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Robertson Change, Winning Team  Chapter 1
Robertson Change, Winning Team  Chapter 1
Robertson Change, Winning Team  Chapter 1
Robertson Change, Winning Team  Chapter 1
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Robertson Change, Winning Team Chapter 1


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Robertson Change, Winning Team Chapter 1

  1. 1. 87 Maturity in complexity and consistency 9 Introduetion Escape from S-catraz 90 RAPTER 6 Diversity 92 The AEM-Cube®: Making diversity measurable 97 Workingwith theAEM-Cube®: lndividual types 103 Working with the AEM-Cube®: Team types We are right in the middle of an exceptionally important process thatwill once 115 Valuing both ends of the maturity-in-complexity axis again put this company firmly on the map as an e-commerce company with a 121 magnificent soul. Valuing and using diversity: Building effective teams 123 Carly Fiorina, former president and CEO of Hewlett -Packard' Escape from S-catraz 125 HAPTER 7 Conditions for a Changeable Organization The salmon as a metaphor for changeability 125 127 T HIS book investigates zations are prepared the boundaries within which people in organi- to explore and change, and the implications for management. It is all about a choice that you make yourself. lf you are con- omplex organizational change is a process not a project 133 vineed that leadership based on values and trust can and should go hand Operating the levers for change and changeability 144 in hand with financial and social profit, then you will find many things The five levers: A summary hcrc that will help you further develop and irnplement such avision. lf you II re of a different opinion, you will find little here that tries to convince you Notes 146 Bibliography 148 10 change your mind. 'l'hc Russian author Fyodor Dostoevsky (1821-1881) is reported to have lid I hu I somebody should not write a book until they have tried every- 11111111 pos~ible to prevent it being written. This is another in a long line of 1IIIIIkl1 I lint attempts to make a contribution to the leadership and man- 111'1111'111 of an organization that, because of information technology, is IIddl'III)1 I"oced with rapid acceleration. Why have I not prevented this III"d 111'1111 written? I 11111.1 Y hccause others have convineed me that virtually nothing has yet 11111'11 about applying concepts from ethology to the management I !i I !,IIII 11Iions. That is strange to say the least. You will have to decide for I!!lH.:lf Wild her I should have prevented the publication of this book. I'{lIII/IW!' Is also known as comparative behavioral studies. This science Irpi·1 1IIIIllncJ Ior more than 100 years and, after World War Il, received la ~1'llld rccognition thanks to Nobel Prize winners such as Konrad IJllnl.ltls Tinbcrgcn, and Karl von Frisch. My own definition of 111111 il is "thc scicncc (hat, using the perspective of evolution, lurw nlld why u spcciûc hchnvior dcvclops and what drives that 11", NOIII'ly 111 wltkh wt.' live IO(lIY hns, [rorn tin cvolutionary IIldy IH'I'II 111'0111111 I(H' 1I VI'I Y Nhml time IIiHI differs mnrkcdly "lid ,11 11111111111111111111 Yl'IIIH 111',11111 whk h 0111 hl'hllvlol' 01'111111111('(,
  2. 2. Our genet ic make-up takes much longer to chtlng~'1111111 MW kl 11111 Y: Much organism during its life are passed on to its descendants.' Many of the of our behavior can be better understood if wc Iry 10 dIIHIIVI'I' Ilw logic of social behavioral directions that emerged in psychology during the last it viewed from the situation in which it has, over 1I11111y ycars, 1111111011 century arose from, or were connected to, the psychoanalytical approach made a contribution ofthc hU1ll1l11 to the development /lIH'( 1(','1, When we laid down by Freud. Perhaps this is one reason why there was less of an look at things from this perspective, ethology can pl'()vldl' 101l1t.' extrcmely appetite for implementing concepts from evolution in this area than in, for interesting insights that bring unexpected depth 10 thc 11llll1lgemcnt of example, the fields of biology or biochemistry. 1believe managers should o rganizations. be slightly concerned about this, since the behavioral scientific input into There is a wide range ofliterature devoted to ethology; unyhody doing areas such as human resources - recruitment, diagnosis, selection, assess- a search on the Internet using the term ethology or the rclutcd term socio- ment, and training of staff - is based, directly or indirectly, on a psychology biology will find more than enough information. Much of thc inforrna- that still partly lacks any input from the study of evolution. Managers tion, however, concerns the animal kingdom and gives details that few should ask themselves whether the behavioral tools they use are "state of managers will need to know for their jobs. I have restrictcd myself to the art." generalliterature, and mainly to literature that translates ethology to the The British psychiatrist Iohn Bowlby (1907-1990) is one of the few human situation.' to have tried - in his heroic trilogy Attachment and LOSS6 - to integrate Within ethology, concepts have been developed that deal with how ethology into human psychology. In this trilogy, Bowlby not only shows people form human bonds (attachment) and how people are attracted to how ethological concepts can fundamentaily contribute to an explanation the unknown (exploration). Organizations derive their intern al strength of human behavior, but also how they fundamentaUy differ from behav- [rorn a combination of teamwork, loyalty, and the courage to undergo ioral and psychoanalytical concepts. I cannot avoid the impression that the onstant change. Using the concepts of attachment and exploration, they establishment did not look favorably on ail this. The cool reception given a n understand the emotional intelligence that is required for constant to his work in the established psychoanalytic circles may possibly explain harige. For this reason, it is strange that so little has been written about why ethology has taken such a long time to reach the field of organizational applying ethology to organizations. And so - after yet another abortive management. scarch on the Internet - I decided not to prevent the writing of this book. As I said above, this book investigates the boundaries within which Nevertheless, the interest in ethology is growing. A number of leading people in organizations are prepared to explore and change. I have not dot.corn bookse11ers have recently added several titles catalogued under approached this investigation from one single perspective. During my ti I tachment or ethology to their selections. The interest has also been picked many years of study, 1have also strayed into other areas such as cybernetics, up by the press, as is shown in a long artiele by M. Talbot that appeared a information science, chaos and complexity theory, and neurophysiology. (cw years