The Advantage: Why Organizational Health Trumps Everything Else In Business
There is a competitive advantage out there, arguably more powerful than any other. Is it superior strategy? Faster innovation? Smarter employees? No, New York Times best-selling author, Patrick Lencioni, argues that the seminal difference between successful companies and mediocre ones has little to do with what they know and how smart they are and more to do with how healthy they are. In this book, Lencioni brings together his vast experience and many of the themes cultivated in his other best-selling books and delivers a first: a cohesive and comprehensive exploration of the unique advantage organizational health provides.
Simply put, an organization is healthy when it is whole, consistent and complete, when its management, operations and culture are unified. Healthy organizations outperform their counterparts, are free of politics and confusion and provide an environment where star performers never want to leave. Lencioni’s first non-fiction book provides leaders with a groundbreaking, approachable model for achieving organizational health—complete with stories, tips and anecdotes from his experiences consulting to some of the nation’s leading organizations. In this age of informational ubiquity and nano-second change, it is no longer enough to build a competitive advantage based on intelligence alone. The Advantage provides a foundational construct for conducting business in a new way—one that maximizes human potential and aligns the organization around a common set of principles.
Q&A with Patrick Lencioni, Author of The Advantage
Unlike my other books, The Advantage is not written as a fable because the nature of the subject it covers is just too broad to fit into one story. In the past, I've taken on slightly more contained and limited issues--teamwork, meetings, employee engagement--but this time I'm taking a much more holistic, comprehensive approach to improving organizations. Still, I've used stories about real organizations to bring the points to life, and I'm hoping that readers enjoy those stories and find them helpful in learning and applying the principles.
Do you consider your company healthy?
Yes, I consider my company healthy. And like any healthy company, we're messy and imperfect. We argue sometimes, we make mistakes, we try things that don't work. But we know who we are, what we believe in, and what we're trying to accomplish, so we're able to recover from setbacks quickly and grow stronger through conflict and adversity. I'm glad to say that we've always believed in living the principles that we espouse. And though we can sometimes forget and feel like the cobbler's children without shoes, we have certainly worked hard to become a healthy organization, and we continue to do so every day.
Having worked with companies for so many years, is there anything that still surprises you?
Yes, I still get surprised by what I see in companies I work with, even after all these years. Some of that surprise is just a function of the fact that no two people, and thus no two organizations, are exactly alike. The nuances are interesting and keep me on my toes. But ironically, the biggest surprise I get is being reminded again and again that even the most sophisticated companies struggle with the simplest things. I guess it's hard for me to believe that the concepts I write and speak about are so universal. I don't know that I'll ever come to terms with that completely.
How can someone who's not in the upper levels of their organization make an impact on its health?
While it's true that no one can influence and organization like the leader, and that without a leader's commitment and involvement, organizational health cannot become a reality, there are many things that employees deeper in an organization can do to make health more likely. First, they have to speak truth upward in the organization. Most leaders, even the struggling ones, want to get better. They're not leading and managing in the way they really want to, even if they don't come out and say so. When an employee is courageous and wise enough to come to them with respect, kindness and honesty, most leaders will be grateful. Without honest upward feedback, a leader cannot get better. Beyond that, people deeper in an organization can focus on making their own departments healthier, and not getting too distracted or discouraged by their inability to change things outside of their "circle of influence", as Stephen Covey says. By focusing on their own departments and their own areas of influence, they provide others in the organization with an example to follow, and they put themselves in a position to be promoted and to have even greater influence.
What's something I can do tomorrow morning to get started?
The first thing anyone can do, immediately, to begin the process of making their organizations healthier, is to begin with themselves and their team. A leader has to understand and embrace the concept of being vulnerable, which inspires trust on the leadership team. That trust is the foundation for teamwork, which is one of the cornerstones of organizational health. If a leader cannot be vulnerable, cannot admit his or her mistakes, shortcomings or weaknesses, others will not be vulnerable and organizational health becomes impossible.
Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers
Business Model Generation is a handbook for visionaries, game changers, and challengers striving to defy outmoded business models and design tomorrow's enterprises. If your organization needs to adapt to harsh new realities, but you don't yet have a strategy that will get you out in front of your competitors, you need Business Model Generation. Co-created by 470 "Business Model Canvas" practitioners from 45 countries, the book features a beautiful, highly visual, 4-color design that takes powerful strategic ideas and tools, and makes them easy to implement in your organization. It explains the most common Business Model patterns, based on concepts from leading business thinkers, and helps you reinterpret them for your own context. You will learn how to systematically understand, design, and implement a game-changing business model--or analyze and renovate an old one. Along the way, you'll understand at a much deeper level your customers, distribution channels, partners, revenue streams, costs, and your core value proposition. Business Model Generation features practical innovation techniques used today by leading consultants and companies worldwide, including 3M, Ericsson, Capgemini, Deloitte, and others. Designed for doers, it is for those ready to abandon outmoded thinking and embrace new models of value creation: for executives, consultants, entrepreneurs, and leaders of all organizations. If you're ready to change the rules, you belong to "the business model generation!" Business Model Generation is a handbook for visionaries, game changers, and challengers striving to defy outmoded business models and design tomorrow's enterprises. If your organization needs to adapt to harsh new realities, but you don't yet have a strategy that will get you out in front of your competitors, you need Business Model Generation. Co-created by 470 "Business Model Canvas" practitioners from 45 countries, the book features a beautiful, highly visual, 4-color design that takes powerful strategic ideas and tools, and makes them easy to implement in your organization. It explains the most common Business Model patterns, based on concepts from leading business thinkers, and helps you reinterpret them for your own context. You will learn how to systematically understand, design, and implement a game-changing business model--or analyze and renovate an old one. Along the way, you'll understand at a much deeper level your customers, distribution channels, partners, revenue streams, costs, and your core value proposition. Business Model Generation features practical innovation techniques used today by leading consultants and companies worldwide, including 3M, Ericsson, Capgemini, Deloitte, and others. Designed for doers, it is for those ready to abandon outmoded thinking and embrace new models of value creation: for executives, consultants, entrepreneurs, and leaders of all organizations. If you're ready to change the rules, you belong to "the business model generation!"
The Power of “What If” Questions
Content from authors Alexander Osterwalder and Yves Pigneur
…furniture buyers picked up components in flat pack form from a large warehouse and assembled the products themselves in their homes? What is common practice today was unthinkable until IKEA introduced the concept in the 1960’s. …airlines didn’t buy engines for their airplanes, but paid for every hour an engine runs? That is how Rolls-Royce transformed itself from a money-losing British manufacturer into a service firm that today is the world’s second biggest provider of large jet engines. …voice calls were free worldwide? In 2003 Skype launched a service that allowed free voice calling via the internet. After five years, Skype had acquired 400 million registered users who collectively had made 100 billion free phone calls.
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