People & Strategy Summer 2017 Vol. 40 Issue 3 - 16

For most organizations, the above elements are simply
habitual ways of working, at least when it comes to delivering
upon and innovating within their legacy businesses. A fundamental question every business must now ask are, "How much
of our revenue and profits require sustaining our legacy way
of leading, and how much of the future strategy is going to
require a significant shift in the 'how' of leading?"4
An undefined legacy forms an obstacle to transformation
in part because it lacks definition. One of the first contributions HR leaders can make to their organization's ability to
deliver on strategy is to define and ring-fence that playbook,
and then work with business leaders to keep it healthy and

The CHROs, CEOs, and board
members we have interviewed on
this topic most commonly cite three
areas requiring attention for their
second playbook: strategy, people,
and innovation.
optimized. It is what is already being done and what is working well-make it intentional.
At the same time, it is most likely not what will be required
to win in the future.

A New Set of Leadership Issues

In April of 2017, a Fortune 50 CEO shared with us this leadership challenge: "As you go through a transformation we all
get endpoint focused. Where we really need to spend time is
on the middle ground, identifying how we get to a directional endpoint. It is critical we identify the clear milestone steps
along the way that tell us we are moving along the journey."5
Routinely today, new strategies are set to get to an endpoint
that is not clearly defined-nor can it be. In fact, often a
strategy is directional to an endpoint that is littered with
ambiguity.
The journey that companies are embarking on is different than ever before in part because it is not just about the
solution or product, it is also about leading and managing
a workforce with different skills, backgrounds, and expectations. Even executing on strategy is more complicated. Just
what does success look like with the Internet of things (IoT)?
How can you measure the long-term impact of AI in any
number of industries? After years of competing with a market
adversary, how do you partner with that brand today if collaboration is required to succeed?
For business unit leaders, these are every day questions for
the first time in their careers. For organizations, each must
identify and define the most critical elements of its own second playbook, but let's explore three commonly recurring areas companies find they must pivot. The CHROs, CEOs, and
board members we have interviewed on this topic cite three
areas requiring attention: strategy, people, and innovation.
16

PEOPLE + STRATEGY

The Strategy Impact
One CEO and his HR leader manage a multi-billion-dollar
P&L that includes a software business, a hardware business,
and a consumer entertainment business. The first operates
with a strategic horizon of months, the second of two to three
years, and the third requires 10-year development cycles.6 All
three businesses face dramatic impacts from mobility and AI.
In such a context, what is the leader's role in strategy? The
answer is different in each business unit, different for the
general manager of each unit, and yet has had to be clearly
communicated across all three, so that talent moving from
one part of the business to another understands the different
accountabilities.
Some companies have been quite clear in their call for
change despite having impressive legacy businesses. McDonald's has commenced a successful turnaround, receiving
positive feedback and increased earnings on innovations
that are redefining their customer experience. Intel, long
dominant as a chip manufacturer, has recently showcased
impressive technological innovations in areas where they
have never competed before. Express Scripts has expanded
from its traditional business by leveraging its data to play a
more critical-and digital-role for patients in prescription
management.
As these and many other companies are laying down clear
bets on how they need to modify their legacy business as well
as venture into new areas, the fundamental challenge for
each organization has been to define and develop the leadership mindset required to understand the strategy, adapt it in
real-time, and toggle quickly between time horizons. This has
required development of second or even third playbooks in
different parts of the organization.

The People Impact
At a fundamental level, the talent profiles that drove the
legacy business may not be the same skills needed to deliver
on the future strategy. Further, the talent base is more liquid
than it has ever been. Add growing employee interactions
with AI, data mining, IoT, and the roles of the leader, and
the contributions of the organization become much less clear
today than they were in the legacy business. Even the very
concept of employee can change as the best talent may be the
one you access on a variable basis.
This has implications from the simple to the sublime. In
most instances, it involves the redefinition of the role of the
leader in recruitment, development, and retention of a team
of people who look, sound, and think increasingly less like
him. (And we said "him" on purpose!) This may take place
in the legacy business as well, but often in that context it is
gradual and evolutionary, while in the emerging, future-oriented business, the need is immediate and crucial to nearterm success.
At a systems level, the people impact also includes what
seems like the never-ending quest to get performance management right. In a Second Playbook, that may mean new parts
of the business judge performance and compensation differently than in the legacy business. Feedback loops move in
real-time, and the link between expected behaviors and the



