Stealth Transformation
A strategy for leaders to implement organizational innovations without triggering resistance from senior management by carefully managing communication and aligning with corporate values, as exemplified by Dave Marsing's approach at Intel's Fab 11.
THE IDEA
STEALTH TRANSFORMATION
One strategy that works for some leaders is to simply keep their innovations below the radar of senior management. When Intel’s Dave Marsing first shared his story at a SoL meeting of the breakthrough accomplishments in the ramp-up of Fab 11, he framed the whole effort as a “stealth transformation.” His focus was on how to transform the working environment of an organization while not drawing the attention of the larger corporation; he did so in part by avoiding jargon and conversational styles that would not communicate well within the larger system. “We made no efforts to hide what we were doing,” he said, “but at the same time we did not make a big deal about it. If people asked, we were happy to share and do our best to explain.”
When we interviewed Marsing, he said that he felt that stealth transformation strategies are still needed. “If anything, today you need to be even more savvy about power politics, not because senior managers are more power hungry but because of the intense financial pressures everyone is under. You need to be able to innovate and not trigger red flags. Your strategies have to be skillfully designed, culturally and linguistically. If I were doing Fab 11 ramp-up today, I would still do the same thing. We were able to show levels of performance that were much better than ‘best in market,’ and corporate management in companies like Intel are always looking for these sorts of comparisons. But I would do everything I could to communicate changes I was trying to achieve in ways that management would get. For example, Intel is a very measurement-oriented culture. If I were in an operating job today, I would work with my bosses on ways to measure technological agility and the ability to deal with market shifts in ways that preserve high ROI. I would look for ways to align these strategic concerns with building a more fluid and flexible operating environment.”
Marsing believes these abilities are going to become even more important because the environment for companies is changing at an accelerating rate. This shows up in a higher turnover of senior managers and a “continual need to re-educate your bosses. It is like playing in an ensemble when the beat of the music is continually changing. It’s an enormous challenge to stay in sync when the beat keeps changing. If you’re innovating within a business operation, part of your job today is to work more closely with your bosses to stay aligned—even though the instincts of many innovators are to want more autonomy.”
When to use it
Piloting a new production process in a large manufacturing company while tracking its effects on existing performance measures.
Introducing an agile methodology in a traditional hierarchical organization by initially piloting it in a small team.
Developing a new product line in a company with strict ROI expectations by framing the project as a low-risk experiment.
Reforming internal culture in a multinational corporation to improve collaboration, starting with a single division and using language that resonates with senior leaders.
FROM THEORY TO EVERYDAY LIFE
In practice
Intel’s Fab 11 Stealth Transformation
Dave Marsing described Intel’s Fab 11 ramp-up as a stealth transformation. He avoided unfamiliar jargon and unnecessary fanfare, while sharing the work when asked. He reported performance above market comparisons. Looking back, he said he would again connect changes to management’s priorities, including measures of agility and ROI.
A MOMENT TO REFLECT
Put it to work.
How can you apply stealth transformation in your organization without being perceived as hiding or deceptive?
What strategies can you use to communicate your innovations in terms that senior management values, such as metrics for agility or ROI?
How do you balance the need for autonomy as an innovator with the need to stay aligned with shifting corporate priorities?
CONTINUE THE CONVERSATION
Source texts
- The Fifth Discipline The Art Practice of the Learning Organization (Peter M. Senge)