ago in the New York Times:' There is also a gradual interest being Yet despite a11these varying perspectives, one has always remained central: shown by business. The Harvard Business Review recently published an thology. It is impossible to imagine that any single person could even a 1'1 iele cntitled "How hardwired is human behavior?'" about evolutionary bcgin to master all those branches of science that I mentioned. But I am psychology; it includes, for the first time, the word attachment used in its .crtain of two things. First, that many of the things I suggest are simplifi- .thological sense. ntions, and second, that they often do not give a full idea of the current I sornctirncs think that the lack of interest in ethology may be due to the stutc of affairs and may even, on occasion, not be completely correct. Inct Ihat, somc 100 years ago, Sigmund Freud refused to accept the concept Ncvcrthcless, simplification is essen ti al when trying to create a synthesis. of cvolution. Even though l'rcud said that Darwin's concept of evolution Whilc I W<lS writing this book, many people encouraged me to stress the Ill1d slimlllnlcd him 10 study mcdicinc, he rcrnaincd, until his dcarh in ipplicabiliry of thc model and to accept any imperfections for what they are. 11)1), 11 di.~d pk ol' llH' PI'~'llçh ~ool()gisl JI't! n- nll pl iSlv de l.umurcl 111lliis, howcvcr, does nor imply rhat 1 have sirnply written the first (171'1 1 UWI); 1111'1.1I11'I'/lIh('()Iy 10111,~II1(I' di/lll'l·dll('d IIIHI ol1ly ol' 11""11 1IIIIt runu- illio Itly hend. My idc(lS (111(/ xplanations c are bascd on IIiNIl 1 1 dl'VI'lOPI'" hy u Ilvlu] 1 11'1111111'1('111Nllitl 111111111'(11111'11I11'IIMIIcIl 1 lilt IH, hIli, 1i1IIH' (lliIlll' 1)1 IhOlll' 1111111 IIH' woy in which I inl uil ivcly nnr]
  3. 3. simplity and combine them, I have allowed myself to adopt a very personal that integrity and ethical - in other words, decent - leadership ultimately view. Even if the model that is constructed in this book proves to be unten- provide the center of rest that people in organizations need if they are to able and if I am attacked for overplaying my hand, I would still expect the continue functioning and exploring in times of increasing turbulence. model to - or rather, I am convineed the model will- contribute to a new In Chapter 1, we discuss the S-curve and the treacherous rigidity it can view of people, organizations, and change processes. cause. In Chapter 2, we discuss the nature and the functioning of the Ethologists will quite possibly not be pleased with the choices made in attachment and exploration systems, both of which show how we can this book to define terms. This book is not written for them, though. escape from the rigidity that arises within the S-curve. Chapter 3 deals Instead, it is written for the uninitiated in the field of ethology, such as with consistency as the most natural way of influencing attachment and managers and leaders of organizations. An example to explain what I exploration. Chapter 4 makes a detour and deals with attachment to people mean: Set goal, a term used by Bowlby in his description of the attachment and attachment to matter. This acts as an introduetion to Chapter 5, in systern. is used in this book to mean "focus of security and attachment." I which we discuss growth in maturity, within the framework of dealing do not want to be superficial, but nor do I want to fa11 into the trap of using with complexity. Chapter 6 focuses on diversity and makes it a concrete inflated language and fashionable terms that litter so many management success factor for change. Chapter 7 shows the importance of internal com- books; I hope the choices I have made in terminology are useful. munication for maintaining extern al consistency. Some of those who read the first concepts for this book warned me not I look back with considerable pleasure and gratitude on a11 help that the to compare too frequently the relationships in an organization with those I have received from so many people. First of a11, o Ann and Richard, who t between a child and its parents. That, they said, could backfire and give the have always forgiven my "unforgivable" sin of simultaneously starting a book an undesirably pedagogie character. I have do ne my best to listen to book, the research for a management tool (the AEM-Cube®), and a con- them and have tried to avoid any"damaging exaggeration" in the text. On sultancy business. I am particularly grateful to those who fina11ymade this rhc other hand, managers have repeatedly told me how they use examples publication possible: Hans Ritman, Raymond Gijsen, and Jonathan E11is. from the way they bring up their children to manage multinationals. Hans has always had the patience to press ahead despite the sin I have just Admittedly,such examples do not reflect the run-of-the-mill management mentioned. The book should have been finished a lot sooner. Many have bock, but they are too significant to ignore. Take, for example, this remark, given me valuable feedback. I cannot mention everybody, but I should like whicb comes from a senior manager of a large international retail company to name a few: Gert Jan de Kruyff, Ernst Horwitz, Bob Sadler, Niek with whom we have worked closely for many years. Sniekers, Fiona Henderson, David Lewis, Riek Price, Annika Ratcliffe, . Maarten Kouwenhoven, Mitch Kotula, Sheila Cox, Jantien Fennema, Wc're all big boys in the board of management and don't easily share things- Mirjam letswaart, Michel Evers, Philip Idenburg, Peter van den Akker, but tbisworks weil. The closer you get to the top, the easier the world becomes Mike Jeans, Peter Woltman, Iim Arena, Barbara Braun, David Thomson, aS far as valuesare concerned.lt is as ifyou are backwith your family. Honesty, and Drew Watson. larilY,trust, consistency, being strict and fair, sticking to agreements, self- knoWlcdge,humor, acceptance, success, and failure ... these sorts of things may bc givcn an elegant wrapping by management, but essentially it all comes IOWlllO bcing a good parent. 111 Ihis lwok, you will find na tricks, tips, or quick fixes for running an (lI'flli1I~,lli()llj insrcad, J have tried to make the underlying principlcs (IS cll'lll' IIN posHihk. I will try to show why peoplefeel safe or nor, nnd why Ilwy dcpressivc, loyal, and open 1'0 clllllllW Ol IIII!. 11'1' IIIIIllvilll'd, t'I'('alivl', '1'ltiN IHllllllplllldHllc hook, ()llring Illy illv<!sligalioli 111I1I111I·ltlld~ 111 lilt i!lllIlIll! I !1J1l1llIy lOl' 111111'11111'111 IlIld 'Xplorlilioll, I IHlVI' 111' .illit tll!llll!ud !I 111
