Customer Reviews

The Power of Corporate Kinetics: Create the Self-Adapting, Self-Renewing, Instant-Action Enterprise

5 star:		(16)
4 star:		(6)
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2 star:		(2)
1 star:		(7)

 

 

"This book is about the death of predictability and how you can turn it to your advantage. Until now, virtually every work of management theory, as well as every business, has been based on a single premise: The future is predictable. Until now, we have forecast market trends, scheduled production, designed services, and trained employees on the assumption that we could count on a stable future expect for the occasional unexpected earthquake...We believe that the insights contained in this book will allow businesses to weather the storm of unpredictability. More than that, we believe this book will help businesses size the opportunities inherent in an unpredictable future as they constantly create new sources of competitive advantage. Our proposals aren't simply theory. They have emerged in part from our study of dozens of leading companies that have recognized the change in the business environment and have developed new ways to cope with it...We offer a model of what we call the 'kinetic enterprise,' a guide to the design of a business that can cope with the new reality. It is based on a simple yet profound insight: If we can no longer depend on our ability to predict the future, we must create a dynamic business design that can capitalize on the unpredictable, to turn it to our advantage...It is very different, in structure and behavior, from the traditional corporation...The kinetic enterprise isn't constrained by existing work processes. It is an instant-action machine, constantly changing its work and evolving its operations to address the unpredictable. What is more, it ignores traditional hierarchies and boundaries. Workers initiate and manage its activities, collaborating with one another at every level and within every area. The old command-and-control management model is defunct. Instead, a new culture motivates workers to collaborate spontaneously, make decisions, take risk, innovate, and learn" (pp.15-20).

Within this general framework, Michael Fradette and Steve Michaud divide their book into two parts:

I. The Destination - In this part, they set forth the principles and attributes of the kinetic enterprise as follows:

* They write, "The kinetic enterprise is organized around workers who initiate and execute individual, discrete, and unpredictable projects that we call events." These are basically market and customer events. According to them, these events require workers who are committed to success of the overall enterprise, rather than just their own position, department, or team.

* They define a market event as the work of the enterprise immediately and profitably performed to seize an unexpected market opportunity. According to them, market events aren't strategy, market forecasting, and just responses to shifting customer needs, and hence market events have the following six basic elements: (1)spotting an unexpected market opportunity, (2)assessing its impact on the enterprise, (3)deciding if the market opportunity is right for the business, (4)marshaling the resources of the enterprise to capitalize on the opportunity, (5)developing the best approach to the task, and (6)capturing insights and rolling out the idea to the enterprise.

* They define a customer event as the work of enterprise immediately and profitably performed to satisfy a unique, single customer demand. According to them, customer events aren't an exercise in extravagant service, dedicated to achieving customer intimacy or even a long-term relationship, micro-marketing, and mass customization, and hence customer events have the following six basic elements: (1)ascertaining a customer's specific needs, (2)assessing its impact on the enterprise, (3)deciding if if satisfying the demand is right for the enterprise, (4)marshaling the resources of the enterprise to meet the customer's demand, (5)developing and implementing the best approach to the task, and (6)satisfying the customer.

* They argue that workers of a kinetic enterprise think like owners, share common goals and enterprise-wide rewards, disdain constraining job descriptions, design event teams, and learn as they go.

* They argue that in a kinetic enterprise, old notions of predefined jobs and roles, the hierarchical distinctions, no longer exist. Everyone in the enterprise, from CEO to assembly line workers, must be ready to play one or all of the roles such as frontline worker, strategist, stakeholder, decision-maker, manager, coach, student, champion, innovator, project member, networker, and leader at any given time.

II. The Journey - In this part, in order to answer to 'How should companies go about their journey toward a kinetic future?', they suggest the following five concurrent paths:

1. Create the new leadership - They argue that in traditional, task-based organizations, leaders are, by definition, separate and removed from their workers. Leaders are responsible for predicting market trends from year to year, developing strategies to take advantage of them, and making sure the strategies are implemented. In the kinetic enterprise, leaders still predict and implement winning plays to succeed in visible markets. But they also prepare themselves and their organization to respond to the invisible, unpredictable market shifts that have become so commonplace in the modern business world. And thus, Fradette and Michaud show five key tasks of these kinetic leaders.

2. Building the right workforce - They argue that in traditional companies, job interviews are concerned with the candidate's specific skills and experience. Kinetic organizations search for candidates who have innate talents rather than just track records, and their attitudes and personalities must match the corporate culture.

3. Design for instant action - They argue that traditional organizations build infrastructures primarily to promote productivity and efficiency, with the result that all to often they lock themselves into old ways of doing business. Kinetic enterprises, on the other hand, gear their infrastructures to a pair of outrageous goals. Work design, communications and computer systems, and even physical plants are designed to serve single customer and to act in zero time.

