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The Leader's Dilemma: How to Build an Empowered and Adaptive Organization Without Losing Control



The Leader's Dilemma: How to Build an Empowered and Adaptive Organization Without Losing Control

Jeremy Hope, Peter Bunce, Franz Röösli

ISBN: 978-1-119-97050-7 September 2011 Jossey-Bass 264 Pages


Drawing on their work on performance management within the ‘beyond budgeting’ movement over the past ten years, including many interviews and case studies, Jeremy Hope, Peter Bunce and Franz Röösli set out in this book an executive guide to building a new management model based on  eight key change management issues:
  • 1. Governance: From rules and budgets to purpose and values
  • 2. Success: From fixed targets to relative improvement
  • 3. Organization: From centralized functions to customer-oriented teams
  • 4. Accountability: From narrow targets to holistic success criteria
  • 5. Trust: From central control to local autonomy
  • 6. Transparency: From closed information to open book management
  • 7. Rewards: From individual incentives to team-based reward
  • 8. Risk: From complying with rules to understanding pressure points

This book is about rethinking how we manage organizations in a post-industrial, post credit crunch world where innovative management models represent the only remaining source of sustainable competitive advantage.[i] The changes suggested by the authors will enable and encourage a cultural climate change that will help organizations to attract and keep the best people as well as drive continuous innovation and growth.

Above all, The CEO's Dilemma is about learning how to change business  - based on best practice and innovation drawn from  leaders world-wide who have built and managed successful organizations.



Some definitions.

The organization as an adaptive system.

1 Principle #1 - Values.
Bind people to a common cause, not a central plan.

2 Principle #2 - Governance.
Govern through shared values and sound judgment, not detailed rules and regulations.

3 Principle #3 - Transparency.
Make information open and transparent; don't restrict and control it.

4 Principle #4 - Teams.
Organize around a seamless network of accountable teams, not centralized functions.

5 Principle #5 - Trust.
Trust teams to regulate and improve their performance; don't micro-manage them.

6 Principle #6 - Accountability.
Base accountability on holistic criteria and peer reviews, not on hierarchical relationships.

7 Principle #7 - Goals.
Set ambitious medium-term goals, not short-term fixed targets.

8 Principle #8 - Rewards.
Base rewards on relative performance, not fixed targets.

9 Principle #9 - Planning.
Make planning a continuous and inclusive process, not a top-down annual event.

10 Principle #10 - Coordination.
Coordinate interactions dynamically, not through annual budgets.

11 Principle #11 - Resources.
Make resources available just-in-time, not just-in-case.

12 Principle #12 - Controls.
Base controls on fast, frequent feedback, not on budget variances.

13 Implementation insights.

14 Make management change your legacy.