Table of Contents for the Digital Edition of People & Strategy Summer 2017 Vol. 40 Issue 3

From the Executive Editor
From the Guest Editors
Perspectives
It’s Time for a Second Playbook: HR’s Leadership Role in Transformation
Industry 4.0: Preparing for the Future of Work
When Fast Is Too Slow: “Xcelerating” Leaders at Electronic Arts
Patagonia’s Journey into a New Regenerative Performance Approach
Getting Results with Talent Analytics
How Artificial Intelligence Will Change HR
The Internet of People Delivers New Ways of Learning
Executive Roundtable
In First Person
Linking Theory + Practice
Book Reviews
Leadership Insights
People & Strategy Summer 2017 Vol. 40 Issue 3 - Cover1
People & Strategy Summer 2017 Vol. 40 Issue 3 - Cover2
People & Strategy Summer 2017 Vol. 40 Issue 3 - 1
People & Strategy Summer 2017 Vol. 40 Issue 3 - 2
People & Strategy Summer 2017 Vol. 40 Issue 3 - 3
People & Strategy Summer 2017 Vol. 40 Issue 3 - From the Executive Editor
People & Strategy Summer 2017 Vol. 40 Issue 3 - 5
People & Strategy Summer 2017 Vol. 40 Issue 3 - From the Guest Editors
People & Strategy Summer 2017 Vol. 40 Issue 3 - 7
People & Strategy Summer 2017 Vol. 40 Issue 3 - Perspectives
People & Strategy Summer 2017 Vol. 40 Issue 3 - 9
People & Strategy Summer 2017 Vol. 40 Issue 3 - 10
People & Strategy Summer 2017 Vol. 40 Issue 3 - 11
People & Strategy Summer 2017 Vol. 40 Issue 3 - 12
People & Strategy Summer 2017 Vol. 40 Issue 3 - 13
People & Strategy Summer 2017 Vol. 40 Issue 3 - It’s Time for a Second Playbook: HR’s Leadership Role in Transformation
People & Strategy Summer 2017 Vol. 40 Issue 3 - 15
People & Strategy Summer 2017 Vol. 40 Issue 3 - 16
People & Strategy Summer 2017 Vol. 40 Issue 3 - 17
People & Strategy Summer 2017 Vol. 40 Issue 3 - 18
People & Strategy Summer 2017 Vol. 40 Issue 3 - 19
People & Strategy Summer 2017 Vol. 40 Issue 3 - Industry 4.0: Preparing for the Future of Work
People & Strategy Summer 2017 Vol. 40 Issue 3 - 21
People & Strategy Summer 2017 Vol. 40 Issue 3 - 22
People & Strategy Summer 2017 Vol. 40 Issue 3 - 23
People & Strategy Summer 2017 Vol. 40 Issue 3 - When Fast Is Too Slow: “Xcelerating” Leaders at Electronic Arts
People & Strategy Summer 2017 Vol. 40 Issue 3 - 25
People & Strategy Summer 2017 Vol. 40 Issue 3 - 26
People & Strategy Summer 2017 Vol. 40 Issue 3 - 27
People & Strategy Summer 2017 Vol. 40 Issue 3 - 28
People & Strategy Summer 2017 Vol. 40 Issue 3 - 29
People & Strategy Summer 2017 Vol. 40 Issue 3 - Patagonia’s Journey into a New Regenerative Performance Approach
People & Strategy Summer 2017 Vol. 40 Issue 3 - 31
People & Strategy Summer 2017 Vol. 40 Issue 3 - 32
People & Strategy Summer 2017 Vol. 40 Issue 3 - 33
People & Strategy Summer 2017 Vol. 40 Issue 3 - 34
People & Strategy Summer 2017 Vol. 40 Issue 3 - 35
People & Strategy Summer 2017 Vol. 40 Issue 3 - Getting Results with Talent Analytics
People & Strategy Summer 2017 Vol. 40 Issue 3 - 37
