Michael Lissack
freedom in how they applied these principles to their specific markets and product categories. Resource focusing. Leaders shape organizational energy by con- trolling resource allocation rather than detailed execution. When tech- nology company Google implemented its famous “20% time,” leadership didn’t dictate how engineers used this time but created the constraint that it should focus on potentially beneficial projects outside their pri- mary responsibilities. This approach led to innovations like Gmail and Google News. Boundary setting. Leaders define what’s out of bounds rather than dictating what’s in bounds. When online shoe retailer Zappos articulated its core values, CEO Tony Hsieh made clear that violating these values would have consequences, regardless of performance against other met- rics. This clarity created space for creativity within established ethical boundaries. This mindset shift reframes leadership power—from controlling oth- ers to creating contexts in which others can control themselves effectively.
From hierarchy to networks
Complex environments require coordinated action across diverse capabilities that seldom align neatly with organizational charts. Effective leaders focus on enabling network connections rather than reinforcing hierarchical authority. Professional services firm Deloitte illustrates this approach through its “Constellations” model. Rather than organizing exclusively around for- mal reporting lines, Deloitte’s leadership creates dynamic networks based on expertise, relationships, and shared interests. These networks activate around specific challenges, regardless of formal positions, enabling more responsive action than traditional hierarchies allow. The shift from hierarchy to networks manifests in several leadership practices:
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