Accelerate

1. The world is changing faster than ever, demanding a new organizational approach

"We are crossing a line into a territory with unpredictable turmoil and exponentially growing change—change for which we are not prepared."

Exponential change: The pace of change in business and technology is accelerating exponentially. This rapid transformation is evident in various metrics:

• Patent applications have skyrocketed
• Hard drive storage capacity has grown exponentially
• Stock market trading volume has increased dramatically

Organizational challenges: Traditional organizational structures and processes are struggling to keep up with this accelerated pace. Companies face:

• Increased competition
• Technological disruptions
• Shorter product lifecycles
• Rapidly shifting market demands

To thrive in this new environment, organizations must develop new capabilities for agility, speed, and innovation while maintaining efficiency and reliability.

2. Traditional hierarchies are ill-equipped for rapid strategic change

"Management-driven hierarchies are built to minimize risk and keep people in their boxes and silos."

Limitations of hierarchies:

• Designed for stability and efficiency, not rapid change
• Slow decision-making processes
• Silos inhibit cross-functional collaboration
• Risk-averse culture stifles innovation

Consequences of inaction:

• Missed opportunities
• Loss of market share
• Inability to adapt to disruptive technologies
• Potential business failure

Traditional hierarchies often attempt to address these challenges through:

• Elongated planning cycles
• Task forces and special projects
• Change management initiatives

However, these enhancements are often insufficient to create the level of agility and speed required in today's business environment.

3. A dual operating system combines hierarchy and network for agility and efficiency

"The solution is not to trash what we know and start over but instead to reintroduce, in an organic way, a second system—one which would be familiar to most successful entrepreneurs."

Dual system structure:

• Hierarchy: Maintains efficiency and reliability for day-to-day operations
• Network: Provides agility and speed for strategic initiatives

Key characteristics:

• Seamless integration between hierarchy and network
• Volunteer-driven network side
• Leadership from all levels of the organization

Benefits:

• Increased capacity for innovation
• Faster response to market changes
• Improved employee engagement
• Maintained operational efficiency

The dual operating system leverages the strengths of both traditional hierarchies and entrepreneurial networks, allowing organizations to be both stable and agile simultaneously.

4. The network side thrives on volunteer energy and a sense of urgency

"Urgency, in the sense I am using the word here, means that significant numbers of people wake up each morning and have, somewhere in their heads and hearts, a compelling desire to do something to move the organization toward a big strategic opportunity."

Creating urgency:

• Focus on opportunities, not threats
• Communicate a compelling vision
• Engage both hearts and minds

Volunteer army:

• Typically 5-10% of the organization's workforce
• Drawn from all levels and functions
• Passionate about driving change

Benefits of volunteer energy:

• Increased creativity and innovation
• Faster execution of initiatives
• Greater commitment to outcomes
• Reduced resistance to change

By tapping into intrinsic motivation and creating a sense of urgency around strategic opportunities, organizations can mobilize a powerful force for change without adding significant costs or disrupting daily operations.

5. The "Big Opportunity" aligns and motivates the organization

"A Big Opportunity is both rational in light of available data and emotionally compelling to people inside an organization."

Characteristics of a Big Opportunity statement:

• Short (less than one page)
• Rational and data-driven
• Emotionally compelling
• Positive and authentic
• Clear and aligned with existing strategies

Purpose:

• Aligns the organization around a common goal
• Motivates action and creates urgency
• Provides a focal point for strategic initiatives

Example components:

• Market trends and customer needs
• Organizational strengths and capabilities
• Potential for growth or transformation
• Timeline for action
• Benefits to stakeholders

The Big Opportunity serves as a North Star for the organization, guiding both the hierarchical and network sides of the dual operating system towards a shared vision of success.

6. Eight accelerators drive the network side of the dual system

"The eight Accelerators which build and then run the network side of an organization are all founded on these basic ideas."

The eight accelerators:

1. Create a sense of urgency around a Big Opportunity
2. Build and evolve a guiding coalition
3. Form a change vision and strategic initiatives
4. Enlist a volunteer army
5. Enable action by removing barriers
6. Generate short-term wins
7. Sustain acceleration
8. Institute change

Key principles:

• Continuous and iterative process
• Driven by volunteer energy
• Focused on strategic opportunities
• Integrated with the hierarchical side

These accelerators work together to create a dynamic and self-sustaining network that can rapidly identify and capitalize on strategic opportunities while overcoming barriers to change.

7. Leadership, not management, is crucial for the dual operating system

"Leadership is about setting a direction. It's about creating a vision, empowering and inspiring people to want to achieve the vision, and enabling them to do so with energy and speed through an effective strategy."

Distinction between management and leadership:

• Management: Focuses on planning, budgeting, organizing, and controlling
• Leadership: Emphasizes vision, alignment, motivation, and inspiration

Leadership requirements for the dual system:

• Creating and communicating the Big Opportunity
• Role-modeling urgency and passion
• Empowering volunteers across the organization
• Removing barriers to change
• Celebrating wins and sustaining momentum

Challenges:

• Shifting mindset from control to empowerment
• Balancing short-term results with long-term vision
• Developing leadership capabilities throughout the organization

Effective leadership is essential for creating and sustaining the dual operating system, as it provides the vision, energy, and inspiration needed to drive strategic change.

8. Successful implementation requires overcoming common challenges

"The biggest challenge is how to make people who are accustomed to control-oriented hierarchies believe that a dual system is even possible."

Common implementation challenges:

• Skepticism about the feasibility of a dual system
• Resistance from middle management
• Maintaining alignment between hierarchy and network
• Preventing volunteers from neglecting their regular jobs
• Avoiding a reversion to hierarchical behaviors in the network

Strategies for success:

• Education and communication about the dual system concept
• Demonstrating early wins to build credibility
• Continuous role-modeling from senior leadership
• Regular check-ins between the guiding coalition and executive committee
• Vigilance in identifying and addressing "default" behaviors

Key success factors:

• Strong support from top leadership
• Clear alignment around the Big Opportunity
• Consistent application of the eight accelerators
• Patience and persistence in building the dual system over time

By anticipating and addressing these challenges, organizations can successfully implement and sustain a dual operating system that combines the stability of a hierarchy with the agility of a network.

Last updated: October 19, 2024