Leading Outside the Lines

Jon R. Katzenbach is a senior vice president of Booz & Company, where he founded the Katzenbach Center. Previously, he was the founder and senior partner of Katzenbach Partners and a former director of McKinsey & Company. He is the author of Why Pride Matters More Than Money, Peak Performance, and coauthor of the seminal book The Wisdom of Teams. Zia Khan is the vice president of strategy and evaluation at the Rockefeller Foundation and a senior fellow of the Katzenbach Center. He cofounded the Katzenbach Center while a partner at Booz & Company. Previously, he led the Katzenbach Partners San Francisco office and developed many of the firm's hallmark practices in strategy, organization design, and culture change. For more information, please visit www.booz.com/katzenbach_center.

• Introduction: Like Talking to a Wall 1Part One: Using the Informal to Enhance the Formal1 The Logic of the Formal; the Magic of the Informal 132 When the Balance Shifts 313 Jumping Together 47Part Two: Motivating Individual Performance4 It’s All About the Work 715 Values Driven, Not Values Displayed 876 It’s Still About Performance 103Part Three: Mobilizing Organizational Change7 Setting the Fast Zebras Free 1238 Melting the Frozen Tundra 1419 Mobilizing: A Different Kind of Managing 15510 What to Do 175In Conclusion 197About Our Sources and Methodology 201A Diagnostic Tool: Assessing Your Organizational Quotient 209Notes 217Acknowledgments 223About the Authors 225Index 227

“Those of us who have been writing about leadership and organization for years should heave a deep sigh of relief and wonder to read this book. Leading Outside the Lines forces us to review and rethink all the twisty turns, false dichotomies, paradoxes, fuzzy or over-metricized writings—all the confusions we've been wrestling with for years—and shapes them into a coherent, useful, and wise perspective. I love this book, and so will anyone with a desire and need to understand the requirements for 21st Century leadership.” —Warren Bennis, Distinguished Professor of Business, University of Southern California, and author, Still Surprised "If you want to know how work really gets done, read Leading Outside the Lines! It is the best book I have ever read at explaining the difference between what is supposed to be going on—and what is really going on in organizations."—Marshall Goldsmith, author, What Got You Here Won't Get You There and MOJO“Katzenbach and Khan’s book is a must-read for leaders who want their teams to shine in terms of performance, innovation, retention, or any other metric of success. I’ve rarely read a book with such an extraordinary collection of fascinating, real-world examples that drive the message home.”—Keith Ferrazzi, author, Who’s Got Your Back and Never Eat Alone“Leading Outside the Lines is a vibrant book with a compelling message that's vital to the success of 21st century organizations—the message that informal human relationships, when effectively integrated with formal structures and systems, can powerfully propel people forward. It's a profoundly important idea that all contemporary leaders must attend to. This book is rich with real life examples of organizational turnaround and culture change — some of the most unique and engaging I've ever read — from actual leaders who tried, failed, learned, and succeeded. John Katzenbach and Zia Khan do a masterful job of weaving together these intriguing case examples with practical applications and useful assessment tools. This is a book about doing great work, making people proud, getting people connected, and living a values-driven life. It's a book you need to savor.”—Jim Kouzes, coauthor, The Leadership Challenge and Dean's Executive Professor of Leadership, Leavey School of Business, Santa Clara University“Leading Outside the Lines is a very important and useful book. Katzenbach and Khan make the argument that corporations today need leaders who understand how to harness the power of the informal organization to improve both execution and innovation. Through insightful storytelling and their years of experience, they provide strategic and tactical advice about how the informal organization can transform your organization, whether it grapples with radical changes in the competitive environment or the inevitable growing pains of moving from start-up to established global enterprise.”—Linda A. Hill, Wallace Brett Donham Professor of Business Administration, Harvard Business School“A must read for anyone struggling to adapt their organization to new realities. Filled with keen insight about the formal and informal life of organizations, Katzenbach and Khan offer practical advice on how to blend the two to bring out the best in your organization.”—Ronald A. Williams, Chairman and CEO, Aetna"The rate of change in our business--and the need to move information at high speed across organizations--necessitated an innovative look at organizational structures and management styles. The ideas in Leading Outside the Lines helped speed and shape our major change implementations successfully."—Stan Glasgow, President and COO, Sony Electronics, Inc.“Leading Outside the Lines is an incredible gift to leaders in all three sectors—public, private, and social—working to move beyond the old walls, build the new, flexible, fluid management systems, and develop leaders of the future determined to build the organization of the future. This management guidebook brings the best of formal and informal organizational theory and experience to leaders at every level, across the enterprise.”—Frances Hesselbein, Chairman and Founding President, Leader to Leader Institute, Formerly the Peter F. Drucker Foundation for Nonprofit Management“Katzenbach and Khan demonstrate that you don’t have to choose between inspiring employees and getting amazing results—the best organizations do both. With novel perspectives, great stories, and practical advice they show leaders how to get the best of both in ways that can transform organizations. This book belongs in the hands of everyone who refuses to accept business as usual”—Chip Conley, CEO, Joie de Vivre and author,Peak“Strategy and hierarchy drive how organizations operate, but so too do personal networks and intuitive judgments that define an equally powerful informal world within. Drawing on richly developed illustrations ranging from the Bushmen of southern Africa to eBay, Marine Corps, and Starbucks, Leading Outside the Lines provides a compelling account of how leaders can best capitalize on the hidden drivers of organizational life.”—Michael Useem, Professor of Management, Wharton School, University of Pennsylvania and author, The Leadership Moment