Hot Spots

Journal of Applied Management and Entrepreneurship, Jan 2008 by Carter, Les

Hot Spots Lynda Gratton Berrett-Koehler Publishers, Inc., (2007) 205 pages, Softcover, $24.95

Reviewed by: Les Carter, St. Edward's University

With hot Spots, Lynda Gratton completes her trilogy of work focused on understanding why and how energy is created and dissipated in the workplace. Her analysis of the capacity and importance of human capital and its relevance in generating a positive, creative work environment reveals that relationships are the driving force. Through these relationships with fellow employees, value is created for the organization. hot Spots evolve through four elements: cooperation, boundary stretching, an igniting purpose, and productive capacity.

Gratton is a professor of management at London Business School leading the executive education program in Human Resources Strategy in Transforming Organizations. Her research efforts concentrate on linking academics and executives, including observing and recording activities in companies such as BP, Goldman/Sachs, Nokia, and OgilvyOne. Through this research she formulated her observations into the theory of how hot Spots emerge. From these initial observations, Gratton formulated a research project that included 17 companies targeting more than 500 hundred employees in 42 work teams in the United States, Europe, and Asia. While the goal of the book is to aid managers in their efforts to maximize value, the heavy research focus and discussion make it more suitable for a supplemental text in a graduate studies or executive education program.

The author explains the four basic elements for hot Spots, and concludes the book with the leader's role. In addition there are several appendices that concentrate on research methodology and resources. The chapters develop and explain Gratton's components of hot Spots: Cooperative Mindset, Boundary Spanning, Igniting Purpose, and Productive Capacity. Gratton created a formula for hot Spots to indicate that the elements are not only synergistic, but multiplicative:

Hot Spot = (Cooperative Mindset X Boundary Spanning X Igniting Purpose) X Productive Capacity

Gratton further explains the formula by stating that if any of the three elements inside the parentheses are lacking, then the potential energy for a hot Spot is significantly reduced. The capacity of this potential energy to be converted into productive energy resulting in value creation is dependent on the productive capacity of the personnel within the hot Spot.

In The First Element: A Cooperative Mindset, Gratton describes the importance of relationships in the workplace. For relationships to emerge as hot Spots, the individuals must be willing to freely give their human capital - intellectual, emotional, and social - to others. They will do it willingly and not because they are directed to do so. Companies will have to focus on supporting and developing the individual needs and on the network of relationships that exist in the workplace to promote that willingness. Toward that goal, companies can encourage a mindset of cooperation by supporting practices that: encourage selection of cooperative employees, reward team performance, develop leadership practices that model cooperation, support mentoring and coaching, and foster informal activities that encourage a sense of mutuality.

The second Element: Boundary Spanning proposes that when the exploration and combinations of knowledge of individuals in a hot Spot reach across boundaries, then novel insights are generated that benefit the company. Value creation emerges when the strong relationship ties within hot Spots exploit the knowledge of the individuals and cross boundaries to members of other teams. Methods to encourage this behavior can be through the promotion of cross functional tasks and project teams, development of practices that encourage cross boundary participation, informal socialization practices that create connections across boundaries, succession planning practices that involve lateral job moves, and selection and training about boundary spanning.

When the individuals in a team discover an interesting and exciting purpose, they are ignited and the energy created by their boundary spanning cooperation propels them to action. In The Third Element: Igniting Purpose, Gratton states that there are three ways to ignite the team a question, a vision, or a task. A question sparks debate and activity. A vision creates a future state with clarity that requires energy and action. A task is meaningful, ambiguous, and developmental. At the center of these three ignition methods is conversation among peers. Leaders must insure that the spark is ignited by using conversation, supported with insightful data, emphasizing values, and time and space for reflection.

For hot Spots to become productive there are five practices that must be followed. Because the complexity of a hot Spot as assessed by the extent of distance between members, the degree of difference between members, and the percentage of strangers, the emphasis on productive practices becomes greater for the company to benefit from the hot Spot. The productive processes required include: appreciating the talents of individuals, making public commitments, quickly resolving conflicts, synchronizing times when people work in different time zones, and establishing a pace that allows for reflection and timeliness. Participants leaders and team members - must make and keep public, voluntary, and explicit commitments.