  4. 4. enthusiastic.' Hewlett-Packard, according to Business Week, had developed 1. Success Is a Sleeping Pill into an organization of 130 different product groups with a "suffocating" bureaucracy. A former member of the board illustrated the company's increasing bureaucracy with an anecdote about four managers of the retail chain Best Buy Co. They wanted to purchase a few computer products from Hewlett-Packard and were bombarded by no less than 50 (1) employees, each praising the products of their various divisions. The culture of con- HIS chapter deals first with change as a prerequisite for survival. I then sensus that had developed over the years within Hewlett -Packard had also T discuss the "rhythm" of growth and decline in everything - from nature through the life of people to the life of organizations - as sketched undermined the innovation potential of the company, according to Business Week, which stated: "HP hasn't had a mega-breakthrough product by the well-known S-curve. Using the idea of the S-curve, in combination since the inkjet printer was introduced in 1984." The managers did not with the ideas of feedforward and feedback, we can understand how the dare to invest in new ideas, because they were scared that they would then future always allows itself to be overtaken, as it were, by the past. But also, not reach their targets for the next quarter, according to the magazine. how managers can arm themselves with the feedforward hierarchy against A particularly good example of this is provided by a former research the "assassin" known as the past, and use it to give their organizations the employee at Hewlett -Packard, Ira P. Goldstein. In the early 1990s Goldstein ability to start new innovations ahead of time ... and thus escape from the developed a prototype for a Web browser, and in 1993 he showed it to the "prison" of the S-curve, to escape, indeed, from S-catraz. then top man, Platt. Platt was enthusiastic and told Goldstein to show his development to the computer division. After that, the idea died a silent death. "They didn't see how it could help them sell more computers;' wrote CHANGE AS A PREREQUISITE FOR SURVIVAL Goldstein some time later. Two years later, Netscape became the first Internet superstar with its Navigator browser. "Continuous change;' "the need for a company to be constantly alert to A tale such as this about Goldstein and his browser that died a silent death profit from movements in the market" - we've heard these phrases so many speaks volumes about the situation of the company and its management. The times that they have become clichés. Yet if we take a good look around us, enthusiasm that Platt showed for Goldstein's invention was quite simply no we will acknowledge how difficult it is to put these clichés into practice. We match for the rigidity that had taken hold of the organization. Perhaps Platt all have examples of companies getting stuck - where rules, procedures, was fully aware of where Hewlett-Packard stood and where he would like to and intern al power politics have become more important in day-to-day take the company. But it seems that he, in common with much of the orga- operations than looking for new ways of serving customers and keeping nization, had become trapped in the quagmire into which the company had costs to a minimum. fallen. Platt, who had been with the company for 33 years, had no idea how The following example shows that even an organization such as to handle the situation, according to Business Week. Despite the lack of new Hewlett-Packard (HP) can find itself trapped in amental ''Alcatraz.'' We products, the magazine suggested, he was still unable to develop a policy that will regularly refer to Hewlett -Packard in this chapter, because it not only would entice people to leave their cubbyholes. The then new top woman, has examples of rigidity in its history, but also is an example ofhow a com- Fiorina, had a heavy task ahead of her, wrote the magazine; she would have to pany can constantly regenerate itself. In their best seller Built to Last, [ames revitalize the heavy culture of HP in the first few months and show them how Collins and Ierry Porras describe the results of their research into comp a- to develop the sort of speed that was required in the Internet era. nies that have the ability continually to reinvent themselves. Hewlett- Thc dcparting CBO had become part of the system. A new CEO was Packard, thcy conclude, belongs to the "best of the hes!'," Whcn Carly I nceeled - OI1C who could net as a breath offresh air within the organization. l'inrinu took over thc helm frorn Lew Platt in thc summr-r or 1'))<), rhc Hl/I whut rould huvc b<:<"11 onc 10 prevent Piorina bccorning, in tbe course d III(h()rlln(jv~' Al1lvrklll1 hWIII1L'sll mngnzine JllIsil/l'S,~ w",'A Willt h~H/t 1111111 nl' 11111' 11111'101'IIH' 11(,wll'll Plldqll'd Ily/llvm? She is, otter 011, only hurnan. 1.
  5. 5. Aren't people always inelined to relax their mental defenses when things are going weIl, as if enjoying asummer's day? Aren't people inelined to stick to a "success formula" and therefore lapse into rigidity? What causes this process of relaxing mental defenses and lapsing into rigidity? And if we can find an answer to this, can we free ourselves from them, or are we in a mental Alcatraz from which escape is impossible? We will first take a look at this last question. Then we willlook at what effects those beautiful sum- mer days of success have on a company's ability to change. There is, indeed, amental Alcatraz where we a11,regardless of who we are, keep finding ourselves trapped. It is almost as if the wages of success are paid in the currency of rigidity. It is as if, in our struggle for success, we are constantly ambushed by an invisible enemy, who lulls us to sleep before we are aware of it. When we wake up, the world has changed and our suc- Winter Spring Summer Fall Winter Spring Summer Fall cess has evaporated. Figure 1.1 The S-curve THE S-CURVE: THE RHYTHM OF GROWTH Summer. This is the time of production. Logistics, technique, and commerce all AND DECLINE support the chosen direction. Investments are less important; profitability assumes center stage. The innovative people who were around at the start have A practical way of applying the we11-known concept of renewal, growth, and disappeared; controllers and bureaucrats have taken their place. This is the stage decay to management practices is the S-curve. The S-curve plots the process that sees the increase in rules and procedures aimed at increasing efficiency. of deeline and resurrection; it is the rhythm of the seasons that can be iden- Pall. In this stage, the first signs of decline become apparent. The company tified in everything that grows. This book is about people and organiza- may, for example, start losing market share. Initia11y,decline is repudiated and tions, but they do not have a monopoly on the S-curve. Whether we talk reasons are giveri.from a11sides to explain why things are going wrong. But about the rise and fall of societies or Mafia godfathers; rabbit colonies; love eventua11y,fear and anxiety can no longer be ignored and this can even give rise relationships; the life cyele of Desklet printers; our own career; or the course to panic. The solutions are downsizing, tightening the belt, pressing the last bit of epidemics: S-curves