Book Excerpt: A Sense of Urgency

From HBS Working Knowledge ... John Kotter's Sense of Urgency

The problem with using crises to reduce complacency and create urgency is that the tactic is a potential diamond sitting on a rock surrounded by quicksand and very nasty beasts. Any naiveté about the downside risks can cause disaster.

Big Mistake Number 1: Assuming that crises inevitably will create the sense of urgency needed to perform better.

An example. At a major European retailer, margins were shrinking year after year because fashionable boutiques were taking its top-of-the-line business, and discounters were taking away its low-end business. Then the European edition of the Wall Street Journal published an explosive article spelling out many of the firm's problems. The CEO had two weeks' warning, but instead of alerting others or working to kill the story, he deliberately chose to do nothing. Not only did he not warn others, except one close confidant, but he also did little to analyze in advance exactly what would happen the day the article came out and what precisely he should do to channel fear, anger, and confusion into a determination to act fast and succeed.

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