Horizontal Leadership Quotes

We have to change the culture from one in which people simply do their own job in their own function to make their own numbers look good (a vertical focus) to one in which people are focused horizontally on the customer and on improving value streams that deliver value across functions.

There are other problems more closely related to the question of culture. The poor fit between large scale and Korea’s familistic tendencies has probably been a net drag on efficiency. The culture has slowed the introduction of professional managers in situations where, in contrast to small-scale Chinese businesses, they are desperately needed. Further, the relatively low-trust character of Korean culture does not allow Korean chaebol to exploit the same economies of scale and scope in their network organization as do the Japanese keiretsu. That is, the chaebol resembles a traditional American conglomerate more than a keiretsu network: it is burdened with a headquarters staff and a centralized decision-making apparatus for the chaebol as a whole. In the early days of Korean industrialization, there may have been some economic rationale to horizontal expansion of the chaebol into unfamiliar lines of business, since this was a means of bringing modern management techniques to a traditional economy. But as the economy matured, the logic behind linking companies in unrelated businesses with no obvious synergies became increasingly questionable. The chaebol’s scale may have given them certain advantages in raising capital and in cross-subsidizing businesses, but one would have to ask whether this represented a net advantage to the Korean economy once the agency and other costs of a centralized organization were deducted from the balance. (In any event, the bulk of chaebol financing has come from the government at administered interest rates.) Chaebol linkages may actually serve to hold back the more competitive member companies by embroiling them in the affairs of slow-growing partners. For example, of all the varied members of the Samsung conglomerate, only Samsung Electronics is a truly powerful global player. Yet that company has been caught up for several years in the group-wide management reorganization that began with the passing of the conglomerate’s leadership from Samsung’s founder to his son in the late 1980s.72 A different class of problems lies in the political and social realms. Wealth is considerably more concentrated in Korea than in Taiwan, and the tensions caused by disparities in wealth are evident in the uneasy history of Korean labor relations. While aggregate growth in the two countries has been similar over the past four decades, the average Taiwanese worker has a higher standard of living than his Korean counterpart. Government officials were not oblivious to the Taiwanese example, and beginning in about 1981 they began to reverse somewhat their previous emphasis on large-scale companies by reducing their subsidies and redirecting them to small- and medium-sized businesses. By this time, however, large corporations had become so entrenched in their market sectors that they became very difficult to dislodge. The culture itself, which might have preferred small family businesses if left to its own devices, had begun to change in subtle ways; as in Japan, a glamour now attached to working in the large business sector, guaranteed it a continuing inflow of Korea’s best and brightest young people.73

management of externalities becomes a key leadership skill. Growth comes not from horizontal integration and vertical integration but from functional integration and network orchestration. The focus on processes such as finance and accounting shifts from cash flows and assets you can own to communities and assets you can influence. And while platform businesses themselves are often extraordinarily profitable, the chief locus of wealth creation is now outside rather than inside the organization. Network effects are creating the giants of the twenty-first century. Google and Facebook each touch more than one-seventh of the world’s population. In the world of network effects, ecosystems of users are the new source of competitive advantage and market dominance.

Leaders should have the ability to interpret things in vertical and horizontal aspects

Structured methods for learning Method Uses Useful for Organizational climate and employee satisfaction surveys Learning about culture and morale. Many organizations do such surveys regularly, and a database may already be available. If not, consider setting up a regular survey of employee perceptions. Useful for managers at all levels if the analysis is available specifically for your unit or group. Usefulness depends on the granularity of the collection and analysis. This also assumes the survey instrument is a good one and the data have been collected carefully and analyzed rigorously. Structured sets of interviews with slices of the organization or unit Identifying shared and divergent perceptions of opportunities and problems. You can interview people at the same level in different departments (a horizontal slice) or bore down through multiple levels (a vertical slice). Whichever dimension you choose, ask everybody the same questions, and look for similarities and differences in people’s responses. Most useful for managers leading groups of people from different functional backgrounds. Can be useful at lower levels if the unit is experiencing significant problems. Focus groups Probing issues that preoccupy key groups of employees, such as morale issues among frontline production or service workers. Gathering groups of people who work together also lets you see how they interact and identify who displays leadership. Fostering discussion promotes deeper insight. Most useful for managers of large groups of people who perform a similar function, such as sales managers or plant managers. Can be useful for senior managers as a way of getting quick insights into the perceptions of key employee constituencies. Analysis of critical past decisions Illuminating decision-making patterns and sources of power and influence. Select an important recent decision, and look into how it was made. Who exerted influence at each stage? Talk with the people involved, probe their perceptions, and note what is and is not said. Most useful for higher-level managers of business units or project groups. Process analysis Examining interactions among departments or functions and assessing the efficiency of a process. Select an important process, such as delivery of products to customers or distributors, and assign a cross-functional group to chart the process and identify bottlenecks and problems. Most useful for managers of units or groups in which the work of multiple functional specialties must be integrated. Can be useful for lower-level managers as a way of understanding how their groups fit into larger processes. Plant and market tours Learning firsthand from people close to the product. Plant tours let you meet production personnel informally and listen to their concerns. Meetings with sales and production staff help you assess technical capabilities. Market tours can introduce you to customers, whose comments can reveal problems and opportunities. Most useful for managers of business units. Pilot projects Gaining deep insight into technical capabilities, culture, and politics. Although these insights are not the primary purpose of pilot projects, you can learn a lot from how the organization or group responds to your pilot initiatives. Useful for managers at all levels. The size of the pilot projects and their impact will increase as you rise through the organization.

The primary venue for activities in which value is created for participants shifts from an internal production department to a collection of external producers and consumers—which means that management of externalities becomes a key leadership skill. Growth comes not from horizontal integration and vertical integration but from functional integration and network orchestration. The focus on processes such as finance and accounting shifts from cash flows and assets you can own to communities and assets you can influence. And while platform businesses themselves are often extraordinarily profitable, the chief locus of wealth creation is now outside rather than inside the organization.

Sometimes setbacks are set-Up' s. Its not always about moving horizontally, its about moving vertically.

...anarchists reject the hierarchical and authoritarian model of organization that erodes freedom and equality; but they do not reject the horizontal model of organization based on democratic decision-making, decentralization, voluntary association, and voluntary cooperation.

Alongside the general fetishism of the state that manifests in the Venezuelan context as a fetishization of Chavez the man, there stands as well an equal and opposite fetish of what has been called “horizontalism,” the fetish of refusing or ignoring the state a priori as in Holloway’s insistence that ‘the world cannot be changed through the state.” To fetishize means to worship something human as though it were divine, and I hope that the literal fetishism of both positions is clear: the first refuses to see the state (and Chavez) as produced by human hands and therefore subject to radical transformation; the second—in its denial of human organizational capacities, of organic leadership through struggle. and of the delegation of power—sees such transformation as utterly impossible and futile. For both, in other words, the state is a superhuman entity to be either worshipped or feared but never transformed.