suqIri\Se.d.~

furvi ting new 'Voices: in to tbe su.a.t~gy"'.m:!lkl~pwleess.hewever; is not enolllgh. S,emrn: ~ejcaltiyes, muse ensure tha t they doni,!,: ID;Qw.n. outpeoplewhn we 'overly 'hl.din,ed. to deferenee, Tl!. one ,c~mp:any, the yt)iu:n:g te.pI:e-.selilucive of a sU'at(:g;y~ Clrel'lltiOo. team p!IeseEIted ehe Wl}Up~5finmn.gSt!D the manal!);,ement mm.mKt:te:e. When the anxieus 'f'Ofung em]lh:l,y~esh(),wed u;p ail: me appWnUl:d pbce and. hom;. he was t<on:fioo:nlied by a dmmting spectacle; 12. exectlrive5r mast with IiOlQ.re ·tkm 20 'Y~.ti"S of sentoa i.y~ euscoaced m mgh-bo1cked leaeherchaas ,an;.ul~d arcund al!1.e::IJ!OI~ mons beardmnm table, The brave youngmana,ger never steed a ibanoe. less than five minutes in~o, the fo,uli~bo1Jrtalk.,ne was bemgpelte,d'mtJil. disbelid ilmd sJll;iepti!ti~m. 'I'hemanage:men.t: rom.miitJteJe dem!llnstta:tJf:~d iilli ca.pllIcity fu~ ~llDWittitl.g} i:Iltimidatiolil ~nd ],~med li ttle,

Mte:Jr 'rhis fiascoJ, the peopThe: a [It.em.pti'!1g to hl.cilitaJ.te the dLaJogue s~w ill ittha.tme .setl:iLig fcvrme. nt}ft m.eil'!ting wlIlS very ditiereD.t. First, it W,a5 .held .: o:ff.:s.ii.te OD neutral terri tory ... S~ooilldjan 25 members of the :striH.egy-creationteam were invitedr thus they outulllmbe!!'ed the executives, Thini, the m_agement commi ttJ~e: SOlLt in ordlnOliq chonrsalUa'Dged in. a semicircle - they ~d .D!D table belllnd wmch to mde .. Pm;JJUy, the m~:3gemen;t commietee was asked mhQld. 011,[1 ccmmeats during the :(ITe.s<ent8t1on .. AAerwiJl1jd~ each :member of the management eemmlreee wa:s assigned. two m~mbc:r$of the team fOT';!foll.r-hourdisoo.ssionwt~ocU8!ecl ClJ]! how the team had a:mved Bit its eeneluaions, The nexf morning, theexecutives were w:illling toa.d:mcit that they had leamed ~. lot, ~dmey were able ~Q give helpful :ad:v:icew me team .ID!e.mbem a: bOIl!: when: mey shawn deepen.and expand.. cl1eiEwOl!:K.

'That- is, strnJtegy making asa demncra.ticproc~s. P.e{)pl~ shalLllcl! .M.ve a s:llI.y in then- deSitm.YI a, ehaeee til influ.eJ]OO me diire-etion afthe enterpdse to which w.ey devote ttl.elI eJl~ .. The ~de::l!. aE demo.~acy bas b eoome so enervaAi:ed! andt;h(l indi vidlld IS sense

I ..

llVilung new

voices into the str.attegy~ma1ki'ng p,[oee.ss won'twork if senior m:lndlge[S drewn them out

of responsibility to the commnm ty SCI .IeebleJ• that tr.heycan. both be S:1J!mIiLIB!med in me Slog<lJfl ant!; P~$Oill, One Vote. Th,~t :1lLOtiOID .repre:s'en!ts mClttlrue £lli[j ideal of demDcra!C:y but its m j ni-mal preeonWittOn. Jj ene exercises, the: rights. of titiz.ensmp oruyotili.ce every L46 1. d;a.y~, can Ollie drum. to be a citizen. in any 1[JDe.mIDg[ul sense ~ In the corp(lrate s;phere r suuestion schemes and town 'ball m.eetings arc: but the tender shoots of a p.luralistic process. Denseeaacy.ia not simply a b.out the .right t.o be :bend" it is about the oppormmtytJo mf.h,u:;oce opimoo and a,ation. It is <II00l1lt 'being im.pati.ent OIIiE1.d impas~ :s:ion'ed~ iMCrniI.edl and inv·o],vem. The realpower of demm:Jti3J.c.y is mat not om.}! tllLe elite can s.b.apeliJ:,e agenda, Ones. voice can, b ~bi'gg!er than one's VOt~. Susan:]i. AntfulDny, .Mart:m .Lum.eI' ·Km;gj. Ir., Ralph Nadier,. Rlll.'lh timba~, and Jesse; ~acbolil ha,'Veill bad. an inB.1Jl~ce oillpolitic;)]! tb01!!gltlt .andl acdon.that h.aJs. gone .tEar beyond a smgLevote:.

