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The Second Cycle: Winning the War Against Bureaucracy
 
 
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The Second Cycle: Winning the War Against Bureaucracy (Hardcover)

by Lars Kolind (Author)
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Product details

  • Hardcover: 256 pages
  • Publisher: Wharton School Publishing; 1 edition (4 May 2006)
  • Language English
  • ISBN-10: 0131736299
  • ISBN-13: 978-0131736290
  • Product Dimensions: 23.1 x 15.7 x 2.5 cm
  • Average Customer Review: 5.0 out of 5 stars See all reviews (1 customer review)
  • Amazon.co.uk Sales Rank: 251,572 in Books (See Bestsellers in Books)

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Product Description

Product Description
You're growing fast. You're profitable. Maybe they're even writing great things about you in the business press. But, just beneath the surface, are you incubating the seeds of disaster? It's happened over and over again, in one industry after another, to companies ranging from IBM to Upjohn. In this book, Lars Kolind helps you uncover the earliest signs of trouble--and reignite a powerful new growth cycle. Drawing upon his own experience as the CEO who turned around Oticon, the world's top manufacturer of hearing aids, Kolind introduces a comprehensive toolbox for revitalizing mature organizations: tools for creating consensus around change, using staff more effectively, promoting innovation, and much more. Finally, he applies his tools to a wide range of organizations in decline, including the U.S. auto industry. The result: specific, practical advice you can adapt to galvanize your organization, no matter how well you're doing today.

From the Back Cover
You're growing fast. You're profitable. Maybe they're even writing great things about you in the business press. But, just beneath the surface, are you incubating the seeds of disaster? It's happened over and over again, in one industry after another, to companies ranging from IBM to Upjohn. In this book, Lars Kolind helps you uncover the earliest signs of trouble--and reignite a powerful new growth cycle. Drawing upon his own experience as the CEO who turned around Oticon, the world's top manufacturer of hearing aids, Kolind introduces a comprehensive toolbox for revitalizing mature organizations: tools for creating consensus around change, using staff more effectively, promoting innovation, and much more. Finally, he applies his tools to a wide range of organizations in decline, including the U.S. auto industry. The result: specific, practical advice you can adapt to galvanize your organization, no matter how well you're doing today.

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1 of 2 people found the following review helpful:
5.0 out of 5 stars How to survive the paradigm shift from the transaction-based business model to the knowledge-based business model, 18 Jun 2007
By Robert Morris (Dallas, Texas) - See all my reviews
(TOP 100 REVIEWER)    (REAL NAME)   

The title refers to what Lars Kolind characterizes as an organizational re-design process by which to "enable and sustain innovation and growth. The starting point is the change from conventional mass production (for example, a metal parts factory) to knowledge work (for example, investment banking) in general and customization in particular. It argues that the conventional hierarchical and functional organization is long overdue as an adequate structure for organizations that perform knowledge work. [The re-design design process] highlights four fundamental characteristics of organizations that are essential if they want to exchange an upcoming death cycle [i.e. the first cycle] with a second or third lifecycle." Kolind suggests that such an organizational re-design process is needed because most (if not all) organizations are involved in (for lack of a better term) a paradigm shift from being transaction-based to knowledge-based.

Kolind cites the rapidly increasing amount of available knowledge that becomes available, the competitive advantages that result from providing innovative and radically different solutions to problems, consumer perceptions that focus more on differentiated products and services ("Price-performance ratios are no longer the only criterion for purchase; environmental, emotional, ethical, and esthetical aspects play a greater role."), and one-time costs (e.g. R&D and marketing) become more important than unit manufacturing and transportation costs. These and other factors create all manner of challenges to which organizations must now respond if they are to adapt to changing environments while continuously applying knowledge in new ways to create innovations in products, processes, and service. In other words, free themselves from the "death cycle" by becoming what Koland characterizes as a "collaborative organization" at all levels and in all areas of their external as well as internal operations.

Of course, that requires managers to see themselves as - and function as - stewards whose fiduciary obligations include the welfare of their associates whom they view as full partners. That also requires a different mindset in terms how everyone involved values what they do and how they do it. More specifically, in terms of what Kolind characterizes as the "meaning" of such initiatives. How does they benefit others? And how can we increase and improve those benefits?

I was especially interested in how Kolind illustrates this important point, that if an organization is to become a true partner with all of its stakeholders, and especially with customers, there needs to be a meaning behind each action. Whatever a given organization's "meaning" may be, Roland suggests that it serves several significant functions: it provides overall guidelines for everything done, it determines the focus and direction of innovation, it is the "turning point" for all internal and external communications, and it determines the relevance of organizational and other changes within the organization and its partner network. Without meaning, the first lifecycle becomes the last.

Many readers will especially appreciate the material provided in Chapter 7, in which Kolind provides "some hands-on tools that you can use to refresh your organization and get it out of the life-cycle trap." Throughout the book, after specifying the "what," he focuses most of his attention on the "how" and "why" of responding to the aforementioned paradigm shift.
Hence the importance of what each reader can select for her or his own "toolbox." For example, which tools are among the most important and what are possible applications for them? See Table 7-1 on Page 98. How to measure the progress of efforts to "break out" from or avoid various first cycle traps? See Table 7-3 on Pages 100-101. What is a Consensus Crash Program (CCCP) and how can it help to create consensus about ideas, values, and goals? See Pages 118-120. All this (and much more) is provided in Chapter 7 and its wealth of information and counsel is representative of what the other chapters also offer.

As he indicates in the final chapter, Kolind believes that there is a "great untapped potential in revitalizing mature organizations within the public and private sectors and within civil society." Why does this potential remain untapped? Kolind suggests three reasons First, they tend to think that they already make the most of their potential; "that is, they think they are doing the right things." Also, if they somehow realize that they have a problem (or an opportunity) to improve, they lack the tools to carry through on the necessary change, "particularly because the transformation they need is different from what they know." Finally, mature organizations become increasingly blinded by their current model. Jim O'Toole would add another reason: mature organizations frequently become hostage to what he characterizes as "the ideology of comfort and the tyranny of custom."

Hence the importance of Lars Kolind's book in which he describes, with rigor and eloquence, "a new social construction, a new framework for doing business in the knowledge economy."

Those who share my high regard for this book are urged to check out Also Enterprise Architecture As Strategy co-authored by Jeanne W. Ross, Peter Weill, and David Robertson as well as Henry Chesbrough's Open Innovation, Vince Thompson's Ignited, Oren Harari's Break from the Pack, Ram Charan's Know How, Dean Spitzer's Transforming Performance Management, and Richard Ogle's Smart World.
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