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Hot Spots: Why Some Teams, Workplaces, and Organizations Buzz with Energy - And Others Don't

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In this volume, Lynda Gratton explains how and why "boundaryless cooperation fuels innovation...why some teams, workplaces, and organizations buzz with energy - and others don't." The business model she recommends is an "open" one. In fact, it is precisely what Henry Chesbrough brilliantly explains in Open Innovation and in his more recent book, Open Business Models. What is a "boundaryless" organization? GE is probably the most prominent example. (Curiously, there are no references in Hot Spots to Chesbrough, GE or its former CEO, Jack Welch.) According to Gratton, a "boundaryless organization" is one within which people are engaged in "purposeful conversation"; there are no barriers to communication, cooperation, and collaboration; and the organization has an ever-widening "net of involvement."

Those whom Gratton calls "boundary spanners" are very important because they break down the "walls" between in-groups and out-groups. They have a network of relationships that form a natural bridge between the two groups. (Chesbrough calls them "innovation intermediaries.") In a boundaryless organization, people feel energized and vibrantly alive. Their brains buzz with ideas as they share with others the joy and excitement of "exploiting and applying knowledge that is already known and genuinely exploring what was previously unknown." Relationships between and among those involved create a Hot Spot.

"One of the most profound insights about Hot Spots is that their innovative capacity arises from the intelligence, insights, and wisdom of people working together. The energy contained in a Hot Spot is essentially a combination of their individual energy with the addition of the relational energy generated between them." Hence the importance of (a) having a "cooperative mindset," (b) "boundary spanners," (c) "igniting purpose," and (d) sustaining sufficient "productive capacity." Gratton acknowledges that there is much of substantial value to be learned by examining best practices in exemplary companies (e.g. BP, PgilvyOne, Nokia, and Linux)but also other types of practices, notably what she characterizes as "signature processes" which embody a given organization's character. They arise from passions and interests within the organization. Whereas best practices "bring the outside in," signature processes "bring the inside out."

To Gratton's great credit, after identifying the "what" in the Introduction and Chapters 1 and 2, she focuses most of her attention on "how" and "why" in the remaining six chapters. I also appreciate the provision of information in three appendices, especially in the first ("Resources for Creating Hot Spots"). And I especially appreciate Gratton's decision to want until the final chapter before explaining how to design (or re-design) an organization in which Hot Spots "emerge." The process consists of five phases best revealed within Gratton's narrative (i.e. in context) but I do presume to suggest that Hot Spots are inevitable and can exist anywhere, both physically and electronically. The challenge is to encourage and support them without institutionalizing ("housebreaking") them. That is a very real danger, one which Bob Taylor obviously recognized when he insisted that the Xerox Corporation allow him to establish - with unlimited funding -- the Palo Alto Research Center (PARC) which those at Xerox's corporate headquarters (in Connecticut) viewed as a "renegade" think tank. In fact, Taylor and his associates conceptualized the very notion of the desktop computer, long before IBM launched its PC, and it laid the foundation for Microsoft Windows with a prototype graphical user interface of icons and layered screens. Even the technology that makes it possible for these words to appear on the screen can trace its roots to Xerox's eccentric band of innovators. It is possible but highly unlikely that any of this could have been achieved, had the research center been absorbed within the Xerox corporate culture in the 1970s.

Guided and informed by Gratton's observations and recommendations, senior-level executives will be well-prepared to provide the leadership needed to avoid or overcome barriers to innovation within their organizations by nurturing a cooperative mindset, encouraging and supporting those who are "boundary spanners," igniting purpose at all levels and in all areas throughout the given enterprise, and - as a result -- sustain sufficient "productive capacity."