WhaiJt;peIGfrnt3ge of the em;p.loyees in yrrUI COmpmfh~v·e ~ S~~Ila. copy of the corporate: ~tta.t~gyl much iesspartici~a ted ill. its creation? Nowoo.dertha,t; what passes I,Oi smw,gy is usu.a]]:.yst.erfie: .and. un.i.lrl.sp:Wng .. Sar.ul.J\li.nskyj, one 0,£ the mo.st d£ecti.v,e s,[]daJ! :l'ev,o'~ucimarie.s m ilieUmted Sb1!tes thJ s cm1l.'l.1zy1 WI'ot~ this~lb IOlUJt the output of to:prdownf ,e.liltistp.la:nn]![Ig;: "TIlt is .n.ota demoaatic ]l:l:ogr;un onE a .. monmrrl!~ntalcbest.ameut to lack of bim.m the abil~ ity and mtelligtllllCe of the masses Qfp~ople to tltinl~ their 'Way dUl)1]gh w thesu.CCJ~:ssful SOhI tien of their problems ..... ili.epeople will h~ve little to do 'W1thit.'1 ThOlt whkh is im.posed is seldom embraced, 1m eli.tis~. ;appmadl:!. 1:0 snac~egy CFe<l.ti.ou eflg>enders Utile rnm~ thalill c~pUa;l!."Iu .

. PrinIcipJ.e 7;AD.l-o:ne I!:~ be a stlr.!ItJegJ a¢.tiivi:sIL ]?erhtarPSSJf!l:ill.OI l!l~gers Me ILidl!1J!:Ci:2!Il t.tJiJ give up m.ei:rmon.opoily Gill the ,creat11Oll1 of :s,trates:y. Mer ill, hO'l;.;;r [)·ft;en haSmemOfi!l!l'©h ledthe tlipri$ing~ What can so-called om:inm:y ern.pl.oyees de tnensure th.a:tl:hel.:r compl1!nybecomes O( l)e:ID.a.ins the antho:r [l~ mdlnstty II~v,oh!llti,Qn? P~eIlty. They can. become Sioa,tei.g:y'activis4S. T()dialY rr(;!i.llltlliine emp.]orees and. middle, mU<3!£,eJ!S ;'J!lne .im:u:lmed t!IJre~ th~m.sclves ruo're as 'rict]ffisth;3ill as acti:rists. The, b.;;l!.ve lost 'collfidence in their a.bMi!:y to :s:bapet:be futme atme.ir. ~a:m.za:ti.oru;., T.hey.have £olgoU:;ea::lth~tfrom 'Ga.ndhi to MiUld.eb·.1 fro.m thc. AmeriC<l!n patdots m thePoli.s.b. smp hm.1deI's,w.e mskers or[ .revulill;ti.ons have nat COme &oEl1tll.e mQP. N ocwi ~~ding ill the :somber mcanbtiotl~ th,at C:hMlgf: must start 13i't. We, top, is it, Tealisticto expeet mat;. in ruily reasoD.<!ib]eperoelltage of cacse~,seruol m,~l,3g~s, will .sw"l ~Jil mdlusuy revob]tion~ No.

In one Jl.arge company, a small group ·of middle maJLtage.l;S \1'ho were con v.mced that their compamy was in danger o.f fodeitmg ·the fu.wl'e to leu cO:!,),:ve;nt.1:0I1al rivrus ~.tablish~d wllllatth~y caned a "debl'ill, team .. " The .IiI:ilmageIN, none of whom waS,iil o01:paute (lm.~ I~er, ba.d. no mandate 'IJD changerne 't:lompruny.3!Dd asked !'lip on.emr penm.s:Sioo. to do 8<0. Over~ever.d. inlQiIJI,ths,mey woo:ked q;uie:cly and persistently to ccnvlncetheis peers that it waH time to remrnk th~com!p;m'yls b~.ic bellef$. TIm .convktio:n gTlIdnall ywok root OOfiOiOlg"". t;j[o~ssectiO'D. o:foo<mag,et,s, who started .i'I$~gsMii(ii[' ~~ eC1iluves d:irfficmt q~uestio]1:S about wheth~t' the comp.au:y was acw.illy in 'co:atml ,~f its diell!tiny. Didthe compmy .ba.ve <Il 1l1iEIiique and. coinpdllll-3view ,of itSi millIe? WOllS the CiOim]?qy ..mead 'Df or be-

