Table of Contents
Introduction.
The Fable.
Part One: Entrepreneurial Ambition.
Part Two: Roller Coaster.
Part Three: Rally.
Part Four: Moments of Truth.
The Theory.
Introduction to Silos.
Components of the Model.
Identifying a Thematic Goal.
Case Studies.
Managing and Organizing Around the Thematic Goal.
Thematic Goals and Long-Term Context.
Making Matrix Organizations Work.
Getting Started.
Acknowledgments.
About the Author.
Read an Excerpt
HONEYMOON
Five months. That's how long it took for Jude Cousins' entrepreneurial
passion and excitement to fade into anxiety and
panic. While it was true that he had never started a company
before and didn't know exactly what to expect, five months
just seemed like too short a honeymoon to Jude.
To be fair, Cousins Consulting wasn't really a company.
Just a consulting practice operating out of a spare bedroom
in Jude's home. No employees. No politics. Just Jude, his
passion, and three clients. Two of which, unfortunately,
were already in jeopardy.
HATCH
For the seven years prior to starting his consulting firm, Jude
had received nothing but encouragement and recognition
in his career, which only served to magnify his frustration
as an entrepreneur.
After a brief and unsatisfying postcollege stint in journalism,
Jude took a job in the marketing department at
Hatch Technology, a fast-growing company that developed
financial software for consumers and small businesses. Beginning
his career at Hatch as a copy editor, Jude gradually
worked his way through every department in the marketing
division, with detours into product management and
operations.
As a result of his work ethic, humility, and general
curiosity about whatever he was doingnot to mention
the rapid growth of the companypromotions came frequently
for Jude. At the age of twenty-eight, four years
after joining Hatch, he was named director of corporate
communication, reporting directly to the company's vice
president of marketing.
Jude's career trajectory, though impressive on its own
merit, was all the more amazing given his relative lack of
passion for technology. Not particularly inspired by the charter
of enticing people to buy software, he knew that the secret
to his success had everything to do with his insatiable
passion for learning. As Jude liked to tell his friends, he
felt like he was being paid to go to business school.
And being just one level removed from the senior executive
team meant Jude was constantly exposed to challenges
related to every aspect of running a company, from
strategy to structure to management. All of which fascinated
him.
Still, he was not content to have his education limited
to one company. So Jude began volunteering to sit on a
variety of advisory boards for small but growing companies
in the area, all of whom were happy to have someone of
his talent providing advice, especially when that advice was
free of charge.
Jude was eagerly soaking up everything he couldand
forming strong opinions about how he would run a company,
which he had come to believe was the ultimate goal
of his professional life. Anyone who knew Jude assumed
he would one day be a CEO.
SMOOTH SAILING
On a personal level, Jude's life certainly seemed to be heading
in the right direction.
He and his wife of three years, Theresa, were hoping
to start a family as soon as possible. They had recently
bought their first home, a small but attractive rancher in
Orinda, just over the hills from the San Francisco Bay.
Though not wealthy, they were financially more secure
than ever, and more important, had amassed a close-knit
collection of friends in the area. They were involved in their
local church, and were quick to help friends, neighbors,
and family members who needed a hand.
From a day-to-day professional standpoint, Jude had
everything he needed. Between his responsibilities at Hatch
and the variety of companies he was being exposed to as an
adviser, he had no complaints. His work was interesting
enough, and his workload, though substantial, was manageable.
Jude certainly had no intention of changing his career.
Until the merger.
BATCH
Though it had been announced to the press as a "merger
of equals," anyone with a sense of the market knew that
Hatch Technology was on the losing end of the acquisition
by its slightly larger competitor, Bell Financial Systems.
Carter Bell, the company's brash CEO, had a much higher
profile in the industry and wasn't about to lose control of
his corporation in a merger.
But because he didn't want to rock the new boat too
soon after the deal was closed, he chose to build something
of a Noah's Ark management team: two heads of sales, two
heads of marketing, and so on. As a result, the seeds of discontent
were planted within the new organization, which
would cleverly be called "Batch Systems." Employees
would later joke that the name combination should have
been reversed and calledHell.
Fortunately, market analysts seemed to like the merger
more than Batch employees did. So Jude and his colleagues
gladly watched the stock price rise with every
painful passing week after the merger papers had been
signed.
As for Jude, his duties and title were divvied up between
him and his counterpart from Bell, so he took on a
slightly diminished role as director of advertising. After
overcoming his initial disappointment in the change in title
and responsibility, Jude accepted his new situation. In fact,
he began to like the arrangement, which gave him more
time for his wife, his golf, and his advisory boards.
Maybe this is just what the doctor ordered, Jude tried to
convince himself.
POLITICS
With every week that passed, Jude found it harder and harder
to get things done. Meetings were longer and more frequent
than ever, and required increasingly more political dexterity.
Back-channel deal making seemed to be taking over
as the primary means of communication and decision making,
with finger-pointing running a close second.
Jude was honest enough to admit that Hatch hadn't
been a perfect company before the merger; without looking
too hard, departmental skirmishes and divisional competition
could certainly be found. But since the merger,
infighting had risen to a new level entirely. Attention had
shifted drastically inward, away from issues like customers
and competitors and toward battles over budgets, titles, and
responsibility for mistakes.
