When an organisation recalibrates to adopt a radically new strategy, most leaders focus on the changes in processes, practices and procedures. These are the mechanics of business, the easiest to measure and easier to implement. Successful change efforts engage both the mechanics and humanics of change. The humanics involves the community, collaboration and culture. In a world of constant change, organisations must adopt a “chameleonic” culture, one that is capable of rapid change in line with strategic change.
It is a pleasure to welcome the Executive Director of the Stanford d.school and the author of Creative Acts for Curious People: How to Think, Create, and Lead in Unconventional Ways, Sarah Stein Greenberg.
We are joined by the former CEO of Cypress Semiconductor, TJ Rodgers and his friend and author of Lead and Disrupt, Charles O’Reilly III
Some organisations engage in renewal as an event rather than an ongoing process. In such cases, they find their organisational skillsets and capabilities are inadequate for the new reality. Often employees who excelled in a previous reality struggle in the new paradigm. In some cases, these employees become senescent. They can even act like a senescent cell and influence those around them to become toxic and malevolent.
In Chapter 5 of the Corporate Explorer, Binns, Tushman and O’Reilly share how a Corporate Explorer created a new business inside the consulting and accounting firm Deloitte.
His new unit, Deloitte Pixel, uses the “wisdom of crowds” to solve complex management problems. Ice are joined by Balaji Bondili.
Our guest had just joined IBM from McKinsey and was assigned as an internal consultant charged with supporting these nascent businesses.
We are about to hear that story and so much more.
It is a pleasure to welcome the author of “The Corporate Explorer: How Corporations Beat Startups at the Innovation Game” Andrew Binns
O’Reilly and Tushman illustrate how leaders can align their organization’s cultures to fit the needed strategy and how ideation, incubation, and scaling approaches, when used all together, can successfully develop new growth businesses.
Businesses throw Hail Marys when encountering a crisis, such as declining sales or disruptive innovation, or technology suddenly upends their business plan. Equally, leaders throw Hail Marys to meet analyst expectations when they have been coasting in the game for a long time. In sports, there is a thin line between arrogance and confidence, and business organisations often fall into the success trap.
In part 2 of our Tushman and O’Reilly series, Charles O’Reilly III explores the importance of cultural alignment in encouraging change. We focus on the cases of DaVita, Microsoft and AGC.
In today’s business world of flux, explore units are agile, decentralised, experimental cultures, loose work processes, strong entrepreneurial and technical competencies, and relatively young and neurodiverse employees. In contrast to the exploit units, these small entrepreneurial units are inefficient, rarely profitable, and have no established histories. They often deliberately violate the norms valued in older parts of the organization.
Because the explore units are wildly different from the exploit incumbent, explorers are often undermined by the parent company, whose short-term needs override exploration. While the exploit teams win in the short term, they sink the company in the long.