Those who share my high regard for this book are urged to check out two of Gratton's earlier works, Living Strategy: Putting People at the Heart of Corporate Purpose and The Democratic Enterprise: Liberating Your Business with Freedom, Flexibility, and Commitment. Also When Sparks Fly: Harnessing the Power of Group Creativity by Dorothy Leonard-Barton and Walter C. Swap, Organizing Genius: The Secrets of Creative Collaboration by Warren G. Bennis and Patricia Ward Biederman, and Juice: The Creative Fuel That Drives World-Class Inventors by Evan I. Schwartz.

Hot Spots is essential reading for leaders struggling to produce results with lean, cross-functional organizations -- in other words, this is a book that every business leader should read.
The good news is that each chapter ends with a concise one-page summary. That makes it possible to skim the whole book in about 15 minutes, coming away with its essential points.
Hidden beneath the slick packaging is deep and meticulous research on a broad selection of teams, conducted by a first-rate academic. So don't settle for the quick skim. The whole book is only 200 pages; drilling down into the detail is worth the effort and not all that hard.
Key takeaways include the role of gender in teams (a critical mass of female members can enhance team success), and the way a few highly-functioning teams can influence an entire organization. There's plenty of intelligent guidance about implementation along the way.

Hot Spots allow latent energy to productively flower into innovation. They exist when the creative enthusiasm emerges within and between people. As a human phenomon that generates innovative results and competitive advantage, there seems to be a nearly magical aura about their reality, which the author fully succeeds in capturing in concrete terms, showing what makes these groups so amazing.

Hot Spots can not be created, but must emerge; leadership, however, can create the right circumstances to allow a Hot Spot to come to life, focusing on practices, processes, norms, or behaviors; the book provides maps and scenarios that reveal how such levers work.

A Hot Spot is a multiplicative blending of three elements:
1. a cooperative mindset (melding intellectual, social, and emotional capital),
2. boundary spanning (the depth and extent of relationships), and
3. an igniting purpose which stems from energizing questions, visions or tasks,

Hot Spots are sustained by a fourth element, productive capacity, consisting of five productive practices: appreciating talent, making commitments, resolving conflicts, synchronizing time, and establishing a rhythm.

Based on extensive research, the author explores the dynamic nature and elements of Hot Spots. The book's Appendix A provides diagnostic questions and instruments for leaders to apply in practice. The concept of Hot Spots is brought into sharp focus in this fascinating book. The author's insights make for compelling reading. If innovation is important to you, this book is MUST READING. Highly recommended.

I've been involved in just a few of what Ms. Gratton calls Hot Sports. These were projects that somehow gathered together a group of people totally dedicated to success. They were good people, working at the limits of their capabilities and an amazing amount of work was accomplished in a very short time.

I had never realized that this would be the subject of academic study, or that it could be managed to occur as part of a regular business environment. Ms Gratton says that there are four criteria that must come together to make a Hot Spot work:

A cooperative mindset: when people are excited, willing, eager and able to work together
Boundary spanning: with people fromdifferent backgrounds, skill sets, and outlooks combine their expertise in new ways
Igniting purpose: there must be a question, task, vision that creates a shared goal
Productive capacity: people must be able to work together, resolve conflicts, and manage the rhythm and pace of their work.

If you are contemplating to make your unit, your organisation and your environment more innovative, exciting and stimulating then "Hot Spots" is a must read.

The author, Lynda Gratton, a professor at the London Business School and a renowned authority on HR Strategy presents a concise yet compelling framework for promoting greater levels of cooperation towards the creation of positive energy, more productivity and innovation in the workplace.

The core of the book is most effectively presented in chapters 3 to 6 which dwell upon the four elements, the essentials to create a "Hot Spot" as under:

The first element towards the creation of a "Hot Spot" is towards "developing a cooperative mindset (where trust and a helpful attitude are a must).

The second element relates to the concept of "boundary spanning" (people working in and across groups, functions and business units for the sharing of knowledge through close/familiar colleagues/friends as well as acquaintances/associates.

The third element relates to an "igniting purpose" (working for an ambitious and overreaching goal/task - here the role of the leader, be it the CEO, the unit head and the team leader to inspire and motivate through asking difficult and purposeful questions is a crucial element and is further explored in Chapter 7).

