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The Way Innovating Companies Are Designed Leaves Ambiguities, Overlaps, Decision Conflicts Or Decision Vacuums In Some Parts Of The Organisation. People Rail At This, Curse It-and Invent Innovative Ways To Overcome It.

-Rosabeth Moss Kanter

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The Way Innovating Companies

Rosabeth Moss Kanter

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The Way Innovating Companies Are Designed Leaves Ambiguities, Overlaps, Decision Conflicts Or Decision Vacuums In Some Parts Of The Organisation. People Rail At This, Curse It-and Invent Innovative Ways To Overcome It.

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Leadership Is One Of The Most Enduring, Universal Human Responsibilities.

The Positive Outlook That Optimists Project Does Not Come From Ignoring Or Denying Problems. Optimists Simply Assume That Problems Are Temporary And Can Be Solved, So Optimists Naturally Want More Information About Problems Because Then They Can Get To Work And Do Something. Pessimists Are More Likely To Believe That There Is Nothing They Can Do Anyway, So What's The Point Of Even Thinking About It?

I've Been Looking At Companies That Are On A Positive Path Vs. A Negative Path And I've Come To Use The Language Of Sports, Winning Streaks And Losing Streaks.

What Being Among The 'right People' Entails Is The Possession Of Human Capital, Rather Than Organizational Capital: An Individual Reputation, Portable Skills, And Network Connections. Career Responsibility Is Squarely In The Hands Of Individuals, A Function Of Their Knowledge And Networks. Transferable Knowledge Is More Important To A Career Than Firm-specific Knowledge.

Friendly People Are Caring People, Eager To Provide Encouragement And Support When Needed Most.

Our Future Will Be Shaped By The Assumptions We Make About Who We Are And What We Can Be.

America Can Restore Its Strengths As The World-respected Land Of Opportunity By Returning To Open-society Principles. An Open Society Invests In People And New Ideas, Rewards Talent And Hard Work, Values Dialogue And Learns From Dissent, Operates To High Standards With Transparent Information, Looks For Common Ground, Sees Problems As Opportunities For Creative Change, And Encourages Those Who Are Fortunate To Help Others Get The Same Chance, Because Service Is The Highest Ideal. With Such Standards In Mind, America The Beautiful Can Return To Its Admired Role As America The Principled.

The Martha Stewart Trial Makes Clear How Far Women Have Risen In The Business World. America Can Be Proud Of Our Equal-opportunity Prosecution And Conviction.

Embrace Change As An Opportunity To Learn, To Improve, To Make A Difference In Others' Lives As Well As In Your Own. Have The Courage To Challenge The Status Quo. Remember That Preparation And Ambition In Combination With Opportunity Equals Success. And Have Fun!

Power Stems From 'rainmaking,' As Law Firms Put It: The Ability To Bring Resources Into The Company.

Not Everyone In An Organization Is In A Position To Accumulate Power Through Competent Performance Because Most People Are Just Carrying Out The Ordinary And The Expected - Even If They Do It Very Well. The Extent To Which A Job Is Routinized Fails To Give An Advantage To Anyone Doing It Because 'success' Is Seen As Inherent In The Very Establishment Of The Position And The Organization Surrounding It. Neither Persons Nor Organizations Get 'credit' For Doing The Mandatory Or The Expected.

Everything Looks Like A Failure In The Middle. In Neary Every Change Project, Doubt Is Cast On The Original Vision Because Problems Are Mounting And The End Is Nowhere In Sight.

It Is Easier To Talk About Money -- And Much Easier To Talk About Sex -- Than It Is To Talk About Power. People Who Have It Deny It; People Who Want It Do Not Want To Appear To Hunger For It; And People Who Engage In Its Machinations Do So Secretly.

The Degree To Which The Opportunity To Use Power Effectively Is Granted To Or Withheld From Individuals Is One Operative Difference Between Those Companies Which Stagnate And Those Which Innovate.

Creativity Does Not Derive From Order But From The Attempt To Impose Order Where It Does Not Exist, To Make New Connections.

I Was Determined To Achieve The Total Freedom That Our History Lessons Taught Us We Were Entitled To, No Matter What The Sacrifice.

