Big Ideas Simply Explained - The Business Book

["START SMALL, THINK BIG 49 See also: Beating the odds at start-up 20\u201321 \u25a0 Take the second step 43 \u25a0 Reinventing and adapting 52\u201357 \u25a0 The Greiner curve 58\u201361 \u25a0 The weightless start-up 62\u201363 \u25a0 Beware the yes-men 74\u201375 \u25a0 The capability maturity model 218\u201319 It is the structure of the Companies must look organization, rather than the to the experience employees alone, which holds of middle managers the key to improving the for growth. quality of output. This requires As a business W. Edwards Deming experienced handling. matures and grows it will require systems, US business professor (1900\u201393) procedures, and protocols. way to the comfort of habit, and Companies must balance Those systems are the in ever-dynamic markets habit structure with purview of middle can too easily lead to stasis and \ufb02exibility. stagnation. The danger for management. management is that, as US investor Warren Buffet warned, \u201cchains of But too much habit are too light to be felt until process can sti\ufb02e they are too heavy to be broken.\u201d innovation and, Middle management therefore, growth. The importance of middle management was described by transportation and communication As standardization and mass business historian Alfred Chandler allowed \ufb01rms to grow beyond the production emerged in the early 20th in his 1977 text, The Visible Hand, immediate gaze of friends or family, century, the role of management a play on economist Adam Smith\u2019s and beyond the immediate locale. grew. Business was taking place on \u201cinvisible hand\u201d metaphor, which But to prosper in this new an increasingly global scale. Even explains the self-regulating forces environment, companies needed before mechanization, coordination of the market. Chandler noted that more rigorous processes and from managers enabled mass before 1850, family \ufb01rms dominated structures. The increasing production. Standardization turned business in the USA. These \ufb01rms geographic scope and size of management into a science, and had poor communication networks businesses required new levels of managers into a vital cog in the and limited access to educated coordination and communication. organizational machine. staff, so rarely grew beyond groups Businesses had grown too unwieldy of family and friends who could be for one person to manage; they Enablers and enterprise educated, trained, and trusted to required the oversight of a team of In a 2007 Harvard Business Review manage the business. people. This marked the emergence article \u201cThe Process Audit,\u201d US and rise of the professional manager. businessman Michael Hammer \u276f\u276f However, with the growth of national railroad networks in the 1850s, the management landscape began to change. Improvements in","50 KEEP EVOLVING BUSINESS PRACTICE summarized the science of Japan for dry beer and allowing the Middle management as management (which is essentially company to capture more market a technology enables the the management of business share. Similarly, a group of Motorola organization as we know it. process) into two factors: enablers middle managers was lauded for and enterprise capabilities. successfully developing a new Alfred Chandler Enterprise capabilities stem from wireless digital system for a client senior management, and include in under one year (the process US business historian (1918\u20132007) culture, tight governance usually takes two to three years). mechanisms, and strategic vision. lessons learned through business Enablers, however, are the task of Sitting between senior leaders experience. The true science of middle management. They include and operational staff, middle management is the conversion of design, infrastructure, process, managers are the communications experience into repeatable and protocol, responsibilities, and conduit through which executives reliable process\u2014today\u2019s problems performance management. The remain attuned to day-to-day become tomorrow\u2019s processes and enablers turn vision into reality. business and personnel issues. next year\u2019s capabilities. Middle managers, as the Asahi and Realizing the vision Motorola examples show, are often Process is the \u201cstuff\u201d of Hammer claimed that while the at the heart of corporate inspiration management. Business processes aspiration for business growth and perspiration\u2014they generate are essential to maintaining order; might come out of the boardroom, ideas and they work to realize ideas like a country\u2019s rail system and the it is a company\u2019s infrastructure\u2014 in practice. Middle management rules that accompany it, processes designed and implemented by is also the driver of functional are the infrastructure around which middle management\u2014that makes ef\ufb01ciency: improvements in cost, a company organizes. Business growth possible. Vision without quality, speed, and reliability are practice must evolve as the business infrastructure is just a dream\u2014it delivered by middle management grows from a single outlet to a chain, cannot become a reality. Leaders and the processes it introduces. from one staff member to many, of growing companies know that, and from national to multinational. regardless of their own aspirations, Growing the business the building blocks of growth are As a business evolves, so must the laid by middle management. management processes that enable it. Whereas initial stages of growth At the Japanese brewer Asahi, rely on individual initiative and for example, it was a team of entrepreneurial spirit, evolving middle managers who developed ad-hoc practices into sustainable Super Dry Beer, starting a craze in growth needs to be based on Cath Kidston English fashion designer, author, she had to buy her stock and entrepreneur Catherine carefully, mixing her own fabrics Kidston was born in 1958. Raised and wallpaper with items from with her three siblings near tag sales and fabric from eastern Andover in Hampshire, she was Europe. Gingham ordered from educated at a number of English Europe arrived already made boarding schools, before moving into duvet covers and to London at 18. pillowcases, rather than as a fabric bolt. Kidston realized she After working as a store would have to improvise, so assistant, she ran a vintage curtain decided to \u201ccut it up and make business with a friend on London\u2019s it into other things.\u201d She kept King\u2019s Road for \ufb01ve years. In 1992 some of the bedding, but altered she sold the business and a year most items into products such later opened a store selling vintage as toiletry bags. The Cath home goods, wallpaper, and fabric. Kidston brand was born. With about $23,000 in her pocket,","START SMALL, THINK BIG 51 The development of infrastructure Enablers are the realm of middle managers, Middle and the strength of a new layer of according to Michael Hammer\u2019s analysis of the managers middle management were key science of management. When implemented factors in the evolution of UK retailer and maintained ef\ufb01ciently, they fosterProtocol Cath Kidston from a single store growth and turn the vision of in 1993 to more than 120 global senior executives into reality. branches and concessions by 2013, with stores throughout Europe and Process Asia, and plans to expand into Design North America. Widely renowned PerformancIenmfrRaaesnstparogunecsmitbuielrinetites for its vintage fabrics, wallpapers, and brightly painted junk furniture, down, sti\ufb02ing innovation and have since helped Renault Samsung Kidston\u2019s initial growth, as is hindering growth. As markets and Motors gain a footing within the common with many single-founder technology move ever faster, South Korean automotive market. start-ups, was slow. In the early process must not blind managers to days, monthly accounts took six opportunity, and systems must not Business leaders dismiss the weeks to prepare and clashes restrict strategic agility. For value of middle management, and between IT systems caused issues example, Motorola continued to the value of process, at their peril. with cash-\ufb02ow projections and invest in satellite technology Without middle managers who are supply-chain management. It took throughout the 1990s even after able to evolve a leader\u2019s vision into nine years to open a second branch, competitors had switched to reality, many businesses would be and another two before the third. cheaper, more effective ground- stuck like those of the pre-railroad based cell towers. era, destined to remain small, local, Following a buy out in 2010, and family run. It is the science of Cath Kidston became partly owned Habit can also twist logic. So management that enables business by a US private-equity group, with habitual, for example, were the evolution and growth. \u25a0 Kidston herself retaining about 20 claims of ethical behavior from percent of stock. As expansion took Dennis Kozlowski, CEO of Swiss If you can\u2019t describe hold, the company started to move security company Tyco International, what you are doing from ad-hoc processes to a more that he seemed able to divorce the as a process, you don\u2019t planned approach. Specialized reality of his own behavior from his know what you\u2019re doing. managers and consultants were rhetoric\u2014in 2005 he was convicted W. Edwards Deming brought in to help build capacity for of corporate fraud. Habit can also growth. New departments were lead to hubris. Buoyed by his added, including design, buying, business\u2019s accomplishment in and merchandising, and systems electronics, in 1994 Samsung CEO were introduced. Most importantly, Lee Kun-Hee believed that the middle management gained same approach would lead to experience of what it takes to open success in the car market, but the and run a new store. The lessons venture struggled and was rescued from earlier mistakes were in 2000 by Renault. The experience integrated into procedures and (and habits) of Renault\u2019s managers policies; by building on experience, every new store opening became easier than the last. Excess and habit The dangers of processes and of hierarchy (if it becomes excessive) are that they may begin to grip the organization too tightly. Protocol and bureaucracy can wear people","52 A CORPORATION IS A LIVING ORGANISM IT HAS TO CONTINUE TO SHED ITS SKIN REINVENTING AND ADAPTING","53","54 REINVENTING AND ADAPTING IN CONTEXT J ust as human beings are The reinvention of daily life organisms that grow, means marching off the FOCUS change, and adapt, so do edge of our maps. Process and product successful businesses. In 1970, the Bob Black US futurist Alvin Tof\ufb02er published KEY DATES Future Shock, a book that predicted US activist (1951\u2013) 1962 US professor Everett the coming phenomenon of \u201ca Rogers writes Diffusion of perception of too much change In 1989, US computer scientist Innovations, showing how in too short a period of time.\u201d The Alan Kay claimed that it took 10 innovation moves through pace of change, he said, would also years for an innovation to go from social systems. spread to the world of business, as the laboratory to everyday life, but companies were forced to adapt by 2006 Twitter had managed to 1983 US business consultant their products and processes to cut this down to just four years. Julien Phillips publishes the maintain advantage in an Products can now be bought online \ufb01rst change-management increasingly competitive market. from anywhere in the world, and model in the journal Human customer feedback is instant and Resource Management. Tof\ufb02er\u2019s ideas of the effects of global. The challenge for companies rapid technological change were to adapt and reinvent is huge. 1985 In Innovation and viewed at the time as far-fetched, Entrepreneurship, Peter but with the invention of computers Products and processes Drucker describes the best and the Internet, change has The personal and business approach to managing change accelerated even more rapidly than landscape has changed so radically as one that \u201calways searches he predicted. Tof\ufb02er presciently since the 1960s that no industry or for change, responds to it, claimed that we would live in a corporation has proved immune to and exploits it.\u201d state of \u201chigh transience,\u201d in which we would give ideas, organizations, 1993 US change expert Daryl and even relationships an ever- Conner uses the metaphor of shorter amount of our time. Social \u201cthe burning platform\u201d to media websites are witness to this describe the high cost of a idea in action, providing a platform business that stays the same. for the new ways we have begun relating to one another; they also demonstrate new ways of starting, growing, and building businesses. Markets are never static\u2014 Businesses must respond \u2026in thinking, product, change is inevitable to change through and process. and continuous. innovation\u2026 Adaptation This \ufb02exibility allows and reinvention companies to respond to the are necessary market and gives them for business a competitive edge. survival.","START SMALL, THINK BIG 55 See also: Gaining an edge 32\u201339 \u25a0 Keep evolving business practice 48\u201351 \u25a0 Creativity and invention 72\u201373 \u25a0 Thinking outside the box 88\u201389 \u25a0 Changing the game 92\u201399 \u25a0 Avoiding complacency 194\u2013201 its effects. Consider, for example, Apple iTunes store offered 60,000 Product adaptation in the music the music and movie industries. movies across 119 countries, and industry demonstrates the steady use of New technology has completely, 35 million songs. new technology\u2014from gramophone to and very rapidly, changed the vinyl, cassette, CD, minidisc, and MP3 way that movies and music are Innovative methods digital music \ufb01le\u2014as companies have purchased and consumed. For the Process adaptation involves \ufb01nding sought to broaden the market for music. big movie and music businesses new ways to do things; it involves (and all their associated suppliers introducing or removing processes. and producers), survival has Competition from online sales and required a high level of reinvention pirate streaming continue to affect and adaptation. movie distribution companies such as Net\ufb02ix. The response of this This reinvention has come in the highly popular video streaming form of both new products and new service was to make all the episodes processes. Product adaptation of one television series (House involves updates and redesign\u2014 of Cards) available for download essentially, innovation and simultaneously; the rationale being invention. The movie industry has that the risk of piracy would be undergone many transformations lower if consumers were able to since the early days of black-and- legally buy all episodes at once. white moving pictures, or \u201cmovies.