Democracv is not

of

sl.mp'~y about the rigbt

to be heaFd; it is ahou ~ the opportunity to influen~e opinion and action.

mud. itheindllsny's, change cIllrVe~Was it at the center or OIIU:U:: peri,plile.ry of the coilitiq:ns that were lL\e:s:bapillg the indu:stl:'y'r Uhi· mate1YI senier manag!eI'S conceded that tney could not answer these q)UesdO'W;l, The.resmt::was; a DOEH:erted effu:rt., spam:tingsever~ d mO.!I]th:!i: aTIIld l:u;mdie)ds, of emp[o:yet::s:rm fmd oppa:rtJL1nlttiesi;o creal.te industry reVoAl!1t:ion •. Out of this 6ft ~e a fundm:m::1lta1 chan,!]!:: In me rom.pan:.y's Gotlcept of rtsmission, 131. !lco:me ,QiIl!lew and IDJIconventioDal busb:li;es~ Q])pOO"tururue$, and a doMbllng of reveanes over the next fiv,e yerns.

l\;cti vists ale net fLl1<Uicrust19, Their go~l is not to ~eaL dQ'WIJ.but to reform. They knowthat an uainvolved dtiz:e1llY deserves whatev'Ie:rfa,wbd.iHs it, as do c'Wti~aJild. cringjn,~: middle ~g;ers. People who C3.M1e 8!bou.t then cmmtty -or~hciro:r:gfln]7a:tiOirn - dOlE't MH!tior permii:ssion to act .. A.ctivm.su don't shape meR opinicm.s to fitd!~ pfeiu.oooes oft:hose tilley ~e:rve. T.beYM'e patriO[sIDtf:l!lt on pmtec:ti:m:lg the enterprise ltmmmeilioGri.ty, !5eH~iIJ:lle:reiS:t.~ andmindless v,enl~t<l!tion O'£thep:ll!$t. Not every activi:St ends u.p .~ hero, Shortly.mer be became president af the :Suprem.e: Sovietl Nikil1a KWu.shcl'lev gave ,;ll iij\1e~clt to .:!I!. w~e gl'on[:l 'of COimm'U!.llist Pany ]eaden;: .inwmch be denamlLced ilie ezcesees ,of Sta.I:m.. D1i.Irlng a, p:aJJ!lS~, a vo~ce' r:3ilIlg olLl:tn[l11lil the b:a.Gk of thehal], "Yon werre tblere. Vi,1ny dicm.'t ycru Stop' him!" Taken idlack ~ such imp~elilCej Ehrushchev tl:mnde:red, ~'Wba !lIDO that~ {I The que:srioiIJJfIT shmk low in his seatand was silent •. After a [ongj llil!oomf'ortiblemiliLute in whlchbis eyea rmced we audience,I{hrushch.ev repij[oldl liN ow you .knQW why. " It is orten sater'tJQ be silent, The c011PlQr;ate equivaleet ,of Lubymk~. is an office withaut~ tdepho'fte or awmdow. D1ssentel[;S: aa!en'1:, shot fOj[ O'easnnrtDeytre ag]~ed~otakea fflate:r:a:l. c;;uee.r m.cnllil:" II

Listeaeo Tb.o:Di1aS Paine: "let them eall me rehel and 'lWe1t::ome~ ] ~eel no ,oc:mEerT.!IJ £rom it; bue 1 soould :suffer the mi;SJery of devils, were tte make awhereof my soul. n ]n a colponte c-6u.textj tbis scunds Iilse hype:rbo.h~ .. But think o:f the great companies that have fallen hopdessl y behind the change cun"~ because ntiddlefiU:oage:rs<md Eint~[evel empiOY'i:le:!l,liacked the c.omage to :speak up .. TD bean activist, one must 'care more full .(lne~5 comml!]nil'ytbiom fwulJ.e'spositiou inthe .ml!xan:b.y. The ,ggill is [I!!:Jtt!(J1 leave senior ex.~ 'ecul:ttiVe:5 bebimd. The goal is n.{I'!::I!o st:lJge a. p~ace(:onp,.B1JlJt w.hen senior mmagers BXe distractJedj 'lI'IDenplm:mmg has . sUPTI,llanted 1lti"l!.tegi$mgl :a~d when mC!l\e el'l.ergy Is being devottil. toprobe.cting me pa,8;t than.tn c;r,eating the future, activistSIDust step .Io,rward ..

