Category Archives: Edges

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From Curiosity to Exploration

Category:Connections,Edges,Emotions,Exploration,Fear,Growth,Learning,Opportunity,Passion,Potential,Transformation

I’ve written a lot about the growing importance of curiosity in the Big Shift world that is evolving around us. While curiosity is an essential core capability that we all need to cultivate, it is far from enough. Today, I want to move one step forward and make the case that curiosity without exploration is far from sufficient.

The role of curiosity

In a rapidly changing world, curiosity becomes more and more essential. Curiosity has many different dimensions, but it essentially involves asking a lot of questions as we become intrigued by what we do not know.

The strong desire to ask more questions can be a valuable way to launch us on our journey to learn more, but it is hardly sufficient.

The need for exploration

Exploration is about action, action beyond questions. How do we learn from the questions that we ask? Well, here we need to make a key distinction that has become central to a lot of my work.

There are two forms of learning – learning in the form of sharing existing knowledge and practices and learning in the form of creating new knowledge and practices.

If we’re focused on learning in the form of sharing existing knowledge and practices, there are many ways we can learn from the questions that we ask. We can do a lot of reading. We can attend classes and take careful notes. We can follow instructions to practice in ways that will help us develop important skills that other people already have. Those actions can be very useful when we are learning in the form of sharing existing knowledge and practices.

But, what about learning in the form of creating new knowledge and practices? In a rapidly changing world, existing knowledge and practices are becoming obsolete at an accelerating rate. Success in the Big Shift world hinges on shifting our focus to learning in the form of creating new knowledge and practices. That requires a very different set of actions. Now, we are venturing out into unknown territory.

This is where exploration becomes central to success. To learn in an unknown territory, we need to travel through the territory that no one has seen before and carefully inspect, search, experiment and analyze what we encounter. This is a very different form of action compared to learning in the form of sharing existing knowledge and practices.

Exploration becomes even more successful if we come together with others who share our curiosity about unknown territories. No matter how smart or intelligent we are, we will learn a lot more from exploration if we can connect with others who bring different perspectives and experiences to help assess what we are encountering.

Without exploration, curiosity becomes a dead-end. We have so many questions, but no answers.

But there’s more

This is where the passion of the explorer becomes key to unlocking the value of curiosity. I’ve done a lot of research on this very specific form of passion and written about it extensively, including in my most recent book, The Journey Beyond Fear.

In brief, people with this form of passion are excited about a long-term commitment to achieving increasing impact in a specific domain. They are excited when confronted with unexpected challenges and their first instinct when confronted with an unexpected challenge is to find ways to connect with others who can help them come up with better answers faster.

The passion of the explorer helps to focus us on the domains that are the most exciting to us. Those domains differ, depending on who we are – they could be anything from gardening to space exploration. Whatever the domain is, people with the passion of the explorer will be driven to find the edges of the domain that have not yet been explored because that is where the greatest impact can be achieved by learning in the form of creating new knowledge and practices.

We all have the passion of the explorer within us, waiting to be discovered, but very few of us have found this passion, much less pursued it. We unfortunately live in societies and cultures where this form of passion is deeply suspect and often discouraged. Our schools, families and institutions encourage us to focus on pursuing careers that will pay a good income and to not let passion distract us.

The focus that we achieve with the passion of the explorer is essential to accelerating learning in the form of creating new knowledge and practices. Without this passion, curiosity and exploration can be overwhelming. There’s so much that we don’t know and could explore that we are very much at risk of spreading ourselves way too thinly across too many domains. That would significantly limit our ability to learn faster. But, if we are excited and focused, we will be driven to learn faster and achieve more and more impact in the domains that matter to us.

The bottom line

Curiosity is a critical capability that we all need to develop in a rapidly changing world, but it is of little value, and can become a distraction, if we don’t combine it with action through exploration that is focused by our passion of the explorer. The passion of the explorer is fundamental – if we find and cultivate that passion, we will be driven to cultivate curiosity and pursue exploration with the goal of achieving more and more impact that is meaningful to us and to others.


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Diving Deeper Into Digital Transformation

Category:Collaboration,Community,Context,Edges,Emotions,Exploration,Fear,Future,Growth,Institutional Innovation,Leadership,Learning,Opportunity,Passion,Potential,Small moves,Strategy,Transformation

Digital transformation has become a business buzzword. Everyone is talking about it, but there is a significant missed opportunity. To understand the missed opportunity, we first need to understand the context of the world we live in.