\u201d It has reinvented itself through For Net\ufb02ix this bold strategy was technology (from adding sound to not just a radical new process; it was creating \u201cimpossible\u201d computer- also an adaptation of the company\u2019s generated images); marketing entire business model. Still in the devices, such as monthly access adolescent stages of growth, in 2012 cards; events, such as outdoor Net\ufb02ix was primarily an online screenings; and the growth of the streaming service, but for House of multiplex to multiply visitor Cards it entered the world of numbers and reduce turnaround production. By producing and times. The newest product aimed distributing, Net\ufb02ix was able to at luring viewers away from illegal capture more pro\ufb01t and gain more downloads and back into movie control over content. Net\ufb02ix did not \u276f\u276f houses is Stereoscopic-3D\u2014itself a reinvention of an older idea. Excellent companies don\u2019t believe in excellence\u2014only in Around the turn of the 21st century, the music industry was constant improvement also struggling because of the drop and constant change. in sales of CDs, and began to refocus on live music and merchandise. Tom Peters However, both the music and movie industries found new life through US business expert (1942\u2013) digitization, such as Apple\u2019s iPod and iTunes. This revolutionary combination of product and process\u2014Apple\u2019s hardware and software\u2014made legal downloads of music and movies more attractive than illegal versions. In 2013 the","56 REINVENTING AND ADAPTING know if the House of Cards internal systems allowed the Those who initiate change experiment would work. It did know, company to exploit global sales will have a better opportunity however, that in order to maintain opportunities. In 1994, due to the the momentum of early growth, it brand\u2019s growing popularity, demand to manage the change needed to adapt and reinvent\u2014in far exceeded manufacturing that is inevitable. this case reinvention as television capability. Poor planning and producers as well as distributors. coordination led to delayed William (\u201cBill\u201d) Pollard production and lost sales. The Internal changes solution was a reinvention of internal US businessman (1938\u2013) Reinvention and adaptation can also systems based around an integrated be internally focused on systems, IT system. The product itself\u2014the industry. The company began with recurrent tasks, or operational classic \u201c1460\u201d eight-laced leather black-and-white televisions and activities. Whether improvement of boot\u2014changed very little, although moved into home appliances during this type is based on data from more designs were later added to the 1970s. In the 1980s, production formal process improvement the product range. The key change grew to PCs and semiconductors. frameworks (such as Total Quality was the adaptation of internal Management) or simply on the processes, which ensured supply In 1986, Samsung released its experience and intuition of could match demand. \ufb01rst car phone, the SC-100. The managers, internal process product was a disaster\u2014the quality adaptation allows companies to Adapting in a recession was so poor that many customers maximize revenue while also Internal process adaptation is even complained. This reputation for poor reducing costs. more important in markets where quality blighted Samsung for much demand is static or falling. of its early life, since consumers The McDonalds McSnack Wrap, Operational ef\ufb01ciencies, rather regarded its goods as inferior to for example, takes staff only 21 than revenue growth, are the key premium Japanese products. seconds to make\u2014the shorter the to pro\ufb01t. For insurance companies, preparation time, the greater the for example, scope for new product On June 7, 1993, chairman Lee number of customers that can be adaptation is limited, so competition Kun-Hee gathered senior Samsung served by the fewest staff. At R is price-based\u2014especially in a executives and declared that the Griggs Group Ltd, manufacturer of recession, when customers are company needed to reinvent itself. Dr. Martens shoes, a reinvention of particularly price sensitive. The key His famous instruction \u201cChange to maintaining pro\ufb01tability while everything except your wife and Dr. Martens footwear grew from a remaining price competitive is children\u201d shows how seriously he niche fashion item to an international continual process improvement\u2014 took the situation. Lee also mainstream hit within a matter of years. the reinvention of internal systems recognized shifting market R Griggs, the brand\u2019s producer, had to that deliver the same product to dynamics, telling colleagues that reinvent processes to match demand. customers, but at a lower cost and, the company needed to \u201cproduce therefore, increased pro\ufb01tability. cell phones comparable to Motorola\u2019s The days of the door-to-door by 1994 ... or Samsung will insurance salesperson have long disengage itself from the cell-phone since been replaced by telesales business.\u201d The \u201cnew management\u201d and an e-commerce approach. initiative that followed, supported by product and process innovation, Reinventing the company put the emphasis on the quality A notable company that has and innovation that Samsung is successfully reinvented itself is now renowned for, and galvanized Samsung Electronics. Established in 1969, Samsung Electronics is a subsidiary of the Samsung Group, which aimed to exploit opportunities in the emerging technology","START SMALL, THINK BIG 57 When processes evolve they may create new jobs or cause existing ones to disappear. The manual switchboards of the old ztelephone system were soon replaced by faster, automatic ones. its foundation for future growth. Samsung\u2019s transformation was not yet complete, however\u2014the Asian \ufb01nancial crisis of the late 1990s forced the company to reinvent itself yet again. Adapting its process turned Samsung into a more market-focused and consumer- friendly brand. Since then the company\u2019s efforts, particularly in the cell-phone industry, have been based on constant attrition, reinvention, and adaptation. Long-term survival tasks are automated and ful\ufb01lled by a continual process. Social media, Few businesses survive without computers and robots. Promotions for example, has created a market adaptation or reinvention. Products have also adapted to \ufb01t changed shift that has required businesses of such as Kellogg\u2019s Corn\ufb02akes and consumer demographics, globalized all types to adapt; even record labels Heinz Beans\u2014products that have markets, and customer preferences. now embrace the promotional value not changed in decades\u2014are rare. Even established brands cannot of websites such as YouTube. Even when a product has not avoid reinvention. changed, many of the processes The ecosystem in which a used in its manufacture, Truly successful business business operates is rarely, if ever, distribution, and marketing have transformation is rarely due solely to static. Corporations exist in these altered dramatically. The factories discovering and commercializing ecosystems as living organisms of 100 or 50 years ago were very bold new ideas, technologies, and that must adapt to survive; great different than today\u2019s, where many products. The most successful leaders know that failure to adapt businesses know that reinvention is leads to extinction. \u25a0 Lee Kun-Hee Born on January 9, 1942, Lee has been transformed from a Kun-Hee is Chairman of the South Korean budget brand into a Korean conglomerate Samsung. major international force and, Holding an economics degree from alongside Sony, is one of the Waseda University in Tokyo, world\u2019s most prominent Japan, and an MBA from George Asian businesses. Samsung Washington University in the US, Electronics, the conglomerate\u2019s Lee Kun-Hee joined the Samsung most famous subsidiary, Group in 1968 and succeeded is a leading developer of his father as Chairman on semiconductors, TV screens, December 1, 1987. and cell phones\u2014with its smartphones even outselling Samsung is the quintessential the iPhone in many markets. example of a chaebol, a uniquely Korean conglomerate that mixes The Forbes 2013 Rich List Confucian values with family ties recorded Lee as the world\u2019s and government in\ufb02uence. Under 69th richest billionaire, and Lee\u2019s stewardship, the company the richest Korean.","58 IN CONTEXT WITHOUT CONTINUAL FOCUS GROWTH AND Business growth PROGRESS, SUCCESS HAS NO MEANING KEY DATES 1972 Larry Greiner outlines THE GREINER CURVE \ufb01ve stages of business growth, and their related crises, in \u201cEvolution and Revolution as Organizations Grow.\u201d 1988 Macedonian business expert Ichak Adizes writes Corporate Lifecycles, in which he describes the growth of corporations as a series of \ufb01ve \u201cS\u201d curves. 1994 Professor David Storey claims that all forms of \u201cstage\u201d models have limitations. He suggests looking at growth through categories of companies instead: failures, trundlers, and \ufb02yers. 1998 In a reprint of his 1972 article, Greiner updates his theory and adds a sixth stage to the Curve. A side from the \ufb01nancial rewards that they offer to entrepreneurs, start-ups can be exciting places to work. Amid the chaos, continual change, ever-evolving policies and procedures, and the abundance of work required, these environments buzz with energy, initiative, and ideas. But as business growth places increasing pressure on people and systems, excitement can turn into frustration. Periods of chaos often occur in a start-up\u2019s early life. As it matures, the new business will pass through various conceptual thresholds. In 1972 Larry Greiner identi\ufb01ed these as \u201ccrises of growth,\u201d which he","START SMALL, THINK BIG 59 See also: Beating the odds at start-up 20\u201321 \u25a0 Take the second step 43 \u25a0 How fast to grow 44\u201345 \u25a0 From entrepreneur to leader 46\u201347 \u25a0 Keep evolving business practice 48\u201351 \u25a0 The weightless start-up 62\u201363 Start-ups are ...but growth These crises are exciting places brings inevitable predictable and can be managed by using to work... crises. the Greiner Curve. illustrated on a graph that came will be required (perhaps from banks many cases the original founders to be known as the Greiner Curve. or venture capitalists), and the need have neither the skills nor the desire He noticed that companies of all for formal systems and procedures to take on more formal leadership. types go through periods of growth increases. The founders\u2014who In 2002, chef Jamie Oliver founded followed by inevitable crises, when are likely to be technically or Fifteen, a chain of restaurants that major organizational change is entrepreneurially oriented\u2014\ufb01nd also provide training opportunities needed to maintain momentum. themselves faced with their \ufb01rst for disadvantaged young people. crisis, as they become burdened by As the chain grew, he handed over Stages of growth management responsibilities that the management to a CEO, so that Greiner initially identi\ufb01ed \ufb01ve they are ill-equipped to deal with. he could return to doing what he stages of growth, but later added This \ufb01rst crisis is therefore one of does best: being a commercially a sixth. The \ufb01rst of these stages is leadership: who will lead the successful celebrity chef. \u201cgrowth through creativity.\u201d During company out of confusion and solve this stage, the start-up is small and the new management problems? Under professional managers, growth is fueled by the enthusiasm business growth continues in of its founders. Management Change of leadership required for an environment of more formal procedures, communications\u2014and phase two may only be a question of structures and budgets, and with even interactions with customers\u2014 internal reorganization and a change the establishment of separate are usually informal and ad hoc. in style, abandoning the casualness functions, such as production However, as more staff joins and of the company\u2019s early days in favor and marketing. This is the second production expands, more capital of greater formality and more rigid stage of growth, known as \u201cgrowth systems and procedures. But in through direction.\u201d As the new \u276f\u276f The Greiner Curve Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 illustrates the six Growth Growth Growth Growth Growth Growth stages of growth that through through through through through through any company might creativity direction delegation coordination collaboration alliances undergo during its development. Each SIZE OF ORGANIZATION Crisis 5: growth phase Growth generates a crisis, the resolution of Crisis 4: which leads to the Red tape next growth stage. Crisis 3: Control Crisis 2: Autonomy Crisis 1: Leadership TIME","60 THE GREINER CURVE manager takes responsibility for One can choose to free. All businesses, of all sizes, direction, mid-level supervisors or go back towards safety or and regardless of growth aspirations, managers act more as functional forward towards growth. \u00a0 will face uncertainties and specialists, but after a while they challenges. It does mean, however, begin to demand more freedom Abraham Maslow that the business will avoid the to make decisions, leading to the requirements of the next stage: second crisis: \u201cautonomy.\u201d This crisis US psychologist (1908\u201370) \u201cgrowth through coordination.\u201d can be solved by freeing the mid- level managers from bureaucracy entrepreneurs start a small company During this fourth stage, and allowing the company to to escape the stresses, politics, and increasing centralization is achieve \u201cgrowth through delegation\u201d of\ufb01ce-bound purgatory of corporate common. By this time the company \u2014Greiner\u2019s third stage of growth. life and so, for them, it may make may be relatively large, with Unburdened by the need to manage sense to limit growth at this stage. operations controlled through a day-to-day issues, senior head of\ufb01ce. The company may management can shift its attention Other entrepreneurs\u2014such as appoint executives with experience to strategy and long-term growth. Virgin chief, Richard Branson\u2014are of managing large, diverse enthused by the early phases in the businesses and introduce standard Stay small or grow? life of a new business, but become operating procedures. At this point a start-up faces bored as the bureaucratic demands perhaps the biggest crisis of all: a increase. Branson likes to guide a However, the introduction of crisis of control. The founders or business through its start-up phase standard policies eventually leads senior management may \ufb01nd it then hand it over to professional to the next crisis: a \u201cred-tape hard to give up responsibility for managers, so he can move on to crisis,\u201d in which increasing decision making, even to trusted new, more exciting, projects. bureaucracy sti\ufb02es operations, boards. When this happens, the Choosing to remain small does not and growth falters as a result. founder may decide to remain mean that a business will be crisis- small\u2014in essence, to limit growth A return to informality to the extent of their own control. Organizations Grow\u201d, is regarded Paradoxically, the \ufb01fth stage, as an all-time classic. Greiner \u201cgrowth through collaboration,\u201d Such decisions are laudable. Not has acted as a consultant to requires, in part, a return to the all companies can be global and all- companies and government earlier days of \ufb02exibility. Systems conquering, and in fact, small- and agencies in the US and abroad, allow greater spontaneity, medium-sized enterprises dominate such as Coca-Cola, Merck, teamwork is introduced, and matrix the business landscape. Some Andersen Consulting, Times (network) structures are used to Mirror Company, and KinderCare. recapture the collaborative nature Larry Greiner of a start-up\u2014in other words, the Key works organization tries to operate like a Larry Greiner is a professor of lean, creative company once again. management and organization 1972 \u201cEvolution and Revolution at the University of Southern as Organizations Grow\u201d Once this has been attained, California, US. He received a BA 1998 Power and Organization the next crisis relates to the limits degree from the University of Development of internal growth. Under pressure Kansas, and an MBA and 1999 New CEOs and Strategic from shareholders to continually doctorate from Harvard Change, Across Industries improve returns, further growth Business School. can only be achieved by developing partnerships with complementary Greiner is the author of organizations. By this sixth stage numerous publications on the a company is already big, possibly growth and development of very big. \u201cGrowth through organizations, management alliances\u201d therefore suggests that consulting, and strategic expansion will continue through change. His 1972 article, mergers, outsourcing, or joint \u201cEvolution and Revolution as ventures\u2014the company needs to look beyond its own internal","START SMALL, THINK BIG 61 Spotify CEO Daniel Ek worked with co-founder Martin Lorentzon to build a large but agile company. It avoids Greiner\u2019s growth problems by working in small squads overseen by \u201ctribes.