The "hot spot" CEO: why do the halls of companies like Nokia, BP and Goldman Sachs buzz with energy?

Chief Executive, The, July-August, 2007 by Lynda Gratton

CEOs who make this shift will walk the corporate corridors in anticipation rather than trepidation. And that has to be worth the effort.

Lynda Gratton (lgratton@london.edu) is professor of management practice at London Business School and the author of Hot Spots: Why Some Teams, Workplaces and Organizations Buzz with Energy--and Others Don't.

RELATED ARTICLE: The Rules of a Hot Spot

Leaders can play a crucial role in creating a context in which hot spots can emerge. To do so requires them to understand and act on nine new rules:

* Value Creation. Value within companies is created by exploiting what is already known through strong bonds. Novelty and innovation emerge through exploration, facilitated by relationships and networks of relationships that cross boundaries. Be aware of what is appropriate and where, and design networks around this.

* Ignition and Leadership. The latent energy in unbounded cooperation can be ignited with the spark of a compelling vision, the stimulus of a question or the excitement of a complex and meaningful task. The responsibility of the CEO is to ensure that this spark is created.

* Emergence. Hot spots cannot be ordered forth. People choose freely to give of their human capital (intellectual, emotional or social).

* Rhythm and Timelessness. A hot spot is marked by periods of intense activity that fuels its productive capacity. The creative output is fueled by times of reflection and timelessness. Without these moments, the hot spot burns out and sub-optimizes the creative endeavor.

* Signature Processes. Much can be done to foster boundless cooperation. However, although the importation of best practices is important, it is not sufficient. Move beyond best practices to signature processes.

* Relationships. The value of hot spots created in the space between people is fundamentally relational, whether the relationship is between close friends or acquaintances. The focus of resources with regard to support and development needs to be on the individual and on the network of relationships.

* Boundary Spanners. Without boundary spanners, who bring insights from outside, hot spots can become moribund, but the role is complex and at times distracting. Be committed to boundary spanners; nurture and cherish them.

* Commitments. Hot spots are formed at the nexus of a network of commitments that establish what actions will be taken and by whom. The responsibility of hot spot participants is to make and keep the commitments public, voluntary and explicit.

* Purposeful Conversation. Conversation is the source of igniting purpose. Support and shape conversations with insightful data, an emphasis on values and space for reflection.