Foreword v

Preface vii

Some definitions ix

Introduction

The organization as an adaptive system 1

1 Principle #1 – Values 33
Bind people to a common cause, not a central plan

2 Principle #2 – Governance 57
Govern through shared values and sound judgment, not detailed rules and regulations

3 Principle #3 – Transparency 89
Make information open and transparent; don’t restrict and control it

4 Principle #4 – Teams 105
Organize around a seamless network of accountable teams, not centralized functions

5 Principle #5 – Trust 121
Trust teams to regulate and improve their performance; don’t micro-manage them

6 Principle #6 – Accountability 139
Base accountability on holistic criteria and peer reviews, not on hierarchical relationships

7 Principle #7 – Goals 157
Set ambitious medium-term goals, not short-term fixed targets

8 Principle #8 – Rewards 179
Base rewards on relative performance, not fixed targets

9 Principle #9 – Planning 203
Make planning a continuous and inclusive process, not a top-down annual event

10 Principle #10 – Coordination 225
Coordinate interactions dynamically, not through annual budgets

11 Principle #11 – Resources 239
Make resources available just-in-time, not just-in-case

12 Principle #12 – Controls 257
Base controls on fast, frequent feedback, not on budget variances

13 Implementation insights 283

14 Make management change your legacy 305

Notes 309

Index 325

This book is about rethinking how we manage organizations in a post-industrial, post credit crunch world where innovative management models represent the only remaining source of sustainable competitive advantage. Above all The Leader's Dilemma is about learning how to change business - based on best practice and innovation drawn from leaders world-wide who have built and managed successful organizations.

"Every executive will have already had to face the well-known dilemma between trust and control. Based on the principles described, the authors succeed in finding a way out of this dilemma. Supported by concrete practical examples, these twelve principles add up to an integral management model which encompasses employee engagement, efficiency and innovation intelligently."
—Philippe Hertig, Managing Partner, Egon Zehnder International (Switzerland)

"As Albert Einstein once accurately stated, problems can never be solved using the same approach as that out of which they came. The management approach in The Leader's Dilemma is not subject to this unconscious, but very frequent mistake. It shows an entirely new approach on leadership and management, which regards organizations as living systems."
—Erich Harsch, CEO, dm drogerie-markt

"Executives are increasingly recognizing that the traditional model by which they manage their organizations is obsolete and counter-productive. In The Leader's Dilemma, Hope, Bunce and Röösli radically re-define the core principles of management - including accountability, goals, rewards, planning and coordination - to bring management into the 21st century."
—Dr Jules Goddard, Research Fellow, MLab, London Business School

"In a dozen clear principles, The Leader's Dilemma codifies a rethink of the conventional management model. The book's approach should be studied by any company aiming to survive and thrive in a transforming business landscape."
—Vineet Nayar, CEO of HCL Technologies and author of Employees First, Customers Second

Principle #1 - Values: Bind people to a common cause, not a central plan
Principle #2 - Governance: Govern through shared values and sound judgment, not detailed rules and regulations
Principle #3 - Transparency: Make information open and transparent, don't restrict and control it
Principle #4 - Teams: Organize around a network of accountable teams, not centralized functions
Principle #5 - Trust: Trust teams to regulate and improve their performance; don't micro-manage them
Principle #6 - Accountability: Base accountability on holistic criteria and peer reviews, not on hierarchical relationships
Principle #7 - Goals: Set ambitious medium-term goals, not short-term negotiated targets
Principle #8 - Rewards: Base rewards on relative performance, not fixed targets
Principle #9 - Planning: Make planning a continuous and inclusive process, not a top-down annual event
Principle #10 - Coordination: Coordinate interactions dynamically, not through annual budgets
Principle #11- Resources: Make resources available just-in-time, not just-in-case
Principle #12 - Controls: Base controls on fast, frequent feedback, not on budget variances

These principles will enable and encourage a cultural climate change that will enable your organization to attract and keep the best people as well as drive continuous adaptation, innovation and growth. They define the new management model for the twenty-first century organization.