\u201d capabilities, and the capacity of In this regard, the various crises as a start-up business. Mirroring its core markets, and seek identi\ufb01ed by the Greiner Curve can the bene\ufb01ts enjoyed by companies external growth. be seen as natural transitions. An in Greiner\u2019s \ufb01rst stage, every squad organization must manage its way is fully autonomous, has direct The actual rate of growth\u2014 through such transitions and contact with its stakeholders, in terms of customer numbers, growing pains as it continually and operates with minimal revenue, or pro\ufb01ts\u2014within each de\ufb01nes and rede\ufb01nes the scope of its dependency on other squads. phase of the Greiner Curve will operations, its values, and its overall vary, depending on the individual purpose. As Benjamin Franklin To deal with the various crises company. Organizations such as observed, \u201cwithout continual of growth (such as autonomy and Facebook were already large by the growth and progress, such words red-tape), related squads are time they started to face crises of as improvement, achievement, and grouped into \u201ctribes.\u201d The function delegation and control. Others may success have no meaning.\u201d of the tribe is to support and enable remain small for many years, the activities of each squad, in perhaps never even reaching Large but agile essence mirroring the role of the leadership-crisis stage. One company that seems to have venture capitalists in incubating heeded the lessons of the Greiner new start-ups. The operation is Using the Greiner Curve Curve is the Internet music- kept small and agile by limiting the Knowledge of the Greiner Curve streaming service, Spotify. The head count for each tribe to 100. can help start-up founders to organization\u2019s Swedish founders, predict and manage the inevitable Daniel Ek and Martin Lorentzon, Spotify appears to have managed crises of growth. Even when knew at the company\u2019s inception to maintain a balance between the enjoying the heady days of early in 2008 that their aim was growth. bene\ufb01ts of growth and the feel-good growth, entrepreneurs need to be They also knew that they were not elements of a start-up. The founders mindful of the steps required to willing to compromise the bene\ufb01ts nevertheless admit that the system build the business further. They that accompany the excitement is not \ufb02awless, and as the demand must put structures in place as of a start-up business. for an organization-wide strategy soon as possible; the earlier that grows, it may be that even Spotify formal systems and professional Spotify organizes itself around will not escape the crises of growth management are introduced, the project-based teams, called predicted by the Greiner Curve. \u25a0 less they will be resented and \u201csquads.\u201d The organization is resisted, and the stronger the divided into small clusters of All growth depends upon foundations for continued growth. squads, with each squad running activity. There is no development physically or intellectually without effort, and effort means work. Calvin Coolidge US former President (1872\u20131933)","62 IF YOU BELIEVE IN SOMETHING, WORK NIGHTS AND WEEKENDS\u2014 IT WON\u2019T FEEL LIKE WORK THE WEIGHTLESS START-UP IN CONTEXT Many start-ups require skill, S tarting a business requires not capital outlay. almost boundless energy, FOCUS unwavering commitment, Start-ups In a weightless start-up, and the resilience to deal with risk. the risk is time, But increasingly, the commercial KEY DATES not money. potential of the Internet is allowing 1923 Walt Disney starts a growing number of \u201cweightless\u201d making professional cartoons The work can be done start-ups to take \ufb02ight. These in his uncle Robert\u2019s garage. initially on weekends and ventures are low on \ufb01nancial resources, but high on individual 1976 The \ufb01rst 50 Apple evenings, but... skill and the investment of time computers are built in the to bring an idea to fruition. spare room of Steve Jobs\u2019s ...if you believe in parents\u2019 house. A few months what you\u2019re doing, Personal passion is an essential later Apple moved \u201cupscale\u201d ingredient in a successful start-up. to his parents\u2019 garage. it won\u2019t feel As Kevin Rose, founder of Internet like work. start-ups Digg, Revision3, and Milk, 1978 Indian master brewer put it: \u201cIf you believe in something, Kiran Mazumdar-Shaw founds work nights and weekends\u2014it biotechnology company, won\u2019t feel like work.\u201d Even global Biocon, in the garage of her greats such as Nestl\u00e9 foods and rented house in Bangalore, Siemens electronics grew from the India. dreams and aspirations of a small group of people. These entrepreneurs 2004 Kevin Rose quits his faced the risk of a new business television job to found Digg, a because they deeply believed in news aggregator website that something, and were driven to attracts 38 million users a realize their dream, despite long month during its peak. The hours, stress, and, often, a string \u201cof\ufb01ce\u201d is his bedroom. of failures large or small. These are quickly forgotten when people are doing something they love. Traditionally, the main barriers to enterprise were time and capital. Entrepreneurs from nonwealthy","START SMALL, THINK BIG 63 See also: Beating the odds at start-up 20\u201321 \u25a0 Luck (and how to get lucky) 42 \u25a0 Hewlett-Packard The Greiner curve 58\u201361 \u25a0 Changing the game 92\u201399 \u25a0 Small is beautiful 172\u201377 Bill Hewlett, born 1913, and Hewlett-Packard (HP) began life in These micropreneurs, who sell Dave Packard, born 1912, were Dave Packard\u2019s garage. The company everything from homemade fashion close friends who graduated has restored the garage, which in 1987 items to antiques and secondhand as electrical engineers from was named a California landmark as electronics, are risking very little Stanford University. After his \u201cthe birthplace of Silicon Valley.\u201d other than their own time\u2014the marriage, Packard moved into capital outlay can be as much or as an apartment in Palo Alto, backgrounds usually needed a full- little as they are willing to risk. The California, with his wife, while time job to meet the living costs micropreneur\u2019s skill lies in spotting Hewlett camped out in a shed of themselves and their families. the right opportunity. In this way on the grounds. A garage Without suf\ufb01cient savings, few the business can be as small or belonging to the property people could risk a new business large as time, and desire, allows. became a decidedly low-tech venture in the 20th century, but workshop. From 1938 to 1939 today, starting a business is easier. For those who aspire to more the garage served as home, than running a business as a part- think tank, lab, of\ufb01ce, and Micropreneurism time hobby, the lean start-up path production department. Bill and In the mid-2000s, the notion of a is well trodden. Large companies David developed the 200A and micropreneur began to emerge. This such as Hewlett-Packard and 200B audio oscillators, which was an individual who ran a very Indian biotech Biocon both started became Hewlett-Packard\u2019s small business, often in addition to in their founders\u2019 garages. Passion \ufb01rst products. full-time employment. The concept was key\u2014with very limited capital, gained popularity alongside the rise essential equipment was begged Believed to be the \ufb01rst US of e-commerce, which made it and borrowed; friends and family technology company to launch possible to launch a commercial were used as (free) staff; and sleep in a garage, Hewlett-Packard website and manage it nights and was sacri\ufb01ced. The main resources was founded by the two weekends. Sales platforms, such as were time, skill, and tenacity. friends on an investment of those provided by eBay and the just $538. Today the Chinese online marketplace Taobao, The path is not straightforward, organization is one of the made it even easier, since they however, and requires a deep world\u2019s largest technology dispensed with the need for a commitment, often in the face companies, with sales in website or payment systems. of failure. As Jeff Bezos warned, excess of $27 billion in 2012. \u201cinvention requires a long-term The garage is designated a willingness to be misunderstood.\u201d \u25a0 historic landmark and is listed on the United States National Register of Historic Places. You have to really believe in yourself and know that, in the worst-case scenario, if it doesn\u2019t work out, you still built something really cool. Kevin Rose","LIGHTIN THE FIR LEADERSHIP AND HUMAN RESOURCES","G E","66 INTRODUCTION G rowth from a small start-up the most of their talent. In other Mintzberg noted that none of these to a large multinational words, leadership is about creating roles is exclusive or privileged. company cannot be capacity in others. It is about Leading well often involves shifting achieved without leaders who are imagining the future, determining seamlessly between leadership and passionate about their business strategic direction, and aligning management, and knowing when, and who are inspirational to their the organization and its people to contextually, each role is most staff. Leading a business is, at its a particular vision. appropriate to adopt. core, about harnessing the power of people. Leaders and managers Creating the organizational The very best leaders, as Steve capacity for continued success also One popular business aphorism Jobs said, \u201cput a dent in the means putting together teams and claims that \u201cthere are no business universe.\u201d These leaders are not managing talent. An effective team problems, only people problems.\u201d bound by convention; they are able is a powerful thing. Individuals Managing people is not easy; every to think outside the box, embracing perform better in teams; they are organization is a collection of one-of-a-kind ideas that disrupt the more productive and more individuals, each with their own status quo in their favor. In today\u2019s innovative. Teams can also be self- philosophies, vulnerabilities, hypercompetitive markets, the managing; individuals support drives, strengths, and weaknesses. leaders we celebrate do not only each other and strive not to let the Effective leadership embraces outthink, outsmart, and outcompete team down. Effective teams require these differences and creates a their rivals, they disrupt entire less supervision and less direction culture in which people can make industries. They change the game. than individuals, and performance is guided by group norms, not by Good leadership consists Rarely, though, do leaders one individual\u2019s expectations. of showing average people achieve greatness alone. Leaders rely on managers. While leadership It is not surprising, then, that how to do the work of is about vision, management is great organizations recognize the superior people. about process, planning, budgeting, value of teams. Google, for example, structuring, and staf\ufb01ng\u2014tasks designs workstations so that staff J. D. Rockefeller that help an organization to keep can easily collaborate. \u201cHangout doing what it does. In The spaces\u201d are adorned with funky US industrialist (1839\u20131937) Manager\u2019s Job (1975), Henry furniture and supplied with food to Mintzberg identi\ufb01ed three broad allow teams to work and socialize. management roles: informational Leaders at Google want employees (managing by information); to interact; they recognize that by interpersonal (managing through encouraging teamwork, employees people); and decisional (managing enjoy greater job satisfaction and through action). Importantly, creativity, and as a result, innovation rises. To the bene\ufb01t of","LIGHTING THE FIRE 67 its staff and its bottom line, Google is littered with examples of leaders The best leaders accept that they knows that the best workplaces feel who, blinded by success, leapt into are not gods of management, and like playgrounds\u2014places where ill-conceived initiatives or made that, in fact, occasionally being people can imagine and invent. \u201cbet-the-farm\u201d decisions that told \u201cno\u201d can be more important proved disastrous. \u201cDeal fever\u201d than always hearing \u201cyes.\u201d Satisfaction and challenge can mean that warning signs are Creating an organizational culture ignored by leaders who feel they Emotionally intelligent that embraces teamwork and can do no wrong. Successful Creating a culture where this kind encourages creativity helps leaders, however, know that they of challenge is the norm depends companies address the perennial must \ufb01ght against the illusion of upon diversity. In companies question: \u201cis money the motivator?\u201d invulnerability. They also realize with employees from diverse Most \ufb01nd the answer is \u201cno.\u201d Higher the dangers of wanting to be liked backgrounds, where gender, race, pay might encourage an individual or to conform. Great leaders know and age are balanced, the different to take a new job, it might encourage that they must guard against perspectives mean decisions are people to move a little faster or to groupthink and \u201cyes-man\u201d more likely to be questioned. work a little harder, but people soon mentalities in themselves and forget about the money and start to others, because such approaches Perhaps most importantly then, focus on other things\u2014such as job leave decisions unchallenged, and and as recent research indicates, satisfaction, challenge, and respect allow ill-judged projects to proceed the single most important trait for from managers. Virgin Atlantic without suf\ufb01cient due diligence. successful leaders is emotional airline, for example, is not known as intelligence. In his bestselling book, one of the highest payers, but is Everyone experiences tough Emotional Intelligence (1995), Daniel regarded as a great place to work. times; it is a measure of your Goleman describes \ufb01ve domains of determination and dedication Emotional Intelligence (EQ): knowing A strong organizational culture your emotions; managing them; is, therefore, essential to success. how you deal with them. motivating yourself; recognizing Through tradition, history, and Lakshmi Mittal and understanding other people\u2019s structure, companies build a sense emotions; and managing of identity\u2014a unique personality Indian entrepreneur (1950\u2013) relationships. Without EQ, a leader de\ufb01ned by the characteristic can be technically brilliant and full rituals, beliefs, stories, meanings, of great ideas, but still ineffective. values, norms, and language that This is because a sole trader may determine the way in which be able to survive on intuition \u201cthings are done around here.