And while it could be expected that these feuds might
develop between employees of the two former companies,
new levels of intercompany conflict were rising in other
areas too. There was the headquarters versus field office
split. And sales versus engineering. And even within marketing,
turf wars were as ridiculous as they were damaging.
Perhaps the most unbelievable example occurred more
than two months after the merger. The forum for the travesty
would be a leading trade publication, Technology Today.
Hatch had always maintained a strong advertising presence
in the publication, as had Bell. During a meeting of
the new marketing departments, Jude proposed a new
coordinated approach to advertising, one that would allow
Batch to double its overall coverage, but with a more focused,
consistent message about the new company's combined
product suite.
After a short presentation of the new ad strategy, complete
with mockups of the artwork and ads themselves,
Jude was relieved to see a roomful of heads nodding and
to hear a chorus of "looks good" and "sounds fine to me"
from his colleagues.
Two weeks later, Technology Today hit newsstands.
Pages forty and forty-one contained Jude's ads, highlighting
Batch's new suite of products and the discounted prices
available for customers who chose to buy them together in
bundles.
Unfortunately, page twenty-eight contained an unrelated
ad for Bell Technology, with no mention of Batch at
all! Not only that, the prices for the old Bell products had
actually been reduced to a level below those of the combined
set, which would only encourage customers to buy
them separately.
Though not prone to anger, Jude was livid. That the
same people who had sat in front of him and agreed to the
new strategy had then gone back to their product divisions
and decided to execute their own campaigns independently
was bad enough. That they had the nerve to cut their prices
at the expense of the new company's well-being was beyond
comprehension to him.
But what disturbed Jude most of all was the reaction of
his boss, the head of marketing, and the other executives.
Nothing.
He had expected an onslaught of frustration and
angerperhaps directed at himbut experienced none of
it. No phone calls, e-mails, stops by the office to ask, "what
went wrong?" Nothing. How could that be? Jude wondered.
And that's when it dawned on him: someone up there
was behind it all. The people who had come to Jude's
meeting and politely nodded their heads were not to blame.
They were mere minions. The real problem was at the top.
Still, Jude had to find out for himself. So he went to his
boss and asked if anyone had noticed the problem, and
whether they were upset. The marketing VP sighed, shook
his head and explained that these kinds of redundancies
and overlap were natural following a merger, and that Jude
wouldn't be blamed for it.
Though he was certainly glad to be out of harm's way,
relief was not Jude's dominant emotion at that moment. It
was a loss of respect for management, and a nagging concern
about the future of the organization.
"Maybe this is just how big companies work," he explained
to an incredulous Theresa that night over dinner.
"I guess I'll just keep my head down for a while, do the
best I can in my piece of the world, and immerse myself
even more in my extracurricular stuff," as he had come to
refer to his advisory board activities.
But Jude was smart enough to realize that avoidance
and denial would probably not be the best course of action
for him, and that problems don't usually go away on their
own. And besides, he did not have the patience to stand
by and watch things unravel.
So, with the security of a nice little nest egg in hand
thanks to the rising stock priceJude decided to go sniffing
for another job.
SEEDS
Given the growing economy and his network of friends in
the industry, Jude was unsurprised at how quickly he had
a full slate of interviews, and at how many of them yielded
offers. But what did surprise him was how much he was
enjoying the job-hunting process.
Every interview gave him an opportunity to learn about
another organization, another market, another set of challenges.
And though he couldn't quite convince himself to
join one of those companiesespecially with so much
Batch stock still to be vestedevery time Jude turned down
an offer, the seeds of a new idea starting growing in his
head. Realizing that he would never find the variety he
wanted in a regular job, he began to wonder if he shouldn't
be a consultant.
For the next couple of months Jude continued interviewing
and feeding his interest in consulting. But each
time he started to seriously consider it, he'd get sucked
back into his day job by an urgent project, and the idea
would go dormant. Jude would later refer to that nine-week
period as "the longest year of my career."
And then it happened. The company's stock, defying
the chaos that was driving its employees crazy, hit a level
that was three times the merger price. Now Jude's nest egg
began to feel like a full-grown bird; even if he didn't stay
long enough for all of his options to be vested, he'd have
the stock equivalent of two years' worth of salary. And so
he decided the time was ripe for a change.
THE LEAP
Gingerly broaching the subject with Theresa, Jude was
shocked by her reaction.
"Well, normally I would support you without reservation.
You know that."
He nodded, and she continued.
"But now that I'm speaking for two of us, I'm going to
have to be a little more careful."
At first it didn't occur to Jude what his wife was referring
to. And then it hit him.
Theresa was pregnant.
After a half hour of quiet celebration and considerable
hugging, the conversation shifted back to his career.
Theresa made the conditions of her support clear. "As
long as there's a solid plan for health benefits, then I'm all
for it. I know you'll do well." she assured him. "Especially
if you're passionate about this."
Jude trusted his wife's instincts more than anyone's, and
he could not deny his passion for what he was about to do.
So the next morning he announced to his boss that he
would be leaving, and after seventy-two hours of counteroffers
and hand wringing, Jude jumped.
But freedom would have its costs.