Princip'leS: Perspeetiv,e is ,~orth. 50 IiQprlIin,ts. ~Wi.tho'nt~ght~ enmen tl the:n: 'CaD 'be DO I!ffii'Ohlt:l.on. Thdi:scc::rve:r Gppo:n.UlILliti.es ~o:r industry .~evolu.tiol!1j enemust look: at the world. in. aJ.DeW W,2,¥j tllrol:!gha new lens, It is, impossible to naakepeeplesmarter; but you am help ,them see ~Yi.th neweyes, Rememl}er wben you iJ(lok yourfust ecenomies coursetl do. mt d.id:n~~.makeme an:y s-m<lne:r" hue it gave me <I. II!ew1enstmOI~gflwhich. to 100k a.t the world. Much th.:!lt had.b~en. invisible - the link between saving.s and inve:stmen:tt betweea interest rate-SaIld ,exc.I:tange raees, a.:IJldlbf:1:'!;Iiteen :suppiy .M1d demand-slJldd.eruy became visIbk

.Aview of the cGqiCl:rati.on .aJS, a imndle of COfe: compet~~.~i!es rather th:im a. collection. ~f bl1:S~ness unns .~s ,a~~w pe:rsp~ctiv~. A vi(;wof dilScontifiui tie'S <15 levers fu.rooaiDgie rai,tJj'eJ: ilia:n threats ttl, the starns quo is a.new perspective,. A vi~w tbattiwa,gt~:tation

80

rather tb.a;n. l.nVesUJiJlfilllt determinesan OI'.gAmz;a'jjQ;o.1:!5 capaci:1:y tal be stra.reg:bc: is a new pers:pe:c:dve.

MY ConlpillinY m:tcllt On. creatWig md1ilSU;; revolunon hasmm !l.ash. First, the company mH;ISt .lid.e:n.illy the 'llil:Shakable b~Uefs that cue across the mdust:ry-we illdusuy's conventicms. Sew.!JId, the .oompany must: search fO'rdisoontlnui.cies in technoLogy~ Wee··· styles, wodting hab~ t5~ I[lf geopolitiGS ma,t: might create gppo.rtunitiestn !fewritoe ·the ulJ.dusuy/s niles, Tru.ro~ the compMymm.t achieve <I deep undentanding of its: corecorapeteacies, Fourth, the company must use ill. this kn.owledg:e tOI :id.en.tiry the reveluclollail'y ideas~theWl.Canlj!enti(ln<l1 istrategic Op1UOmLS, that eeuld h~puttQ w©:rkm its competitive domain. What OO~· sees &o:m the mcn:m.ltmnt:op is qmtedlfferent from wJiJa t. one sees rnr-om. t:fue plain .. Ther,e can be no i:mlov.ation in the a'utio;o. of stFoiltiegy -wit1}OUt iii riba:n:ge In pe.rsll'lectil'li't:.

i'tiDci,me 9: Thp-dio,WiI1alii1d &otMm~1!!I.1P .iDe not tIlw.eillllt1enJ;ati¥es.

The creatiun of Stta.t'~gy is 1llluilly ch:ara:cte:rl~ed. ~ eit:he.r a top~ do'W"Ll ()t bmtem-up pr(') cess, Strategy either emerges <lis a. grand designa'!: the top - think of Jack Wekhls; :f~011_[lnS! "ili.:rrl~e ckcl'~,;1 W hl!Ch de:f:m.e:d GE'i fu.twehusmes\S fQCUS-orOTUb ble.s: up, hom. ]ome enue~1iJfll, such a<s me manwlao .m:veDLted Post-It N otes at 3M ]31!1t all. too ohe:tl,J t.o!p-OOWD. ~;t:!!:at~!es ~e diri;gistJe :1:<!tffiter than viS:~(}l1ny~ And mall too :many oompam:ie-s,me entIepillmeUJri.a1l spark is .mo.re likely to be doused by a flood or I~o:rate orthodoxy u:lan f~ed. by resenrees ~;!ldth.e suppOrt 01 senior exeeudves, fnmy EXperience, new-venture mV'isiO:[JIs, skunk wOJ[ks1.i1nd the nmsings IO:il research ~eIlfiW:S Me no more likely to ~eJ1d~ an bl!dlllSU'Y IeValuti.OIl. ~ is:.an a]]ta.ual p~ aTDni1flg pro~eSis.