\u201d alone, but as soon as someone else is employed, EQ becomes key. Importantly for leaders, Lighting the \ufb01re means keeping managing people also means the sparks \ufb02ying for everyone. \u25a0 managing oneself. Business history","68 MANAGERS DO THINGS RIGHT, LEADERS DO THE RIGHT THINGS LEADING WELL IN CONTEXT Leaders develop a vision They conquer in any for the organization. context\u2014even in the most FOCUS Organizational roles turbulent of times. KEY DATES ...that managers then Leaders advocate change 1977 US professor Abraham implement to make a new, and new approaches... Zaleznik writes an article asking \u201cManagers and stable environment. Leaders: Are They Different?\u201d Managers do things right, 1985 In Leaders: Strategies for leaders do the right things. Taking Charge, Warren Bennis and Burt Nanus suggest four G ood managers do not 1985, \u201cmanagers do things right; leadership strategies to help necessarily make good leaders do the right thing.\u201d Leaders leaders do the right things. leaders, and good leaders \u201cconquer\u201d their surroundings\u2014the can be poor managers. This is competitive environment\u2014through 1990 US leadership expert because the two jobs are not vision and strategy, and it is the John Kotter publishes What the same, despite sharing similar role of managers to then implement Leaders Really Do. characteristics\u2014principally the these strategies effectively. need to drive human (and therefore 1997 Robert House and Ram organizational) capacity. As Warren Effective management is crucial Aditya claim that management Bennis and Burt Nanus noted in to organizational success. It takes consists of implementing the care of processes, planning, vision and direction provided by leaders. 2005 Warren Bennis publishes Reinventing Leadership: Strategies to Empower the Organization.","LIGHTING THE FIRE 69 See also: The value of teams 70\u201371 \u25a0 Gods of management 76\u201377 \u25a0 Effective leadership 78\u201379 \u25a0 Organizing teams and talent 80\u201385 \u25a0 Develop emotional intelligence 110\u201311 \u25a0 Mintzberg\u2019s management roles 112\u201313 budgeting, structure, and staf\ufb01ng; regarded leaders\u2014such as Jack tasks that help an organization to Welch of General Electric, Steve keep doing what it does. Without Jobs of Apple, and Jill Abramson management, no matter how well of The New York Times\u2014have led, an organization would been well documented. disintegrate into disorganized chaos. However, management Leaders have to be brave in is not leadership\u2014it will not lead the face of uncertainty, standing the company in new directions. \ufb01rmly behind their vision for the company. They need to hold staff Decisive leadership accountable when things do not In 1990, John Kotter argued that go as planned, and make dif\ufb01cult leadership is about dealing with decisions about who to hire or change and developing a vision \ufb01re in order to develop an for the organization, often within organizational culture capable turbulent times. Leaders then of achieving their strategic vision. communicate their vision to the rest of the company, and motivate The next generation Jill Abramson was the \ufb01rst woman staff\u2014especially managers\u2014to Truly great leaders know that they to become executive editor of The New act in ways that will bring about will not be around forever, and one of York Times. She found that unpopularity the required change. Leadership their most important tasks is to hire, came \u201cwith the territory,\u201d as Times\u2019 is about setting the agenda and train, and nurture their successor. chairman Arthur Sulzberger had warned. empowering people to produce They lead well by making sure useful change. somebody is ready and waiting to It is common practice in many take over from them. Nine years companies to privilege leadership \u201cLeading well\u201d does not always before his retirement, General over management, but it is unwise. mean making people happy; Electric CEO Jack Welch said, \u201cfrom Great organizations value both: likability and success rarely go now on, choosing my successor is leaders who can spot opportunities, together. The direct, tough, and the most important decision I\u2019ll and managers who can make those sometimes even rude leadership make. It occupies a considerable opportunities a reality. \u25a0 styles of some of the most highly amount of thought almost every day.\u201d Blending leadership and management Leadership is lifting a person\u2019s Inspirational leadership skills immediately. When he \ufb01rst took vision to high sights, raising are the hallmark of Portuguese over Chelsea Football Club in their performance to a higher soccer coach Jos\u00e9 Mourinho. London, England, he called a standard, building a personality His teams won two European team meeting and urged any beyond its normal limitations. Cups and 14 trophies in eight naysayers to speak up, or stay years, elevating him to sit silent from then on. He learned Peter Drucker alongside some of the greats his management skills from of soccer management. Bobby Robson and Louis van US management consultant Gaal, for whom he worked as Successful sports teams, an assistant coach and translator (1909\u20132005) like great organizations, are at the Spanish soccer team FC a blend of good management Barcelona. Under their guidance and good leadership, and he also learned how to study Mourinho achieves the rare opponents, form strategies, and feat of excelling in both. As build strong, winning teams. a leader, he makes his mark","70 NONE OF US IS AS SMART AS ALL OF US THE VALUE OF TEAMS IN CONTEXT Human beings Teams help to like to belong. generate a sense FOCUS Teamwork of place and counter anomie. KEY DATES 1924\u20131932 The Hawthorne None of us Studies, conducted by is as smart Elton Mayo, highlight the as all of us. importance of groups in affecting the behavior Organizations Successful teams of individuals at work. can be thought of provide an as a collection 1930s The Human Relations environment Movement is sparked by Mayo\u2019s of teams. for new ideas. work. It proposes that worker satisfaction and productivity W e might complain about and familiarity of belonging to a depend on careful management routine and familiarity, group helps people to avoid anomie, and consideration of groups. but research shows and \ufb01nd security and purpose. that human beings have an innate 1940s As a result of Abraham need for some degree of stability. The existence of groups serves Maslow\u2019s \ufb01ndings, and Without rules, norms, values, and two purposes. Organizations, and the earlier work of Mayo, expectations, people begin to feel the groups within them, can be businesses begin to recognize anxious, rootless, and confused. seen as an expression of the human the value of teamwork. This is termed \u201canomie,\u201d and it is desire to belong. As psychologist the reason that humans often self- Abraham Maslow identi\ufb01ed in his 21st century Workplace organize into groups. The routine 1943 paper \u201cA Theory of Human design moves from the solo Motivation\u201d, groups give us a sense workspaces and closed of\ufb01ces of the 20th century to open layouts that encourage collaborative working.","LIGHTING THE FIRE 71 See also: Creativity and invention 72\u201373 \u25a0 Organizing teams and talent 80\u201385 \u25a0 Make the most of your talent 86\u201387 \u25a0 Organizational culture 104\u201309 \u25a0 Avoid groupthink 114 \u25a0 The value of diversity 115 of belonging. Maslow believed will increase an individual\u2019s security Cisco Systems uses workspaces that that there is a hierarchy of human and encourage collaborative, can be transformed from small groups needs; once we have met the most creative, work\u2014as US management of work pods to large open spaces for basic of needs\u2014the physiological expert Ken Blanchard said, \u201cnone of conferences. Cisco aims to be \ufb02exible for ones, such as hunger and thirst\u2014 us is as smart as all of us.\u201d In turn, connectivity and a sense of community. we progress to the next: security. commitment toward a project When these needs are satis\ufb01ed, creates ties that strengthen the bond the \u201cConnected Workplace\u201d, which we move to the third basic need: between individuals and, ultimately, offers employees great \ufb02exibility in a sense of belonging. Once this the company\u2019s communal purpose. working practice and environment, is met, we will proceed toward while ensuring that they always increasing self-esteem through Places to belong feel part of the Cisco community. achievement, and ultimately Great organizations recognize the toward self-actualization, by using value of teams and the importance Business success is rarely our inner talents with creativity. of the working environment. Cisco achieved through individual genius, Systems, the Internet infrastructure and the greatest leaders are those When Maslow\u2019s theory is company, has created what it calls who recognize the value of applied to the workplace, working maximizing talent through teams. \u25a0 in groups and gaining a sense of belonging make employees more effective. With the need to belong already addressed, individuals are able to focus on other things, such as a desire for achievement and the practicing of inner talents. In this way, the movement through the stages of satisfying needs can bene\ufb01t a company. Free from anomie, groups are places where human beings, and therefore ideas, can \ufb02ourish. Teams that are carefully chosen and supervised Abraham Maslow The American psychologist you can be.\u201d Contrary to many Abraham Maslow was born in of his peers, Maslow focused on 1908. He grew up in Brooklyn, the positive side of mental health. New York, and earned a degree, The hierarchy of human needs, masters, and PhD in psychology which Maslow outlined in \u201cA from the University of Wisconsin. Theory of Human Motivation\u201d, Maslow started his career as a remains in\ufb02uential even today teacher, working at Brooklyn in \ufb01elds as diverse as social College from 1937 to 1951, after work and management theory. which he became chair of the psychology department at Key works Brandeis University, US. Here he met Kurt Goldstein, the originator 1943 \u201cA Theory of Human of the idea of self-actualization, Motivation\u201d and Maslow became fascinated 1954 Motivation and Personality with the path of human 1962\u00a0Toward a Psychology development toward \u201cbeing all of Being","72 INNOVATION MUST BE INVASIVE AND PERPETUAL: EVERYONE, EVERYWHERE, ALL OF THE TIME CREATIVITY AND INVENTION IN CONTEXT O ur fondest childhood Like the playgrounds of our memories are often those childhoods though, companies that FOCUS that involve the freedom embrace creativity and innovation Creativity of play, and the unbridled use of as \u201cinvasive and perpetual\u201d\u2014as imagination to create and live out consultant Stephen Shapiro puts KEY DATES fantasies. As human beings we it\u2014are exciting places to be. 17th century Polish poet never lose the inner joy of creativity, Google, Facebook, and Procter & Maciej Kazimierz Sarbiewski but it tends to be suppresed by the Gamble, for example, are renowned applies the word \u201ccreativity\u201d responsibilities of adult life\u2014we for hiring and nurturing creative to human activity. For more trade the playground for the of\ufb01ce. people, and for rewarding than a century and a half, the idea of human creativity is The desire to create As children, creativity resisted\u2014\u201ccreation\u201d is and invent is deeply comes naturally... reserved for describing embedded in all of us. God\u2019s creative act. For businesses, ...but for many adults, 1970s In\ufb02uenced by the work establishing a climate it has to be of psychologists Abraham of perpetual creativity worked at. Maslow and Frederick Herzberg on the subject of motivates staff... motivation, businesses begin to design jobs that allow ...and improves the company\u2019s employees space for competitiveness. creative freedom. 2010 IBM lists creativity as the most sought-after trait in business leaders. 2013 Bruce Nussbaum\u2019s book Creative Intelligence states that creativity is the greatest source of economic value.","LIGHTING THE FIRE 73 See also: Stand out in the market 28\u201331 \u25a0 Gaining an edge 32\u201339 \u25a0 Thinking outside the box 88\u201389 \u25a0 Changing the game 92\u201399 imagination and invention. They often work harder, longer, and more Emma Hill attract thousands of applicants as productively, yielding innovative a result. Moreover, creativity is not solutions to problems, new cost- UK-born fashion designer only a potential source for ideas saving processes, or pro\ufb01table Emma Hill studied at the that can yield economic value, but new products. Wimbledon School of Art in is a vital asset for individuals and 1989 before graduating from companies operating in increasingly So signi\ufb01cant is the competitive Ravensbourne College of changeable global markets. edge that can be gained that a 2010 Design and Communication IBM survey listed creativity as the in 1992. Starting her fashion De\ufb01ning creativity most sought-after trait in leaders. career at luxury brand Creativity involves the generation When it was announced that the Burberry, Hill also worked for of ideas, alternatives, or possibilities, Creative Director of Mulberry, UK retailer Marks & Spencer, and the consideration of situations Emma Hill\u2014who was largely US fashion designer Marc or problems in novel ways. Invention credited with the fashion label\u2019s Jacobs, and US retailer Gap, is the practical application of renaissance\u2014was stepping down before moving to Mulberry\u2014 creative thought. When successfully in 2013, the company\u2019s shares fell which has stores in Europe, realized, creativity and invention by more than 9 percent. As Steve US, Asia, and Australia\u2014as are highly motivating. They allow Jobs proved at Apple, \u201cthinking Creative Director in 2007. us to combine our innate desire for differently\u201d is not just cool or autonomy, purpose, and mastery. quirky\u2014it matters to staff, to At Mulberry, Hill\u2019s creative They also produce a sense of customers, and to investors. talent for designing handbags achievement, which is a key element carried by the likes of model in what Abraham Maslow described Fostering creativity Kate Moss and musician Lana as the \u201cHigher Order Needs\u201d of The challenge is for companies to Del Rey resulted in waiting motivation\u2014the factors that allow us balance creativity with \ufb01nancial lists for purchases. Thanks to feel value and self-actualization. prudence. Unbridled creativity to her expansion of the brand rarely leads to commercial success, into small leather goods For businesses, establishing yet businesses are required to (such as brightly colored card a climate of creativity has the dual make pro\ufb01ts in order to survive. holders) in order to appeal bene\ufb01t of enhancing employee to the more price-conscious satisfaction and improving its For Mulberry, it was a clash of end of the market, the brand competitiveness. Excited by the these values that resulted in Hill\u2019s enjoyed stellar growth. When pursuit of invention, employees will departure. When the joined she joined Mulberry the company in 2007, Hill was company\u2019s shares had stood at When you innovate, you\u2019ve responsible for some of the label\u2019s $1.78 (111 pence); at the time got to be prepared for biggest hits\u2014notably its Alexa and of her departure in 2013 they everyone telling you Bayswater handbags\u2014and were worth nearly 10 times as you\u2019re nuts. presided over a period of signi\ufb01cant much. In 2010, thanks to Emma Larry Ellison innovation and growth. In 2013 Hill\u2019s work, Mulberry won the though, with sales falling, the \u201cBest Designer Brand\u201d prize at US co-founder, Oracle Corp. (1944\u2013) brand\u2019s management decided it the British Fashion Awards. needed a new creative direction\u2014 even the most creative brands feel the need for reinvention. As creative organizations know, to the bene\ufb01t of their staff and the bottom line, creativity and invention\u2014by everyone, everywhere, and all of the time\u2014are vital ingredients for business success. \u25a0","74 DISSENT ADDS SPICE, SPIRIT, AND AN INVIGORATING QUALITY BEWARE THE YES-MEN IN CONTEXT If managers F or many employees, are only brought working within an FOCUS organization means forever Behavioral management good news... saying \u201cyes.