reveal the dynamics (Figure 1.1 - the vertical axis of profit from products, "back to basics," and so on.' indicates the growth, the horizontal axis the time from left to right). Nobel Prize winners such as Jacques Monod and Ilya Prigogine have shown The S-curve has appeared increasingly in management books over the in their work how, in light of the relationships described in the S-curve, last few years. Theodore Modis describes the S-curve for companies in his order can emerge from chaos.' This concept has been translated for book Conquering Uncertainty. He uses the cyele of seasons: winter, spring, management by an increasing number of writers, particularly in the 1990s. summer, fall, winter, spring, and so on. Authors such as Kenneth Blanchard, Terry Waghorn, Charles Handy, and Winter. In the winter, companies have time to develop new ideas, but prof- Theodore Modis have demonstrated how the S-curve is and should be part itability is poor. There is chaos and uncertainty. Death lies in wait. This gives a of the armory of every leader, manager, and strategist." Marc van der Erve nsc of urgency to keep on looking for soutions and finally to make choiccs. has described how values and norms shift within the Svcurve." Jeffrey P. S",.i/l>. 'l'hc ndvantngc of spring is cnthusiasrn. The disndvnuuuu- iNllilll il hay and Frank T. Rothaermel sketch in an artiele how the S-curve pro- d(11l1l11Id/! high kvçls or invcstrncnt. 111110v~,tive eOI)('('(lI'1 1111' 1111111,11hilll vides a basic SI ructurc that allows existing models for strategy-forming 1lllIglhll' (lIlHIIII IN IlIld N('Ivl( ('H.IIIN til!' prl'iod ol'''lPNI'IIII''I ,. includill!', Ih(' lI'owlh nnd markct-share matrix of the Boston Consulring 1,1 I,
  6. 6. (;1(11111) 111111'IIldlCd 1lIlIllllITIIL~llIlIijtl in ti more 101111111'11111111111' dynamic appears to have areverse side, and all those reverses together feel like a 11()d,·111I1 Nllilll'll,k 1111111" straitjacket. He was pleased with her ambition, but now she refuses to give 1101'WI'lIt'I f H1111, '1'111'11111111'11 1IIIIIIIliilly ti physicist, it is an excellent mea- up her job, and that causes a dilemma: Do you take that international pro- surillg loolillill I"IIIW,~ 1111'1IIIIIIIdtlliül1 ofcxceptionallyreliableprognoses: motion or not? She was pleased with his ideas about emancipation, but ",(,his 1:11I'Vl' cuu IH' IIHl't! quuntitatively to achieve predictability and de ep when push comes to shove, he refuses to accept responsibility. The rela- insighis. ()IC snvcd muny millions in 1985 by accurately predicting how tionship has moved through an S-curve. How it continu es remains to be much tUIï10VCI' could be generated from servicing an old product .. .In seen: Either it comes to an end, or a new S-curve begins. 1992, the British government, to give another example, could have spared During our lives, we pass through dozens of such S-curves. The S-curve itself the pain of attempting to close down two-thirds of the coal mines." of our infancy, elementary school, high school, relationships with friends, Theodore Modis also applies similar mathematical calculations to the study, first job, second job, third job, marriage ... careers of individuals, such as Hemingway, Hitchcock, and Mozart. Using the S-curve for the works of Mozart, Modis calculates that the first 18 com- S-CURVES IN ORGANIZATIONS positions were probably never written down due to "technical" problems: The young Mozart could not write well enough, nor speak well enough to There are enough recent examples of companies having become too rigid dictate them to his father. Most authors, however, do not approach the to react to important technological change that they found themselves S-curve in such a strict mathematical way, but make use of a "qualitative playing catch-up in a race they could probably never win. Merrill Lynch and subjective approach:' In this book, we, too, use a conceptual approach to resisted share-trading over the Internet for four years. And aH the while, the S-curve rather than the strict mathematical approach adopted by Modis. new and existing companies, such as E- Trade, Charles Schwab, and smaller discount brokers had captured market share with an efficient and cheap formula for buying and selling shares. Merrill Lynch was so hostile to the S-CURVES AND PEOPLE Internet that vice president and head of share-trading Iohn "Launny" The S-curve also applies to the lives of people. Take the S-curve of a rela- Steffens publicly announced in August 1998 that share-trading over the tionship (perhaps a caricature, but certainly nothing out of the ordinary): Internet "should be seen as a serious threat to the financial position of the We fall in love, maybe emerging from a winter of solitude, and find our- American citizen." The paralysis at Merrill Lynch was not, however, caused selves in the spring of happiness. We dream about a future that ends "They by any concern for the public good, but was a result of the internal corpo- lived happily ever after." We develop from being a couple in love, move in rate culture. The contingent of 15,000 powerful traders was petrified that together, and become partners for life. And all the time we are getting to share-trading over the Internet would erode its income from commissions, know each other better and better. We learn about irritations and weak- which made up 30% of its total earnings; it resisted such a development by nesses, and about the areas where interests conflict and where polarization tooth and nail. is possible. Initially these are dismissed; they do not fit into our perception. Merrill Lynch is by no means the only reputable company that has been After a while, the novelty wears off and the many advantages are taken ~or held back by its own culture. When Amazon.com opened its Internet granted. Perhaps the next move is a marriage, children, a mortgage, two trading in 1995, Barnes & Noble refused to take this new form of "e-tailing" careers - and our days are filled with things that we had never imagined. seriously. This leading chain of bookstores had just experienced a period of Is th is all th ere is? Is this the way it was supposed to be? A pattern of dis- fevered growth. Barnes & Noble had, for example, just started innovative agreement, stress, dissatisfaction, and frustration shakes us awake, and for cafés and music shops in its large stores. Internally, so much attention was the first time we look around at a world we had never discussed, never direcrcd at expanding the physical chains that people were totally blind dreamed about - and yet apparently we had worked towards it. Wc were 1'0 thc possibility of an altcruare supply chain, It took two years for Barnes happy with OUI' rnarriagc, happy with our children, happy wilh 0111' nIOI·I· & Nuhlc hl'silttntly ro 011('11 (he doors of irs OWI1 virtual sror g:1lt', happy with OUf' cnrccrs. nlll cvcrything thnt uscd lil pilWIl' II~ IIOW Ilill'II"HIIIHll1llhk',t()lll. 'l'his d,'IIIY IIIIN proveel dnl1l:1gillg to 1:lIïl~'S & Nohlc." 111
