Book SummaryThat's Not How We Do It Here!, by John Kotter and Holger Rathgeber

1-Page Summary1-Page Book Summary of That's Not How We Do It Here!

The Limitations of Management-Focused Organizations

Kotter and Rathgeber use the journey of a Meerkat clan to illustrate the difficulties faced by management-focused organizations. They demonstrate that while these organizations can deliver reliable, efficient results in stable environments, they struggle with adaptability and innovation when facing rapid change and unforeseen challenges.

Management-Focused Firms Excel in Consistency and Effectiveness but Struggle With Adaptability and Creative Solutions

The authors utilize the "Nicholas Clan" to exemplify the strengths and weaknesses of management-focused organizations. These organizations, through their emphasis on structure, hierarchy, and carefully defined policies and processes, excel at carrying out routine tasks and achieving predictable outcomes. The authors explain that these processes and systems, when well-executed, ensure consistent dependability and efficacy.

However, when confronted with unexpected challenges or disruptions, these same strengths can become weaknesses. The authors demonstrate this through the Nicholas Clan's struggles with environmental changes like increased predator activity and a severe drought. These challenges demanded new solutions, but the group’s rigid structure, established procedures, and reliance on top-down decision-making inhibited their ability to adapt and innovate quickly.

Rigid Structures Hinder Rapid Response

The authors highlight how the rigidly defined roles, strict adherence to established processes, and lengthy decision-making in management-focused organizations hinder their capacity to respond rapidly to unexpected challenges. They use the example of Nicholas, who oversaw the guards and was responsible for planning, scheduling, training, and measuring their effectiveness. The meticulously crafted plans and methods worked efficiently in "normal" times. However, when confronted with the fresh threat of a vulture, these rigid structures hampered their ability to respond quickly and decisively. Finding and implementing new strategies was hindered by bureaucratic processes, ingrained habits, and an unwillingness to deviate from established procedures.

For example, when Ayo, a guard, innovatively ascended a tree to obtain a better vantage point for spotting predators, Nicholas chastised him for violating established procedures rather than exploring the potential benefits of his innovative approach. This rigidity, the authors argue, is a common characteristic of management-focused organizations, ultimately hindering their ability to adapt swiftly to changes in the environment.

Other Perspectives

• Lengthy decision-making might reflect a thorough analysis of the situation, which can lead to more effective and sustainable solutions rather than hasty, potentially reckless actions.
• Adherence to established processes can protect organizations from the risks associated with impulsive or uninformed decision-making by individuals.
• In complex systems, rapid changes can have unintended and far-reaching consequences, so a slower decision-making process may be necessary to ensure system stability.
• The effectiveness of a plan in responding to fresh threats can be influenced by the culture of the organization, including its openness to improvisation and innovation, rather than the rigidity of the plan itself.
• In some cases, bureaucratic procedures may actually facilitate the implementation of new strategies by providing clear guidelines and channels for proposing and approving innovations.
• Established procedures are often the result of accumulated experience and best practices that have been refined over time to optimize performance and minimize risks.
• The term "management-focused" is broad and can encompass a wide variety of organizational structures and cultures, some of which may be very supportive of innovation.
• Rigid structures can be a source of strength in crisis situations, providing clear chains of command and predefined protocols that can be executed quickly.

Rigid and Bureaucratic, Slow to Adapt

The authors further emphasize how the very nature of manager-centered organizations makes them inherently rigid and bureaucratic, slowing down their capacity to adapt to changing conditions. This manifests in multiple ways:

• Reluctance to change: Kotter and Rathgeber explain that the inherent focus on established procedures often leads to a strong resistance to new ideas. The clan members' frequent refrain of "This isn't how things are done here!" exemplifies this resistance, prioritizing the familiar over the potentially beneficial.

• Slow decision-making processes: Complex organizational structures and layered hierarchies result in slow decision-making. The example of the endless meetings held by the Alpha group and their demand for extensive reports before taking action illustrates this point. The authors demonstrate how this slowness can be detrimental when faced with urgent challenges demanding swift responses.

• Lack of agility: The emphasis on control and strict adherence to procedures limits the organization's ability to be agile and flexible. This lack of agility, they argue, makes it difficult for the organization to pivot quickly in response to changes in the market or environment.

The authors stress that this inherent rigidity leaves such organizations vulnerable in an era of rapid transformation, where adaptation and innovation are essential for survival.

Practical Tips

• Implement a 'shadowing' program in your workplace where employees can spend time in...

That's Not How We Do It Here! Summary The Limitations of Leadership-Focused Organizations

The authors, while emphasizing the importance of leadership, also caution that solely focusing on leadership, without adequate systems for management, can lead to its own set of challenges. They illustrate this through the example of the "Lena Collective," a highly innovative and adaptive group that thrives initially but faces difficulties as it grows in size.

