1. The first shift stems from a monumental transition in the power balance between seller and buyer: to management's astonishment, the buyer is now in the driver’s seat. As a result, the firm’s goal has to shift to one of delighting clients: i.e. a shift from inside-out (“You take what we make”) to outside-in (“We seek to understand your problems and will surprise you by solving them”).
2. The second shift stems from the first transition, as well as the epochal transition from semi-skilled labor to knowledge work. Again to management's astonishment, traditional hierarchy suddenly doesn’t work anymore. The role of the manager has to shift from being a controller to an enabler, so as to liberate the energies and talents of those doing the work and remove impediments that are getting in the way of work.
To support and sustain those two shifts, three other shifts are necessary:
3. The mode of coordination shifts from hierarchical bureaucracy to dynamic linking, i.e. to a way of dynamically linking self-driven knowledge work to the shifting requirements of delighting clients.
4. There is a shift from value to values; i.e. a shift from a single-minded focus on economic value and maximizing efficiency to instilling the values that will create innovation and growth for the organization over the long term.
5. Communications shift from command toconversation: i.e. a shift from top-down communications comprising predominantly hierarchical directives to communications made up largely of adult-to-adult
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