  7. 7. IIn'I'I' Hl! M M HitS 'l'HAT NEVER END success,"!' In other words, the summer of success can lull people to sleep. And success is what it is all about in the second or upper part of the not Ihc biggest challenge facing US, either in companies or in "'h'IINIIIIN" 1II'l' S-curve. All efforts in the fust half of the curve (the bottom part) are directed 0111' llvcs. lt isn't about how we can proteet the existing against deeline - at harvesting in the second half (the upper part). Even at the very moment dccline can't be stopped - but, rather, about how we handle the rhythm of that the growth curve - which describes the life cyele of a product, an the seasons. organization, or anything else - is about to flatten out, everything still If we just allow the rise and fall to take its own course, then the curve seems to be in-order. Success still seems assured. will go downwards at approximately the same rate that it went upwards. The Gary Hamel, C. K. Prahalad, and many others suggest, in relationship to total curve will follow the bell-shaped movement of the elassic product life strategie renewal, that success is one of the major threats to true organiza- . cyele (Figure 1.2). tional change." Their vision can easily be coup led to the S-curve. Hamel Now we return to our previous question: Why is it so difficuIt to remain and Prahalad concentrate on two aspects. First, that people experiencing flexible, to escape from the mental Alcatraz? The answer is found in the success have little appetite for distancing themselves from a successful past, idea that many people have that summer will never end and in their incli- and second, that people continue to concentrate on repeating and continuing nation to keep a firm grasp on success. People construct their own mental success into the future. This makes them more focused on (the success of) Alcatraz. As the line of the S-curve rises, when success comes to complete yesterday than on the demands of tomorrow. fruition, then you step into Alcatraz - or more appropriately in this con- In itself, the observation that success lulls people to sleep is a letdown. text - S-eatraz. At the end of the rising S-curve, success smiles on you, and The problem is well known. This rational knowledge seems insufficient to nothing indicates the possibility of deeline. The fact that the high of success prevent rigidity, the sleep at the end of the S-curve. This is due to the devious makes itself felt is actually the first signal that deeline is imminent. way in which the process works. Nob?dy is aware of the exact moment Bernardo Bertolucci describes this poetically thus: "deeline of which you they fall asleep. It's the same with an organization: When renewal is are not aware, the deeline of those that look but do not see, who listen but required, there is the danger that it will simply faHasleep without noticing. do not hear, of those who do not know how to judge themselves or others.?" imilarly, a company can suddenly wake up disoriented and rub its eyes as Richard D'Aveni, author of the management best seller i l takes in the unknown surroundings in which it finds itself. Hypereompetition: Managing the Dynamies of Strategie Maneuvering, recounted during a lecture in 1996 that Peter Drucker had, after reading Unparalieled track Accumulation of record of success abundant resources his book, invited him to dinner. On that occasion, Drucker is said to have t t remarked, "If the gods wish to destroy you, they give you twenty years of No gap between Aviewthat xpectations and resources wil! performance win out There seem to be only two directions: up or down t t ontentment with Resources substitute rurrent performance for creativity If people stay on the old t t S-curve, then inevitably Inability to escape the past t t they wili go down Failureto reinvent Vulnerability to leadership new rules t t Momentum is Deeplyetched mistaken for leadership recipes t t uccess conflrms Optimized business tralcgy ystem Pigul'c 1.2 The.pathofthe:::>-curv 1111',1111: 1,: V/~" 1111' I() )il'II/ ol /1" ,'1' (,'lil )/IIIIII/t'llIlIti (;,1. I'mlli/ll/tI) 111 lij
  8. 8. I j IlIlv('d W 1II II( I (' 'j IIIId 1l('IIIWH' lil ti • 111 I" N l luwlv llill 1111 h, IV 11 1IIIIIIII'd W 111111'111111111/ ,111111 11111 ( thv 1111'11 1'11111. 1 or ',lIllil,lIlioll, 'I'h· sillillion les .ribcd hl'll' (t( lil 11111 dly I 111 I'VI I '111 "1 11 1111 11)',1 111 d('VI'llIllIlIllIl: I1 ""IV dl' shown in Fi JUl" I. ) is I vcrly apturcd in the w rk of thc I 111h 1',1iphi ' IH'llgllt, ('11,', I V('III' ,11I1t 111', ('( IIIIIYI qlndlly, IIld 1'1('( (1lIlIilly, arti t M. C. Escher; one of his works shows the subtle and impcr cptible ,'OIllVWh 'I' ililh/ 1'"1 (' 'IIIIIW('V('I, 1IIIt 1IIII,Iw (111•• ,I huuk-n; ('11111'1)1(' transformation of white horses into black ones (Figure 1.4). 11'UI'S IlIld SIl' hIlisi. 1II111 IIln ollllOIll'l's und hili' 'iHI '1'011<, SOII1l'wlll'n' In IhiH In this work by Escher, a group of white knights on white horses rides pro' '$$,<'lId nobo Iy lil I say wilh certainty al what tirnc 01'011 what dny ilhup across the page from left to right and about halfway up seems to evaporate p .ns, th whit h l'S s sudd .nly Iurn bla k. Th I' ar still a lOL of I' 'S( UI' 'S into black knights on black horses riding in the opposite direction. This ivailable, fun tion ar ca ily thought up, and on rul 111 re r I ss won't image of a "white" force changing almost imperceptibly into a "black" force make all that much difference - even though it may low down th cl ision- perfectly symbolizes how initial proponents of change - at the bottom of making process. Everything, it seems, is possible, and then all at n ' il the S-curve when an organization is still in its infancy - imperceptibly b omes too much, everything boils over, and it takes ages to reach d isi ns, change into a force that opposes change. In other words, suddenly and without warning, those initial advo al of The image by Escher is a11the more appropriate because the moment hange turn into forces that oppose change with every means at their dis- of change is so intangible. The same happens in organizations. Initia11y(at posal. This also happens within the people in the organization itself: Th' the start of the S-curve), factors such as structure and procedure are the process is largely amental one and is reflected in the way people think about a11iesof growth for the emerging organization. At the start of the S-curve, and look at the world around them. People become lazy; the structur s lhul the "spring;' there is a need for enthusiasm and optimism but, at the same have arisen around them make things all too easy for them. What's mor " time, a considerable need for the right investments in structures. It seems success feeds vanity, The reward of success has become a sleeping pill, Ilw as if everything has to happen at once, each aspect intertwined with the befuddled senses that follow a