The Organization

>>SPECIAL DOUBLE ISSUE<< www.hbr.org July–August 2005 THE ORGANIZATION 96> Collaboration Rules Philip Evans and Bob Wolf 54> Designing High- Performance Jobs 106> Manage Your Robert Simons Human Sigma John H. Fleming, 64> Turning Great Curt Coffman, and Strategy into Great James K. Harter Performance Michael C. Mankins 116> Virtuoso Teams and Richard Steele Bill Fischer and Andy Boynton 74> Moments of Greatness: Entering 124> Managing for the Fundamental Creativity State of Leadership Richard Florida and Robert E. Quinn Jim Goodnight 84> Learning in the >> PLUS: Thick of It The Best of HBR Marilyn Darling, Charles Jim Collins; Gary Hamel Parry, and Joseph Moore and C.K. Prahalad; Jon R. Katzenbach and Douglas K. Smith; Robert S. Kaplan and David P. Norton Features >> THE HIGH-PERFORMANCE July–August 2005 ORGANIZATION 54 54 Designing High-Performance Jobs Robert Simons Are the jobs in your business set up to fail? Learn how to adjust the levels of control, accountability, influence, and support for each position and unit to make sure the company achieves its potential. 64 Turning Great Strategy into Great Performance Michael C. Mankins and Richard Steele A revealing new study shows that companies, on 96 average, reach only 63% of their strategies’ potential value. Creating tight links between planning and execution is one way to close this strategy-to- 84 Learning in the Thick of It performance gap. Marilyn Darling, Charles Parry, and Joseph Moore The after-action review is more than a meeting; 74 Moments of Greatness: Entering the more than a report; more than a postmortem. It is Fundamental State of Leadership a living, pervasive process that the U.S. Army created Robert E. Quinn to adapt quickly in unpredictable situations. Here’s how your business can use this performance tool When we outdo ourselves as leaders, it’s usually more effectively. because we’re responding to a crisis. But that doesn’t have to be the case. We can get into the zone by asking ourselves four basic questions – and really digging for honest answers. 84 96 Collaboration Rules Philip Evans and Bob Wolf Who would have thought that the Toyota Production System works in much the same way as Linux software development? The similarities between the two communities point to a surprising model for innova- tion, learning, and growth. 74 continued on page 6 ART:COVER YUCEL harvard business review continued Features >> THE HIGH-PERFORMANCE July–August 2005 ORGANIZATION 106 Manage Your Human Sigma John H. Fleming, Curt Coffman, and James K. Harter Six Sigma works well in manufacturing contexts. Now there’s a comparable methodology for measur- ing and managing performance in sales and service businesses. 116 116 Virtuoso Teams Bill Fischer and Andy Boynton A team of experts can achieve extraordinary results. But you’ll need a whole new set of rules – and some unusual management tools – to harness their creative temperaments. 124 Managing for Creativity Richard Florida and Jim Goodnight Tap into the creative energies of all your stake- holders – from managers to support staff to cus- tomers – and your company’s performance will take off. Start with the three guiding management 106 principles SAS Institute applies. Best of HBR 136 148 162 172 Level 5 Leadership: Strategic Intent The Discipline The Balanced Scorecard: The Triumph of Humility Gary Hamel and of Teams Measures That Drive and Fierce Resolve C.K. Prahalad Jon R. Katzenbach and Performance Jim Collins Douglas K. Smith Robert S. Kaplan and Western companies waste too David P.Norton Of all the factors that can cata- much energy chasing the cost Working teams aren’t pult a company from good to and quality advantages of their always teams, no matter what Most managers agree that the great, none is as essential as rivals. They should take a les- management calls them. Real old measurements of corporate having a Level 5 leader at the son from Japanese firms that teams share commitment, pur- performance don’t match the helm, an executive who is both practice “strategic intent”: the pose, and approach. They also new terms of competition. But humble and willful, shy and art of going after and attaining strive for something greater what are the right yardsticks? fearless. Leaders with this para- seemingly impossible goals than any individual member Enter the balanced scorecard, doxical mix are hard to find – by spreading a vision of global could achieve. which considers not only finan- and hard to stop. leadership throughout the cial measures but also opera- organization. tional measures of customer satisfaction, internal processes, and an organization’s ability to learn. continued on page 10 6 harvard business review 8dbeZi^c\lî]di]ZgXdbeVc^ZhgZVaan bZVchXdbeZi^c\lî]i]Z^ghjeean X]V^ch#Hdl]ZgZYdndjÒcYVcZY\Z4 CdbViiZg]dlXVgZ[jaanndjeaVc!i]ZgZlâahiâa LZXVc]ZaendjbdkZgVlbViZg^VahVcYdeZc WZhdbZjc[dgZhZZcZkZciidX]Vc\Zi]Ze^XijgZ Y^hig^Wji^dcX]VccZahiddi]ZgeaVcih#DgVcdi]Zg VcYV[[ZXii]ZbdkZbZcid[ndjg\ddYh#8aZVgan! Xdjcign#Dgl]Vi^[VbV_dgXjhidbZghjYYZcan i]ZbdgZÓZm^WaZndjghjeeanX]V^c!i]Z\gZViZg cZZYhVcdgYZgbjX][VhiZgi]VcVci^XêViZY4 i]ZZY\ZndjXVc]VkZdkZgXdbeZiîdghl]dXVcÉi LZXVcfj^XànYZeadndjgkVhiVcYkVg^ZY VYVei#L]^X]^hl]nndjh]djaY\dlî]JEH# igVchedgiVi^dccZildgìdheZZYndjg\ddYh idbVg`Zi!gZ\VgYaZhhd[XVeVXîn# L]ZgZkZgndjgegdYjXihVgZ^ci]ZhjeeanX]V^c! lZXVc]Zaebdcîdgi]Z^gegd\gZhhVcYegdk^YZ :kZgnYVn!djg\adWVaZmeZg^ZcXZVcYgZVX]XVc ndjlî]dei^dchidbZZijcZmeZXiZYY^hgjei^dch \^kZndj\gZViZgÓZm^Wâîn^cndjgXdbeVcnÉh dgX]Vc\Zh^cYZVYa^cZh# hjeeanX]V^c#IddjibVcZjkZgndjgXdbeZiî^dc# HVni]ZgZÉhVegdWaZblî]VbV_dghjeea^Zg# JEH#Xdb$hjeeanX]V^c&"-%%",)'"*,', '%%*JcîZYEVgXZaHZgk^XZd[6bZg^XV!>cX#JEH!i]ZJEHWgVcYbVg`!VcYi]ZXdadgWgdlcVgZgZ\^hiZgZYigVYZbVg`hd[JcîZYEVgXZaHZgk^XZd[6bZg^XV!>cX#6aag^\]ihgZhZgkZY# New York City 311 High performance delivered for government. More than 2000 non-emergency city services in 2005 Accenture. All rights reserved. © 170 languages for 8 million residents—services that once took 14 pages of telephone numbers in New York City—are now available 24/7 with a single call to 311. Working closely with the city’s Department of Information Technology and Telecommunication, Accenture took the nation’s largest 311 project live in just seven months, introducing not just new applications and technologies, but a new way of doing business. Having surpassed the 8 million- call milestone in its first year, the system is giving the city of New York the agility required for high performance. Wyeth High-performance R&D, delivered. Determined to boost its output of innovative new medicines, Wyeth’s research & development leadership teamed with Accenture to reengineer the way the pharmaceutical company discovers new molecular entities and moves them through preclinical development and clinical trials. The companies designed and implemented vast changes to streamline operations and dramatically improve the effectiveness of Wyeth’s proven R&D organization. Now, three years into the initiative, the productivity of Wyeth’s drug discovery effort has risen 400 percent, early clinical trial cycle times have been cut by 60 percent, and a new high-performance model for outsourcing clinical data management is substantially reducing costs by about 50 percent. Never be intimidated. Go on. Be a Tiger. For a high performer, preparation is the antidote to pressure. To see how we can help your business become a high-performance business, visit accenture.com Departments >> THE HIGH-PERFORMANCE July–August 2005 ORGANIZATION 12 FROM THE EDITOR 41 PERSPECTIVES Raising the Bar When Failure Isn’t an Option High-performance organizations oper- Michael R. Hillmann, Philippe ate on a different plane. We recognize Dongier, Robert P.Murgallis, them when we see them, but can we Mary Khosh, Elizabeth K. Allen, explain them? The articles in this issue and Ray Evernham illuminate that question. Some teams – like SWAT teams or groups of firefighters – can’t afford to fail. So how do they consistently 17 HBR CASE STUDY 12 Feed R&D – or Farm It Out? perform at such high levels? A series of commentaries by six team leaders Nitin Nohria addresses the essential elements of The iVid headset prototype might team performance, especially under just be the answer to RLK Media’s stressful – and sometimes life-or- evaporating margins. Outsourcing death – conditions. its software development to India promises to cut time to market by a third and slash R&D costs. But RLK’s 94 STRATEGIC HUMOR gifted chief scientist insists his R&D group is too tightly knit for outsourc- 183 LETTERS TO THE EDITOR ing to work. What should CEO Lars 17 Inman do? Women who have competing work/ life priorities but who decide to stay in their demanding corporate posi- 30 HBR AT LARGE tions need more than reduced hours Toward a Theory of and the chance to work at home. High Performance Julia Kirby 189 EXECUTIVE SUMMARIES It’s been a quixotic quest for the most part – discovering not only which companies are the greatest, but why. The 196 PANEL DISCUSSION search for excellence continues, how- Counter Proposal 30 ever, and – believe it or not – we seem Don Moyer to be making progress. Numbers don’t lie, but they can dis- tract.“How much?” and “How fast?” are important questions, but so are “Why?” and “What else?” 41 10 harvard business review >> THE HIGH-PERFORMANCE ORGANIZATION FROM THE EDITOR Raising the Bar appy companies are all alike; Your Human Sigma” is based on re- Heach unhappy company is un- search by the Gallup Organization happy in its own way. Lots of compa- into the enormous variability in per- nies claim to be high-performance formance among similar work groups, organizations. The real thing is rare, such as the branches of a bank. Using however, and instantly recognizable.

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