\u201d Fearful of losing their jobs, eager to please, and ambitious KEY DATES ...they are forced to make for promotion, subordinates are 1992 Indian economist Abhijit decisions based on incomplete often happy to pass on good news, V Banerjee looks at how but reluctant to deliver bad news. decision makers refer to the or inaccurate information. This might be good for their choices made by previous manager\u2019s ego but it can be decision makers for guidance, Leaders should beware damaging for the business\u2014if in his book A Simple Model of \u201cthe yes-men\u201d bad news is hidden, managers lack Herd Behavior. vital information and can make and embrace constructive bad decisions as a consequence. 1993 US economist Canice con\ufb02ict in their companies. Prendergast writes A Theory of This can happen at the highest Yes Men, identifying the Sometimes \u201cno\u201d levels with catastrophic results. tendency of subordinates to is ultimately more A Financial Services Report in agree with their superiors useful than \u201cyes.\u201d 2012 on the Royal Bank of Scotland as a \u201cmarket failure.\u201d (RBS) suggested that the bank\u2019s failure in 2008 was, in part, due to 1997 US psycholinguistics \u201ca lack of effective challenge by the expert Suzette Elgin writes board and senior managers to the How to Disagree without Being CEO\u2019s proposals, resulting in risks Disagreeable. being overlooked and strategic mistakes being made.\u201d 2000s Leadership theory encourages leaders to embrace A tolerant business culture constructive con\ufb02ict as a Being an effective leader involves healthy, and necessary, part recognizing that it is impossible to of the business environment. be right all of the time. Seeking, and graciously accepting, critical feedback from trusted colleagues can help maintain a balanced perspective. The challenge for","LIGHTING THE FIRE 75 See also: The value of teams 70\u201371 \u25a0 Hubris and nemesis 100\u201303 \u25a0 Effective leadership 78\u201379 \u25a0 Ignoring the herd 146\u201349 \u25a0 Learning from failure 164\u201365 \u25a0 Avoiding complacency 194\u2013201 \u25a0 Creating an ethical culture 224\u201327 In an organization where are those who are courageous innovation happens, very often and caring enough to tell the truth, no matter how bad it might be. people ignore orders. Robert Sutton For employees, delivering bad news is a skill in itself. It is better US professor of management if the news comes with a proposed solution attached, and with causes of the problem acknowledged rather than ignored. The news should be delivered promptly; the sooner a problem is identi\ufb01ed, the sooner it can be solved, and the better a manager\u2019s reaction is likely to be. leaders is to create an environment Testing your ideas Saying yes to every task and giving where bad news is tolerated, and Jean Paul Getty, founder of the only good news to a leader might result even encouraged. If leaders react to Getty Oil Company, recognized in popularity, but will soon overload unwelcome news without the value of outspoken employees, the employee and risks blinded screaming or recrimination, staff is claiming that \u201cdissent adds spice, decision making by the leader. more likely to be con\ufb01dent about spirit, and an invigorating quality.\u201d delivering it. Good leaders tend to Management teams that can address the problem, rather than Ken Olsen, founder of Digital challenge each other\u2019s thinking simply apportioning blame, helping Equipment Corporation, built develop a richer understanding of to prevent a repeat scenario. dissent into company culture, using strategic options, and, ultimately, debate and con\ufb02ict resolution as the make better decisions. The best An important way of preventing primary ways of decision making. business leaders attempt to a yes-men culture is to create a Jack Welch, CEO of General Electric harness criticism and debate. culture of collective responsibility. (GE), encouraged no-holds-barred If everybody is saying \u201cyes,\u201d Often, the most valuable employees debates, saying, \u201cif the idea can\u2019t something is seriously wrong. \u25a0 survive a spirited argument, the marketplace will surely kill it.\u201d Jean Paul Getty Jean Paul Getty was born in buy several oil companies and Minneapolis in 1892. His father build these into a pyramid of was a lawyer who moved into the corporations, with the Getty Oil oil business in 1903. Getty studied Company at the top. In 1949, he at universities in the US and UK purchased a 60-year concession before joining his father\u2019s in a tract of land between Saudi business, The Minnehoma Oil Arabia and Kuwait that was Company. He set out to make a thought to be barren of any oil. million dollars within his \ufb01rst two His company struck oil in years, and did so by buying and massive quantities in 1953, selling oil leases. making Getty a billionaire. He died in 1976 at the age of 83. Because Getty married \ufb01ve times, his disapproving father Key works bequeathed him only $500,000 from his $10-million estate. 1953 My Life and Fortunes Undeterred, Getty combined this 1965 How to be Rich with his own amassed earnings to","76 NO GREAT MANAGER OR LEADER EVER FELL FROM HEAVEN GODS OF MANAGEMENT IN CONTEXT I n his in\ufb02uential 1978 book who have the expertise to solve Gods of Management, Charles problems. In Dionysus\u2019s \u201cexistential FOCUS Handy used the allegory of the culture,\u201d the organization exists to Organizational dynamics gods of ancient Greece to describe support the individual\u2019s needs. the nature of organizations. Handy KEY DATES proposed that four management Handy\u2019s typology provided an 20th century Typologies styles could be identi\ufb01ed, a entirely new and original method emerge to help management combination of which are likely to for managers to analyze a thinkers sort organizations into be present in every organization. company\u2019s dynamics, and to identi\ufb01able classi\ufb01cations, and Zeus represents the \u201cclub culture,\u201d understand culturally embedded individuals into distinct types. in which relationships with the behaviors, biases, and beliefs. What motivates each person is leader are more important than However, it soon became clear that thought to be determined by formal titles or positions. Apollo\u2019s because organizations are vast and their \u201ctype.\u201d \u201crole culture\u201d is de\ufb01ned by diverse entities, and are seldom functions, divisions, rules, and static, organizational behavior 1978 Charles Handy\u2019s Gods rationality. In Athena\u2019s \u201ctask evolves over time. Under pressure of Management proposes culture,\u201d power lies within teams externally and internally, most that understanding which companies operate in a constant classi\ufb01cation an organization \ufb01ts into is key to understanding Handy\u2019s Gods of ...but organizations are the type of people it contains Management reveals complex at institutional and, thus, the way to lead them. different types of and the individual level. organizational dynamic... 1989 In The Age of Unreason, Handy puts forward the theory Therfore, typologies can Effective leadership requires of the Shamrock Organization. still be helpful for God-like omniscience, but no great leader ever fell 21st century Management understanding organizational thinking increasingly and individual complexity. from heaven. acknowledges that stylistic typologies are just one of many methods of understanding and managing companies and staff.","See also: Leading well 68\u201369 \u25a0 Effective leadership 78\u201379 \u25a0 Organizational LIGHTING THE FIRE 77 culture 104\u201309 \u25a0 Mintzberg\u2019s management roles 112\u201313 Charles Handy Zeus\u2014 Apollo\u2014 Club Culture Role Culture Professor Charles Handy, born As the ruler of the Greek gods, Apollo was the god of order and in 1932, is Britain\u2019s best- Zeus was at the center of power and rules. Successful in times of stability, known management guru. in\ufb02uence. Club cultures are built on role cultures tend to \ufb02ounder when After graduating from Oxford af\ufb01nity; proximity to the center of rapid change is required. Insurance University he joined the the club re\ufb02ects an individual\u2019s companies are among those Massachusetts Institute of standing within it. Investment typically led along Apollonian Technology in 1965, moving banks often have dominant to the London Business School club cultures. principles. (LBS) in 1967 to run the only Sloan School of Management Charles Handy\u2019s program outside the USA. Gods of Handy\u2019s challenging ideas, articulate style, and use of Management provocative imagery\u2014such as his text The Empty Raincoat, Athena\u2014 Dionysus\u2014 a critique of the \u201cimpersonal Task Culture Person Culture mechanics of business Athena, the goddess of wisdom, Dionysus, the god of wine, stood organizations\u201d\u2014set him apart was a problem-solver. Task cultures for individual freedom. In person from his contemporaries. thrive where innovation is required, cultures, professional opinion is Handy sees himself as a social but struggle with routine. privileged and management is seen philosopher rather than Advertising agencies and as an unnecessary burden. management guru\u2014his consultancies often display Professional service companies, writings, he believes, are task cultures. such as legal \ufb01rms, mirror commentaries rather than Dionysian cultures. manuals for success. His opinions have in\ufb02uenced business thinking for decades. Key works 1976 Understanding Organizations 1978\u00a0Gods of Management\u00a0 1994\u00a0The Empty Raincoat state of \ufb02ux\u2014they adapt and year may not motivate them the The job of leadership is to align these change in unforeseen, unplanned, next. When a company consists of a differences toward a common, and unpredictable ways. staff of thousands, it is clear that organizational goal. people, and therefore organizations, Accounting for complexity are more complex than the stylistic Organizational dynamics are Organizational complexity is often Gods of Management suggest. important because people matter. measured by the number of Typologies only take a leader so far. countries a company operates in, Handy later wrote of the Leaders must recognize that each or the number of brands under a Shamrock Organization\u2014a \ufb02exible employee perceives the company manager\u2019s control. Such organization made of core employees, differently, and has unique drivers institutional complexity is not peripheral outsourced staff, and an (and barriers) to effectiveness. As insigni\ufb01cant; it pales though external, \ufb02exible work force. Each US businessman Tom Northup compared to individual complexity. category of worker has a different said, great leaders do not \u201cfall from For example, something novel that commitment to the organization, a heaven,\u201d but God-like omniscience motivated a member of staff one different understanding of its vision, is a useful\u2014albeit unreachable\u2014 and their own motivations for work. goal to strive for. \u25a0","78 A LEADER IS ONE WHO KNOWS THE WAY, GOES THE WAY, AND SHOWS THE WAY EFFECTIVE LEADERSHIP IN CONTEXT Effective leadership A leader\u2019s charisma alone builds capacity is not enough. Effective FOCUS in others. leadership requires the Leadership Effective leadership establishment of... KEY DATES requires action from 1520s Italian diplomat Niccol\u00f2 the leader, not just ...integrity, trust, Macchiavelli\u2019s The Prince empathy, and discusses the perils of brainpower. empowerment. leadership in political life. F or centuries scholars have example, Henry Ford was renowned 1916 French executive Henri attempted to determine for his charismatic leadership Fayol\u2019s work General and the de\ufb01nitive styles, style\u2014there is a danger that Industrial Management de\ufb01nes characteristics, and personality rhetoric can exceed reality. Rather a leader as someone who traits of great leaders. Yet, despite than empowering their employees, \u201cshould possess and infuse thousands of studies, effective charismatic leaders often into those around him courage leadership remains a subject of micromanage tasks and prevent to accept responsibility.\u201d debate. However, one common their staff from gaining a sense of theme is that effective leadership achievement from their work. 1950s and 60s The requires action, not just intellect. Charismatic leaders are often authoritative \u201cCommand and heralded as champions of Control\u201d school of management Leaders cannot simply rely on organizational success, but that becomes popular. Charismatic charisma. While charismatic charm can be a blessing and leaders dominate organizations leadership has its place\u2014for through force of personality. 1980s and 90s Leadership thinkers, such as US professor Warren Bennis, encourage a leadership style based on integrity, trust, and the ability to build an organization\u2019s capacity for change.","LIGHTING THE FIRE 79 See also: Leading well 68\u201369 \u25a0 Gods of management 76\u201377 \u25a0 Changing the game 92\u201399 \u25a0 Develop emotional intelligence 110\u201311 \u25a0 Mintzberg\u2019s management roles 112\u201313 Actively participating in business Renault and Nissan. Within a Carlos Ghosn life, from the boardroom to the factory year of his appointment in 1999, \ufb02oor, is vital for effective leadership. Ghosn returned Nissan to Born in 1954, Carlos Ghosn, Carlos Ghosn visited car assembly lines pro\ufb01tability and was credited with a French-Lebanese Brazilian, to build integrity and trust with staff. saving the company from collapse. started his career with This proved to be one of the most Michelin, moved to Renault a curse\u2014the void created by the dramatic turnarounds in modern in 1996, and was appointed departure of a charismatic leader business history. the CEO of Nissan in 1999 can be hard to \ufb01ll. It may \ufb02atter the following Renault\u2019s purchase ego to be proclaimed a hero, but Among the leadership traits of a substantial stake in the great leaders know that success that contribute to Ghosn\u2019s ailing Japanese company. At involves building long-term effectiveness is his belief that the time, Nissan\u2019s debts had organizational capacity that will leadership is learned \u201cby doing.