bottie of good wine. The hangover comcs Ilw other: marketing, production, sales, service, aftersales, planning, logistics, next day, when you wake up and find yourself in a strange room. To summarize: During the course of the S-curve, those factors tha I w 'I' • critical and essential for initial success become an impediment to hanuc. What is so treacherous about all this is that it takes place as slowly and as imperceptibly as the transformation of Escher's horses. Friends who t ok care of structures and procedures, and thus helped words to become de ds, change into ene mies of change because they consider those structures and procedures as ends in themselves. FEEDFORWARD AND FEEDBACK, OR HOW THE FUTURE ALLOWS lTSELF TO BE OVERTAKEN BY THE PAST Life is a moment in space, when the dream has gone, it's alonelier place ... Barbra Streisand" The course of the S-curve in organizations can become more tangible - Figure 1.4 Escher's trap (M. C. Escher, Regularl ;V;S;O/l Oflllc 1'11I1Il' 111) and thus better manageable - if we look at it with two ideas in the back of 20 21
  9. 9. T-----ïTlm-TTTTTm'lr.'"if"l"l"l'TfT'TWim'firmmT"'Tf'I"fI'7irnT'il":ïmrnT1mmTTïmt'f"'!'lPft""''lf~,.."rnr--____::_---::;;;;;;;=-""llfffiiTTr,TiTITl1il1~mffiiTlfifiTlmr'ifilyrrIR"~TiT1'lIi[Tff'f!l'lJnlIl nr mnn IIllly "1111111111 '1'1 1111 1111 1111111'1 11111I1111'.1111 1111.111 1111"11 11111 ti lid" 11111111' /1,//'1/1, /I,l' /"/'/11',1/ /, -"). "1/ I .1/11111· 11I111"11111111 1.1111111 .« 1I0ld 111 111011'.111 11011 111111,1'1'11 IJHk,'I(lil ti tlHIVl, W, 11111111111111"1 v. (' 1'111IIIIIPI'I 111111'11 IIIHIIII 1111111 1111'.11111111111111 1 II'VI·I,1111' 1111 lil 10 rh -sc id ':IS in 111·cominu hupt 'I'S wil '11 Wi' dlNt 11 lilt, WI' 11wit 11" 11 .11,1111' 11'1111',1 plll)(111 11'11111111 11I1111111'." I wil w d pcoplc have han 11 I hangc and thc f ar of th unknowu 101 1IIIIIIoliS ot' 1)111111',111(' lilllt I Ilil' ol IIH' S 1111 1(' IdOI'( 111', VI', 1I'('dh I' k , 1" ·dOIIi years, Feedforward and feedback are terrns derived from syst ms th .öry. 1111111)1'11111111il 11.111 t'. bf'(I('dH I) Hl1'('HU (('H,; 1111"". (' OIul111IPt 01111· l 'I 1111VI',lud 111 '1111,· 'dh rek (ukcs ov 'I', )lOl'('XIIIII"I' Wlllpl'lltOI'S Ilwy h IV' I 111·1t·tI Ilw IIH,,'k 'l, ind 'V .rybocly in thc IIHlrkN is k 'plll!lllll'il' (y( IJ 011 FEEDBACK: TAKE A SHOWER IN AN OLD HOTEL I'VI'Iyhody 'Is', If 011' link l'S with rh . pr] ) th I''st follow Illlil. Everybody knows feedback systems. The systems for controlling the refrig- erator and the central heating are both good examples, The human body is 11I1,II.1)1I0RWARD: FROM AMSTERDAM 1'0 PARI' fu11 of feedback systems, which control such things as blood pressure, the heart rate, and blood sugar levels, The fo11owing illustration - one that has 1i,'{ldlllrWard is another form of control, whi h aris soul of 0111'nbilily 10 been used on many occasions - shows clearly how a feedback system works, Ilitkipni the future.It is as if the future is pulled ba k in order 10 'onll'Ol You are a guest in an ancient British castle that has been redeveloped as tlt~, I I' 's nt. Feedback is a11about control based on inf rmulion fJ'()1I111H' a hotel. The cavernous bathroom has a large bath in it, and above that bath PIst;}" 'dforward is control based on the expe tations, hop 'S, dl' '111IN,Ilid are two taps. Somewhere deep down in the bowels of the hotel is a boiler wil h 'S people want to achieve in the future. An xarnplc will 111 lid Ik~' or gas water heater that provides the building with hot water. You turn on , k· Ir, L t's imagine a driver - and, admittedly, this is nn cxtrcuu- cxut 11 pk' the taps, and the shower starts pouring down cold water - exactly what you who onstantly drives his car around a traffic ir I (]ligtIl' , l.ri, 1('/1), 'l'hh would expect. You wait for some time and then decide to turn up the hot driver bases his actions purely on feedbacl. II pays ntl'lIlioli 101111'111' tap and/or turn down the cold tap. Suddenly, the water is scalding hot, and on the road and makes use ofthe accelerator usin ~'l'dhlCk 1111111111 J ti 1111 you quickly turn down the hot tap. Then the water turns ice-cold. You turn (Trom the speedometer on the dashboard and th ' posi! iOI) or IIH' I 111111!t, l up the hot tap. If your stay is short, then you'll probably never get the hang road) about the existing requirements (the 111a il11L1111 Hpl'pd Illd 11,,'wit 1 of the system. If you're fortunate enough to spend some time there, then lines on the road). you'Il probably get to know how long it takes for the system to react to a In a feedforward situation (Figure 1.5, right), thc driv 'I ,~IIIII 11"1 turn of the tap. around a traffic circle, but has decided to drive from Amlll 'I' 1.1111 I' 11II1 This example shows how preoccupied you are with the past. The tem- Feedforward bases control on information it receives frorn I"l' 11111111'. 111I perature of the water in the shower is not the same as the temperature of feedback situation, actions are directed at reestablishine a silWlllt)l1 I" I1 the water that leaves the boiler at that moment. If you don't know how much delay there is in the system, then you can't rea11ycontrol the process. An additional factor is that the greater the delay in the system, the more difficult it is to control that system. ~- - -~ - - - - B The essence of feedback is that the action is directed at achieving Ht (again) a situation that existed in the past or that meets a standard set in the past (in this case, a comfortable shower temperature of 38°C). Feedback means "control using information from the past." There are two forms of feedback: reinforcing feedback and balancing feedback. Reinforcing feedback is "feedback that strengthens itself" A product is a hit, people starting talking about it to each other, more people buy it, more people talk to each other Figure 1.5 Peedforward and feedback control 22 23
  10. 10. I I I IJ I "I "I 11 I PI , 111I ,,'II,//I/I,I! I1 Hl lid Ii1 ti tIllI' 11111'1'11 uu u] 1111111111111IIIIIIIdi 11' 11111111 1111 d, I I1 1IIIWIlid I1 I lil I, 111I1 dll~ I1 11, lil'. ti l('lll'd 11 .1 lIltIllI' I 111111 11)VI'lllcd hy 1I'I,tlIIII til 1111 II11 111111 II 11/111111111 1111dil 1111 II hi 'ving 1111IIIIIU tlpl'Owlh in IIII'IIOV 'I' ol~ suy, IOIXI IH, W 111111/1 1111'1IIIIIu'I 'IlItIl' 1.1 illOW lilt, d 111'11 1111'1111IWI'I'II 1I'I'dlnil I IIHIII'I·d 111 Wll1d, informatior about thc hi ih 'I' aim an I ti' print 'lltioll 1)1 lilt h 1',ItIWth, and without any additional information about the COII! I of tld,~ 11111,thc i '1'111 1'Jl.I',DI'OItWAIU) J1IHItAIt(,JlV: A I'I(AC'I'ICAI. same as the white line on the road: a rule that has to be foll w d. AI'I'ItOACII'I'O MANA<.INO'I'JlI', (;IJItVJI. The power of the feedforward direction expresses itself in self-fulfilling prophecies: If we start our day thinking that things will go weIl, they gen- 'l'lu: 1011 "pl or thc S- urvc mn bc mndc 11101" tnngibl' nu 1,1101" luipor erally will; if, however, we start the day