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Reorganize for Resilience: Putting Customers at the Center of Your Business ReviewIn his timely book, Gulati provides CEOS and managers with a wakeup call and a practical tool kit they can use to re-organize their firms to thrive in increasingly turbulent economic conditions. The issues discussed in this book are of importance for small, large and even non-profits. Gulati has done an excellent job of writing in a very readable style that I believe will benefit many firms that are seeking ways to survive and thrive.
The core message of this book is that only those firms attain resilience that are truly able to place their customers at the center of their enterprise. However, implementing this strategy is not easy for most firms. Gulati notes that many of the firms which believe that they are customer centric by virtue of going through the motions of traditional market research may actually be deluding themselves. Even when they do solicit ideas from their customers, they do so through the lens of their products as their focus remains on how the customer experiences their products. Further, most firms get caught up in their day to day operations and processes and forget to keep the customer at the center of their enterprise. Unfortunately, customers "become after thoughts" because firms become distracted and blinded by the rigidity of their internal architecture.
Based on qualitative and quantitative research, Gulati explains that while many firms get locked in self-erected silos and thick internal walls, some firms thrive while embracing brutal competition and demanding customer. What distinguishes these firms?
To answer this critical question, Gulati distills lessons from a broad array of firms. He explains that the key differentiator of these successful firms is not just their curiosity and engagement with their customers and their problems, but the ability to actually turn some of those insights into action.
To achieve this high degree of "customer-centricity" Gulati advises firms to dismantle their rigid "inside-out" organizational architecture and adopt a customer focused "outside-in" mind set with an intense focus on understanding and serving the needs of their customers. Putting the customer in the driver's seat can be accomplished only by radical reorganization. This in turn comes about from their capacity to effectively coordinate the appropriate organizational, human, and social resources for creating products and services that satisfy the real needs of their customers. By becoming nimble and flexible, firms can foster "resilience" to achieve competitive advantage for thriving under adversity.
The book not only provides an answer to the WHY of resilience but also the HOW. Gulati peels away multiple layers to demystify the operative mental models as well as the structural and social architecture of exemplary resilient firms. He explains the features and processes that are related with the five key levers that need to be engaged in reorganization. The five levers are: coordination, cooperation, clout, capability and connection.
I particularly appreciated Gulati's efforts to simultaneously highlight the structural, human, and relationship aspect of each lever. Most important, he provides clear and practical guidance on how to appropriately engage these levers to achieve resilience and customer centricity.
This book is not recommended for leaders who wish to undertake incremental changes. Gulati is blunt in his assessment and advice. While acknowledging that creating resilient organizations is not impossible, he cautions that it is not easy because it requires long term perseverance and consistent effort. He also notes that re-organization can be fraught with heightened concerns and operational chaos. But the eventually rewards can be dramatically positive. Thus, he cautions leadership to be prepared to invest considerable energy in creating companywide commitment.
Since any organizational transformation journey must begin with honest self assessment, I suggest that CEO's and leaders read this book first. After taking a hard look and reorienting their personal mental models, they should require their entire staff to read it. They should then use this book to initiate an honest conversation within their organizations and start preparing their blue prints for achieving "customer-centricity".
Reorganize for Resilience: Putting Customers at the Center of Your Business OverviewIn an era of raging commoditization and eroding profit margins, survival depends on resilience: staying one step ahead of your customers. Sure, most companies say they re customer-focused, but they don t deliver solutions to customers thorniest problems. Why? Because they re stymied by the rigid silos they re organized around. In Reorganize for Resilience, Ranjay Gulati reveals how resilient companies prosper both in good times and bad, driving growth and increasing profitability by immersing themselves in the lives of their customers. This book shows how resilient organizations cut through internal barriers that impede action, build bridges between warring divisions, and transform former competitors into collaborators.Based on more than a decade of research in a variety of industries, and filled with examples from companies including Cisco Systems, La Farge, Starbucks, Best Buy, and Jones Lang LaSalle, Gulati explores the five levers of resilience: Coordination: Connect, eradicate, or restructure silos to enable swift responses. Cooperation: Foster a culture that aligns all employees around the shared goals of customer solutions. Clout: Redistribute power to bridge builders and customer champions. Capability: Develop employees skills at tackling changing customer needs. Connection: Blend partners offerings with yours to provide unique customer solutions.Authoritative and practical, Reorganize for Resilience helps you walk the walk, not just talk the talk, of customer-centricity jump-starting a virtuous cycle of profits, growth, and competitive advantage.
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