The Commune Movement Is Part Of A Reawakening Of Belief In The Possibilities For Utopia That Existed In The Nineteenth Century And Exist Again Today, A Belief That By Creating The Right Social Institution, Human Satisfaction And Growth Can Be Achieved.

Time Is A Function Of Impact. The Longer A Book Of Mine Has Been In Print, The Greater Its Impact Seems To Be As People Absorb And Digest My Ideas. I Am Especially Proud Of The Change Master: Innovation And Entrepreneurship In The American Corporation, First Published In 1983, Because It Raised Questions And Addressed Issues At A Time When So Many Great Changes Were Occurring In Our Society, Indeed Throughout The World.

Innovation Is An Outgrowth Of Initiative, And Initiative - Taking Positive Actions In A Belief That Your Actions Can Make A Difference - Is A Big Part Of Confidence.

Making A Difference

You've No Future Unless You Add Value, Create Projects.

"leadership" Is A Big Topic Today. We Know That The World - Nations And Communities In Addition To Companies - Needs More And Better Leaders. So I Wanted To Explore How Leaders Make A Difference, How They Can Shift A Negative Cycle, Turn Around A Losing Organization, Propel A Team To Victory When Conditions Aren't Perfect. I Saw That What Leaders Do Is Build Confidence In Advance Of Victory. Then The Confidence They Produce Makes The Hope Of Success Turn Into The Reality Of Success, Because People Behave Differently When They Are Surrounded By A Culture Of Confidence.

Perpetuating Success Or Sliding Into Decline Is The Result Of Many Intersecting Forces That Reinforce One Another Directly And Indirectly. They Are Both Cause And Effect Of Winning Or Losing. Winning Generates Positive Forces, Losing Generates Negative Forces.

... People Are Capable Of More Than Their Organizational Positions Ever Give Them The Tools Or The Time Or The Opportunity To Demonstrate.

After Years Of Telling Corporate Citizens To 'trust The System,' Many Companies Must Relearn Instead To Trust Their People - And Encourage Their People To Use Neglected Creative Capacities In Order To Tap The Most Potent Economic Stimulus Of All: Idea Power.

Innovative Organizations Provide The Freedom To Act Which Arouses The Desire To Act.

Nations Need To Understand Their Own Strengths And Weaknesses, And India's Tradition Of Dissent And Democratic Debate Is A Positive Aspect.

Creativity Is A Lot Like Looking At The World Through A Kaleidoscope. You Look At A Set Of Elements, The Same Ones Everyone Else Sees, But Then Reassemble Those Floating Bits And Pieces Into An Enticing New Possibility.

John Akers Once Said That Changing Ibm's Culture Was More Difficult Than Getting Elephants To Dance. Of Course It's Really Difficult, As Lou Gerstner Also Found Out Years Later. The Title Of His Own Book Is Who Says Elephants Can't Dance? He And His Top Executives Were Change Masters At Ibm. All Organizations, Especially The Larger Ones, Will Always Need Change Masters. Dissatisfaction With The Status Quo And Efforts To Improve It Should Be Encouraged Rather Than Discouraged. Regrettably, That Is Often Not The Case.

The Best Way For Business To Move Out Of The Hall Of Shame Is To Demonstrate A Commitment To Social Causes. This Also Makes Business Sense. A Focus On Solving Social Problems Has Motivational Benefits In Lean Economic Times.

Change Demands New Learning.

A Vision Is Not Just A Picture Of What Could Be; It Is An Appeal To Our Better Selves, A Call To Become Something More.

People Who Are Making Decisions About The Future Often Don't Have Access To Some Of The Best Ideas In The Company, Which May Be At The Periphery Or At Lower Levels.

Leaders Must Pick Causes They Won't Abandon Easily, Remain Committed Despite Setbacks, And Communicate Their Big Ideas Over And Over Again In Every Encounter.

One Of The Symptoms Of A Losing Streak Is A Turnover Of Top Executives. It's A Revolving Door.

You Can Always Buy Something In English, You Can't Always Sell Something In English.

Passion For A Goal Doesn't Guarantee Success, But Without It, You Can't Even Begin.

The Goal Of Winning Is Not Losing Two Times In A Row.

