Category Archives: Edges

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The Imperative for Two Dimensions of Transformation

Category:Collaboration,Edges,Institutional Innovation,Learning,Opportunity,Passion,Strategy,Transformation

Now, more than ever, we live in a world of massive change. Not surprisingly, “transformation” has become a buzzword throughout our economy and society.

Transformation has been a focus of my work for decades and I’ve learned many lessons along the way. In this post, I want to explore two distinct transformation imperatives as we scale the edge.

Scaling the edge

Those who have been following my work know that I’ve become a strong champion of scaling the edge as a way to drive transformation in large, traditional institutions. This approach is in stark contrast to the more conventional “top down, big bang” approaches that are used to drive change. By seeking to transform the entire core of the institution, these efforts require a lot of money and they will take a long time – you can’t turn around a battleship overnight. As a result, these approaches have a high failure rate because they under-estimate the significant power of the immune system and antibodies that exist in all large institutions. The immune system and antibodies will mobilize aggressively to crush efforts at massive change, especially those that will require a lot of money and take a lot of time.

Scaling the edge can reduce the risk of immune system attack because it doesn’t seek to transform the core of the institution. Instead, it focuses on finding an edge to the existing institution that, given the forces at work in the broader economy and society, has the potential to scale very rapidly to the point where it will become the new core of the institution. To be clear, this is not just an “experiment” or a diversification or growth initiative – the commitment is to make it the new core of the institution and, in the process, drive the transformation that will be required to thrive in a rapidly changing economy and society. I’ve written a lot more about the design principles for successful edge scaling initiatives here.

The two transformation imperatives

But what does transformation really mean? Virtually every large institution today has a “digital transformation” program, but the focus of these programs is to apply digital technology so that existing tasks can be done faster and cheaper. That’s not transformation from my perspective. I use the metaphor of the caterpillar to the butterfly to describe transformation – it has to produce something completely different from before. If we’re just helping the caterpillar to walk faster, that may be helpful to the caterpillar, but please let’s not describe that as transformation.

So, what is transformation in the context of our existing institutions? I believe it will have to occur on two dimensions given the Big Shift that is transforming our global economy and society.

The first dimension involves re-thinking at a fundamental level the value that will be delivered to customers and other stakeholders. The nature of the value being delivered will change at a very basic level.

The second dimension involves re-thinking at a fundamental level what is required to deliver that value to customers and other stakeholders. The approach to delivering value must be redesigned from the ground up.

Let’s explore both of these dimensions more deeply.

Transforming the value delivered

We live in a world of exponential change. In that kind of world, there is a natural tendency to shrink our time horizons and just focus on today’s needs.

That tendency needs to be resisted. Instead, we need to look ahead, far ahead, to anticipate emerging needs that are fundamentally different from the needs we are addressing today. That’s certainly challenging in a rapidly changing world.

That’s why I’ve become a strong champion of a very different approach to strategy that I call “zoom out/zoom in.” I’ve written about that approach extensively here. This approach calls on leadership of institutions to move beyond their comfort zone and to look ahead 10-20 years. The two key questions to address are: What will our relevant market or environment look like 10-20 years from now? What will be the biggest unmet needs of our customers and stakeholders that will provide an opportunity to build an institution that is far bigger and more successful than the one we have now?

If we truly understand the nature of exponential change, we need to be prepared to embrace the fact that the value we are delivering today will become obsolete and that we need to embrace very different forms of value that will address emerging needs and become a key to success in the future.

What would be an example? Take the example of a large fossil fuel company today. Given the changes that are occurring in the energy industry, there may be a need to leverage some of the expertise that this company has developed and focus it in a very different direction. For instance, one of these companies might decide to leverage its expertise in resource extraction to provide extraction services in a wide range of industries that rely on natural resources. Another possibility would be to focus on its expertise in building and managing large-scale distribution networks to provide these services to a wide range of industries. Whatever path these companies take, they are likely to be serving a very different set of customers and delivering a very different form of value.

The zoom out/zoom in approach to strategy has many benefits, but one key benefit is that it can help the leadership of an institution to select an edge to their existing institution that has the potential to scale rapidly to the point where it becomes the new core. And they won’t just select the edge, they will commit to scaling it because it represents a much bigger opportunity than anything they have addressed in the past.

Transforming the delivery of value

But transformation doesn’t stop there. There’s another dimension of transformation that needs to be understood and addressed. This is transformation in how the value is created and delivered to customers and other stakeholders.