Leadership-Focused Companies Are Very Innovative, Adaptable, and Dynamic

The Lena Group, as depicted by the authors, embodies the strengths of leadership-focused organizations. Its culture of shared responsibility, receptivity to fresh ideas, and commitment to collective action makes it highly adaptable and creative. Unlike the Nicholas Clan, where decisions are hierarchical, Lena's community fosters a structure based on equality. It encourages active participation from all members, promotes volunteerism, and readily embraces new concepts to confront challenges.

This approach, the authors explain, allows Lena's group to respond quickly to the same environmental threats that crippled the Nicholas Clan. The lack of rigid protocols enabled them to experiment with innovative solutions, like the tree-top guarding strategy...

That's Not How We Do It Here! Summary The Importance of Balancing Leading and Handling Management

The authors argue that organizations need to balance managing and leading to achieve sustainable success in today's complex and dynamic world. They emphasize that managing and leading are distinct but complementary functions, each crucial for addressing specific organizational needs.

Management and Leadership: Different but Essential Functions

The authors clearly distinguish between managing and leading, highlighting their unique roles and contributions to organizational success. They argue that:

Management Ensures Efficient Operations in Intricate Companies

The authors explain that management involves ensuring efficient operations in complicated entities. It centers on:

• Planning and Budgeting: Establishing clear goals and allocating resources effectively to achieve those goals.

• Organizing and Staffing: Creating structures, defining responsibilities and duties, and securing the right talent to execute tasks.

• Controlling and Problem Solving: Monitoring progress, identifying and resolving issues, and ensuring that things run smoothly.

The authors emphasize that management systems and processes are crucial for achieving consistent performance, managing...

That's Not How We Do It Here! Summary Specific Strategies for Integrating Leadership With Management

Kotter and Rathgeber outline specific strategies for integrating management and leadership within organizations. They emphasize the importance of establishing an urgent mindset, fostering a network of leadership beyond formal hierarchies, and institutionalizing successful initiatives within the management framework.

Create Urgency and Possibilities for Change

The authors highlight the significance of creating a widespread feeling of urgency around the necessity for change and the potential opportunities that change offers. They suggest doing this by:

• Communicating the Possibilities: Clearly and with enthusiasm, articulate the opportunities that lie ahead, emphasizing the potential benefits of a more adaptive and innovative approach.

• Highlighting the Need for Change: Openly acknowledge the challenges the organization faces and the drawbacks of its current approach in addressing those challenges.

• Building a Compelling Case for Action: Provide concrete evidence, not just rhetoric, to back the argument for change and the advantages of embracing a leadership-driven transformation.

Form a Diverse, Empowered Coalition to Direct Change

The authors stress that...

That's Not How We Do It Here! Summary How This Integrated Approach Can Help

Kotter and Rathgeber highlight the numerous benefits of adopting an integrated approach that combines management and leadership. They demonstrate this approach leads to enhanced organizational agility, increased innovation, and improved talent retention.

Enables Companies to Be Reliable/Efficient and Adaptive/Innovative

The authors argue that integrating leading and managing creates an ideal scenario, enabling organizations to reach a crucial balance between competing needs.

Retains Management Strengths While Adding Leadership Dynamism

This approach, according to Kotter and Rathgeber, allows organizations to retain the strengths of traditional managerial systems:

• Dependability and Effectiveness: Maintain the ability to execute routine tasks effectively, manage complex operations, and deliver predictable outcomes consistently.

• Organization and Control: Preserve defined responsibilities, well-defined processes, and established systems for monitoring performance and ensuring accountability.

However, this approach exceeds conventional management by incorporating the dynamism and adaptability that leaders foster:

• Adaptability and inventiveness: Enables the...

That's Not How We Do It Here! Summary Overcoming Reluctance to Evolve

The authors acknowledge that combining management with leadership often encounters resistance within organizations. They emphasize that understanding what causes resistance and addressing them strategically is crucial for successful change.

Organizations Resist Leader-Led 'Second Systems'

The authors explain that institutions tend to naturally resist the introduction of leader-driven "second systems," those that run parallel to the formal management-directed structure. This resistance stems from fear.

Fears Of "Discarding" Their Success

Management-focused organizations often fear that embracing leadership-driven change requires "discarding" the very systems and processes that have contributed to their prior achievements. This fear, according to the authors, is often misplaced, as the integrated approach is about building upon existing strengths, not replacing them.

Other Perspectives

• Embracing leadership-driven change does not have to be perceived as discarding existing systems; it can be viewed as an opportunity for evolution and refinement of those systems.
• The concept of building upon existing strengths could lead to an overemphasis on past...