\u201d reached $20 billion and only outlast their own tenure. On joining Nissan as CEO he three of its 48 car models were walked around every factory, generating a\u00a0pro\ufb01t. Promising Keys to effectiveness meeting and shaking hands with to resign if the company did To be effective, a leader must be every employee. To this day he not reach pro\ufb01tability by the con\ufb01dent and secure, and at the remains a common sight on factory end of the year, he de\ufb01ed same time open and empathetic. \ufb02oors. Integrity and trust, Ghosn Japanese business etiquette, Effective leadership involves the believes, are built when leaders are cut 21,000\u00a0jobs, and closed ability to create capacity in others seen to be willing to \u201cget their unpro\ufb01table domestic plants. through the process of interacting, hands dirty\u201d and remain in touch Within three years Nissan informing, listening, developing, with the factory \ufb02oor of the business. became one of the most and trust-forming. Credibility of pro\ufb01table automakers, with the leader is achieved through Empowering staff operating margins of higher collaboration, not domination. Leaders must communicate a strong than 9 percent\u2014more than Central to effective leadership is vision but, above all, they must twice the industry average. empowerment\u2014the art of enabling empower staff to make decisions other people to get things done. themselves. In large, diverse Having presided over what organizations a leader cannot, and has been described as one of One of the most effective should not, make all the decisions\u2014 the greatest turnarounds in contemporary business leaders is helping others to understand the business history, Ghosn was Carlos Ghosn, CEO of car makers necessity for change, and giving named \u201cthe hardest-working them the tools to manage that man in the global car business\u201d change is key to the leader\u2019s role. by Forbes magazine in 2011. The success of Nissan is also attributed to Ghosn\u2019s ability to The universe rewards manage cross-cultural teams. action, not thought. Leaders, Ghosn suggests, require Russell Bishop the ability to listen and to empathize, not just with employees from their US executive coach own countries, but also with people from different countries and cultures. Ghosn\u2019s insights illustrate that effective leadership requires putting vision into action. Achieving this requires more than just rhetoric: effective leaders must \u201ctalk the talk\u201d and \u201cwalk the walk.\u201d \u25a0","80 TEAMWORK IS THE FUEL THAT ALLOWS COMMON PEOPLE TO ATTAIN UNCOMMON RESULTS ORGANIZING TEAMS AND TALENT","81","82 ORGANIZING TEAMS AND TALENT IN CONTEXT E ffective teams are the key Members of a team seek out to great organizations. certain roles and they perform FOCUS This is especially true in Teamwork business, where teamwork merges most effectively in the ones individual talent into something that are most natural to them. KEY DATES greater than the sum of its parts, 1965 US professor Bruce enabling \u201ccommon people to attain Meredith Belbin Tuckman proposes that teams uncommon results\u201d in the words of go through \ufb01ve stages: US industrialist Andrew Carnegie. in pro\ufb01t, and improved job forming, storming, norming, satisfaction. In Honeywell\u2019s performing, and adjourning. Manufacturing companies in commercial \ufb02ight division in Europe and the US began to explore Minneapolis, for example, teamwork 1981 British management the idea of teamwork in the 1960s was credited with achieving an theorist Meredith Belbin and 1970s, in response to the 80\u00a0percent market share in \ufb02ight writes Management Teams: success of Japanese team-based and navigation systems\u2014and for Why they succeed or fail, working methods such as kaizen generating pro\ufb01ts that were describing nine distinct (staff are responsible for a company\u2019s 200\u00a0percent higher than projections. roles that are essential to continuous improvement) and team success. \u201cquality circles\u201d (groups of staff Teams succeed because they tasked with improving quality). In provide an environment where 1992 Peter Drucker describes the 1980s, as many companies weaknesses can be balanced out three kinds of team in \u201cThere\u2019s adopted \u201ctotal quality management\u201d and individual strengths multiplied. more than one kind of team,\u201d (organization-wide quality), Teams also safeguard against published in The Wall teamwork began to spread beyond individual shortcomings, such as Street Journal. its genesis in manufacturing. underperformance and personal Today, it would be rare to \ufb01nd an agendas. Projects are more likely to 1993 Jon Katzenbach and organization, of any type or size, stay on track when peers support Douglas Smith write The that did not value teamwork. each other and review each other\u2019s Wisdom of Teams, claiming and the team\u2019s work. Teams also that forming a team leads to The bene\ufb01ts of teamwork create an environment that most greater success than Teamwork has been credited with people enjoy. The security of a group individual efforts. bringing about substantial makes each individual feel less reductions in absenteeism, lower exposed and, in turn, more likely to Meredith Belbin staff turnover, signi\ufb01cant increases take risks, be more creative, and therefore be better able to perform. Meredith Belbin was born in consultant. Belbin studied Beckenham, UK, in 1926. He teamwork in the UK, US, and Storming and norming earned a degree in Classics at Australia, and in 1981 wrote Effective teams take time to the University of Cambridge, and Management Teams: Why they develop. It is rare that a group of then a doctorate in psychology, succeed or fail, which became people can come together and during which he did research on one of the world\u2019s best-selling begin to perform immediately; most the importance of teamwork. He management books. Belbin has teams go through a series of stages then took a research fellowship advised the US government, the before effectiveness is achieved. at Cran\ufb01eld\u2014where he studied European Union, companies and Bruce Tuckman, a US professor of the bene\ufb01ts of ergonomics public service bodies. (designing tools and systems that \ufb01t best with people\u2019s needs) Key works and improving ef\ufb01ciency in production lines\u2014before 1981 Management Teams: Why becoming a management they succeed or fail 1993 Team Roles At Work 2000 Beyond the Team","LIGHTING THE FIRE 83 See also: Leading well 68\u201369 \u25a0 The value of teams 70\u201371 \u25a0 Effective leadership 78\u201379 \u25a0 Make the most of your talent 86\u201387 \u25a0 Organizational culture 104\u201309 \u25a0 Avoid groupthink 114 \u25a0 The value of diversity 115 \u25a0 Kaizen 302\u201309 educational psychology, described work because the most effective setting the right tone is essential. these stages as forming, storming, teams are those where members The tone should not be too norming, performing, and trust one another, share a strong casual\u2014teams perform better adjourning. During forming, the sense of group identity, and have when challenged, so a sense of group comes together, and con\ufb01dence in their effectiveness urgency needs to be imparted. members get to know one other. It as a team. then moves into a storming stage, The team should agree on clear where members challenge each Effective team building rules for group behavior and norms, other for coveted group roles, and In 2005, US researchers Jon and meet often, both formally and group processes begin to emerge Katzenbach and Douglas Smith informally. If possible, the team through trial and error. The middle identi\ufb01ed a series of factors that should be allowed to enjoy some stage\u2014norming\u2014marks a period seem to be essential for effective early success; a few easy wins of calm, where agreement is teamwork. First, team members early on has been found to boost reached on roles, processes, and must be chosen for their skills, not performance later. Likewise, group norms. By the fourth stage, their personality. The team then the group\u2014and its individual members have become familiar needs to get off to a good start; members\u2014needs to be lavished with each other, with their roles, with praise. Continuing motivation \u276f\u276f and with the processes involved. At this stage, team performance Teams produce Mutual support Teams provide hits its most effective level. Once more creative encourages team an environment their work is done, the group moves to adjourning, or disbanding. solutions to members to to manage problems. reach their talent. Businesses are eager for teams potential. to move quickly through the early Individual Teams provide stages, reaching \u201cperforming\u201d as shortcomings Effective teams security, so soon as possible. This is why are balanced provide synergy. companies invest so much in team- out in a team. members feel free building activities, where teams 2+2=5 to take risks. face and solve arti\ufb01cial challenges, often in a different environment. Teams Many companies also use the establish architecture of their building to positive group encourage team interaction. For norms that example, at Pixar, the movie encourage animation studio based in openness and California, the cafeteria, meeting \ufb02exibility. rooms, employee mail boxes, and bathrooms are located around a centralized atrium designed for collaborative working. The building design and layout encourages members of teams to meet and interact with one another, even when they are based in different departments within the company. Research has shown that team- building activities and collaborative work spaces help to improve team","84 ORGANIZING TEAMS AND TALENT Belbin Team Inventory is encouraged by new challenges, since they help to keep the work Team role Talent Weakness fresh and engaging. Plant Successful roles Creative, unconventional Not good at managing Individuals offer different talents thinker who excels at (or communicating with) and attributes, and these need to solving problems be taken into account when putting less creative people together teams. UK management theorist Meredith Belbin claims Resource Communicative extrovert Loses interest once initial there are nine distinct roles within investigator who develops contacts and enthusiasm has passed a team that are essential to team success, and that the key to a well- explores opportunities organized team is balance. For example, Belbin found that teams Coordinator Mature, con\ufb01dent person Can be manipulative and without Plants (creative, who is able to clarify goals appear aloof unconventional thinkers) struggle Shaper to come up with ideas; but if there and promote decision are too many Plants, idea generation Monitor\/ making starts to take precedence over evaluator action. Similarly, if there is no Teamworker Dynamic, outgoing, highly Prone to provocation and Shaper (a dynamic, driven person strung person who will short-lived bursts of temper who pushes the group toward Implementer challenge, pressure, and decisions), teams lack drive and direction. But in a team with too Completer\/ \ufb01nd ways around obstacles many Shapers, arguments occur \ufb01nisher frequently and will lower morale. Sober, strategic, discerning Lacks drive and ability to Specialist person able to see and inspire others Now an established business tool, the Belbin Team Inventory is judge options objectively frequently used by companies to maximize team effectiveness. Social, mild, perceptive and Indecisive in crunch However, many companies make the accommodating, this situations mistake of using it after teams have been formed; to work successfully, it teamworker averts friction must be used before creating a team. Disciplined, reliable, Somewhat in\ufb02exible, slow Managing talent conservative, ef\ufb01cient to respond to new Sir Alex Ferguson, former manager person who can turn ideas possibilities of Manchester United, one of the into practical actions world\u2019s best-known soccer teams, is a master of building winning Painstaking, conscientious Inclined to worry unduly, teams over and again, and his person who is always able reluctant to delegate methods can be applied to the business environment. His team to meet deadlines was bonded by a strong sense of shared mission\u2014a desire to win. Single-minded, dedicated Contributes only on Players were cohesive on the \ufb01eld, self-starter who brings a narrow front because Ferguson demanded knowledge or technical cohesiveness off the \ufb01eld. An exceptional team culture ran skills that are in rare supply through the veins of every player","LIGHTING THE FIRE 85 Teams develop direction, because talented people often contributions. In The Wisdom momentum, and commitment resist being managed, and it of Teams, Jon Katzenbach and can be dif\ufb01cult to \ufb01nd challenges Douglas Smith de\ufb01ned a team as by working to shape a that keep them suf\ufb01ciently \u201ca small number of people with meaningful purpose. motivated, while at the same complementary skills who are Jon R. Katzenbach time aligned with organizational committed to a common purpose, Douglas K. Smith goals. However, teams provide set of performance goals, and an environment where talent can approach, for which they hold and every staff member. Ferguson thrive. By giving talented staff themselves mutually accountable.\u201d realized the value of positive group teams to manage, or\u2014although No individual is responsible for norms. He was, for example, one risky\u2014grouping talent together success or failure, because no one of the \ufb01rst managers to ban the in teams, it is possible to stretch acts alone. Teamwork encourages consumption of alcohol. Moreover, even the most gifted member of listening, responding constructively alongside a host of team-building staff. Teams provide a framework to the views of others, providing activities\u2014quizzes on the team and value system to which all support, and recognizing the bus, for example\u2014he demanded members, however skilled or interests, skills, and achievements ferocious loyalty. Players could talented, must adhere. of the other team members. expect unfailing public support from Ferguson and the team. Equally, Collective products Most successful teams are players were expected to observe a Businesses, like sports teams, formed in response to a perceived code of media silence in regard to face performance challenges for threat or opportunity. When these teammates. Anyone breaching this which teams are a powerful arise, the role of senior leaders is to team ethic was quickly ousted. solution. This is because teams organize teams with clear purpose, are not simply a group of people balanced membership, disciplined Team management often who work together; they are judged procedures, and strong bonds, involves dealing with large egos not by individual performance, while giving them enough and highly talented people. Ferguson but by their \u201ccollective work \ufb02exibility to develop their own recognized that it was folly to rein products.