What do I mean by this? Large institutions around the world have been pursuing a scalable efficiency model for the past century. For them, the key to success has been becoming more and more efficient at scale – finding ways to do their activities faster and cheaper. They have determined that the best way to do this is to tightly specify every activity that needs to be performed, highly standardize those activities so they are done the same efficient way throughout the organization and tightly integrate those activities, removing all inefficient buffers.

This approach has been highly successful around the world for the past century. The challenge is that the world is rapidly changing and this approach to efficiency is paradoxically becoming more and more inefficient. Workers are confronting more and more “exceptions” – unexpected situations that cannot be addressed by the process manual. They are scrambling inefficiently to find ways to address these unexpected situations.

In this rapidly changing world, we need another dimension of transformation – institutional transformation. We need to shift from a scalable efficiency institutional model to a scalable learning institutional model where the focus is on helping everyone in the organization to learn faster together. This is especially challenging because the learning that is increasingly required is not learning in the form of sharing existing knowledge in training programs but instead learning in the form of creating new knowledge. That doesn’t occur in a training room – it occurs in the workplace when people act together to address new situations and reflect on the impact that they are achieving so that they can evolve their actions to achieve even more impact. I have written about this institutional transformation extensively here.

If we take this seriously, it will require challenging and changing virtually every aspect of how institutions organize and operate today. We’ll need to move from hierarchical, command and control organizations to networked organizations that organize around small, front-line groups of 3-15 workers – I call them impact groups. We’ll need to move from a focus on business process re-engineering to business practice redesign, cultivating practices within the impact groups that help all participants to learn faster. We’ll also have to redesign our work environments to provide all the participants with the tools they need to learn faster. One key objective is to help draw out and cultivate the passion of the explorer in all workers so that they become excited, and truly motivated, by the opportunity to learn faster together.

This dimension of transformation will need to be pursued in parallel with the other dimension of transformation.

Bottom line

If we’re going to unleash the exponential opportunities that are being created by the Big Shift, we need to commit to drive transformation on two intersecting paths – transforming the value that we are delivering to our stakeholders and transforming how that value gets delivered to the stakeholders. This is certainly very challenging – it’s why I urge leaders to focus on scaling the edge as the most effective way to drive transformation. Significant opportunities await those who see the need for both dimensions of transformation and aggressively pursue them on the edge of existing institutions.


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The Journey Beyond Our Edge

Category:Collaboration,Edges,Emotions,Exploration,Fear,Learning,Opportunity,Passion,Potential,Workgroups

Over the past four weeks, I’ve posted a series of blog entries providing an overview of the key themes in my new book, The Journey Beyond Fear. In this blog post, I want to focus on the journey ahead.

My book focuses on the fear that has been spreading around the world for years (it’s certainly not just the result of the current pandemic). While the emotion is understandable (we live in a world of mounting performance pressure), it’s also very limiting. My key goal in the book is to share lessons about the journey beyond fear that I’ve learned in my personal journey as well as from research that I’ve been pursuing for decades.

But, now what? My hope is that the book will help us to acknowledge our own fears and then see that we do have the ability to move beyond fear and cultivate emotions that will help us to achieve much more meaningful impact. I don’t want to suggest that this journey will be easy – it’s very challenging and there are many obstacles and barriers we’re going to confront along the way.

That’s why I suspect that reading my book will not be enough to make the journey. Hopefully, it will be a catalyst to help us see the potential of the journey and motivate us to get started on the journey.

Beyond the book

I want to do more than write a book to help others on the journey. My goal is to offer programs and services that will bring people together around a shared desire to make the journey beyond fear.

Some of the programs will be targeted to help individuals, but some of the programs will also be targeted to leaders of organizations, communities and movements who are seeking to move their participants beyond fear. As I indicate in my book, we as individuals will make much slower progress on this journey if we are living and working in environments that feed the fear, so my intent is to help individuals to evolve while at the same time helping to evolve our environments so we are supported and encouraged on our journey.

On both fronts (individuals and environments), the programs will not just be standalone events. They will be woven together so that individuals and leaders can continue to be supported throughout their journey.

A key objective will be to bring people together into small groups of 3-15 people who can both challenge and support each other on their journey. I call these groups “impact groups” – they’re not just discussion groups, they’re committed to acting, achieving impact and learning through action. Programs would help people to see the importance of these impact groups and help them to form an impact group. Then there would be coaching services to support the impact groups and programs tailored to impact groups.

