The Catalyst by Jeanne Liedtka, Robert Rosen & Robert Wiltbank |Book Brief

The Book, The Catalyst, describes seemingly ordinary middle managers who have achieved extraordinary things. Author Jeanne Liedtka identifies the key to becoming an outstanding growth leader inside large organizations that are often working against you.

Bureaucratic obstacles just come with the territory  in most big companies, but some leaders still achieve entrepreneurial greatness. My co-authors Bob Rosen, Rob Wiltbank, and I spent three years studying a set of managers who act like chemical catalysts -- they make things happen quickly that wouldn t happen without them.  They do this by navigating between two worlds: the corporate world, designed for stability and control, and the entrepreneurial world, where uncertainty and unpredictability rule. And here s how.

Who they are matters. At the heart of the catalyst s success is what we call their  repertoire    the sum of the experience and expertise they have built over their extensive careers, working in many different product areas and functions. This broad repertoire allows them to use their past to create a new future.  John Haugh may have been new to the candy business when he was put in charge of reviving Mars  gourmet chocolate division, but his experience in other industries like luxury travel and retail shoes had taught him that his customers didn t want another chocolate bar   they wanted a chocolate experience.

Organizations train their managers to think in terms of prediction and analysis. This obsession often leads to growth gridlock--growth initiatives get stalled when an organization s need for control and stability runs up against a growth leader s need for flexibility and speed. The Catalysts approach uncertainty in the same way that successful entrepreneurs do: they focus on creating new markets rather than analyzing existing ones, using tactics that maximize their control and minimize their risk. Jim Steiner s, a 22 year veteran of Corning, a global manufacturer of industrial and scientific glass, achieved his turnaround by starting with capabilities that already existed in the company and then partnering with an existing customer to develop a new offering. At a time when Corning was cutting back, Steiner s division generated $50 million in new sales within one year of his initiative.

Catalysts find new opportunities that competitors miss by looking through a different lens. Clay Presley turned around sales and profits at deteriorating paper company Carolina Pad by refusing to believe that the company s offering school notebooks  had to be a commodity product aimed at a mass market. He discovered that teenage girls are eager to pay a premium for a fashion notebook designed specifically for them. This deeper understanding of their needs paid off handsomely for Carolina Pad when Walmart became a key distributor. Within 5 years, revenues and profits doubled--all in a business that nobody thought could be saved.

Large companies take on more risk than they need to when they insist that only big initiatives are beautiful. But Catalysts refuse to play that crazy game. They learn to juggle with bean bags, not flaming torches. Once they have worked out the formula for a new growth opportunity through a series of small moves aimed at launching and learning simultaneously, then they ramp up quickly. Conrad Hall at Trader Publications pursued this sort of iterative experimental process in the classified advertising business. He started by purchasing just one small publication as an experiment and worked out the recipe for success there. He then launched an exact replica in another market, learned from that experience, and ramped up to national scale in just two years.

When all these factors come together the effects are extraordinary and they produce the last tool in the Catalysts  toolkit - speed. Speed is their secret weapon, their Trojan horse. It looks innocent, but it really creates a revolution   because you can t care about speed and do things the organization s way.

In a world of uncertainty, fortune favors improvisers with a great repertoire who place small bets fast. The opportunities you ve been looking for are all already there. It s time to tap into your entrepreneurial spirit--so put down that Powerpoint and get moving! 

Thank you for reading the Catalyst.  We hope you find it useful.