Takeaways from reading the book:
Location 100:
Virtually all organizations begin with a network-like structure, sort of like a solar system with a sun, planets, moons, and even satellites. Founders are at the center. Other people are at various nodes working on different initiatives. All action is guided by a purpose that everyone believes in and works on living out. People move with agility. As the organization grows bigger, i.e. has more employees, departments are created, and hierarchical levels arise. Processes are created, for example planning, budgeting, job defining, staffing, measuring, problem solving. The company becomes a management-driven hierarchy.
Chapter 6:
The way organizations traditionally develop - as described above - is problematic. Why? A management-driven hierarchy, built for reliability and efficiency now, leans against significant change - and leans hugely against change as significant as the implementation of a dual operating system. It does so, most fundamentally, because its silos, levels, rules, short-term plans, and narrow jobs systematically create complacency. And group complacency is an almost unbelievably powerful force. Complacent people see no reason why they should do anything much different. They don't think in terms of looking for ways to develop competitive advantage. Mostly they want to keep doing what they are doing.
Silos limit access to information about the big picture, and certainly any big picture opportunities or threats. Narrow job parameters send the message that as long as you are doing your little job today, you are fine. Managerial processes tend to focus people's attention inward - on the budget, the plan, the staff, and the metrics. This inward focus means a lower probability of seeing external strategic opportunities or threats.
Reading about the dual structure, I stumbled upon this question at about location 1650: "Should all strategic initiatives be handled by the right side network?" The answer: "No. Here's a general rule for determining what goes where: All processes and activities that do not require change, or that involve doing what we know how to do, stay on the left side." In other words, when innovation is not a big issue, initiatives can be driven by strategic planning organizations, project management organizations, traditional task forces, change management departments etc. However, initiatives for which innovation and agility are needed must go on the right side, the networking side on which innovators / change agents / people, who want to change things, work.