People & Strategy Summer 2017 Vol. 40 Issue 3 - 38
People & Strategy Summer 2017 Vol. 40 Issue 3 - 39
People & Strategy Summer 2017 Vol. 40 Issue 3 - 40
People & Strategy Summer 2017 Vol. 40 Issue 3 - 41
People & Strategy Summer 2017 Vol. 40 Issue 3 - How Artificial Intelligence Will Change HR
People & Strategy Summer 2017 Vol. 40 Issue 3 - 43
People & Strategy Summer 2017 Vol. 40 Issue 3 - 44
People & Strategy Summer 2017 Vol. 40 Issue 3 - 45
People & Strategy Summer 2017 Vol. 40 Issue 3 - 46
People & Strategy Summer 2017 Vol. 40 Issue 3 - 47
People & Strategy Summer 2017 Vol. 40 Issue 3 - The Internet of People Delivers New Ways of Learning
People & Strategy Summer 2017 Vol. 40 Issue 3 - 49
People & Strategy Summer 2017 Vol. 40 Issue 3 - 50
People & Strategy Summer 2017 Vol. 40 Issue 3 - 51
People & Strategy Summer 2017 Vol. 40 Issue 3 - Executive Roundtable
People & Strategy Summer 2017 Vol. 40 Issue 3 - 53
People & Strategy Summer 2017 Vol. 40 Issue 3 - 54
People & Strategy Summer 2017 Vol. 40 Issue 3 - 55
People & Strategy Summer 2017 Vol. 40 Issue 3 - 56
People & Strategy Summer 2017 Vol. 40 Issue 3 - 57
People & Strategy Summer 2017 Vol. 40 Issue 3 - In First Person
People & Strategy Summer 2017 Vol. 40 Issue 3 - 59
People & Strategy Summer 2017 Vol. 40 Issue 3 - Linking Theory + Practice
People & Strategy Summer 2017 Vol. 40 Issue 3 - 61
People & Strategy Summer 2017 Vol. 40 Issue 3 - 62
People & Strategy Summer 2017 Vol. 40 Issue 3 - 63
People & Strategy Summer 2017 Vol. 40 Issue 3 - 64
People & Strategy Summer 2017 Vol. 40 Issue 3 - 65
People & Strategy Summer 2017 Vol. 40 Issue 3 - Book Reviews
People & Strategy Summer 2017 Vol. 40 Issue 3 - 67
People & Strategy Summer 2017 Vol. 40 Issue 3 - 68
People & Strategy Summer 2017 Vol. 40 Issue 3 - Leadership Insights
People & Strategy Summer 2017 Vol. 40 Issue 3 - 70
People & Strategy Summer 2017 Vol. 40 Issue 3 - Cover3
People & Strategy Summer 2017 Vol. 40 Issue 3 - Cover4
http://www.nxtbook.com/ygsreprints/HRPS/hrps_41_3_2018
http://www.nxtbook.com/ygsreprints/HRPS/hrps_41_2_2018
http://www.nxtbook.com/ygsreprints/HRPS/hrps_41_1_2018
http://www.nxtbook.com/ygsreprints/HRPS/hrps_40_4_2017
http://www.nxtbook.com/ygsreprints/HRPS/hrps_40_3_2017
http://www.nxtbook.com/ygsreprints/HRPS/hrps_40_2_2017
http://www.nxtbook.com/ygsreprints/HRPS/hrps_40_1_2017
http://www.nxtbook.com/ygsreprints/HRPS/hrps_39_4_2016
http://www.nxtbook.com/ygsreprints/HRPS/hrps_39_3_2016
http://www.nxtbook.com/ygsreprints/HRPS/hrps_39_2_2016
http://www.nxtbook.com/ygsreprints/HRPS/hrps_39_1_2016
http://www.nxtbook.com/ygsreprints/HRPS/hrps_38_4_2015
http://www.nxtbook.com/ygsreprints/HRPS/d52272_hrps_summer2015
http://www.nxtbook.com/ygsreprints/HRPS/d49675_hrps_spring2015
http://www.nxtbook.com/ygsreprints/HRPS/d47867_hrps_winter2015
http://www.nxtbook.com/ygsreprints/HRPS/hrps_fall2014_teaser
http://www.nxtbookMEDIA.com