JllSt as a ,poliricm ;activist w.JilJD fmIs to .inf!lllleD![letho~e wlm. l~isla-rive .authority will make littlle lasting diffe'le:lIi1lc!!, O! (tnltlegy actlwt who lalli;;, to win semo!ll mana.ge:f:S~ r:o.ufide:lJIcewill iili(;rueve nothb:l,g. S~m~m.a:n.;l~er~may~otb.olv~ a:!nQ~opa['Y cni:m.agim· bon. but the,y do havea board-sanetioned monopoly 0]], the alloca~OI1 efreeourees. To bankroll tl'l)e. r;evoluriouJ semo:r ,eXewtives ml!1Sl!; beuev"e, both. int~lb:)(:'.ibu.a].ly and lemo,tir.ln:,dJy •. in ~t8a.im8: .. So alwulllgll ehe revukll.tiOlil. doeslLI.'t needea stan a:1r:rfI!eI:OPJ i,t: must.ultim<1!.tely be W1d~,tooo ande[ldoI'soo by the tOp. HI the Uildirio:nod modd. at: strategy creation, the thinkers. are assumed to be a:!twe top and tbe doers down below. mr,eality~ thethWke:rs o·fuen lie deep in. the org:mlzauO]l,and senier m~n.:a.:ge:rs simply contmltha

m~afi;S of domg. - .

To aehieve d!ive:raity ofperspectiveand llIDLity of pIl.l'posel• the (iua.tegy-ffi<l:king process must mvolv,e a deep diag~)CRa.[ s]!iceof the or.ganJ za:ti.on .. A I:Op--dOWll. preeess oftenadri.eves urn tv· of pmpru;e: tbe .Ee:w' who mem vo]ved ~;O'mf!: to share a conviction abcrut the a,p:N)p~tJe course (j,f action and can seeureseme degree of oompliance .&:(ltm tbose below; A bottom·up process Cml achi~ve diversity ofpe;rspectIve: man.}" Voices are beond and many CphCifIlIii are e,xll]arem .. Bu:~ u:nity wi thout diversity leads eo dogma, andiliv~nity ~thc1.1t umt}! results ij!)! competing stt.ateg ai:goocl!<liS. a:lId ehe £irBlg~ menl:s.tion of re:s,~)uTiCes. Omy i1l!st:mli.eu~malOng p1i[lC-ess thu is deep and wide can . .3:@:1tieveIDotlil divemsity an.cl u:ni~y.

E!rin.gm,~:ilie top and ~Clu;om. togemer in. the creatim:m of sttattlgj willi he[p bypa.ss the usu.illy pamful Ollld]aboriou:s process whue~ by Bllowly em.ployee. champioEl:5 snidea up tbe chadn o.f OQ~d.

Man,agel's, many of whnm may be m.Q:re intent onpn:ltenmg, theirrepU:WltiGill!. 100: pmd.elilce than. OlD j~ tbe [ruLks; o:f me. lunatic Errin.grel arelllik.ely to s"bJm:::rt do'i,i'i,1]!l .myrevoluoornary idea.

that reaches them. T.b~e~~m;;w:Y' W<l!ys. o£l:inking those OD

the bottomwi.tb. thesein the office:r corps. Seni.o.r execm:fr'li'e:!i: can. spensora pIOCIe8S of deep thinking aboue d)isoontituuiries~ coee competencies, and l1iew rules that involves a cross seccion OK the ,argerni;c;ation. SemOlm.at3laS;eal can pamci~ P\!lJ~e: as t~m meIDbe:rs-~oget.be:r with flec;retmies:lsaJ!e;5i~ people,an.d finrt-.1evd etli.glDeen - in thesearch I.o! rev.~)Ii[illldo:nMY OJl.p'OI'lt:unities. }u][ executive COnm:l1ttee can devote One week per month to telepm.g up to speed with the revolo.tiollary ldeasthat 1U'e gestating deep in

iht:. arrganizatiQu • to, t

mag1!S _:ra e •.