The Big Shift

Long-term forces are re-shaping our global economy and society in profound ways. I have done a lot of research on the Big Shift. It has many dimensions – one of them is the creation of exponentially expanding opportunities. We can create far more value with far less resources and far more quickly than would have been imaginable a few decades. But to do this, we will need to embrace broad business transformation.

From digital transformation to business transformation

Here’s the first problem. Virtually every large, traditional organization has a digital transformation program, but when you probe into what the program is doing, it turns out that virtually all of these programs are focused on applying digital technology so that the organization can do what it has always done, but just faster and cheaper.

Increased business efficiency may be helpful, but it is not business transformation. Business transformation starts with asking the most basic question of all – what fundamentally different business should we be seeking to become?

To answer this question, I strongly recommend that leaders adopt a very different approach to strategy, something I call the Zoom Out/Zoom In approach to strategy. This approach has many benefits, but one of them is that it takes leadership out of their comfort zone, and forces them to look for small moves, smartly made that they can pursue in the short-term to begin their journey to much more profound business transformation.

If we’re serious about pursuing exponentially expanding opportunities, everything in the business will need to change. We’ll need to shift from an institutional model of scalable efficiency to scalable learning. We’ll need to redefine work for everyone in the organization so that people are no longer performing tightly specified, highly standardized tasks and instead are focused on addressing unseen opportunities and problems to create more value. We’ll need to redesign our work environments so that they can support this new form of work. We’ll need to adopt different approaches to growth – rather than focusing on make versus buy as the two key growth options, we’ll need to embrace leveraged growth where the focus is on connecting our customers with a broader range of third parties that can help to address their unmet needs.

That’s profound change in all aspects of our current businesses. What are the barriers and obstacles to overcome? Based on my experience in helping leaders to pursue business transformation, I have only one piece of advice – never, ever under-estimate the power of the immune system and antibodies that exist in every large, traditional organization and which will mobilize at the slightest indication of change to resist that change.

These people are not evil people. They are very well-intentioned, but they are driven by the emotion of fear. They have become very risk averse and believe that the best way to succeed is to continue doing what has always been done to create value.

From business transformation to emotional transformation

To address this barrier and obstacle to business transformation, we need to dive deeper into another level of transformation – emotional transformation. How do we move beyond the emotion of fear to cultivate other emotions that will help us to have more impact that is meaningful to us? That’s the focus of my latest book – The Journey Beyond Fear. I wrote the book because I saw fear becoming more and more prevalent as an emotion around the world.

A key reason for the spread of fear is mounting performance pressure that is also generated by the Big Shift – competition intensifying on a global scale, pace of change accelerating and extreme, disruptive events emerging more frequently. While understandable, this emotion is also very limiting – people who are driven by fear can’t even see the exponential opportunities emerging in the future, much less have the motivation to pursue them.

How do we overcome this fear? We need to find and draw out a very specific form of passion – the passion of the explorer – that resides within all of us and is waiting to be drawn out.

It turns out that the Zoom Out/Zoom In approach to strategy can be very powerful in moving us beyond fear. It focuses people on a really big and inspiring opportunity 10-20 years from now and quickly provides evidence of progress towards that opportunity in the next 6-12 months to help overcome skepticism.

To make the journey beyond fear we also need to cultivate new leadership models – shifting from an expert model where the leader has the answer to all the questions to the explorer model where the leader is focused on sharing inspiring questions and asking for help in coming up with answers.

We also need to adopt different approaches to transformation. Rather than pursuing top down, big bang approaches that draw out the immune system, we should focus on scaling an edge that can become the new core of the business and will embrace all the changes required to pursue exponential opportunities.

Bottom line

Digital technology is a significant catalyst for the need for transformation, but we need to avoid becoming focused too narrowly on digital transformation. Instead, we need to dive deeper into business transformation and then recognize that will require an even deeper dive to a third level – emotional transformation.

This is a huge opportunity. It can help us to move from mounting performance pressure to exponentially expanding opportunity. It’s not just an opportunity – it’s an imperative given the rapidly changing world around us.

I am an optimist. I believe that we can and will move beyond the caterpillars that we are today, focused on just finding ways to move faster. Instead, we will all become butterflies in a thriving world.


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Cultivating and Connecting Capabilities

Category:Collaboration,Connections,Edges,Exploration,Growth,Institutional Innovation,Learning,Opportunity,Passion,Transformation

I’ve long been a contrarian regarding our current view of learning in our work environments. I’ve come to believe that it is a growing barrier to progress. If we’re going to prosper and flourish, we need to embrace a very different approach to learning, one that is much more consistent with our humanity.