thinking that things will go badly, 111I11y, 11101" <'I pli al I, - if W' us 1'1'1118thttl (11" P Irt of our duy 0 ti Iy then again, they generally will. Pribram 14 has pointed out the fundamental VII( ihulnry: stralny, norm , vislou, dteams, pro '5, stru ture, itlens, tnrtlrs, difference between feedback and feedforward. He says that feedback has lil tluus, pro dur s, mission. Whcn I ask rnana .rs to list th s t 'rl11S in little to do with information: The driver who goes around the traffic circle Ilid'rrromfcedforwardt [eedba k,th yg ncrallypr lu . a list mu h likc only needs information about his position on the road in relation to the Ih 'Ol) shown in Figure 1.6. white lines. He could even drive blindfold, with a passenger who gives 'l'his fcedforward hierarchy describes the $-curve,rrom th b (tOIl1 instructions such as "a little to the left" and "a little to the right." Some upwards. The feedforward hierarchy gives managers a lever they an u ( managers think that when they are controlling budgets they are dealing 1ll0V thcir company, department, or project further up the S-curve, and thus with information. This is not true. All they are doing is judging figures promoto development. When a project is in the early stages of developrn .nt, against a norm that has already been set. The essential difference is that th ' manager has to apply downward pressure on the lever: from valu s to feedback-oriented work is directed by a signal Cadeviation in the budget), tir am to vision and so on. The more feedback the manager receives,the mor' while feedforward-oriented work is directed at the content, about the why tangible the project becomes for the organization. Once the proj t hu, of the budget and about the context in which that budget is placed. bccome concrete, top management will increasingly delegate the leader hip of Feedforward is based on our ability to imagine the future and to anticipate the project to middle-management levels lower down in the organization. In it. This can have negative results - think, for example, about the fear of ther words, the organization will move step by step from feedforward l failure: We see failure looming up in front of us, and that makes things go Values Values Values Accents at the beginning and end ofthe S-curve Vision Vision Vision Start of S-curve: Feedforward impulses End of S-curve: Feedback impulses Mission Mission Mission Impulses are based on the future, on something th at is Impulses are based on the past, through feedback with Strategy Strategy Strategy not yet present something th at has taken place Tactics Tactics »>" Tactics Cause little or no delay in eithertime or space Cause delay since the feedback always takes time Process Process ...------ Process Deal with something that is still to come but doesn't Deal with concrete and tangible matters 5tructure Structure Structure yet exist Procedures Procedures Procedures Start and finish Can continue endlessly Norms Norms Norms Change a condition Maintain an existing condition Aredependent on information that gives a "direction" Aredependent on a signal th at indicates a "difference" In the first stage of the S-curve, In the consolidation stage, the accent In the efficiency stage, the accent or "goal"; without specific contextual information or "deviation"; as long as th at takes place, no further the accent lies on questions shifts to the question: How can we shifts to the question: How can we about the direction, there can be no feedforward information about the type or nature of the such as: Who are we? What do best tackle our plans given the current do what we do cheaper, faster, and information is essential we do? Why do we do it? circumstances? better? Table 1.1 The differences between feedback and fc clforwal'd Figure 1.6 The feedforward hierarchy as a way of mapping the S-curve 24 25
  11. 11. 1111',111,llld hili I f',1Idtl til 111111111111 11"'IIII1,lvl 11111 Id,1tI 11111111111.1 1 I' ," 111,111111111 1111111 ('P,( lVIII 1',11111.1,111 ,lIllitI," 1',.1111 111111111'0 1111 " lil 1,," u' ,'I'ltl I'IIHI', ,'I ti/lil I' 1'111ti: '1'111' 111I1t'(' 1011111'11' 1""1,, I I" .111111' I , 1111111111""1",1.11111 1 1/,,11111I11 '000, 11('111'1'11 111 1 11), 1 (iitl 11111111) 111111 11t~'gt'~'II~'1' f,t'dhlld ,'I'lloHc"hlo {hors '$":tr' 1101 Ilw oilly IIt'vllitlll",llwy 1It' I'ilIlt, 11111 W,lIldl'l 1111111 dl 11111 1111111' «Iv 111'"11111111' 1111 lilt' 1 (111 111111 also us rul. 1I s is eb ughL" with an in r as in ri 1i lily, 1'1'01111l1l1 'ra- 'op 11111 10 IIH' pll'H'1I1(iI'slIlIllll lilt' 1"11111'1 11luul )1111U'I'II'1IIIIIIIdl'tI) Vt') Ilt I tions are simply not possible without rules and feedback. Mana '111 mt's task 1111 1111111',11111111" dl 1>11111111'" ,(,.lIolwlld It ('llIlby i~Iwjllf',d how wit I is to accept this while remaining above it and anticipating it. I 11 1'11. Values and norms V hll Any discussion with management about the order of the individual terms "III'INilltl'da',,'ol ompony.ltistt omptlnYlllllllhw'lldl11il"df'I'ol11 dil1', generally turns into a heated debate about the proper position of the term I ylltl will, röl' l11f1nycar . It is a rnpany thnt I hav ti lmir I lor its vnlu ... y values. This is hardly surprising, since generally (and certainly in the 'l'II'VlIhl'soflrusl,inlcgrity,l amw rk, ntributi n.And it isu ompany thn! Netherlands) values and norms are lumped together - almost as if they were IlidIllil" ir arly for its invcntiv apability ... As w rcinv nt urs Iv '$ W' lil", synonyms. Yet when I demonstrate things with real examples, we generally 1111,I,inmanyr always,drawingfr m our hi I: ryand urtraditions to hclp reach the conclusion that values should be at the top of the list. For example, IIN that rcinvention.l believe that Hewlett-Packard has a uniqu .opponuult y in respect or honesty says something about the way you should act - and for io bc om whatlwouldcall,whatmanyofusatHPnowcall,an '- ornpnny this reason they seem to set a norm (in short, the highest form of feedback), with a shining soul.i.We are blessed with a cornpany that was iv 1111 v "'y But values have a "thou shalt" character, while norms have a "thou shalt not" Siron soul and spirit and character by Bill Hewlett and Dave Pa lord, Anti 1I character, Values give direction (information about the future, even if this is Is Ih nature of that soul that helps us now in our reinventioo ... rather abstract), but say little about the way in which the direction is " 0 l'dlike first to start by sharing with you the rules ofthc gara ',liS we rull I achieved. Norms provide a boundary, and are gene rally concrete in the way thcm at Hl-now ... OurphraseforthatinsideHPtodayis'Pre crv thc h 'sl uu] they mark this boundary. Norms are always derived from values: "Don't lie" I' invent the rest.' And ifyou look at these rules 1thinkyou wilt 'that ull ol (a norm) is derived from "integrity" and "showing respect for each other" them come from the great legacy that Bill and Dave left us. W. talk h 