~t: senior execudv.~must nee do h;. ;;1!sk ,~. s;m,dlr

,e:ume grQUP or-the IJ.mbsritRteTiIraiD:s1i of a t!l.mJj.rion~. Strn!tegy'7 IOOfi8uhin:g firmtn go aW<lyand p][otme company~s future. With o.eiWerr senior .n;lanaJgefs nor a substantial cross seeeinn 'cnf the orgat~ niuUJOliL m.voJfv~d~ the o~tput 'Wi]] likely be. consid~~d. <1. bastard by all lec'tcepl~ mose who ereaee d i.t.

Of corus~~ s~rum marnage':I'~must lIiltimatcly make :h:ud ehoices OI.b Out which. n~''!\'olu:ti.O'~ SUa te.pe:-sto 5iUpfo.n and wbat rescurces to commit,. bU'[rheym:ust nmdl. theroem;pltatio]l tlO judge pl'e:oo:!tu!;cl:y. futhe quest ·ifolli lrevolu.rioR.:1ry st~a;l)~~'~., ;!! S ~l'1Ii O( eaeeutive mnst be more student than magi:st.Tate..m Cine GompamYi tTI...le CEO believed that the $ttategy~mU:i1'lg team W~ fe~poouibl'~ for convmcing :btim twt it had. come .~ wimffie right answers, Thae is ·the WTrnJlg aJ.ttiruile. It is. the CEOis; .lie~poooihili.tJ to stay dose eJiJI.ough to me, oq~tiMjS L~'lmmg .ptr~ d:l.at he Oil: she CMI. :shar.:: employees' imri,gntsmd lIDd:erntmldlil.ek e:me:r-gmg C;DIII.~ vkdOlOill. In thettadido·naJ. pFa1'1lniJ!!g p.rO~St enecomesere llikely eo clus:tet clClselYill~und senior .managers' pm::.judiC>e:S:;tb.e p.p ber;ween .I\ec!l]mmemdarricms andpl1i5e.nsting p~d!i~A;;:!c,d[;Jm is 1l:i1IDdy flo bll; low. lut thait Isnot the case m a mare ope:n.~ended process of str<ltiegffi.c mscove:r:y. ]£ fuegoaI is eo ensure that theeescuree ho~d:~ ers and ·the reV\ahltio.nm~ end np at the same pJ,<lce: ... t the same time, sealer executives muse engage. in <I Ieamingprocess along» sidethoseat the. vang:uru;d. of inciootry l,evoh.:thoil.

PIind,~e lO:Yoll.cam./·~ s~e.·t!ire·end hom. the be~~~ Astr;a.!.egy~ m;~kiltgpJ1'o(less: "thOll. mvo:t yes <11. D:rOOdCf©S,s section of the .com··· pa,uYI delves deep],. into d.isccmtinui.ties and GOmpellenciesl a:rIJ.[I eneon-r,';l~~ e.mph::ry.ees to escape au mdlustryJs ro:n.v.en.liom will almo!S't inevi tablyreac:.h.. smpnsing conclusions. .AtEDS/ such 11 process convinc,~d many in the organi:!::1ttio;n. that it wasnet mough tiC be a bu:SirnesS~UJ··busme-s:s cOlllpiSiny •. As:·me w.v.idrng line between pm~ess:iClP.aJl.l!:i!e and Pel'SOinm[ life was bhming;1 EnS :re;t]· uedwt it had tc become capable c.f serv.Wg mdi:vidwilgas well.as, bnsmes:s:es .. AA.elrru:I open. and creative strategy-making p:m)DeSSI EDS iaswUed .. ~Uitomated.tiiil:neJ: m;:llchines mm<t.fiy 7~EIe"'eln. stores. Mc]1dlsear.lier~few would have andcipll.~ed, IDlllCll less cred:ited.1 such a moy·e.

