Accelerate: Building Strategic Agility for a Faster-Moving World

According to this book, the solution is to create a second structure or operating system to run alongside the hierarchical one. This new system will be an agile network that's as dynamic as a start-up. It will be designed for competing and winning. It'll have the speed and energy of a young athlete who's first off the blocks, but it'll also have the backup of an established structure to keep it fed and watered, and to cheer it on. With these two operating systems in place, organizations will be able to achieve fiercely ambitious targets while not jeopardizing their core activities.

So if you're part of an organization that wants to capitalize on disruption, rather than be derailed by it, this book's for you. It's mainly aimed at people in leadership roles in large organizations, with the human and financial capital to run two operating systems side-by-side. And it's best suited to people who aren't afraid of testing out innovative methods.

But you don't have to be a CEO of a big firm to benefit from "Accelerate." Anybody who's threatened by change and wants to seize new opportunities while keeping up with daily demands will find its tips useful.

John Kotter is a leading authority on leadership and change, with decades of experience. He's the Konosuke Matsushita Professor of Leadership Emeritus at Harvard Business School, and the founder of the Kotter International consultancy group, which helps public and private organizations transform themselves and stay ahead of the pack.

He's also the author of 18 books, 12 of which are bestsellers, including "Leading Change." "Accelerate" expands on his previous work. You can read more about Professor Kotter's theories and hear an Expert Interview with him on the Mind Tools site.

So, keep listening to learn the principles that underpin a dual operating system, how to put a big opportunity into words so it galvanizes your team, and how to be a role model for urgency in your daily working life.

The ideas in "Accelerate" are based on the author's research into organizations that have beaten the competition by adopting new ways of operating. He focused on the top one percent or so of performers, and then looked at other companies that set out to copy these stars, generally with the aid of his consulting group.

In this book, we see how firms in industries ranging from high-tech to manufacturing put a dual operating system into practice. We read about their victories and the stumbling blocks they came across. These real-life examples are one of the strengths of this book. "Accelerate" is quite laden with theory, and its structure can be hard to follow. These case studies help break up the text with narrative and interesting detail. They also offer a helpful road map to leaders who want to follow the same path.

So, let's look at how the dual operating system works and the basic principles that underlie it.

Most successful businesses go through a similar life cycle, the author says. They start with a network-like structure that works something like a solar system, with a sun, planets, moons, and satellites. The founders sit at the center, with those surrounding them working on various initiatives.

At this stage, everyone is energized – there's full buy-in. Action and risk-taking are encouraged. The network is agile – it can capitalize on opportunities and dodge risks.

Typically, as it grows, this enterprise will develop a more hierarchical structure. Familiar managerial processes such as planning, budgeting, and job defining take root. Silos and divisions form, and rules and procedures are put in place.

There's nothing wrong with this, the author argues. A well-designed hierarchy is reliable, efficient, and enables the company to meet quarterly and annual targets. But it runs into trouble when it needs to act fast.

The good news is we can create a network within our organization that replicates the original dynamic, entrepreneurial structure. Then we can move quickly and take risks, while keeping all the managerial processes in place on the other side of the business.

If this sounds complicated, don't worry. The author offers some basic principles to help leaders set up this new network and avoid the common pitfalls. So let's take a look at these.

One of the keys to creating a well-functioning dual operating system is to get a lot of people on board, and not just the usual suspects. You need people from all areas and levels of the organization to volunteer to join the new network. And forget about external consultants – you're looking for insiders. This is about giving a cross-section of talent the power and freedom to take risks and come up with new ideas, rather than simply take orders from a few top managers.

You also need to find people with a "get-to" rather than a "have-to" mindset – people who are excited that they "get to" be part of the change process, while not giving up their day job.

Getting the right people on board has a lot to do with your ability to inspire them. You have to appeal to their hearts, not just their heads, and tap into their genuine desire to be part of a cause that'll take the organization to a new level. Meaning and purpose are great motivators.

Leadership is another key to creating a successful network. The ability to spot and respond quickly to windows of opportunity or unpredictable threats is a particular skill, and you need good leaders in place who can do this. Accelerating is all about vision, inspired action, passion, innovation, and celebration, so look for leaders who embody those qualities.

Finally, the hierarchy and network need to work well together, with a constant flow of information and activity between them. This should be easy to achieve, since the people volunteering for the network will have jobs in the hierarchy already. They're not separate entities or super-silos. There's a lot of overlap, even if they each have a very different focus and structure.

The author accepts the start-up phase may have its awkward moments, as people get to grips with unfamiliar ways of working. But if leaders can demonstrate how the network's success benefits the entire company, the dual operating system will become part of an organization's DNA.

