INDEX
Page numbers ending in an f indicate a figure. Page numbers ending in t indicate a table.
accountabilities in an operating model, 68, 69
Alcoa, 184
A-level talent
benefits of an inegalitarian staffing approach, 91, 93
budget allocation errors when staffing, 89
deployment of top talent in companies, 92f
identifying business-critical roles, 93–94
impact on productivity, 85–86, 87f, 88
leadership involvement in, 94–95
track record of companies in hiring, 88
all-star teams. See teams
Amazon, 51
Anheuser-Busch InBev (AB InBev)
actions that communicated the culture, 179
cultural model, 5–6, 176–177, 179
organizational principles, 12, 78, 99, 177–178
productive power index, 21
zero-based budgeting, 180
Argyris, Chris, 104
Bain & Company, 12, 75, 107, 194, 200
Bain-Economist Intelligence Unit, 86, 137, 159
Bain Macro Trends Group, 2
Bank of America, 107
behavioral signature
basis of, 98
company-specific nature of, 98–99
development process illustration, 101, 102f
diversity and, 103
leadership development and, 100
nurture versus nature and, 103
techniques for defining, 100
Berkshire Hathaway, 1
Bezos, Jeff, 51
Bock, Laszlo, 200
Boston Consulting Group, 1
centeredness, 164
Chesky, Brian, 99
Chiquet, Maureen, 121
Clooney, George, 129
coaching
developing inspirational leaders and, 163–164
separating from evaluation, 108, 109f
talent management and, 97, 100, 104, 154, 156
Coleman, Peter, 180
collaborative intelligence, 104–105
cost of capital and, 2
cultures at top companies and, 4–6
failure to manage human capital and, 3–4, 6–7
leaders’ focus on financial capital, 1–2
productivity record of top quartile companies, 6, 7f
resource allocation and, 1
Condit, Phil, 123
Consulting magazine, 200
Container Store, 86
culture, organizational. See performance culture
Dell Technologies
data on employee engagement, 141
organizational model, 74
talent pipeline management, 107
diagnostic tests
building a case for change using, 53–54
productive output determination, 23–27
Drexler, Mickey, 121
Drive: The Surprising Truth About What Motivates Us (Pink), 148
Drucker, Peter, 55
Dunbar, Robin, 95
e-communications
creating protocols for, 35, 36, 48–49, 50
proliferation of, 3, 9, 10, 18, 39, 43, 130
Economist Group, The, 14
Economist Intelligence Unit, 14, 86
energy management
characteristics of companies that fail in, 6–7
competitive advantage and, 2–4
culture and, 136
element of inspiration in (see inspired employees)
making up lost productivity with, 19
organizational productivity and, 15–16, 199
productive output diagnostic test, 26–27
engagement
data on, 141
energy management and, 135–136
factors contributing to low, 139
hierarchy of practices, 146–149
performance and, 174
price of disengagement, 139
qualities of successful, 143–145
state of in companies, 137, 138f, 139
summary of ways to build, 165–166
See also inspired employees
flywheel of organizational productivity, 197–198
Ford, Bill, 124
Ford Motor Company, 13, 47–48, 51, 124, 180, 185
founder’s mentality, 175
Founder’s Mentality (Zook and Allen), 188
Futurestep, 169
General Electric, 1
Gerstner, Lou, 168
Goldberg, Gary, 46
Good Jobs Strategy, The (Ton), 145
Google, 78, 86, 99, 107, 144, 200
Gordon, Robert, 194
Grove, Andy, 35
Hamel, Gary, 11
Hinrichs, Joe, 124
IBM, 168
Ikea, 172
inspired employees
elements in inspiration, 142
engagement versus inspiration, 140–141
factors contributing to low engagement, 139
price of disengagement, 139
productivity of, 19, 30, 136, 141
state of engagement in companies, 137, 138f, 139
summary of ways to build inspiration, 165–166
value of an inspired employee, 140, 141
See also energy management
Janowski, Andy, 121
JetBlue, 200
Katzenberg, Jeffrey, 119
Kellerman, Barbara, 161
Korn Ferry, 169
Kropp, Brian, 62
leadership
cultural change and, 185
developing inspirational leaders, 161–165, 162f
executive concerns about the workforce, 10
focus on financial capital, 1–2
inspired employees and, 159–160
involvement in placing top talent, 94–95
leaders’ ambitions for their organizations, 142–143
managing scarce resources, 4
talent pipeline management, 106–107
learning agility, 104
Li, Ning, 127
LinkedIn, 196
hiring rate, 115
traits they look for, 111, 112f
Mahindra, 172
Maslow, Abraham, 148
McCord, Patty, 4
meetings
nature of behavior during, 42
reasons for an increase in, 40
Metcalfe, Robert, 37
model, operating. See operating model
model, organizational. See organizational complexity
Monster, 196
Mulally, Alan, 47, 123, 124, 180, 185
multitasking, 44
Musk, Elon, 118
National Bureau of Economic Research, 126
Newmont Mining, 46
Newport, Cal, 130
nodes in an organization
deactivating select nodes, 72–73
minimizing inter-nodal interactions, 74–77
multiplier effect of adding, 60–62, 62f
Ocean’s Eleven, 129
O’Neill, Paul, 184
operating model
organizational complexity elements, 67–68, 68f
simplifying complexity in, 71–77
See also organizational complexity
organizational complexity
assessing the spread of, 63–64
cost of adding managers, 65f
deactivating select nodes, 72–73
determining which functions are essential, 73
effect of adding nodes, 60–62, 62f
eliminating multiple sources of data, 73
