From the Ground Up

"The new logic begins with the assumption that management systems, processes, and structures can be the keys to building a competitive advantage if they allow an organization to perform in a way that competitors cannot."

"You can often determine whether an organization is likely to perform in a particular way by looking at its culture, because culture 'says' what people in the organization should do and what will be rewarded."

"Senior management must lead a process that will not only develop an effective strategy but ensure that it is widely understood and accepted in the organization."

"A flat structure and an emphasis on lateral processes can produce organizations that are simultaneously small and large."

"People have to be grouped so that they can have the power, information, knowledge, and rewards that allow them to coordinate their efforts and cause them to feel collectively responsible for their performance."

"Using the right combination of project teams, problem-solving teams, work teams, overlay teams, and management teams, it is possible to develop organizations that are entirely team-based."

"Typical management activities—goal setting, giving credit for a job well done, and developing and nurturing competencies—must be done with the entire team. Managers must also provide teams with a sense of mission, direction, and purpose."

"Organizations need formal systems to measure the skills of employees. Organizations must also provide ways for employees to assess their own skills."

"No reward—whether it be a pay increase, a promotion, or a desired form of recognition—can be a motivator unless there is a clear line of sight between what the employee is doing and the reward for doing it."

"Remember: organizations get the kinds of behaviors they measure and reward. Thus whatever an organization measures must be consistent with what it wants to accomplish and how it wants to manage its performance."

"Because changes in an organization's management approach happen slowly and take time to pay dividends, it is important to take a long-term view."

"The new logic has already had a major effect on managerial career opportunities. There is every reason to believe that it will have a greater impact in the future. Bluntly stated, there are going to be fewer and fewer managerial job opportunities."