N'Oi[ every~lP!Ill. e.1lJjo~ si~lmri.5e;s, .. StmiOI' m:mn;:l,g~. I~O·t p,redict where ·amn opf:r!-endcd W\1.Wgy-IDail:tingproc~s 'mll ]~drbut the-y camnot go amy pan ·oflJiJi.e 'l,\\I:aym Ind:l1StryrevnJIllM!Iil. H ne',"OIdlS e~eootiV'i~. open U.p a dial10gue aJI1Ld. then ignore the outco:m~.I·mey

In the questfol' irevolu tionary stlrategies a. senior e,_~Clltive must be more student than

will ],)01501[1 the well hi one eamparry, senior mmageJr-s a:l[ticl!Jliat.e.d theb: reluetaace to staff a st1~tegy-maki_ngbea:m with <'I. cJOhottoif ytmJEII~ out-(Jf-IDe~bm:: empfuyees. The CEO was cO[l[vrnced tba:t be needed to set cle~ bQtmd~des OD th~ wO'Ik of the ~ga revoluticnaries, DeleDdmg ms, desire wimpo:se :p:riOI :restraint on the sti,a;ltegy-c:reation, proO(!c'&S, he. asked, IIWho1i.t if th>ill team comes b.u:k with. dumb ideasr" The response; liH that is, the easel yon havea bigg~[ problem -dumb managers, N Seniw m~g.ets should be less werried a:.bout gei~ting Oiff-m.e-walls1ll.ggesdnn:s and raoreceneerned abou:daillngto tme.u:ththe ide.ti th..It will aHowt])eJJ:' company W escape the curse ,of' increreen tralism.

- Though it is impossshleto see the end from thee beglfUjj]fig,. an oJ?e11-end!edand indus! ve prom~s~, or $tra'~egy crearlcn suhstantiall.y lessens thel:h;all.enge of .imp.1eme:n.ta:tio][][. Imip~eml::n:bti.ialJJl.. is O!ftenmo:n-e dliffi,cu(kth:an it n~edbe because 'only ,(I. .li:I:andf~. ot poe/opie have been. mvolv,oo. inthe creatio:rn. of stm:t~gy 3J[I.d om)' a fetv kiay exeeutives sbare at conviction a;bout th~ wayOOrwuc.l. Too o:fte~.tb.epla:.nnfu:n.g[l'wce:ss ellu:li:swith the Gh<ille.n,ge oigettmg j~buy,-m/ of ge.tting wb,u is< ill the hea:M of tb_.ebQsses into the heads ollthe wotkle.:r bees .. Bm when se.'i\i''e£.aJl hUfid(,~tI. emplicry.ces shaLIe me task O!f .ide.nt:i!fymg !m.dL s:yn;tb.esiringa set[]!f unenaventiona) s~t:e~c opdoEls,t;he cOfl!cilU:5ions take Dr.! .ru::!!i ,m of ID~~ 1t!lbili.ty~ fu.. such a process, :swot :m..a.nagen;)ms:k is less to "sell" rhe lSUat~gyt,bJ<W!L to ensure that tb~ organization acts 01!l.th,e (;,Qlfllr vlcnom; that: ,e:merg:e-. How often dees the plalli:.lJing plOCe:"SS start with seni.o.:r executives aaking what the .rest of the o:r,ga:rllzation C3.U teach th.emab OlIn the futuj'le~ Not o,:ft~ enough.

'TIiill invtre new 'Voices m.t® the strateID"~mi31km:g FOtesiS, to en.~ tOlltotge!IJew perspective.s,l!o staLrt new' conve:n;atiol!l,s :tt.h~t. span ~bonal booodarie:s, mdthen. tQoolp s')'llthes:me U.a1C,ofiVimtional o:prion:sin!CD a. point of view about O()rpo:ra:te dir6c:tionehese ~e.thec.b.illenges JOt oS:~Dior ~r.:::'cutiv'~ Vi' 1110 beliJeveth~t sttate,gy must he re¥obJ.tion.

1. Thmbito1IUDcsSclli:ll!:S,my~eil!l SI;i';li~et"fM~.~~o:l~~_

~ I IJW~ ~ ~.phJ!!lrism. 'lie' Ahn. :&2)'; ~ :~ .. !FdI.IJ'ft' ar App,1l!: D1Irnp1Jtm"_&ay5 wm~ that IiItw '~i!ql~a"llIWrll:l ~~~ 'I:b.u:!~ ~.rwimi~Jll!: ig,~. np:EIJ!Kl5 m-51tm~~ inmI'~~g!:!n ~~ itj~ ~ I'll!:W.~I!IE~ iiJmg,lI~timL

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