Sports Is A Perfect Activity In Which To See Streaks And Cycles, Organizational And Otherwise, In Action - And To Watch Confidence Build Or Erode. There Are Repeated Episodes Of Performance With Similar Rules And Clear Winners Or Losers. I Added Team Sports To My Studies Of Business Because There Are Excellent Parallels To Work Groups In The Performance Of Sports Teams And Also Excellent Parallels To Larger, More Complex Businesses Or Organizations In The Strategy, Structure, And Culture Surrounding Any Particular Team.

During The Boom Years, It Was So Easy To Lose Sight Of Basic Values. For Example, There Was Lots Of Nonsense Said And Written About The So-called "new Economy." Some People Said All Economic Laws Have Been Overturned! Then All The Problems Developed. Corporations Were Heavily Fined For Illegalities. Many Of Their Senior-level Executives Were Indicted, Convicted, And Sent To Prison.

If Networks Of Women Are Formed, They Should Be Job Related And Task Related Rather Than Female-concerns Related. Personal Networks For Sociability In The Context Of A Work Organization Would Tend To Promote The Image Of Women Contained In The Temperamental Model - That Companies Must Compensate For Women's Deficiencies And Bring Them Together For Support Because They Could Not Make It On Their Own. But Job-related Task Forces Serve The Social-psychological Functions While Reinforcing A More Positive Image Of Women.

Lack Of Opportunity Breeds Dreams Of Escape. But Professionals And Managers Who Have Invested In Their Careers Do Not Leave The Work Force As Frequently As Discouraged Workers In Lower Status Occupations. Instead, They Keep Working, But They Escape Emotionally By Defining Achievement In Professional, Not Company, Terms. ... Thus, The Potential For Being Stuck As Career Uncertainty Grows Takes Its Toll In Weakening Attachment To Any Particular Employer.

Power Is The Ability To Get Things Done

To Take Full Advantage Of The Potential In E-business, Leaders Must Lead Differently, And People Must Work Together Differently. Let's Call This New Way Of Working E-culture-the Human Side Of The Global Information Era, The Heart And Soul Of The New Economy.

I Wonder Whether There Has Been Too Much Emphasis On Teaching Women To Conform, To Fit Into The System. Certainly That Suits Conservative Organizations In Conservative Times. But Now ... Innovation And Creativity Are Necessary.

A Self-reinforcing Upward Spiral: Performance Stimulating Pride Stimulating Performance.

No" Is Always An Easier Stand Than "yes.

In The Most Innovative Companies There Is A Significantly Higher Volume Of Thank Yous Than In Companies Of Low Innovation.

Leaders Are More Powerful Role Models When They Learn Than When They Teach.

Too Many People Let Others Stand In Their Way And Don't Go Back For One More Try.

Competition Has Never Been More Threatening Than It Is Now. Innovative Thinkers Challenge The Status Quo In Their Organizations. They Are Often Viewed As "troublemakers." They Threaten The Defenders Of The Status Quo. So Competition Within An Organization Can Also Be Brutal. The Most Effective Leaders Overcome "the Ideology Of Comfort And The Tyranny Of Custom" By Being Change Agents Themselves. They Encourage And Reward Innovative Thinking. I Have Observed That People Only Resist Changes Imposed On Them By Other People.

Companies Used To Be Able To Function With Autocratic Bosses. We Don't Live In That World Anymore.

Confidence Isn't Optimism Or Pessimism, And It's Not A Character Attribute. It's The Expectation Of A Positive Outcome.

Confidence Is Not Just In People's Heads; It Comes From The Culture Of The Organization. It's Easier To Expect Success When Working In An Organization That Has A Culture Of Accountability, Collaboration, And Initiative. Without This, It's Easier - And More Self-protective - To Assume Failure So The Person Is Not Disappointed And Instead Pleasantly Surprised.

If World Problems Feel Too Big To Tackle, Think Small. Step By Step. Small Wins Build Confidence, Lead The Way To Change.

Mindless Habitual Behavior Is The Enemy Of Innovation.

The Difference Between "winners" And "losers" Is Not Whether They Face Obstacles And Setbacks - We All Do, And It Is Inevitable That Plans Do Not Unfold Exactly As Imagined Or That Unexpected Events Surprise Us Or That A Few Mistakes Happen. The Real Difference Is That "winners" Bounce Back From A Fumble Or A Loss By Refusing To Panic, Analyzing The Situation And Looking For Positive Actions They Can Take To Correct The Problem, And Then Go On To Resume Winning.

