The energy level of a company is determined by the intensity and quality of its
energy. Activity, interaction, the ability to react and to fascinate are indicators
for the intensity of energy. The quality of the energy can be positive – creating
excitement, joy and satisfaction – or negative, creating fear, frustration and sadness.
Weak emotions, whether positive or negative, do not encourage people to act.
If a weak positive energy prevails in a company it is in its “comfort zone” and the
employees are satisfied and relaxed. However, the energy intensity necessary for
strategic advances or changes is lacking. Companies in the “resignation zone” are
characterized by weak negative emotions. The employees are lethargic and feel left
out of the whole. Without attention and activity, they grow idle.
High-energy organizations are characterized by a strong feeling of urgency and
an enormous “drive” that makes them more productive: strong negative emotions in
combination with a high energy intensity can land a company in the “aggression
zone,” which is characterized by intense competition, a high level of activity and
a tooth-and-nail battle to achieve the company’s goals. Finally, in the “passion
zone” companies flourish because of strong positive emotions such as enjoying
working and being proud of what they achieve. The fascination of the people in the
company means that attention and activities are oriented on shared priorities.
Various dangerous factors can rob companies of energy, such as the acceleration
trap, the lethargy trap and the corrosion trap. Constant pressure to accelerate or to
change can lead to the burnout of the entire company. If the company loses the
ability to access and utilize resources it is caught in the lethargy trap and the
company is no longer able to react to environmental changes. A company is caught
in the corrosion trap if it simultaneously has to deal with threats (or opportunities)
from the outside and internal conflicts and is hampered in doing so because its
employees expend all of their energy on these internal disputes.
3.2.2 No Fairy Tale: Of Princesses and Dragons
So far we have seen that the issue of the energy level is essential, especially in
change situations, and can come down to a company’s life or death. Companies that
successfully make changes usually select one of two approaches to free and channel
organizational energy: The “slaying the dragon” or the “winning the princess”
strategy.
With the “slaying the dragon” strategy the management intentionally leads the
employees into the aggression zone in order to spark attention, emotion and action.
A very good (if also drastic) example was provided by Jan Timmer – CEO of
Philips Electronics – in 1990. In a meeting he presented the company’s executives
a pre-dated fake newspaper with the headline “Philips files for bankruptcy”; this
represented the threat of the “dragon.” He succeeded in channeling the anger and
fear this prophecy set off in his employees into energy and commitment in order to
turn the company around.
3.2 Leading with Your Head and Heart 125