(Continued from front flap) management US$25.00 / CAN$28.00 the eight Accelerators that drive it. Perhaps most This is a book about pioneers, for pioneers. crucially, the book reveals how the best companies Is it even possible to stay ahead of today’s focus and align their people’s energy and urgency dizzying pace of change? In Accelerate, the world’s preeminent expert on leadership and change provides around what Kotter calls the Big Opportunity. a fresh, persuasive take on achieving strategic agility in the face of constant I If you’re a pioneer, a leader who knows that t’s a familiar scene in organizations today: turbulence. bold change is necessary to survive and thrive in a competitive threat or a big opportunity Based on his award-winning article in Harvard Business Review, John P. Kotter an ever-changing world, this book will help you emerges. You quickly create a strategic urges organizations to create a dual operating system that combines the still-crucial accelerate into a better, more profitable future. initiative in response and appoint your best corporate hierarchy with a second, more agile, network-like structure. This, he says, people to make change happen. And it does— is the key to succeeding in the face of today’s fast-moving, volatile environment. but not fast or effectively enough. Value gets lost, This book is for leaders and professionals ready to embrace the bold change and things drift back to the default status. necessary to succeed today, no matter your business or industry. Why is this scenario so frequently repeated— not only at big companies like Borders and RIM, where leaders saw change coming—but in organizations like yours? PrAISe for JohN P. koTTer In this groundbreaking new book, leadership expert and bestselling author John P. Kotter man ranked among the world’s Top Ten Management gurus provides a fascinating answer—and a powerful are by Bloomberg Businessweek new framework for winning in a world of t t o constant turbulence and disruption. c s Leading Change named as one of “The 25 Most Influential business Kotter explains how traditional organizational John P. Kotter is the Konosuke Matsushita Management books” of all time by TIME hierarchies evolved to meet the daily demands of Professor of Leadership, Emeritus, at Harvard running an enterprise. For most companies, the Business School, and is widely regarded as the Called “. . . the business world’s favorite guru on the subject of change” hierarchy is the singular operating system at the world’s foremost authority on leadership and by the Financial Times heart of the firm. But the reality is, this system change. In recent years Kotter and his firm, simply is not built for an environment where Kotter International, have helped numerous change has become the norm. organizations, both public and private, build dual Also by John P. Kotter Kotter advocates a new system—a second, operating systems to drive growth and accelerate more agile, network-like structure that operates strategy. He predicts that such systems are the key in concert with the hierarchy to create what he to sustained success in the twenty-first century— calls a “dual operating system.” This network is for shareholders, customers, employees, and dynamic and free of bureaucratic layers. Its core organizations across all industries and sectors. is a guiding coalition that represents each level in the hierarchy. And its drivers are a “volunteer For more information please visit army” of people energized by the coalition’s vision kotterinternational.com/accelerate and strategy. The dual system allows companies to capitalize on today’s rapid-fire strategic jacket design: brian levy and stephani finks ISBN-13: 978-1-62527-174-7 challenges—and still make their numbers. 90000 The book vividly illustrates the five core stay informed. join the discussion. principles underlying the new network system and visit hbr.org/books follow @harvardbiz on twitter find us on facebook, linkedin, youtube, and google+ hbr.org/bookS 9 781625 271747 (Continued on back flap) AccelerAte Kotter.indd 1 1/21/14 2:21 PM Kotter.indd 2 1/21/14 2:21 PM john p. kotter AccelerAte Building StrAtegic Agility for A fASter-Moving World Harvard Business Review Press Boston, Massachusetts Kotter.indd 3 1/21/14 2:21 PM Copyright © 2014 John P. Kotter All rights reserved Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to [email protected], or mailed to Permissions, Harvard Busi- ness School Publishing, 60 Harvard Way, Boston, Massachusetts 02163. The web addresses referenced in this book were live and correct at the time of the book’s publication but may be subject to change. Library of Congress Cataloging-in-Publication Data Kotter, John P., 1947– Accelerate : building strategic agility for a faster-moving world / John P. Kotter. pages cm 1. Organizational change. 2. Strategic planning. 