\u201d These are the pieces timing and approach. By doing so, in signi\ufb01cant talent\u2014players Eric of work\u2014which might be products, leaders create environments where Cantona and Cristiano Ronaldo surveys, or experiments\u2014that individuals\u2014and therefore the were both encouraged to express come about as a result of joint organization\u2014are able to succeed their soccer-playing \ufb02air\u2014but he and \ufb02ourish. \u25a0 also transferred highly skilled players who felt themselves to be more important than the team. Talent management is a source of frustration for many executives, Flying geese demonstrate the power of teamwork. By \ufb02ying together, each one reduces air resistance for the ones behind. They rotate leadership and \u201ctalk\u201d continuously by honking.","86 LEADERS ALLOW GREAT PEOPLE TO DO THE WORK THEY WERE BORN TO DO MAKE THE MOST OF YOUR TALENT IN CONTEXT S taff in many organizations 2012 Global Work force Study only reports feeling undervalued, 35 percent of employees reported FOCUS overstretched, and forced to engagement with their jobs, Work-force effectiveness work in areas beyond its competence. revealing a disconnect with what Because of this they feel ineffective employers want and what employees KEY DATES \u2014they want to work better, but feel are willing to give. Studies have 1959 US psychologist that the organization is constraining found engaged employees\u2014those Frederick Herzberg de\ufb01nes them. The best companies allow devoted to their jobs and committed factors in job satisfaction in his staff to build careers around what to the company\u2019s values\u2014are study The Motivation to Work. they excel at\u2014in leadership expert signi\ufb01cantly more productive, Warren Bennis\u2019s words \u201cto do the provide better customer service, 1960 In his book The Human work they were born to do.\u201d and outperform those who are less Side of Enterprise, US engaged. But many companies treat academic Douglas McGregor Contemporary organizations, staff as little more than pieces on proposes Theory Y, urging faced with dynamic, fast-moving an organizational chessboard that companies to adopt a markets, favor employees who are can be moved around at will. participatory management \ufb02exible and multiskilled. Yet in a style that motivates workers to strive to achieve their potential. Effective people create effective organizations. 1989 US management guru Great leaders allow great people Rosabeth Moss Kanter\u2019s to excel at what they do well. When Giants Learn to Dance suggests that employees are most productive when empowered to make their own decisions. They value the factory \ufb02oor as much as the shareholders.","LIGHTING THE FIRE 87 See also: Leading well 68\u201369 \u25a0 Creativity and invention 72\u201373 \u25a0 Effective leadership 78\u201379 \u25a0 Organizing teams and talent 80\u201385 \u25a0 Is money the motivator? 90\u201391 Google\u2019s innovative, dynamic culture, underachievement. Consequently, up to the shareholders. Companies in which staff are encouraged to work equipping employees with the tools that value effectiveness over to their strengths and explore projects to develop effective habits can lead to volume, and performance over that they are passionate about, is one of more effective performance, happier, presenteeism (when staff works the reasons for the company\u2019s success. more productive staff, and, in turn, despite illness, instead of taking improve a company\u2019s results. sick leave) often \ufb01nd themselves In his two-factor theory, US at the top of best-employer lists. psychologist and management Working better, not harder Leaders of these companies realize thinker Frederick Herzberg identi\ufb01ed Google, borrowing from a practice that shareholder value is driven by a sense of achievement as being introduced by US conglomerate 3M staff performance; allowing staff closely linked to motivation to work. in 1948, encourages staff to spend to build careers around what they Effectiveness is intrinsically 20 percent of their time on projects excel at is good for employees and rewarding; even the most generous of their own choosing. Rather than the bottom line. \u25a0 salary cannot, over the long term, distract from directed projects, replace the satisfaction of a job well Google found that their staff works The man who does not done. The same generous salary will better on all tasks\u2014when people are work for the love of work, but not offset the dissatisfaction of passionate about their work, it does not feel like work. Such discretionary only for money, is likely to effort, the willingness of employees neither make money nor to \u201cgo the extra mile,\u201d can be the difference between good and great. \ufb01nd much fun in life. Great businesses focus on getting Charles M. Schwab the best out of people, not the most out of them. Gmail, one of Google\u2019s US industrialist (1862\u20131939) most popular products, is a result of the company\u2019s 20-percent time. Enabling staff to work better, not harder, requires an enlightened leadership approach that looks down to the factory \ufb02oor as well as Warren Bennis Born on March 8, 1925, Warren studies, Bennis was named one Bennis is an American scholar, of the ten greatest in\ufb02uencers organizational consultant, and on business thinking by management author. Enlisting BusinessWeek magazine in in the US Army in 1943, Bennis 2007. The Financial Times lists was one of the youngest infantry his classic 1985 book Leaders of\ufb01cers to serve in World War II, as one of the top 50 business and was awarded the Purple books of all time. Heart and Bronze Star for service in action. After leaving the Key works military, Bennis studied at Antioch College, Ohio, and later became 1985 Leaders: Strategies for a professor at the Massachusetts Taking Charge Institute of Technology\u2019s Sloan 1997 Why Leaders Can\u2019t Lead: School of Management. Widely The Unconscious Conspiracy regarded as the pioneer of the Continues contemporary \ufb01eld of leadership 2009 On Becoming a Leader","88 THE WAY FORWARD MAY NOT BE TO GO FORWARD THINKING OUTSIDE THE BOX IN CONTEXT T he competitive pressures old environment. To avoid this, the that businesses face are idea of \u201cthinking outside the box\u201d FOCUS constantly in \ufb02ux: new ideas is used to challenge precepts and Innovation and disruptive technologies emerge, assumptions\u2014to consider that the economic power of countries sometimes, the way to move KEY DATES shifts, and market dynamics forward is not to move forward at all. 1914 The nine-dots puzzle change. Yet business history is is published in Sam Loyd\u2019s littered with companies that The idea of thinking outside the Cyclopedia of Puzzles. ignored change and pushed forward box emerged in the 1960s and is with \ufb02awed strategies based on the based on the nine-dots puzzle, a 1967 Edward de Bono coins game that was used by management the term \u201clateral thinking\u201d to describe the process of the Markets are dynamic; \u201chorizontal imagination,\u201d technologies and competitive which has a broad sweep but is unconcerned with detail. pressures change. 1970s There is a surge of For businesses to survive, management consultants leaders must motivate staff encouraging creativity. to avoid \ufb01xed thinking. Strategic thinking is said to embrace retrenchment and retreat. 2012 Jeff Bezos of Amazon claims that \u201dif you\u2019re inventing and pioneering, you have to be willing to be misunderstood for long periods of time.\u201d Thinking outside the box Sometimes the way is a leadership tool that to move forward encourages creative is not to move responses to problems. forward at all.","LIGHTING THE FIRE 89 See also: Gaining an edge 32\u201339 \u25a0 Keep evolving business practice 48\u201351 \u25a0 Creativity and invention 72\u201373 \u25a0 Changing the game 92\u201399 \u25a0 Forecasting 278\u201379 \u25a0 Feedback and innovation 312\u201313 The nine-dots puzzle challenges players to connect the nine dots with four straight lines or less, without lifting pen from paper or tracing the same line twice. The solution involves drawing lines \u201coutside the box.\u201d Nintendo\u2019s Wii console is a product Zuckerburg\u2019s hugely successful price and increasingly of lateral thinking. Rather than taking Facebook. The future survival of sophisticated games, the Nintendo on their industry rivals head on, the MySpace depended on new Wii created a whole new market. Its Wii\u2019s designers rede\ufb01ned gaming thinking\u2014it turned its business unique player interface\u2014with a as a family-friendly, social activity. around by successfully refocusing range of handheld, wireless on a core market of creative music controllers\u2014and focus on group- consultants to encourage lateral professionals, leaving the social- based gaming made it family- thinking. Several of its solutions media mass-market to Facebook. friendly; suddenly gaming was a involved drawing lines that were social activity for gamers of all ages literally outside the puzzle\u2019s box. Other companies have and experience levels. The console The phrase was adopted to represent employed leaders with a more quickly outsold the competition in any kind of creative thinking that radical approach to guide them almost every territory. goes beyond the obvious. Today, through fast-changing times. thinking outside the box represents Nintendo\u2019s response to the Leaders taking this kind of \u201cbold innovation, the need to be aware of technological superiority of the retreat\u201d willingly cede technological market changes, and the need to X-Box and Playstation, for example, advantage or market position to the avoid \ufb01xed ways of thinking. was to think differently. Instead of dominant player, pursuing instead competing on the usual grounds of less vulnerable (and often more The bold retreat pro\ufb01table) market positions. Linear thinking\u2014the opposite of BT should have invented thinking outside the box\u2014has been Skype. But they didn\u2019t Rethinking the box responsible for the downfall of Some business leaders believe that many businesses. MySpace, a because the concept of a free even creative thinkers may take website that dominated the online platform totally disrupts their certain things\u2014such as social-media market in the early organizational structure\u2014for 2000s, is an example of a business business model. granted. They are therefore that fell victim to strategic Alan Moore encouraging their staff to think retrenchment\u2014sticking to a failing literally \u201cbeyond the building\u201d for strategy rather than adapting to US systems expert new ideas. Procter & Gamble CEO new competition or a changing A G La\ufb02ey sent employees to live marketplace. Purchased by News temporarily in the homes of Corp for $580 millon in 2005, the consumers to better understand business was sold in 2011 for $35 their needs and identify product million, having failed to match the opportunities. The box itself, it creative vision of Mark seems, is perhaps a distraction. \u25a0","90 THE MORE A PERSON CAN DO, THE MORE YOU CAN MOTIVATE THEM IS MONEY THE MOTIVATOR? IN CONTEXT When present, If poorly managed, motivators\u2014such as hygiene factors\u2014such as FOCUS recognition, professional pay, conditions, supervision, Motivation growth, and responsibility\u2014 and security\u2014can increase can contribute to job KEY DATES job dissatisfaction. 1914 Henry Ford doubles satisfaction. wages at Ford Motor Company in an effort to reduce labor Money matters, but workplace motivation is much turnover. Thousands apply more complex than \ufb01nancial reward alone. for jobs with the company. I f you were paid more, would Herzberg began to study workplace 1959 Fredrick Herzberg you work harder? The answer motivation in the 1950s while proposes his theory that is probably partly yes, and teaching at Case Western Reserve \u201cmotivators\u201d and \u201chygiene partly no. Higher pay might University, OH. In 1959 he proposed factors\u201d lead to satisfaction encourage you to move to a new job the \u201ctwo-factor theory\u201d\u2014that a or dissatisfaction at work. He or to work a little faster or harder, series of \u201cmotivators\u201d encourage job stresses that pay demotivates, but this focus is soon eroded\u2014or satisfaction, while aspects of work but it does not motivate. equally, magni\ufb01ed\u2014by other factors, termed \u201chygiene factors\u201d contribute such as job satisfaction, respect to dissatisfaction in the workplace 2000s \u201cBest Employer\u201d lists from managers, and the challenge if they are poorly managed. reveal that the highest ranked presented by the work itself. companies are often not those Removing dissatisfaction offering the biggest salaries. Financial gain can move us Hygiene factors include working to do things, but motivation is more conditions, job security, relationships 2012 Fortune magazine cites complex than money alone. US with other workers, and salary. Google as the best organization psychologist Professor Frederick to work for in the US, and it also tops the list of employers in developing countries, including India. High salaries and a range of perks contribute to staff satisfaction.","See also: Leading well 68\u201369 \u25a0 The value of teams 70\u201371 \u25a0 Creativity and LIGHTING THE FIRE 91 invention 72\u201373 \u25a0 Effective leadership 78\u201379 \u25a0 Make the most of your talent 86\u201387 Frederick Herzberg JOB DISSATISFACTION JOB SATISFACTION US psychologist Frederick Company policy and Achievement Herzberg was born on April administration Recognition 18, 1923. He attended City Supervision Work itself College of New York and later Relationship with supervisor Responsibility held a professorship at the Work conditions Advancement University of Utah, USA. Salary Growth Herzberg\u2019s service in the Relationship with peers US Army, in particular his Personal life Herzberg\u2019s two-factor observation of conditions Relationship with subordinates theory illustrates the at the Dachau concentration Status dichotomy of workplace camp in Germany during Security motivation\u2014that for the World War II, is thought to most part, job satisfaction have inspired his interest derives from ful\ufb01lment of in motivational theory. a different set of factors (\u201cmotivators\u201d) than those Challenging the notion that cause dissatisfaction that workers are driven only (\u201chygiene factors\u201d). by money and other bene\ufb01ts, Herzberg suggested that Motivators achievement and recognition Hygiene factors are powerful motivators. He believed that managers should create safe, happy workplaces and make tasks interesting, challenging, and rewarding. His work in\ufb02uenced a generation of managers. Key works Motivators include recognition, increase job satisfaction, but when 1959 The Motivation to Work responsibility, the opportunity for lacking, actually only result in low 1968 One More Time: How do advancement, a sense of personal levels of employee dissatisfaction. you Motivate Employees? achievement, and potential for 1976 The Managerial Choice: growth\u2014as Herzberg put it \u201cthe Motivators in practice To Be Ef\ufb01cient and to Be more a person can do,\u201d the more Herzberg\u2019s \ufb01ndings are signi\ufb01cant Human easily they can be motivated. for business leaders. The two-factor theory proposes that job design is environment and \ufb02exible working Herzberg argued that job crucial\u2014it must create conditions policies. Initiatives such as the dissatisfaction is as important