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Efficient sharing of informational, social, and personal resources should also be a prerequisite for positive reviews, promotions, and pay raises. At one investment bank, employees’ annual performance reviews include feedback from a diverse group of colleagues, and only those people who are rated as strong collaborators (that is, able to cross-sell and provide unique customer value to transactions) are considered for the best promotions, bonuses, and retention plans. Corning, the glass and ceramics manufacturer, uses similar metrics to decide which of its scientists and engineers will be named fellows—a high honor that guarantees a job and a lab for life. One criterion is to be the first author on a patent that generates at least $100 million in revenue. But another is whether the candidate has worked as a supporting author on colleagues’ patents. Corning grants status and power to those who strike a healthy balance between individual accomplishment and collaborative contribution. (Disclosure: Adam Grant has done consulting work for Corning.)

Collaboration is indeed the answer to many of today’s most pressing business challenges. But more isn’t always better. Leaders must learn to recognize, promote, and efficiently distribute the right kinds of collaborative work, or their teams and top talent will bear the costs of too much demand for too little supply. In fact, we believe that the time may have come for organizations to hire chief collaboration officers. By creating a senior executive position dedicated to collaboration, leaders can send a clear signal about the importance of managing teamwork thoughtfully and provide the resources necessary to do it effectively. That might reduce the odds that the whole becomes far less than the sum of its parts.

A version of this article appeared in the January–February 2016 issue (pp.74–79) of .

Rob Cross is the Edward A. Madden Professor of Global Leadership at Babson Collegeand a coauthor of (Harvard Business Review Press, 2004).

Reb Rebele is a researcher for Wharton People Analytics and teaches in the Master of Applied Positive Psychology (MAPP) program at the University of Pennsylvania.

Adam Grant is a professor at Wharton and the author of Originals and Give and Take .

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27 COMMENTS

Yes, a great article. I also like this part: 'A well-known consultancy had recommended retention bonuses for leaders.'. This is just one of the trite and worn-out 'HR' remedies for anything. There is little creativity or appetite for change (let alone creativity) in using high-tech methodologies such as network analysis. Like anything, this methods solution needs to be done properly. Apart from one conference, I have never actually seen anyone (apart from myself) using this sort of methodology. More often than not, it's a boring survey (which of course are vital if done properly - I think too many think it's just a bunch of questions, but such is the case now, that there is much negative writing about the 'survey' as an instrument of diagnosis and change). In my dealings with all sorts of people in various situations, people do not want to collaborate - it is as if the ego is strongly at work. Many do not want to do any 'diagnosis' ('OD' = training, for example), and if it is done, it is done poorly. More often than not, someone who has a large ego, big voice and who people don't like to challenge, come up with the 'bonus' or some other daft idea which has no bearing on the problem in the first place. I see though that too much collaboration is problem. This needs to be facilitated properly (and no, I don't mean feacilitator=training). Note the terminologies used here - don't get me started!

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Executive Summary

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The old ways of setting and implementing strategy are failing us, writes the author of Leading Change, in part because we can no longer keep up with the pace of change. Organizational leaders are torn between trying to stay ahead of increasingly fierce competition and needing to deliver this year’s results. Although traditional hierarchies and managerial processes—the components of a company’s “operating system”—can meet the daily demands of running an enterprise, they are rarely equipped to identify important hazards quickly, formulate creative strategic initiatives nimbly, and implement them speedily. The solution Kotter offers is a second system—an agile, networklike structure—that operates in concert with the first to create a dual operating system.

In such a system the hierarchy can hand off the pursuit of big strategic initiatives to the strategy network, freeing itself to focus on incremental changes to improve efficiency. The network is populated by employees from all levels of the organization, giving it organizational knowledge, relationships, credibility, and influence. It can liberate information from silos with ease. It has a dynamic structure free of bureaucratic layers, permitting a level of individualism, creativity, and innovation beyond the reach of any hierarchy. The network’s core is a guiding coalition that represents each level and department in the hierarchy, with a broad range of skills. Its drivers are members of a “volunteer army” who are energized by and committed to the coalition’s vividly formulated, high-stakes vision and strategy.

Kotter has helped eight organizations, public and private, build dual operating systems over the past three years. He predicts that such systems will lead to long-term success in the 21st century—for shareholders, customers, employees, and companies themselves.

Perhaps the greatest challenge business leaders face today is how to stay competitive amid constant turbulence and disruption.

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