Skills versus capabilities

When I talk to leaders about learning, their focus is on learning “new” skills. They are concerned that, in a rapidly changing world, many skills are becoming obsolete. If workers are going to continue to be productive, they need to learn “new” skills. These skills aren’t really new, they’re just skills that most workers haven’t yet acquired. They need to be taught the skills.

Here’s where I start to be a contrarian. I challenge our narrow focus on skills and believe we need to expand our focus in learning to include capabilities. What’s the distinction? Skills are very valuable in a specific context – for example, how to operate a machine or how to use certain applications on a computer. Capabilities, in contrast, are valuable in all contexts – examples include curiosity, imagination and creativity. I’ve written extensively about this distinction here (pdf).

Connecting capabilities to support a new form of learning

Of course, some leaders are beginning to pay attention to capabilities, but they tend to approach them in isolation. We’ve all seen creativity workshops or imagination exercises. What’s missing is the need to connect capabilities. While each capability has some value on its own, the real potential comes when capabilities are combined.

Think about it. Curiosity is about exploration, venturing out into areas that have yet to be understood. But curiosity alone has only limited value. We need to cultivate connection and empathy so that we can form deeper and broader relationships with others. Exploring in isolation is much less rewarding than exploration with others. As we explore, we need imagination to come up with new ideas regarding how to create more value from the areas we are exploring. And ideas alone are not that helpful. We need creativity to help us develop and deploy approaches to help us to actually create the value that our imagination suggested we could pursue.

Done right, connecting these capabilities can unleash a virtuous cycle of learning. As we develop and deploy approaches to creating value with our creativity, our curiosity will gain come into play as we explore the impact that we have achieved. We can come together to imagine even more promising approaches and create even more value.

But this learning is very different from the learning that consumes the attention of most leaders today. When leaders talk about learning, they almost without exception are talking about learning in the form of sharing existing knowledge. This learning occurs in training rooms or through online video courses.

While not dismissing that form of learning, I again want to be a contrarian and suggest there’s a very different form of learning that is becoming much more necessary and valuable. It’s learning in the form of creating entirely new knowledge that never existed before. That form of learning occurs in the workplace, pursued by people who come together and take action as they cultivate the capabilities just described and address previously unseen opportunities to create more value.

While most leaders would acknowledge that this form of learning is important, they tend to confine it to small parts of the organization – research departments and/or innovation centers.

Cultivating capabilities

So, if capabilities are so important, how do we cultivate them? Here’s the good news. These capabilities are all innate within us. You don’t believe me? Let’s go to a playground and look at children 5 or 6 years old. Show me one that doesn’t have these capabilities as they play.

Unfortunately, our schools and our work environments have sought to crush these capabilities. We are taught to simply follow detailed instructions, reliably and efficiently, without asking too many questions or deviating from the assigned tasks. This is the key to success in the scalable efficiency institutions that dominate our world today.

Those capabilities may be hidden for many of us, but they are still there, waiting to be drawn out. How can we draw them out? It will be challenging because it will require very different work environments. We need work environments that will cultivate a very specific form of passion – the passion of the explorer (pdf).

The passion of the explorer has three components. People with this passion are committed to, and excited about, achieving more and more impact that is meaningful in a specific domain. When confronted with unexpected challenges, they become excited about the opportunity to achieve even greater impact. Finally, their first instinct when confronted with an unexpected challenge is how to connect with others who can help them get to a better answer faster.

People with this passion are driven to draw out and cultivate the capabilities I discussed earlier. They are excited about the opportunity to learn in the form of creating new knowledge. Curiosity, connection, imagination and creativity are essential for this kind of learning and they deeply value all these capabilities. They understand that these capabilities are deeply connected and should not be viewed in isolation.

But, here’s the problem. Our work environments today are deeply suspicious of people with the passion of the explorer. These people ask too many questions, they take too many risks, and they deviate from the process manual. That’s why, based on my research (pdf), only about 14% of US workers have this form of passion in their work.

Unleashing passion and capabilities

So, how do we change this? It won’t be easy. It will require us to transform the institutional models that shape all large institutions around the world. As I’ve written about here (pdf), the prevailing institutional model is scalable efficiency where the key to success to do things faster and cheaper at scale. This model has driven the growth of large institutions over the past century but, in the Big Shift, the paradox is that scalable efficiency is becoming less and less efficient because it has a hard time dealing with the accelerating pace of change.