Sometimes You Lose - Perhaps Because You Play Against The Very Best, Or Because Surprises Happen - But If There Is Organizational Confidence, You Bounce Back From Losses And Convert Them To Successes.

I've Found That Small Wins, Small Projects, Small Differences Often Make Huge Differences.

Money Should Never Be Separated From Values. Detached From Values It May Indeed Be The Root Of All Evil. Linked Effectively To Social Purpose It Can Be The Root Of Opportunity.

The Boomers' Biggest Impact Will Be On Eliminating The Term 'retirement' And Inventing A New Stage Of Life... The New Career Arc.

The Very Lack Of Opportunity The Group Faces Creates A Self-defeating Cycle And Puts Pressure On Members To Limit Their Aspirations.

The Most Distinguished Advocate And The Most Distinguished Critic Of Modern Captialism Were In Agreement On One Essential Point: The Job Makes The Person. Adam Smith And Karl Marx Both Recognized The Extent To Which People's Attitudes And Behaviors Take Shape Out Of The Experiences They Have In Their Work.

Change Masters Are - Literally - The Right People In The Right Place At The Right Time. The Right People Are The Ones With The Ideas That Move Beyond The Organization's Established Practice, Ideas They Can Form Into Visions. The Right Places Are The Integrative Environments That Support Innovation, Encourage The Building Of Coalitions And Teams To Support And Implement Visions. The Right Times Are Those Moments In The Flow Of Organizational History When It Is Possible To Reconstruct Reality On The Basis On Accumulated Innovations To Shape A More Productive And Successful Future.

The Importance Of Discretion Increases With Closeness To The Top Of A Hierarchical Organization.

Peter Drucker Being One Of The Most Important Influences Because He Has Helped To Think Differently About Organizational Leadership And Management. Frankly, I Learn Something Of Value From Everyone I Meet. My Harvard Colleagues. My Students. The Executives I Work With. For An Eager Student, Which Is What I Am, There Is So Much To Be Learned From Everyday Experiences. I'm A Sponge. Always Will Be.

It Takes Courage To Speak Up Against Complacency And Injustice While Others Remain Silent. But That's What Leadership Is.

Confidence Is Not Lodged In People's Brains, It Comes From The Support System That Surrounds Them. Let's Not Confuse Confidence Overall With Just Self-confidence. Self-confidence Is Only One Part Of Confidence. People Also Need Confidence In Others - Their Colleagues And Leaders - That They Can Count On Them To Do The Right Thing And Not To Let Them Down.

A Basic Truth Of Management - If Not Of Life - Is That Nearly Everything Looks Like A Failure In The Middle.

Throughout Human History, People Have Developed Strong Loyalties To Traditions, Rituals, And Symbols. In The Most Effective Organizations, They Are Not Only Respected But Celebrated. It Is No Coincidence That The Most Highly Admired Corporations Are Also Among The Most Profitable. Why? Because Everyone Involved Is Committed To Certain Non-negotiable Core Values. Traditions Keep Them Alive. Rituals Such As Special Occasions Reaffirm Them. Symbols Serve As Constant Reminders Of Their Enduring Importance.

Life Is Full Of Cycles That Have A Way Of Perpetuating Themselves. Success And Failure Both Feed On Themselves. Things Can Go Downhill Quickly, With People Bogged Down By Ineffective Behavior And Poor Teamwork, Unless Leaders Intervene To Shift The Cycle.

The More Closed The Circle, The More Difficult It Is For 'outsiders' To Break In. Their Very Difficulty In Entering May Be Taken As A Sign Of Incompetence, A Sign That The Insiders Were Right To Close Their Ranks.

A Great Idea Is Not Enough.

The Architecture Of Change Involves The Design And Construction Of New Patterns, Or The Reconceptualization Of Old Ones, To Make New, And Hopefully More Productive, Actions Possible.

The Most Radical Thing We Can Do Is Connect People To One Another. That Starts Conversations Toward A Vision For Change.

To Stay Ahead, You Must Have Your Next Idea Waiting In The Wings.

Powerlessness Corrupts: Absolute Powerlessness Corrupts Absolutely.