4. Ignite customer events - They argue that kinetic enterprise ignite customer events so customers can design their own relationships, create personalized products and services, invent wholly new products and services, and design total solutions.

5. Ignite market events - They argue that innovation with customer events isn't enough to win in today's unpredictable environment. To stay on top, workers must invent new products, services, and businesses that neither customers nor competitors have imagined.

Finally, they write, "The primary focus of this book is more immediate and pragmatic. We have designed it to be both a spur and a guide: a spur to recognize the permanence of the changes that have torn up our business environment, and a guide to help cope with those changes. We hope that you will heed our warnings and that you will find ways to apply kinetics in your own backyard. As so many enterprises have discovered, the path of kinetics can be difficult and demanding, but the rewards are sure and plentiful."

Strongly recommended.

This book has some significant problems. I completely agree with the prior reviewer who believes that being "kinetic" (as suggested by the authors) is being reactionary. Reacting radically to "radical" events is an oversimplification. This is not necessarily the best course to take.

The concepts discussed by the authors are nothing new. Many writers have suggested that we need more flexible organisation structures to cope with the environmental turbulence in the current period. See Hedberg et al (1976) "Camping on seesaws". These concepts coincide with contingency theory and the like. There is no real evidence however that organisations behaving in the way that the authors suggest will succeed.

I also believe that the authors confuse having a plan with being able to execute it. The two concepts seem alike but are in fact different. Those pushing re-engineering have fallen into this trap - they perform radical re-design and then attempt to radically implement it - this course is surely destined to fail more often than not.

In short, anyone who literally swallows their medicine is asking for trouble. Those wanting long term solutions should examine Systems theory (Senge and others). They suggest (with good evidence) that "sudden" changes in the environment have in fact built up over time. It's good advice - to cope with the business problems we face in the current times we need to approach them within this framework.

The authors profile and give guidelines to the design of a business that can capitalize on the unpredictable; a kinetic enterprise moves, instantly, responding to new demands and seizing new opportunities. The enterprise is organized around workers who initiate and execute unpredictable projects ("events") driven by market opportunities and customer demands. This work focuses on leadership, an empowered work force, infrastructure, and market and customer events. The book offers numerous examples that illustrate its central theme.

If you are searching for some certainty in this today's chaos, this book provides some solid footing in an unpredictable world. Recommeded. Reviewed by Gerry Stern, founder, Stern & Associates, author of Stern's Sourcefinder The Master Directory to HR and Business Management Information & Resources, Stern's CyberSpace SourceFinder, and the Compensation and Benefits SourceFinder.

The Power Of Corporate Kinetics-Book review

Introduction

The concept of Corporate Kinetics (Kinetics meaning movement from the Greek language), is presented in this book as a new business model that evolved from the analysis by the two authors in 1995 of a fundamental shift in pioneering companies, in response to a rapidly changing environment (Fradette & Michaud, 1998). The premise in the author's view is that in order for business to survive in today's age of advanced technology, savvy and demanding customers, and uncertain politics and finance, a business must move at the same pace and be ready to meet the challenge.

Some of the ideas in the book can be identified within well-established motivational theories and organizational models. However, the newness of the model presented in this book is in the potential of "Kinetic" organizations to utilize principles that work such as a clear corporate vision, coupled with worker's passion that grows out of ownership of the vision, translated into immediate actions in response to market changes or customer needs. The old theories are crystallized into a picture of a planned corporate setting that welcomes and encourages change and new opportunities, without loosing sight of why the company exists in the first place.

Book summary

The book is composed of two parts, the first being described as "The Destination", and the second as "The Journey".

Part I - Embrace the power of Corporate Kinetics

Part one of the book begins from the premise that businesses today are faced with unpredictability, changing customer loyalties, and tremendous advances in technology that warrant corporate change to cope, survive, and thrive.

Part II - Follow five concurrent paths to Corporate Kinetics

This section of the book describes the practical steps a company can take to become "Kinetic". The practical steps provide a road map to executives wishing to "convert" their companies into "kinetic" enterprises, or entrepreneurs who are looking to fit in today's business environment.

Commentary

This book caught my eye as I searched for strategic insight, primarily because I am a visual as well as conceptual learner. This book presented more than a total of theories and a plan of action, but a "word picture" that I could "see" with my mind's eye. A Company deeply committed to a vision, with a good strategic plan, but fluid enough to adapt quickly in response to internal or external changes, as identified by a hand-picked workforce, in touch with the real world, and just as committed to the company's vision.

"Kinetic" workers, test their responses to market changes or customer demands by how well they fit the strategic plan, support the vision, and create competitive advantage and corporate health. The motivation for the so called kinetic worker, is a sense of ownership in the company, fueled by a generous reward system and clear understanding of the vision, as well as complete collaboration and access to resources, among all levels in the workforce from the CEO to the front line worker.

