The Next Next Common Sense
Schultz returned to Starbucks during its 2008 crisis, he focused first on creating a coherent narrative about the company’s situation and future direction, helping the organization make sense of complex market shifts before attempting to address specific challenges. Probe-sense-respond cycles. Leaders replace prediction-based plan- ning with iterative cycles of action and learning. When Microsoft entered the cloud computing market, CEO Satya Nadella implemented what he called “learning loops”—small initiatives designed primarily to generate information rather than immediate results, with each cycle informing the next. This mindset shift represents more than a change in technique; it re- flects a fundamentally different understanding of the leader’s role—from oracle to interpreter, from commander to sense-maker.
From control to enabling constraints
In complex environments, direct control often produces unintended consequences. Effective leaders focus instead on establishing enabling constraints—boundaries within which beneficial self-organization can emerge. Manufacturing company W.L. Gore embodies this approach through its “lattice” organizational structure. Rather than controlling employee behavior through detailed policies, Gore’s leadership establishes clear boundaries around values and strategic priorities while allowing remark- able freedom within those boundaries. This approach has enabled Gore to maintain innovation and adaptability for decades while preserving organizational coherence. The shift from control to enabling constraints manifests in several leadership practices: Principle-based guidance. Leaders establish clear principles rather than detailed instructions. When Consumer goods company Unilever implemented its “Sustainable Living Plan,” CEO Paul Polman established ten foundational sustainability principles while giving business units
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