minimizing number of inter-nodal interactions, 74–77
operating model elements, 67–68, 68f
organizational drag and, 57, 60
simplifying the operating model, 71–77
spans-and-layers approach to change, 64–66, 65f
standard method of attacking organizational drag, 60
organizational drag
impact on time and productivity, 3–4, 17–18
standard method of attacking, 60
time management and, 196
outputs in an operating model, 67, 68f
Pepsi, 107
basis of a winning culture, 170, 171f
energy and, 136
engagement and, 174
example of transforming into (see Anheuser-Busch InBev)
examples of top companies, 4–6
leadership change and, 185
micro-battle concept, 188
overview of interventions, 181f
ownership mindset and, 184–186
principles versus rules and, 144–145
purpose and, 172
resetting the ways of working, 188–190
at Spotify, 157
strategic ambition and purpose and, 182–183
summary of ways to build a, 191
values and beliefs and, 172–173, 186–187t
Pink, Daniel, 148
Price, Steve, 141
Procter & Gamble, 107
productive output, 20f, 22f, 23–27
productive power of an organization
business cycle challenges, 193–194
compensating for organizational drag and, 18–19
cost of corporate bureaucracy, 11
data on organizational productivity, 11
executive concerns about the workforce, 10
financial capital challenges, 195
flywheel of organizational productivity, 197–198
interactions of individual elements in, 29, 199–201
making up lost productivity, 19
organizational drag’s impact on, 17–18
productive power index, 20–23, 20f, 22f
productivity challenges, 194
productivity increases from A-level talent, 86, 87f, 88
scarce resources management and, 195–196
strategic threat of organizational drag, 11–12
white-collar productivity, 9–10
workforce productivity responsibility, 15, 16
pyramid of employee needs, 146, 147f, 148–149
Rise and Fall of American Growth, The (Gordon), 194
Roberts, John, 86
Robin, Jennifer, 149
Seagate, 50
Shanks, Bob, 124
Sinequanon (sqn), 100
spans-and-layers approach to change, 64–66, 65f
Spotify, 13
alignment and control, 158
autonomy and accountability, 156–157
company background, 154
culture, 157
innovation with consistency, 157
organizational model, 154, 155f, 156
performance management system, 156
player-coach model and, 156
stacked ranking systems, 96–97, 127
structure in an operating model, 67–68, 68f
Sullivan & Associates, 200
talent management
behavioral signature and (see behavioral signature)
challenges in, 196
characteristics of companies that fail in, 6–7
coaching and, 97, 100, 104, 108, 109f, 154, 156, 163–164
collaborative intelligence and, 104–105
compensating for organizational drag with, 18–19
competitive advantage and, 2–4
importance of, 30
issues in a human capital plan, 90
key conditions defining capabilities, 90
learning agility and, 104
LinkedIn’s approach to (see LinkedIn)
organizational productivity and, 15–16, 199
potential dimension in hiring, 97–98
productive output diagnostic test, 25–26
productivity results of well-managed talent, 83
rotations management, 108, 110
stacked ranking systems, 96–97, 127
summary of finding and developing, 116
talent pipeline management, 106–107
360-degree feedback, 97
top level (see A-level talent)
trajectory and hunger and, 105
typical employee evaluation factors, 96, 97–98
Talent Strategy Group LLC, 97
teams
avoiding overshadowing in, 129
collaboration and, 130
compensating for organizational drag and, 19
creation of the 777 by Boeing, 123–124
Dell management model, 124–125
egos and team performance, 128–129
firepower advantage of all-star teams, 120–121
leveraging the “extra-milers,” 126–127
multiplier effect from top teams, 117–118, 122, 126
promoting productive teamwork, 129–130
results from all-star teams, 118–120, 121, 123, 126
summary of creating and developing, 131
support staff and, 128
synergy advantage of all-star teams, 121–122
turnaround at Ford, 124
3G Capital, 99
time management
average workweek of an executive, 36
calendar data overload, 39
characteristics of companies that fail in, 6–7
competitive advantage and, 2–4
cost of organizational drag, 33–34
creating a fixed time budget, 46–48
creating protocols for e-communications, 48–49
dysfunctional meeting behavior and, 42
e-communications and, 39
establishing norms for meetings, 50–53
low-cost communications and, 37–39
meetings and, 39–40, 41f, 43–44, 44f
monitoring and measuring how time is spent, 49–50
organizational drag’s impact on, 3–4, 17–18, 196
organizational productivity and, 15–16, 199
placing restrictions on authority to call meetings, 48
practices of disciplined companies, 36–37
productive output diagnostic test, 23–25
results of a lack of formal controls over, 43
results of a lack of real collaboration, 42
results of and absence of consequences, 43
summary of suggestions for, 56
taking a holistic approach to reforms, 53–55
Tindell, Kip, 86
Ton, Zeynep, 145
total factor productivity, 194
University of California, Berkeley, 61
VoloMetrix, 39
Walker, Dan, 195
ways of working in an operating model, 68
Weiner, Jeff, 111
Work Rules (Bock), 200
Zanini, Michele, 11
Zappos, 144
zero-based budgeting (ZBB), 180