'r" 111 I N (values). On the other hand, somebody with values such as "integrity" and about an environment in which every employee believes that th ir ntrlbu "showing respect for each other" may well occasionaIly lie - there are situa- tion can make a real difference. And so our first rule, as you see hcrc, is b ·Ii 'v ' tions in which this is appropriate. The classic example is hiding Iews during you can change the world ... World War 11: In such a situation there is justification, taking into account "And coupled with that, believe you can change the world, is another ruI at values, for breaking the norm about not telling lies. Anybody who rigidly the end which saysthat believe togetherwe can do anything. Because of cours , sticks to the norm and by doing so betrays the [ews would no longer be con- teamwork is at the heart of all great reinvention ... You will also see that w sidered a person of "integrity" or somebody who shows respect for others. think speed is essential ... Trust is important, as we talk about keeping the tools This sort of discussion usually results in managers reaching the conclu- unlocked ... Trust in sharing with our colleagues. And of course, a customer sion that values should top the list in the feedforward hicrarchy. Norms, on defines a job well done. And throughout it all we remember, for ourselves, for the other hand, can be compared with traffic sign , or with the white lines our customers, and for our share owners, that this is a company founded on the raad, They show what can and cannot bc don, Valu s, to continue by inventors. And that it is fundamentally our inventive capacity which the traffic metaphor, are the reason you are on th ' rond, thc destination distinguishes us from our competitors. Which continues to allow us to make a you wish to reach. contribution to our share owners and to our customers." At the top, the feedforward hierarchy is con rn 'd with 11' fut ure and is abstract (values, vision). At the bottom, it is on '1'11 wirh th past; it is ,( Vision concrete by nature and control-driven (pro dur 'S, 1101'1I1S), (in practical A "Aswe move forward in this reinvention phase, we are constantly aware of the 26 27
  12. 12. ,11 Ilil IllIlIp 111 1111111'11 kI'l I 11111 WI IlilVI 1111II1 ti 11V1l1111ldllllllll" 111111111111)'.'111111111111 1 11111111IIdll I1 III,II'VI', II1II 11hll 11111'1'1111'1'"111111111111101 1111111111111111I. IVl'lypI'OdlIIOWlllIIIOII·vlt!lIlhl(·hl(·dIIJlIllIlllI'l 1" Itl IIVII 11111111(' 1'111.lil' '" "lilildd 11I1I,W'IIIIVI'IOlIlll'dlwolllflllll '/1111lIIIllillilili 1IHIIII'dlllllllllvd 11ft wrupp 'ti nround th u pro Iu 'I. Wh 'lh 'I' Wl,'I'(' I dk IIfI 11111111ll 111('1Ih 11 hlls J with .it a scrvi C p rsonaliz ti n ws... l n 1'1, whut L h IPIH'II IIH 10 lny is Ilw h '/>IIOll" ustuuivr 'xp 'I'kllt '," productsaremore and more valuable to the cxt ntthat t h .y 11" n 'I work .d and to the extent that theyare included in a package of services. And s it's vital for Operatlonal matters (process, structure, procedures) uS th sc al' th .. , fundamenlal buildin bi ks n w wil hin 11P. WOl'ld I )S~ us, as a company, to not only continue in our strong tradition of product generation, but also to put those products together with services. E-services is, 1'1' du t gen rati n, w rld las ustorner xp ri n c.An I r UI' ,11 IJ Lol is at the center of aUof this. HP Labs i the place where our invcntiv apabilit y we believe, the next great movement in the networked economy ... So the bcgins and is perhap best personified. And we're focused vcry mu h now on challenge for us in HP is to play uniquely in driving this e-services world." taking the technology and the capability of HP Labs and moving it m I' Mission quickly into the businesses and out into the marketplace. I mentioned our d al "We believe HP is uniquely positioned at the intersection of these services, with KodakandI wantto focus on this justforamoment ... Another important these assets or processes that can be turned into services, to deliver over a net- deal that we announced relatively recentlywas with Ford Motor Company." work. The infrastructure that supports those services, and the appliances, the information appliances. Whether those are PCs or cell phones or wrist watches, Norms or a microchip so tiny that it can be embedded in literally every device. It is our "And finallyto updateyou on howwe have performed over this first quarter in privilege and our competitive advantage to play at the intersection of those 2000, I will say that we have committed to our share owners for 2000 that w services. The infrastructure that supports it and the information appliances will provide revenue and profit growth in the 12-15% range ... We believ that deliver those services. So it is our job to use that privileged position to we've made good progress in our first quarter against that goal. As you can sec, drive revenue opportunities and pro fit opportunities as we help transform our overall reven ues were up 14% ... From an operating income perspective, we a I' customers' businesses." two cents above analysts' expectations at 80 cents. Our reported earnings were 77 cents ... And I might just add that our stock closed today at $134.8." Strategy [Applause] "So we are really focused on six strategie priori ties today. First, I would say that we are focused on increasing the performance from our current core businesses ... Second strategie priority is to eliminate a lot of replication and THE PROFES SION OF LEADER FROM THE PERSPECTIVE redundancy and inefficiency that has grown up in our business ... Third, we OF THE S-CURVE must refocus our energies on providing a total customer experience that I have sat and watched the chairman of a great company speek to his assembIed competitively advantages us ... Fourth, we have a very efficient business in barons. "I have two messages for you today," he said. "Pitst; I want to remind you manyways, in terms ofinventory management as an example ... And priorities that we are a very successful business, perhaps more successful today than we have five and six really come back to the notions I was talking about earlier. .. ever been. Second, I must teIl you that if we want to continue to be successful we shall have to change, fundamentally, the way we are working now." "So these are the strategie priorities that we are focused on as a business. Charles Handy" These are the priorities that allow us to both reinvent the company and produce superior competitive results in the year 2000 and bevond," In practice, management is all about juggling measures directed at either lactics feedforward or feedback. Results-oriented managers and leaders will "One ofthethingsthatwe'vedoneis fairlyfundam ntully r ali '11 lil' business. always fed a certain pressure to make things concrete and tangible. And we've realigned our business so that we are bot h world- InS$ providers of Feedforward indicates the reason for action and the direction it takes; feed- 29 28