It is this worker empowerment and encouragement of innovation that attracted my attention, since they are concepts that I espouse wholeheartedly, the essence of what I find fascinating in this book. Especially impressive were the case histories used that clearly illustrate what a company "in movement" is like, i.e. Kinko's, MTV, Microsoft, Hewlett-Packard, the US Army, etc. It was evident by the examples that the companies illustrated "fit" the overall picture of the "Kinetic" enterprise as described in the book. The idea is to "step back a minute" to see more clearly what we've missed or where we are going.

Ultimately I feel this type of organization encourages personal growth and societal well being, as well as a healthy corporate structure that can stand the test of time and change.

Conclusion

In my view, rather than finding something entirely new in this book, I found a fresh perspective with a word picture "Kinetics" (stay in movement), to describe in a graspable way the ideal business in today's world. One that moves with the times, focuses on the ever-changing needs of clients, and is willing to change itself, while also acting as an agent of change. It is apparent to the author that all of the elements mentioned in this review are necessary to succeed in creating such an organization. However, the primary elements are servant leadership (leaders and managers rolling up their sleeves and joining workers), and recognition of the front line worker as a mover and innovator (closest to customer needs and market opportunities). Both of these must also be aligned with the primary purpose of customer satisfaction and company well being that is shared by all.

As attractive as this model is however, even these companies must continually renew their efforts to prevent stagnation. Leadership in my opinion is key, since in many organizations denial is still rampant, and corporate change is stifled by hierarchical structures and corporate culture. Personally, I acknowledged as I read this book that as a mini-organization, home life also needs to become "kinetic" to some extent. I.e. we must make time for one child at a time, invest in their changing needs, "get into" their environment (the world as it is rather than as we would have it be), and be committed to the overall success of this enterprise we call family however defined by each. Whether running a large corporation or home life, we do well to heed the signs of the times and focus on adapting and seizing the opportunities presented to us, one at a time.

Bottom line, I recommend this book for it's fresh perspective and insight into a complex and ever changing business environment. Good readings!

Asela M. Calhoun, BS, MAOM Student, Azusa Pacific University

The Power Of Corporate Kinetics-Book review

Introduction

The concept of Corporate Kinetics (Kinetics meaning movement from the Greek language), is presented in this book as a new business model that evolved from the analysis by the two authors in 1995 of a fundamental shift in pioneering companies, in response to a rapidly changing environment (Fradette & Michaud, 1998). The premise in the author's view is that in order for business to survive in today's age of advanced technology, savvy and demanding customers, and uncertain politics and finance, a business must move at the same pace and be ready to meet the challenge.

Some of the ideas in the book can be identified within well-established motivational theories and organizational models. However, the newness of the model presented in this book is in the potential of "Kinetic" organizations to utilize principles that work such as a clear corporate vision, coupled with worker's passion that grows out of ownership of the vision, translated into immediate actions in response to market changes or customer needs. The old theories are crystallized into a picture of a planned corporate setting that welcomes and encourages change and new opportunities, without loosing sight of why the company exists in the first place.

Book summary

The book is composed of two parts, the first being described as "The Destination", and the second as "The Journey".

Part I - Embrace the power of Corporate Kinetics

Part one of the book begins from the premise that businesses today are faced with unpredictability, changing customer loyalties, and tremendous advances in technology that warrant corporate change to cope, survive, and thrive.

Part II - Follow five concurrent paths to Corporate Kinetics

This section of the book describes the practical steps a company can take to become "Kinetic". The practical steps provide a road map to executives wishing to "convert" their companies into "kinetic" enterprises, or entrepreneurs who are looking to fit in today's business environment.

Commentary

This book caught my eye as I searched for strategic insight, primarily because I am a visual as well as conceptual learner. This book presented more than a total of theories and a plan of action, but a "word picture" that I could "see" with my mind's eye. A Company deeply committed to a vision, with a good strategic plan, but fluid enough to adapt quickly in response to internal or external changes, as identified by a hand-picked workforce, in touch with the real world, and just as committed to the company's vision.

"Kinetic" workers, test their responses to market changes or customer demands by how well they fit the strategic plan, support the vision, and create competitive advantage and corporate health. The motivation for the so called kinetic worker, is a sense of ownership in the company, fueled by a generous reward system and clear understanding of the vision, as well as complete collaboration and access to resources, among all levels in the workforce from the CEO to the front line worker.