Productive Capacity i.e. the fourth and final element is really about managing these groups and teams in terms of appreciating talents, about making and keeping commitments and in managing conflict and time.

The book also contains an excellently worded appendix that acts as a resource guide complete with diagnostic surveys for the creation of "Hot Spots." This section is in essence a mini workshop on "Hot Spots" and is a must read to be used by teams and colleagues alike.

The book's underlying message is crisp and most relevant yet seemingly difficulty to apply in the real world of organisational life i.e. for organisations to flourish and create value, processes need to be created and fostered towards the building of partnerships and alliances; an essential prerequisite being an collaborative mindset existing amongst it's people.

Professor Gratton's treatise on "Hot Spots" makes for a very interesting read and is quite inspirational backed by a decade of research on some of the top-performing organisations the world over (BP, Goldman Sachs, Nokia, Ogilvy One to name a few).

Readers are also urged to read two of her earlier excellent and inspirational works - Living Strategy (2001) and The Democratic Enterprise (2004) which complete this trilogy (wherein Hot Spots is the third).

A highly recommended read for all in the corporate fraternity.



*******

Lynda Gratton has done it again. An astute observer of high performing organizations, Dr. Gratton offers an alternative way to resolve the endless pursuit of the right answers to the challenging questions of business growth, employee engagement and enterprise sustainability.

Based on her rigorous research and thoughtful reflection, Hot Spots deliver a provocative message. The organizations that buzz with healthy energy and draw talent to themselves produce innovative solutions and deliver results. Those are the outcomes rather than goals. The innovative and sustainable cultures cannot be engineered; they have to be nurtured and let the hot spots "emerge." Dr. Gratton convincingly concludes that focusing on the right things such as collaborative ways of working, cultivating relationships, and motivating people through meaningful purpose, vision, and goals is what really matters.

There is a new art of leadership that is modelled in the study. It is the leadership that knows how to create the environments that become magnets of diverse talent and paradigm changing ideas.

The book is a must for those of us who want to stay relevant in the evolving 21 century organizations.

The fundamental equation "Hot Spots = (Cooperative Mindset x Boundary Spanning x Igniting Purpose) x Productive Capacity" is the organising principle of this book. All material is very well organised to illustrate and support this insight. The style is conversational and authoritative. There is a lack of pretension that is refreshing in business literature. The material is supported throughout by real life examples. My favourite is the `Truffles' initiative at OgilvyOne. There are many other examples across many industries.

Professor Gratton uses language in a way that reinforces the main messages and makes concepts memorable: `Signature Processes' describe activities that powerfully convey a company's character and passion; `Boundary Spanners' move in many worlds, share information and connect people. `Big Freeze' and `Country Club' describe sub-cultures unlikely to produce hotspots!

Appendix A contains some fabulous material to help readers interested in creating their own `hot spots' - including many diagnostic questions and ways to map your system. Go on......treat yourself....... you deserve it!

Creativiteit, inspiratie, leiderschap en innovatie zijn woorden die iets hebben met het overspringen van vonken, vlammend vuur, enthousiasme en flow. Je zou dergelijke fenomenen zo graag tastbaar, meetbaar, stuurbaar willen maken. Slecht nieuws: dergelijke hot spots zijn niet te plannen of op te leggen; de maakbaarheid valt tegen. Goed nieuws volgens Lynda Gratton : ze kunnen wel gefaciliteerd, gekoesterd en ontwikkeld worden. Slecht nieuws: ondanks de in het boek beschreven succesverhalen van Linux, BP, Nokia, Toyota, en dergelijke, is de auteur wel zo nuchter om aan te geven, dat allerhande oorzaken voor het afkoelen, uitdoven of afsterven van hot spots kunnen leiden. Handle with care, dus.

