The Power Of Corporate Kinetics


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The Power Of Corporate Kinetics

  1. 2. The Power Of Corporate Kinetics Create The Self-Adapting, Self-Renewing, Instant-Action Enterprise AUTHOR: Michael Fradette and Steve Michaud PUBLISHER: Simon & Schuster DATE OF PUBLICATION: 2000 NUMBER OF PAGES: 255 pages Book pic
  2. 3. <ul><li>How do businesses cope in today’s fast-paced, wired world? </li></ul><ul><li>By embracing change, evolving with the times, throwing out old models and strategies, constantly adapting, seizing opportunities, meeting ever-shifting customer demands, and capitalizing on market turbulence . </li></ul><ul><li>The kinetic enterprise thrives on unpredictability . </li></ul>THE BIG IDEA
  3. 4. Embrace the Power of Corporate Kinetics <ul><li>The Two Goals of the Kinetic Enterprise are: </li></ul><ul><ul><ul><li>Serve a single customer. </li></ul></ul></ul><ul><ul><ul><li>Act in zero time. </li></ul></ul></ul><ul><li>Kinetics : f rom the Greek Kinesis , or movement. </li></ul><ul><li>Applied to a dynamic business that instantly responds to new demands and seizes new opportunities. </li></ul><ul><li>Predictability is dead. How do we turn this truth to our advantage? The answer is Corporate Kinetics. </li></ul><ul><li>The model of the kinetic enterprise, a guide to the design of a business that can cope with the new reality. </li></ul>
  4. 5. Embrace the Power of Corporate Kinetics <ul><li>The kinetic enterprise is organized around workers who initiate and execute individual, discrete, and unpredictable projects we call events. </li></ul><ul><li>Two varieties of events: </li></ul><ul><ul><ul><li>Market Events </li></ul></ul></ul><ul><ul><ul><li>Customer Events . </li></ul></ul></ul>
  5. 6. Market Events <ul><li>A market event is defined as “the work of the enterprise immediately and profitably performed to seize an unexpected market opportunity”. </li></ul><ul><li>A Market Event: </li></ul><ul><ul><li>Starts when a worker identifies an unpredictable opportunity </li></ul></ul><ul><ul><li>Worker assesses impact on the enterprise and determines if the impact will be desirable </li></ul></ul><ul><ul><li>Gets the budget go-ahead from management </li></ul></ul><ul><ul><li>The market event ends when the workers roll out the innovat ion. </li></ul></ul>
  6. 7. Market Events <ul><li>What Market Events Aren’t: </li></ul><ul><ul><li>Strategy </li></ul></ul><ul><ul><li>Forecasting </li></ul></ul><ul><ul><li>Mere responses to shifting customer needs. </li></ul></ul><ul><li>Key Elements of a Market Event </li></ul><ul><ul><li>Spotting an unexpected market opportunity </li></ul></ul><ul><ul><li>Assessing the impact on the enterprise </li></ul></ul><ul><ul><li>Deciding if the market opportunity is right for the business </li></ul></ul><ul><ul><li>Marshalling the resources of the enterprise to capitalize on the opportunity </li></ul></ul><ul><ul><li>Developing the best approach to the task </li></ul></ul><ul><li>Capturing the insights and rolling out the idea to the enterprise </li></ul>
  7. 8. The Dell Customer Event <ul><li>Collaboration with a customer </li></ul><ul><li>Salesperson determines if the company can deliver profitably </li></ul><ul><li>Trigger action to execute event </li></ul><ul><li>Shipping, billing, reporting is automated or performed in the quickest way possible </li></ul><ul><li>Customer is satisfied and insights of workers are captured for future reference. </li></ul>
  8. 9. What Customer Events Aren’t <ul><li>Customer Events Aren’t An exercise in extravagant service a la Nordstrom, where one lone hero goes out of her way to satisfy a very specific need of a customer. </li></ul><ul><li>Customer Events Aren’t dedicated to achieving intimacy or a long-term relationship. It’s delivering what they want, when they want it. </li></ul><ul><li>Customer Events Aren’t Micro-Marketing. </li></ul><ul><li>4. Customer Events Aren’t Mass Customization. </li></ul>