People Often Resist Change For Reasons That Make Good Sense To Them, Even If Those Reasons Don't Correspond To Organizational Goals. So It Is Crucial To Recognize, Reward, And Celebrate Accomplishments.

The Middle Of Every Successful Project Looks Like A Disaster.

The Behavior Of People And The Culture Of An Organization Are Very Different In Winning Streaks And Losing Streaks. But What Both Have In Common Is Their Momentum - Once Winners' Or Losers' Habits And Culture Take Hold, They Tend To Perpetuate Themselves.

The Way Innovating Companies Are Designed Leaves Ambiguities, Overlaps, Decision Conflicts Or Decision Vacuums In Some Parts Of The Organisation. People Rail At This, Curse It-and Invent Innovative Ways To Overcome It.

Even The New Feminist Research On Sex-role Socialization And Sex Differences Has Sometimes Had The Unfortunate Consequence Of Creating A New Set Of Stereotypes About What Women Feel And How Women Behave. Despite The Large Amount Of Overlap Between The Sexes In Most Research, The Tendency To Label And Polarize And Thus To Exaggerate Differences Remains In Much Reporting Of Data, Which May, For Example, Report The Mean Scores Of Male And Female Populations But Not The Degree Of Overlap.

Power Is America's Last Dirty Word. It Is Easier To Talk About Money - And Much Easier To Talk About Sex - Than It Is To Talk About Power.

Confidence Is The Bridge Connecting Expectations And Performance, Investment And Results.

Corporate Men And Women, Once Divided By Striking Differences In Opportunity For Career Growth, Have Come To Share Career Chaos.

Winning Becomes Easier Over Time As The Cornerstones Of Confidence Become Habits.

It Is Crucial To Recognize, Reward, And Celebrate Accomplishments.

Change Is A Threat When Done To Me, But An Opportunity When Done By Me.

Thinkers, Makers And Traders Are The Dna Of The World Class Company

A Great Thinker Once Described Innovative Thinkers This Way: "some Men See Things As They Are And Say, 'why?' I Dream Of Things That Never Were And Say, 'why Not?'" Innovative Thinkers Are Constantly Asking Questions Such As These. How Can We Improve Recruiting, Hiring And Training. How Can Be Add Greater Value To Our Products And Services By Making Them Even Better? How Can We Do More To Nourish The Personal As Well As Professional Development Of Our People? What More Can We Do As A Good Citizen Where We Do Business?

Pessimists See Problems As Stemming From Stable And Universal Causes, Thus Making Them Less Susceptible To Corrective Action. Optimists, In Contrast, View Problems As Temporary And Resulting From Specific Factors That Will Either Change Or Be Changed.

Confidence Makes You Willing To Try Harder And Attracts The Kind Of Support From Others That Makes "winning" Possible.

Change Is Like Putting Lipstick On A Bulldog. The Bulldog's Appearance Hasn't Improved, But Now It's Really Angry.

Those Enjoying Winning Streaks Thus Win Twofold. They Win Not Only The Game But Also The Right To Greater Self-determination. They Become Masters Of Their Own Fate. That Feeling Of Efficacy, Of Being In Charge Of Circumstances, Is The Essence Of Confidence. Winning Once Or Twice Is Encouraging, But Winning Continuously Is Empowering.

In Most Important Ways, Leaders Of The Future Will Need The Traits And Capabilities Of Leaders Throughout History: An Eye For Change And A Steadying Hand To Provide Both Vision And Reassurance That Change Can Be Mastered, A Voice That Articulates The Will Of The Group And Shapes It To Constructive Ends, And An Ability To Inspire By Force Of Personality While Making Others Feel Empowered To Increase And Use Their Own Abilities.

Leaders Must Wake People Out Of Inertia. They Must Get People Excited About Something They've Never Seen Before, Something That Does Not Yet Exist.

Leaders Is The New Organisation Do Not Lack Motivational Tools, But The Tools Are Different From Those Of Traditional Corporate Bureaucrats. The New Rewards Are Based Not On Status But On Contribution, And They Consist Not Of Regular Promotion And Automatic Pay Rises, But Of Excitement About The Mission And A Share Of The Glory Of Success.

Confidence Is The Sweet Spot Between Arrogance And Despair-consisting Of Positive Expectations For Favorable Outcomes.

Everything Looks Like A Failure In The Middle.

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