3. Management. I. Title. HD58.8.K6447 2014 658.4′012—dc23 2013050671 eISBN: 9781625272546 The paper used in this publication meets the requirements of the Ameri- can National Standard for Permanence of Paper for Publications and Documents in Libraries and Archives Z39.48-1992. Kotter.indd 4 1/21/14 2:21 PM contentS Preface vii 1. limits of Hierarchy in a faster-Moving World 1 2. Seizing opportunities with a dual operating System 19 3. the Stakes: A cautionary tale 41 4. leadership and evolution 57 5. the five Principles and eight Accelerators in Action 75 6. relentlessly developing and role Modeling urgency 109 7. the Big opportunity 131 8. getting Started: Q&A 153 9. the (inevitable) future of Strategy 173 Appendix A: Can Your “Best Practices” Save You? An Assessment 181 Appendix B: D o You Need to Take Action Now? An Assessment 195 About the Author 205 v Kotter.indd 5 1/21/14 2:21 PM Kotter.indd 6 1/21/14 2:21 PM PrefAce We are crossing a line into a territory with unpredictable turmoil and exponentially growing change—change for which we are not prepared. Here I describe what some pioneers have successfully done to win, and win big, in this emerging environment. Accelerate is about how to handle strategic challenges fast enough, with agility and creativity, to take advantage of windows of opportunity which open and shut more quickly today. It shows how people in some leading, innovative organizations move ahead of fierce competi- tion, deal with unprecedented turmoil, and cope with the constant threat of technological discontinuities—all without sacrificing short-term results or wearing out their workforces. My conclusions as presented here are fundamental. The world is now changing at a rate at which the basic systems, structures, and cultures built over the past cen- tury cannot keep up with the demands being placed on them. Incremental adjustments to how you manage and strategize, no matter how clever, are not up to the job. You need something very new to stay ahead in an age of tumultuous change and growing uncertainties. vii Kotter.indd 7 1/21/14 2:21 PM accelerate The solution is not to trash what we know and start over but instead to reintroduce, in an organic way, a second system—one which would be familiar to most successful entrepreneurs. The new system adds needed agility and speed while the old one, which keeps running, provides reliability and efficiency. The two together—a dual system—are actually very similar to what all mature organizations had at one point in their life cycles, yet did not sustain (and have long since forgotten). There is a practical way to cre- ate this dual operating system, and it can be done very in expensively. Results come quickly. I have seen people do it. It works. The origins of this project build on previous research I have done on large-scale change: work funded by the Harvard Business School, where I have been teach- ing for many decades. A report on that research was first published in my book Leading Change (1996) and extended with follow-up reports in The Heart of Change (2002), Our Iceberg Is Melting (2006), A Sense of Urgency (2008), and Buy-in (2010). That work, in turn, was built on my early examinations of leadership, which go all the way back to 1974, with perhaps the most important report on that subject published in 1990 as A Force for Change: How Leadership Is Different from Management. I am sometimes amazed at how robust the conclusions from these studies remain today—how they still speak viii Kotter.indd 8 1/21/14 2:21 PM Preface to us even though the world facing business leaders (and those in government, the nonprofit sector, and educa- tion) has changed so much. What I present in this book adds to my prior work. This is not a case in which new realities mean that old ideas are no longer valid. It is more a case of adding to previous conclusions in a way that takes us to some very big new ideas. Up until this project, all of my past work, research now spanning many decades, has used the same for- mula. Find cases representing the highest 10% or 20% of performers. Observe what they do. Talk to people who have lived in those situations. Then do the same for the average performers and for the laggards. Look for patterns that show the differences. Report those patterns with an emphasis on factors that you can change—to take average performance to high or lagging results at least up to the norm. With this project, for the first time in my career, I have tried a formula that is different in two fundamen- tal ways. Here I begin by looking at people truly push- ing the envelope. I mean only the top 1% or so—those who have achieved extraordinary successes through very new ways of operating. Then I watch as others (usually with the assistance of the Kotter Inter national consulting group) try to replicate the very best, in their own way, in their own industries or organizations. This shift feels sort of like going from basic research ix Kotter.indd 9 1/21/14 2:21 PM