  9. 10. Organize on the Fly <ul><li>Learn as you go. </li></ul><ul><ul><li>Workers think like owners because kinetic business workers are personally committed to the enterprise’s common performance, they are willing to take risks, and try new solutions - on the fly. </li></ul></ul><ul><ul><li>Workers will feel a true sense of ownership when they share in the financial rewards, as Microsoft’s workers share in the increasing value of its stock. Profit sharing will drive the kinetic workers’ performance. </li></ul></ul>
  10. 11. The Roles of a Kinetic Worker <ul><li>Frontline workers interact directly with customers to handle unpredictable challenges. </li></ul><ul><li>Strategists shape the purpose and boundaries of the organization, they are up-to-date on market trends, understand how actions affect customers, suppliers, and competitors. </li></ul><ul><li>Stakeholders take personal responsibility for the success of the business and participate in the rewards. </li></ul><ul><li>Decision-makers use real-time information to respond to customer demands. </li></ul><ul><li>Managers monitor themselves and their teammates. </li></ul><ul><li>Coaches help others learn by sharing experiences, insights, and mistakes. </li></ul><ul><li>Students constantly seek to broaden their experience and develop new skills to increase their value at the enterprise. </li></ul>
  11. 12. The Roles of a Kinetic Worker 8. Champions sell their ideas and enlist other worker’s support and obtain the financial backing. 9. Innovators find ways to improve current business operations and evolve new customer solutions, new products, services, and new business formats. 10. Project members collaborate to create new strategies, products and services. 11. Networkers build awareness and cultivate relationships with other workers in and outside of the organization. 12. Leaders are role models for the company’s vision, values, and performance goals.
  12. 13. The Five Key Tasks of the Kinetic Leaders <ul><li>Set the company’s strategic purpose. </li></ul><ul><li>Establish boundaries within which that purpose may be pursued. </li></ul><ul><li>P rovide mechanisms whereby workers can challenge those boundaries. </li></ul><ul><li>Champion market and customer events </li></ul><ul><li>5. Make decisions in real time. </li></ul>
  13. 14. Build the Right Workforce <ul><li>Hire Kinetic . </li></ul><ul><li>Hire for innate talent. </li></ul><ul><li>Hire for attitude. </li></ul><ul><li>Hire what you need. </li></ul><ul><li>Prepare Workers to Act Kinetic </li></ul><ul><li>Embed the strategic purpose. </li></ul><ul><li>Define the new way to operate. </li></ul><ul><li>Train workers to play any role, anytime. </li></ul>
  14. 15. Design for Instant Action <ul><li>Design Protocols for Simultaneous Work . </li></ul><ul><li>Design Networks for Spontaneous Collaboration and Learning </li></ul><ul><li>Design Information Technology to Deliver in Zero Time </li></ul><ul><li>Design Process technology to serve single customers. </li></ul><ul><li>Design Facilities for Adaptability . </li></ul>
  15. 16. Ignite Customer Events <ul><li>Let Customers Design Relationships </li></ul><ul><li>Let Customers personalize their products or services. </li></ul><ul><li>Let Customers Invent New Products and Services </li></ul><ul><li>Let Customers Design Total Solutions </li></ul>
  16. 17. Ignite Market Events <ul><li>Seize opportunities to reinvent operations. </li></ul><ul><li>Seize opportunities to invent new relationships, products, and services. </li></ul><ul><li>Seize opportunities to innovate with suppliers, partners, and competitors. </li></ul><ul><li>Seize opportunities to invent new businesses. </li></ul>
  17. 18. Final Words <ul><li>The kinetic enterprise has a significance that goes beyond the business world. </li></ul><ul><li>The kinetic model will fundamentally change the very nature of work, and that may have a profound effect on our society as a whole. </li></ul><ul><li>When the kinetic enterprise becomes the norm, individuals will develop a greater sense of fulfillment. </li></ul>
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