We like the way the author underpins the network with these guiding principles. We agree that solid foundations are key to any successful new venture, particularly when you're moving into unfamiliar territory.

The author outlines eight processes that help drive action within this new network. He calls these processes "accelerators." They are: create a sense of urgency around a big opportunity; build and evolve a guiding coalition of people; form a change vision and strategic initiatives; enlist a volunteer army; enable action by removing barriers; generate (and celebrate) short-term wins; sustain acceleration; and institute change.

If you know the author's work, you'll notice that these accelerators are similar to the eight steps for leading change he's written on previously. He's adapted them for this new model, but readers familiar with the steps may find some of this book repetitive.

Let's now look at how leaders can identify a big opportunity for the network to tackle and then communicate this to the rest of the team.

Big opportunities often arise on the back of changes in an organization's external or internal landscape, such as new markets, technologies, or competitors, or new products or people. These days, big opportunities come and go in a flash, so it's vital to act fast when you see one.

But how do you get your organization excited and energized about the next big thing? The key is to come up with a well-crafted statement that captures the sense of opportunity and explains what's at stake. And you need to use language that everyone can understand, from the shop floor to the C-suite.

The author offers several tips for writing an effective statement. For a start, keep it short. This sounds obvious, but it's easy to try to say too much. Just a quarter of a page is often enough. Brevity creates a sense of urgency. Plus, a short statement is easier to communicate.

Check your statement is rational and makes sense in light of what's happening inside and outside the organization. Try to answer questions like what, why, why us, why now, and why bother, and make it as clear as possible. Having total clarity about your goals is essential – is there a target you're aiming for in terms of sales or market share?

You'll also want your statement to speak to your audience's heart, so make it compelling and authentic. And, give it a positive tone. This is not about frightening employees into action by warning them of imminent danger. It's about enthusing them to take part in something really big.

Finally, make sure your statement is aligned with any existing initiatives or corporate strategies. A lack of alignment will raise more questions than answers, and create stresses and strains.

The author accepts that such statements can seem like fluff at first glance. It's all too easy for employees to roll their eyes when they get another email outlining the latest thinking. But we think his tips for writing effective statements will convince a lot of skeptics. He also includes some really useful examples of statements companies actually used to fire up their networks. These bring his ideas to life and they could serve as templates, at least for your first draft.

Once you've got your statement, you need to create a sense of urgency around the network's activities that's infectious and has a snowball effect. The key to doing this is to employ powerful role models, the author says. This role modeling generally starts at the top but it can begin anywhere.

When leaders role-model urgency, they talk about the strategic challenges and opportunities whenever and wherever they can – in hallway conversations, at the coffee machine or the water cooler, in meetings, and in emails.

It's not about boasting or telling people what to do. It's about sharing what you are doing, why you're doing it, and how it's impacting the whole organization. Even if it's just 60 seconds here or a few minutes there, it has a cumulative effect.

The author talks about leaders he's met who've turned this into an art form, including a vice president of a high-tech firm he calls an "urgency machine." This executive peppers his conversations with examples of actions colleagues are taking that are leading the firm toward a great opportunity. He also keeps a copy of the firm's big opportunity statement on his desk, and refers to it before the end of meetings, always checking if actions are aligned with what has been agreed.

Role-modeling urgency in this way is different to how traditional hierarchical structures communicate. A management-driven hierarchy would likely appoint a communications team to come up with some messaging around an opportunity and devise ways to deliver it. But a leader who speaks passionately and authentically in a way that energizes other members of staff and makes them want to pass the message on will have a much bigger impact.

We think the author does a great job here – and throughout the book – of conveying the sense of urgency, energy, and excitement that these new, dynamic networks can bring to established organizations. But, they only work if leaders take time to lay firm foundations, get the right people on board, and set clear, rational targets.

We particularly like the section on celebrating small wins. This isn't a new idea, but it's clear that sharing a network's victories with the wider organization can boost its credibility and create a feel-good effect. Soon, you might find the most cynical of employees are rooting for the network's success.

You may have noticed that the author's message is a positive one. He's convinced that dual operating systems are the way forward for organizations that are slow off the starting blocks. But he does mention potential teething problems, and suggests ways to address these. There's a pretty comprehensive question and answer section at the end of the book, which covers practical issues like budgets and staff workload.

The author also points out that there are still lots of details to be worked out with dual operating systems. The organizations that have adopted them are blazing a trail, he says. But, for companies that are stuck in the past, watching from the sidelines as their rivals sprint by, we think this pioneering model has got to be worth a shot, and "Accelerate" provides a great road map.

"Accelerate" by John P. Kotter is published by Harvard Business Review Press.

That's the end of this episode of Book Insights. Thanks for listening.