It is this worker empowerment and encouragement of innovation that attracted my attention, since they are concepts that I espouse wholeheartedly, the essence of what I find fascinating in this book. Especially impressive were the case histories used that clearly illustrate what a company "in movement" is like, i.e. Kinko's, MTV, Microsoft, Hewlett-Packard, the US Army, etc. It was evident by the examples that the companies illustrated "fit" the overall picture of the "Kinetic" enterprise as described in the book. The idea is to "step back a minute" to see more clearly what we've missed or where we are going.

Ultimately I feel this type of organization encourages personal growth and societal well being, as well as a healthy corporate structure that can stand the test of time and change.

Conclusion

In my view, rather than finding something entirely new in this book, I found a fresh perspective with a word picture "Kinetics" (stay in movement), to describe in a graspable way the ideal business in today's world. One that moves with the times, focuses on the ever-changing needs of clients, and is willing to change itself, while also acting as an agent of change. It is apparent to the author that all of the elements mentioned in this review are necessary to succeed in creating such an organization. However, the primary elements are servant leadership (leaders and managers rolling up their sleeves and joining workers), and recognition of the front line worker as a mover and innovator (closest to customer needs and market opportunities). Both of these must also be aligned with the primary purpose of customer satisfaction and company well being that is shared by all.

As attractive as this model is however, even these companies must continually renew their efforts to prevent stagnation. Leadership in my opinion is key, since in many organizations denial is still rampant, and corporate change is stifled by hierarchical structures and corporate culture. Personally, I acknowledged as I read this book that as a mini-organization, home life also needs to become "kinetic" to some extent. I.e. we must make time for one child at a time, invest in their changing needs, "get into" their environment (the world as it is rather than as we would have it be), and be committed to the overall success of this enterprise we call family however defined by each. Whether running a large corporation or home life, we do well to heed the signs of the times and focus on adapting and seizing the opportunities presented to us, one at a time.

Bottom line, I recommend this book for it's fresh perspective and insight into a complex and ever changing business environment. Good readings!

Asela M. Calhoun, BS, MAOM Student, Azusa Pacific University

Great comfort to know that Michaud and Fradette are feeling the acceleration that all of us feel. The world is getting faster and I agree that we have crossed a logical horizon... that horizon at which we can no longer plan. We now must prepare and react to the unpredictable. Good case studies, good practical insights.

The Power of Corporate Kinetics makes a solid case that the rules of the game are changing and companies that don't attempt to become "self-adapting, self-renewing, and prepared for instant-action" will not be here to regret their mistakes. It all boils down to survivability. In an era of highly intelligent and extremely demanding customers; companies will not be able to remain competitive by simply squeezing profitability out of mass production of undifferentiated products. Production efficiency and product quality are increasing almost as fast as customer satisfaction is decreaseing (what the heck is going on?).

This book was extremely readable and insightful. Fradette and Michaud's anecdotal writing style allowed their assertions to really hit home. I thoroughly enjoyed this book and look forward to using many of its lessons in my everyday business life.

As any number of recent business books have pointed out, markets and customers have become increasingly unpredictable. What Fradette and Michaud offer, however, is a new business design that takes unpredictability as a working assumption. This new design--which responds to customer and market "events" rather than attempting to predict, plan and implement--turns everyone in the enterprise, from the CEO to the receptionist, into a front-line worker. The authors also posit two outrageous goals for aspiring kinetic companies: zero-time response and serving markets of one profitably. If the vision seems at times a bit like science fiction, scores of real-world examples remind the reader that many such efforts have, in fact, succeeded (albeit on a smaller scale than the wholesale, enterprise-wide transformation the authors propose). The book is well-paced and written in an engaging style. I found myself devouring it in a single sitting.

It may grab a headline or two to announce that "predictability is dead" but where do you go with that? Taken literatly, this book would lead a business to become very reactionary. Now no field general would suggest that a battle is predictable, but you better believe that they plan their strategy. Plan your work and work your plan, as the saying goes. This book suggests you ricochet from one "opportunity" to the next. Good luck following that advice.

Long-range planning doesn't work anymore in today's accelerated business arena. You must abandon this long-standing strategy and implement a wholly different one, say the authors. You need to transform you company so that it becomes more kinetic, that is, dynamic, able to move and move fast. Your company needs to be able to capitalize on the unpredictable; changes in customer demands and the market. A kinetic company has two goals:
· to serve a single customer a tailored product
· to act in zero time, responding to customer demands immediately and capitalizing on market opportunities as soon as they arise

The authors propose the following strategies to achieve these goals:
1. Change to an infrastructure that allows your company to act instantly. Destroy the barriers that keep your employees from sharing their expertise with each other.
2. Provide leadership that rewards employees for challenging the status quo. Send the message that the strategic purpose of the organization is everyone's business.
3. Hire workers who can recognize and seize market opportunities. Look for employees with intelligence and the ability to work with others. Other skills can be taught, brains and attitude usually can't.
4. Encourage workers to satisfy unexpected customer demands.