Hoewel een literatuuropgave ontbreekt, Lynda Gratton wel de interdisciplinaire aanpak voor haar onderzoek en achterin in een appendix de gehanteerde inzichten uit de psychologie, economie, etc. aangeeft, kun je Hot Spots goed plaatsen in het verlengde van Peter Senge's Fifth Discipline (met name het systeemdenken is ook in Hot Spots uitgewerkt in diagrammen en toelichting), Meerwaarde-innovatie en de ideeën van Robert E. Quinn over de productieve gemeenschap. Kapstok om hot spots te kunnen laten ontstaan zijn - niet verrassend - aanstekelijke visie, doel en vragen. De conversatie aangaan (Peter Senge zou dialoog gebruiken).

Het ontstaan en voortbestaan van een hot spot is afhankelijk van de combinatie van vier factoren:
1. een `coöperatieve mindset': een geheel van overtuigingen en daarbij passende denkwijzen en houdingen dat de wil en het belang van hechte samenwerking tot uitdrukking brengt. Het eigenbelang of najagen van eigen succes, de basis van veel (andere) business en management modellen, is dodelijk voor een hot spot. Al te sterke individuele beloningstructuren ook. Terug naar de samenwerking.
2. Grenzen overschrijden: hoewel grensoverschrijdende samenwerking in de praktijk uiterst moeilijk valt te realiseren (tijd, competenties, andere werkzaamheden, work/life balance), geven succesvolle praktijkvoorbeelden (BP en Nokia) aan hoe belangrijk een dergelijke samenwerking is voor het ontstaan van innovatieve projectgroepen en Communities of Practice.
3. Aanstekelijk doel waar de participanten zich in herkennen en voor willen gaan, in woord en daad.
4. Productief vermogen: er moet wel wat uitkomen, en dus zijn afspraken over tijd, opleveringen en resultaten noodzakelijk. Conflicthantering is daarbij een noodzakelijke competentie.

Waar andere modellen de adoptie van best practices benadrukken, gaat Gratton een stap verder, namelijk erop wijzen, dat de 'signature processen' nog belangrijker zijn: de binnenwereld naar buiten brengen. Andere auteurs zouden het in dit kader hebben over organisatie DNA, het wezen van de organisatie, de missie, organizational story telling. Hierbij past leiderschap die inspireren, faciliteren, coachen en bruggen bouwen. De auteur biedt een aantal vragenlijsten aan om de as-is situatie rondom hot spots en de bijbehorende cultuur in de eigen organisatie inzichtelijk te maken. Natuurlijk worden zowel de lezer als auteur enthousiast bij het (h)erkennen van hot spots in 'echte' organisaties, al blijft het 'hoe dan' in de praktijkverhalen naar mijn smaak nog onderbelicht.

Zonder het boek of Lynda Gratton als zodanig op een voetstuk te willen plaatsen, bevestigen de onderzoeksresultaten het uitgeput zijn van modellen die alleen voor management van middelen, efficiency maatregelen, de harde kant van de business gaan en onderkent ze de noodzaak mogelijkheden voor innovatie en productiviteitsverbetering te zoeken bij de mensen en de eigen organisatie. Het sociaal en relationeel kapitaal is zeker bij de grote, internationaal opererende, uit diverse fusies en overnames samengestelde ondernemingen, of uitgebreider in het ecosysteem (allianties, partners, etc.) veel groter dan tot nu toe benut.

HOT SPOTS: WHY SOME TEAMS, WORKPLACES, AND ORGANIZATIONS BUZZ WITH ENERGY - AND OTHERS DON'T packs in details on what differentiates a thriving, busy organization from a stagnant one, and will find a special place in the busy manager's bookshelf as a basic reference to understanding organizational dynamics. Lynda Gratton has spent a decade uncovering and analyzing what contributes to Hot Spots: her research has uncovered four basic qualities and organization needs to support the creation of Hot Spots of excitement and cooperation. HOT SPOTS is key to building a strong, collaborative organization and shouldn't be missed.

Diane C. Donovan
California Bookwatch