Another objective (and they’re all related) will be to help people find and nurture their passion of the explorer. As people find their passion of the explorer and come together with others who share their passion, they’ll be driven to increase their impact in the domain that excites them. They’ll discover that this is a journey without end, because they’ll soon realize that, no matter how much impact they have already achieved, there is so much more impact to be achieved.

That leads to another objective: to help deploy and scale learning platforms where impact groups can gather and accelerate their learning and their impact. Impact groups will be pursuing a diverse set of opportunities on this platform, driven by the passion of the explorer that is finally manifesting within them. Impact groups pursuing the same opportunity will come together into broader and broader networks, helping them to scale their impact.  But there will also be growing interaction across these networks as participants discover that many of the opportunities they are pursuing are related and that the approaches being used to address one opportunity can also be applied to address other opportunities.

And then, of course, it can become even more complex as I seek to build relationships with other organizations and movements that share a common goal to help us move beyond fear and achieve impact that is more meaningful to all of us. We will hopefully see networks within networks and networks across networks blossom over time as people see the value of coming together in the journey beyond fear.

Exploring the edge

I don’t have a detailed roadmap or blueprint of what all of this will look like as it emerges and evolves. In classic zoom out/zoom in fashion, I’m focusing on framing the long-term opportunity to support people on the journey beyond fear and some of the early programs that can be offered to get the journey started.

I’m heading beyond the edge and that certainly brings out some fear as I explore terrain that’s never been explored before. But I’m so excited about the opportunity to build a platform that can bring more and more people together in their journey beyond fear that I am eagerly moving forward, in spite of the fear.

Bottom line

I need all the help that I can get in making this journey. I’m wide open to suggestions and ideas for developing and delivering programs that can help people to make the journey beyond fear. I’m also looking for ideas on how to build awareness of these programs and the opportunity they address. Of course, my hope is that many people will read my book and that it will pull them to these programs, but how do I pull people to read my book? There are so many things competing for our attention that it’s challenging to rise above the noise. Please message me if you want to help and have some ideas and suggestions on how to get started.

Let’s overcome our fear and venture out onto the edge together so that we can craft a platform that will help a growing number of people to achieve more and more of their potential!


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Beyond Our Edge

Category:Collaboration,Creation Spaces,Edges,Emotions,Exploration,Institutional Innovation,Learning,Movements,Narratives,Opportunity,Passion,Potential,Trust

I’ve got some exciting news. I’ve opened up a new company – Beyond Our Edge, LLC.  Its goal is to motivate more and more people to come together and move beyond our edge so that we can achieve more of our potential together. Many of us are already drawn to our edge, but we’ll be much more likely to move beyond our edge if we come together on the journey. I’ve always been inspired by the African proverb: “If you want to go fast, go alone; but if you want to go far, go together.”

This move has been made possible by my retirement from Deloitte, even though I have no intention of “retiring.” I’m now free to venture beyond my edge and I’ll want to connect with others who share my passion for exploration and driving meaningful change.

My next book

In that context, my first priority is to finish writing my next book – its working title is “From Pressure to Passion.” Two triggers motivated me to write this book. First, even though my business career has been largely focused on business strategy, I’ve come to believe that achieving impact depends less on strategy and more on psychology – if we don’t see and understand the emotions that are driving our choices and actions, we’ll never achieve what we really need and want. Second, as I’ve traveled around the world over the past several years (well before the current pandemic), the dominant emotion that I encountered everywhere is fear – at the highest levels of organizations, on the front lines and out in the community.

While that fear is understandable – there are many reasons to be afraid – it’s also potentially very dysfunctional. We need to acknowledge the fear but, equally importantly, we need to find ways to cultivate hope and excitement that will motivate us to move forward in spite of our fear. My new book is partly about my personal journey from fear to hope and excitement, but it draws on that experience to outline approaches that we all can use to make that journey.

While my book focuses on helping people to make this personal journey, it also highlights the need to drive fundamental change in the environments that we live in. We’re in a world that’s rapidly evolving. It’s a paradoxical world – it provides exponentially expanding opportunity as well as mounting performance pressure.

Bringing movements together

Right now, most of us are experiencing mounting performance pressure, in part because all our institutions were designed for an earlier, more stable world. The institutions that provided stability in the past are increasingly proving ill-equipped for the rapidly changing world around us. We all see this. It’s a key reason that trust in all our institutions is eroding around the world. It’s also feeding our fear – the institutions that we thought we could rely on are increasingly failing us.