We need to make a shift from the institutional model of scalable efficiency to a model of scalable learning. As already discussed, the focus of this new institutional model is on learning in the form of creating new knowledge by mobilizing people throughout an organization to come together and address unseen problems and opportunities to create more value. These models can scale even further by building networks of relationships among people that extend far beyond a single institution.

The scalable learning model focuses on cultivating the capabilities already discussed and recognizes that the passion of the explorer is the most powerful motivator for people to draw out and exercise these capabilities. It encourages everyone to find and pursue their passion of the explorer.

The scalable learning model challenges virtually all the beliefs and practices that prevail in our existing scalable efficiency models. For this reason, it will be very challenging for existing large institutions to make the transition. As I’ve written about here (pdf), the most effective way for large institutions to transition will be to scale the edge, rather than pursuing “big bang” top-down change programs that seek transform the core of the institution.

As challenging as it might be, the transition will be deeply rewarding. At its best, the scalable efficiency model is a diminishing returns model – the more efficient we become, the longer and harder we have to work to achieve the next increment of efficiency. In contrast, the scalable learning model is an increasing returns model where value can grow exponentially as learning expands its horizons and accelerates.

Bottom line

We live in a rapidly changing world where the most valuable and necessary learning for everyone is learning in the form of creating new knowledge. This form of learning requires a combination of uniquely human capabilities – curiosity, connection, imagination and creativity. People who find and pursue the passion of the explorer are powerfully motivated to develop these capabilities. If we all are going to embrace the passion of the explorer, we need to transform our institutions. It won’t be easy, but the rewards will be enormous. Let’s get started.


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Connectivity and Decentralization

Category:Collaboration,Connections,Context,Decentralization,Edges,Future,Learning,Opportunity,Paradox,Passion,Potential,Trust,Workgroups

We’re in the early stages of a Big Shift that is transforming our global economy and society. The Big Shift produces many paradoxes, but here’s one that I haven’t written about: it is rapidly creating global connectivity while at the same time generating a growing desire for decentralization. How can we reconcile the two?

I’ve written about the Big Shift for a long time, including here. A key driver of the Big Shift is the ability to connect more quickly and cheaply with anyone or anything around the world. Certainly, this includes our ability to send a message to anyone in the world, but it also includes our ability to monitor in real time physical goods with Internet of Things technology. And it’s not just about communicating and monitoring, but also controlling and directing activities from a distance.

So, with all these connecting capabilities, we might anticipate more and more centralization where activities are controlled and monitored by fewer and fewer large, centralized global entities (e.g., governments and corporations).

Certainly, we are already seeing some of that. But, at the same time, I anticipate that we’re going to see more and more efforts to decentralize our activities – distributing or delegating activities, especially planning and decision-making, away from a central location or group. Why is that?

Accelerating pace of change

Growing connectivity accelerates the pace of change and makes the specific changes more and more challenging to anticipate. In a more rapidly changing and unpredictable world, we need to find ways to respond more quickly to unexpected developments. The conventional approach of tightly specifying business processes in advance from a central location is becoming less and less effective. Those who are in the best position to confront the unanticipated changes quickly are those who are on the front lines, not those who are sitting in some command center, even when supported by more and more powerful computers.

Context matters

Changes don’t occur in isolation. They occur in a specific context that shapes the change and the impact that it will have. Context is complex – it can’t be reduced to numbers or images. Those who are in the best position to “read” context are those who are living in it in the moment. If we want to address change effectively, we need to rely on those who are deeply embedded in the context. Context is becoming more and more important for value creation, as I have written about here.

Learning is an imperative

In a rapidly changing world, learning becomes essential. To be clear, this isn’t about learning in the form of sharing existing knowledge which is the focus of most learning today. Existing knowledge is becoming obsolete at an accelerating rate. The learning we all need to pursue is learning in the form of creating new knowledge and that is best pursued by coming together with others and learning through action, not just conversation.

When I say “coming together with others,” I mean coming together in small groups – I call them “impact groups” – which I have written about extensively, including here and here.  These groups range between 3 to15 participants. They stay small because the need is to build deep, trust-based relationships among the participants so that they can support and challenge each other in a continuing quest to pursue increasing impact in a specific domain.

