Accelerate!
Organizing for exploit/explore
In his book 'Accelerate!' leadership and change management expert John Kotter argues that businesses need to be re-designed to respond more quickly to a fast-changing world. He advocates a dual operating system; keeping the traditional organizational hierarchy that meets the daily demands of running an enterprise in place (what we would call ‘exploit’), and at the same time recognizing that this system focuses on reliability and efficiency and is not built for change. For this reason, he recommends installing a second network-like structure similar to start-ups that is future-oriented and can act faster (designed to ‘explore’).
Next, Kotter talks about the eight accelerators for leaders to use in achieving transformational objectives. We like his approach because he applies change management principles to strategy development. Starting with identifying the big opportunity, creating a guiding coalition, and communicating the vision, and ending with institutionalizing changes by implementing them in the hierarchy system. This last step is crucial, without it you run the risk of ending up with two separate companies instead of an engine for transforming your core business. However, in our experience it’s also the most challenging part. You need ambidextrous leaders (who can do both exploit and explore) to connect the two.
Do you recognize the dual operating system? Are you able to use the network system as a catalyst for change in your traditional business?