Our institutions have become significant barriers to our efforts to harness the exponentially expanding opportunity that’s now becoming available to us. So, even if we find ways to overcome our fear and take more bold moves to pursue opportunities, we’ll find our existing institutions standing in our way and limiting our potential for impact.

That’s why we need to drive change on two fronts – individual change and institutional change. For decades, we’ve had two movements proceeding in parallel – the human potential movement and social change movements. The challenge is that there’s very little interaction between these two movements – it’s either all about helping individuals to overcome their internal obstacles or driving change in the broader society or economy. Unless we can drive change on both fronts, we’ll never create the conditions that will enable all of us to achieve much more of our potential by harnessing exponentially expanding opportunity. We need to find ways to bring these two movements together.

Impact groups inspired by narratives

It will come as no surprise to those who’ve been following me to hear that I believe the key to bringing these two movements together is to focus on organizing small impact groups that can then connect and scale their efforts through broader networks and platforms.

Let me be clear – to harness exponentially expanding opportunities, we need to come together. If we act alone, we’ll only achieve a small fraction of the potential available to us. By coming together, we’ll be much more likely to overcome our fear and find the courage to move beyond our edges and achieve much more of our potential.

What will it take to bring us together? I’ve become a strong proponent of opportunity-based narratives that frame really big, inspiring opportunities in the future and that represent a call to action to all of us today, emphasizing that those opportunities will not be achieved unless we act together. Imagine what amazing things we could accomplish if we all came together?

Understanding edges

As we come together, we need to find ways to help each other move beyond our edge. In this context, edges have many meanings. At one level, edges are defined by areas of expertise – for example, marketing, economics or equipment maintenance. At another level, edges are defined by our comfort zones – where do we start to become uncomfortable when confronted with new experiences?

For many of us, edges create the image of a cliff where we need to be very careful or we’ll slip and slide into oblivion. I prefer to view edges as walls – they’re the boundaries that limit our ability to explore and discover more of our potential. And we can’t just look beyond the walls, we need to climb over the walls and explore the territory that’s been hidden from us.

Sure, venturing beyond these walls can be scary and make us very uncomfortable because we’re venturing into unknown territory, but we’re much more likely to make the journey if we’re joined by others whom we trust and who will provide us with support and encouragement. We’re also likely to learn more if we go together, rather than heading out alone. No matter how smart any of us are, we’ll learn a lot faster if we’re sharing experiences with others and learning through action together.

Bottom line

I’m hoping that my new book will become a catalyst to motivate more of us to venture beyond our edge together. Over the next several months, I’ll be looking to connect with others who share my conviction that there’s exponentially expanding opportunity available to all of us if we choose to address the root causes that are holding us back – the emotion of fear within all of us and the institutions that are increasingly serving as barriers to progress. It’s an unprecedented opportunity, but we need to act now, together, and venture beyond our edge.


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On the Edge of a New Decade

Category:Edges

BY JOHN HAGEL

NOTE: previous blog posts are still available at edgeperspectives.typepad.com

We’re heading into a new decade today. It’s not just a new year, but a new decade.*  It’s a turning point, a historic moment, and provides us an opportunity to reflect on where we’ve been and where we’re headed.

It’s all in the numbers

I believe in the power of numbers. I don’t think it’s an accident that the year launching a new decade has special characteristics. First, it repeats numbers – this is the first decade in over a millennium (remember 1010?) that does that, and the next one will not come for another millennium. That in itself is an important sign.

Second, the number it repeats – 20 – has special significance in the field of numerology. The number 2 is viewed as a symbol of collaboration, duality and partnerships. The number 0 is viewed to be the symbol of infinity and wholeness – it suggests the potential to achieve exponential growth in potential. The key message of the two numbers together – 20 – is that we can achieve exponential growth in potential by coming together, and not trying to do it alone or as part of a small, isolated group. And repeating this pair of numbers underscores the power of the opportunity.

And, finally, let’s not forget 20/20 vision. Perhaps this is the decade that will enable us to see everything much more clearly than we have before.

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NEW BOOK

(if you've read the book, click here)

My new book, The Journey Beyond Fear, starts with the observation that fear is becoming the dominant emotion for people around the world. While understandable, fear is also very limiting.

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The book explores a variety of approaches we can pursue to cultivate emotions of hope and excitement that will help us to move forward despite fear and achieve more of our potential. You can order the book at Amazon.

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