in which employees can feel a sense \u201cfriends and family contract\u201d\u2014in as satisfaction. He believed that of achievement, enjoy responsibility, which employees from the same unless hygiene factors were well and gain recognition for their work. family or friendship group can cover managed, no matter how good the Levels of pay may be important for each other\u2019s shifts\u2014give staff a motivators, staff would not be recruitment and retention, but it sense of shared responsibility, and inclined to work hard. They would, is less important in encouraging enhance loyalty to the company. he suggested, be so dissatis\ufb01ed as staff to work effectively. to be demotivated. He also believed The top-paying companies are that hygiene factors do not, in Every day, thousands of people rarely ranked as the best employers. themselves, motivate; but when around the world apply for jobs at Money matters, but job satisfaction, ful\ufb01lled, they reduce dissatisfaction fast-food outlet McDonald\u2019s. career advancement, management and provide a foundation for Frequently rated at the top of \u201cbest attitude, and personal relations are motivation. On the other hand, employer\u201d lists, the chain is popular the workplace factors that most motivators have great potential to because of a friendly working motivate us to work harder. \u25a0","BE AN ENZYME\u2014 A CATALYST FOR CHANGE CHANGING THE GAME","","94 CHANGING THE GAME IN CONTEXT T he business people we I want to put a dent remember are those who in the universe. FOCUS do things differently\u2014 Steve Jobs Innovation people such as Facebook CEO Sheryl Sandberg, US investor Thinking one step ahead of KEY DATES Warren Buffett, Hong Kong business customers and competitors disrupts 1997 US professor Clayton M. magnate Stanley Ho, British the status quo in a business\u2019s favor. Christensen introduces the entrepreneur Richard Branson, concept of \u201cdisruptive and US media giant Oprah Winfrey. Disruptive innovation technologies\u201d\u2014major and Similarly, the companies we Harvard Business School scholar unforeseen technological remember are those whose products Clayton Christensen identi\ufb01ed advances that cause companies and services stand out. Companies two types of technology that can to rede\ufb01ne how they operate. that shuf\ufb02e along with the crowd, in\ufb02uence businesses: \u201dsustaining doing the same thing in the same technologies,\u201d or advances in 2000s Global Positioning old way, are soon forgotten; those technology that help companies System (GPS) navigational that disrupt industries and change make gradual improvements to technology emerges as a the game are celebrated, sometimes product performance; and disruptive innovation in a even idolized. \u201cdisruptive technologies,\u201d radical range of industries, from travel advances in technology that disrupt and \ufb01tness to recreation and In today\u2019s global market, the industry and force companies to smartphone applications. competition is \ufb01erce and every rethink their entire mode of being. percentage point of market share is Christensen later changed the term 2014 US professor of business hard fought and precious. Operating \u201cdisruptive technology\u201d to administration David in these markets is often a zero-sum McAdams writes Game- game: competition drives prices Changer: Game Theory and the down and costs up. Gaining a Art of Transforming Strategic signi\ufb01cant competitive advantage Situations. McAdams uggests requires more than gradual that game-changers are those improvement, it demands radical who are \u201cdetermined enough and disruptive shifts\u2014if you cannot to change the game to their win the game, move the goalposts. own advantage.\u201d Rede\ufb01ning the rules and boundaries of an industry is the essence of game-changing business strategy. Steve Jobs Entrepreneur and inventor fate, Apple bought NeXT in 1996 Steven Paul Jobs was born on and Jobs returned to Apple later February 24, 1955 in San that year, becoming CEO in Francisco, California, US. In 1976, 1997. In 1998 Jobs launched the at the age of 21, he and Steve iconic iMac computer and went Wozniak started Apple Computers on to preside over one of the (from the garage in Jobs\u2019s home). most famous corporate The business went public in 1980, renaissances in history. Under with a market value of $1.2 billion. his guidance, Apple led the way with innovative product design In 1985, after disagreements and technology to become one with the board, Jobs was \ufb01red of the most valuable technology by recently appointed CEO John businesses in the world. Sculley. Jobs nevertheless went on to found NeXT Computer and In 2010, Steve Jobs was 61st invest in Pixar Animation Studios, in Time Magazine\u2019s \u201c100 People which was to become hugely who Changed the World.\u201d successful. In a twist of corporate He died on October 5, 2011.","LIGHTING THE FIRE 95 See also: Stand out in the market 28\u201331 \u25a0 Gaining an edge 32\u201339 \u25a0 Creativity and invention 72\u201373 \u25a0 Thinking outside the box 88\u201389 \u25a0 Leading the market 166\u201369 \u25a0 The value chain 216\u201317 \u25a0 Creating a brand 258\u201363 Today\u2019s markets are ...and increasingly Gradual change increasingly global... competitive. can only bring gradual improvement to a company. They are ...they rede\ufb01ne the But successful leaders catalysts markets in which embrace radical, for change. they operate. disruptive thinking... \u201cdisruptive innovation\u201d to re\ufb02ect need for a product, even before with the new market segment. the fact that it is not so much customers realize such a need The German company Siemens, technology itself that is disruptive exists, and opens up new, for example, built the world\u2019s \ufb01rst as how that technology is applied. untapped markets with signi\ufb01cant electric elevator in 1880, and in \ufb01rst-mover advantages\u2014not least 1881 provided power for the world\u2019s One such product that has of which is brand association \ufb01rst electric street lights (in changed the game by adapting technology for new purposes is GlowCap. A screw-on top that can be attached to prescription medicine containers, GlowCap contains a glowing LED and audio alert that signal when medication should be taken. It also connects via Wi-Fi to the user\u2019s smartphone, sending a text message or an email alert if a dose is missed. Like many game changers, it utilizes lateral thinking to present a solution to an existing problem, effectively meeting the consumer\u2019s needs. Disruptive innovation creates the The Crystal is one of the world\u2019s most sustainable buildings. Built in the UK by Siemens, it symbolizes the spirit of innovation that has been the hallmark of the company since the 1880s.","96 CHANGING THE GAME PERFORMANCE Overperformance of existing product creates a gap for a Disruptive innovation refers to new, \u201cdisruptive\u201d product an innovation that transforms the Point of overperformance market. When an existing product boasts more features or services TIME than customers require, it may become too complex or dif\ufb01cult to use. As the gap between the existing product\u2019s performance and customer requirement grows, it creates a gap in the market that can be exploited by a new, \u201cdisruptive\u201d product. Over time, the new product can rede\ufb01ne the market. Performance demand of mainstream consumers Mean performance demand Existing company\/ product New \u201cdisruptive\u201d company\/product Godalming, England). More recent industry, the music industry, the unlikely to have shifted the market game-changing products in cell-phone industry, and the tablet- very far\u2014true game changers raise lighting, energy, transportation, computer industry. eyebrows and prompt questions. and healthcare have ensured that the Siemens name is associated Apple\u2019s iMac, with its focus Interfacing technologies with quality and innovation. on user-friendly design and The iPod was a cross between the software, made a signi\ufb01cant early crop of low-storage MP3 Leaders like the company\u2019s impact on the personal computer players and the large, hard-drive- founder, Werner von Siemens\u2014 industry. However, Apple\u2019s \ufb01rst based players that provided several those with the vision and courage major game changer was the iPod, gigabytes of storage. Amid a sea of to pursue game-changing \ufb01rst introduced in 2001. The bland competing products, the iPod strategies\u2014are, however, all too product was met with scepticism\u2014 stood out thanks to its stylish and rare. It takes great courage to break but this, according to Christensen, distinctive design. It was small, easy from tradition; and charisma and is a classic reaction to a game to use, and came with the promise conviction to lead individuals, changer. A product that is accepted of \u201c1,000 songs in your pocket.\u201d organizations, and entire industries at \ufb01rst glance as a \u201cwinner\u201d is away from the status quo. Success The real disrupter, however, was is met with reward and celebration; You cannot lead the combined power of the iPod failure with ridicule and scorn. from the crowd. and its software interface, iTunes. For would-be game changers, the Margaret Thatcher Customers could now access a line between fame and infamy is huge amount of music from one often thin. UK former Prime Minister (1925\u20132013) place, buy it, download it, and \u201csync\u201d music from their computer Rewriting the rules to their devices with ease. The Another company that has changed iPod could also be charged while the game in its favor, on several syncing. The fact that we now occasions, is Apple. Under the take such features for granted guidance of its co-founder and demonstrates the extent to which CEO, Steve Jobs, the organization Apple transformed the market disrupted the desktop computer for personal-music devices.","LIGHTING THE FIRE 97 The iTunes Music Store (now the The iTunes Store and the iPod It\u2019s kind of fun to do iTunes Store) rede\ufb01ned the music system, quite simply, worked for the impossible. industry in 2003. At the time, digital consumers, who had been baf\ufb02ed Walt Disney music piracy was on the rise; record by the many MP3 players and online labels were \ufb01ghting against digital methods of \ufb01nding music. Apple US entrepreneur (1901\u20131966) distribution for fear of losing control simpli\ufb01ed the process, and made and further damaging already its solution aesthetically appealing called the iPhone \u201ca revolutionary declining revenues. Jobs exploited at the same time. By 2013, its product,\u201d claiming it was \u201c\ufb01ve the record executives\u2019 nervousness strategy had brought sales of around years\u2019 ahead of any other cell to his advantage, offering people a 400 million iPods and more than phone.\u201d His words were prophetic: way to purchase music legally but 25 billion iTunes Store downloads. for some years after, the iPhone easily and instantly. remained the standard against Continually game-changing which all other cell phones Apple\u2019s software changed the Such radical disruption, if achieved were assessed and de\ufb01ned. music industry\u2019s business model only once, could be put down to forever. In addition to changing the good luck, but true game changers Shortly before his death in 2011, way we access and listen to music, are those who persistently seek Jobs did it again\u2014this time with iTunes enabled people to buy single to separate themselves from the the iPad. Launched in April 2010, tracks from albums. Artists no competition. Steve Jobs was not to confusion and some cynicism, longer needed to slave for months content merely to have changed the the iPad came to (re)de\ufb01ne the on albums, but could release a music industry: in 2007 he turned industry. It extended access to steady stream of singles instead. his attention to the cell-phone technology beyond its accepted Consumers no longer felt trapped industry. Cell phones had been business, educational, and \u276f\u276f into album purchases and felt less getting smarter for a while, but the need to search for free, pirated iPhone was a giant leap forward. downloads in place of legal versions. Offering users access to a suite of computer-like applications and, The Apple logo has become a global in particular, seamless Internet emblem of the modern age\u2014an access, it was an instant hit. The indication of the extent to which real breakthrough was the iPhone\u2019s the organization has revolutionized touch-screen technology. Jobs technology and product development.","98 CHANGING THE GAME What today seems odd, change.\u201d But to be truly successful, Problems cannot be unnecessary, offbeat\u2014maybe and to outlive the tenure of a highly solved at the same level driven leader, the desire to disrupt even outrageous\u2014may must be pervasive. The energy, of awareness that prove integral to solving innovation, and courage required created them. to repeatedly disrupt industries tomorrow\u2019s problems. must be deeply ingrained in the Albert Einstein Pierre Omidyar corporate culture, which must also allow for \ufb02exibility to change. German-born physicist (1879\u20131955) desktop-bound roots, in a format that few, at \ufb01rst, expected to be In the case of eBay, Omidyar users to do most of the work. These popular. The iPad ushered in realized that the future was features nevertheless ensured a new era of computing, and unpredictable and nonlinear, that eBay evolved not only around remains, even in an increasingly and decided to structure his new Omidyar\u2019s ideas and energy, but crowded tablet-computer market- venture with the approach of a also around the requirements of the place, the industry standard. software engineer (his former job), entire eBay community. \u201cwho has learned to strive for Corporate culture \ufb02exibility in design.\u201d While a Embracing failure Apple has changed the game so software program might seem However, such deeply embedded signi\ufb01cantly that the brand has initially to provide more than its game-changing mentality is rare. entered the cultural zeitgeist: its customers need, this is what gives Heroic leaders\u2014game changers and products are seen everywhere\u2014 it the \ufb02exibility to change and risk takers\u2014are dif\ufb01cult to \ufb01nd and from coffee shops and classrooms \u201cprepare for the unexpected.\u201d even more dif\ufb01cult to replace. With to television shows. Apple\u2019s Ebay\u2019s self-sustaining system fewer than one in ten new product technology has made its products required little intervention and was ideas making it to market, people ubiquitous and its customers able to adapt and grow according fanatically brand loyal. With such a to customer needs. Its design competitive edge, it is no surprise effectively embedded disruption that the company\u2019s prices are able within the core structure. The idea to sit well above industry averages. of allowing users to rate each other was both new and risky\u2014as was But the challenge for any a business model that required organization is to ensure that such game-changing mentality informs the spirit of the whole company. As French businessman Pierre Omidyar, founder of the online auction site eBay, suggests, a leader must be \u201ca catalyst for Pierre Omidyar, chairman and founder of the popular auction site eBay, has embedded the desire for innovation and dramatic change within his company\u2019s corporate culture."]