Passion is the best motivation for learning

Learning in the form of creating new knowledge through action can be very challenging and involves taking a lot of risk. What’s the motivation to do that? Based on my research, the most powerful motivation is a very specific form of passion – the passion of the explorer – which I have written about here and here. People with this kind of passion naturally come together into the impact groups that I mentioned earlier and they seek environments where they can pursue their passion without constraints. They want to be free to take initiatives that have never been done before and to rapidly iterate on those initiatives when they gain insight on how more impact can be achieved.

Customers are gaining more power

Because of all the connectivity globally, customers are becoming more and more powerful and demanding. They have more access to information about more options and the ability to quickly switch from one product or service to another. In this kind of environment, they are less and less willing to settle for mass-market, standardized products and services. Instead, they are seeking products and services tailored to their specific needs and that will evolve rapidly as their needs evolve.

Erosion of trust in large, centralized institutions

Around the world, trust is eroding in all the large, centralized institutions – companies, governments, media, universities, etc. – that are so prominent in our economy and society. There are many reasons for this, but they are driven by a growing realization that these institutions are not addressing our evolving needs and are increasingly unsuited for the rapidly changing world around us.

Tying it all together

Decentralization will be driven by the intersection of many different needs and desires. If I had to summarize, I’d say that the two key forces are our growing need as providers to learn faster and our growing desire as customers to have products and services tailored to our needs. If we’re going to learn faster, we need to come together in small groups, driven by a passion to achieve increasing impact and we need to be able to act more quickly in ways that are tailored to our local context. On the other side, as customers, we are seeking providers we can trust who will address our unique and rapidly evolving needs.

The paradox is that both of these forces are being driven by growing global connectivity. The more connected we become, the faster everything will evolve and the more rapidly we will all need to learn in the form of creating new knowledge. And the more connected we become, the more ability we will have to pick and choose the products and services that meet our specific needs.

What will emerge?

What shape will decentralization take? Of course, that’s hard to predict in detail. But, as someone who enjoys exploring the edge, I am drawn to early indicators of how this decentralization might evolve.

From a corporate (and broader) institutional point of view, I’ve written about the “unbundling of the corporation.” Without going into too much detail, we’re already starting to see fragmentation of businesses in the digital space – everything from software to music and video. That fragmentation is beginning to spill over into physical products like craft beer and chocolate. I believe that’s just the beginning – we’re going to see more and more small, but very profitable, businesses emerging to address small segments of customers.

We’re also starting to see the growth of decentralized, autonomous organizations (DAO’s) that are focusing on decentralizing decision-making within organizations. There’s also a variety of initiatives to organize front-line workers into small pods or workgroups that are given more freedom to take initiative on their own. In China, the Rendanheyi model being championed by Haier with “micro-enterprises” operating within a much large company is beginning to attract more attention from around the world.

Of course, I have to mention blockchain as a major initiative in the technology space that embraces decentralization as a key organizing principle. While there’s been a lot of speculation and “boom/bust” initiatives in the early days of blockchain, blockchain reflects a strong desire for decentralization and is likely to provide a foundation for many initiatives seeking to decentralize Internet activity.

More generally, we’re seeing the spread of initiatives within the “human potential” movement that are organized around small groups of people who share a commitment to achieving more of their potential. Social change movements are increasingly focusing on “bottom up” approaches to change that embrace a cellular structure of small, local groups rather than pursuing a top-down centralized approach to change. In facing the challenges of the pandemic, we’ve seen the growth of mutual aid groups in local neighborhoods and communities.

Admittedly, these are all still early indicators of a trend towards decentralization, but they merit attention because the forces that I described earlier are going to drive significant growth of these kinds of initiatives.

Connectivity and decentralization

To be clear, I’m suggesting that connectivity and decentralization will unfold together. I’m not suggesting that decentralization will lead to increasing isolation of small groups. On the contrary, the proliferation of small groups will become increasingly connected into broader networks that can scale their learning and impact. Decentralization will actually drive a need for greater connectivity in the same way that connectivity is driving a growing need for decentralization. That’s the paradox.

Bottom line

We are in the very early stages of a paradoxical Big Shift. Growing connectivity will foster a growing need for decentralization and decentralization will increase the need for even more connectivity. This will have profound implications for how we organize and create impact in a rapidly changing global economy and society.

Those who are consumed by the connectivity trends are likely to get blindsided as decentralization begins to gain momentum. Decentralization will create enormous opportunities for value creation and will disrupt many of our large, centralized institutions around the world. We need to evolve a profoundly different set of institutions that will embrace the twin gifts of connectivity and decentralization.


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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.


  • 0

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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  • 0

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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