Leading Outside the Lines

There are two dividing beliefs in the business world: (1) the belief that companies should be run according to formal organizational standards, such as job responsibilities, costs, and means of communication, and (2) the belief that companies are healthier when informal factors, such as one’s environment, office interactions, and influences, are taken into account by the company and its organizational structures. In Leading Outside the Lines, Jon R. Katzenbach and Zia Khan assert that these two principles are not exclusive. Recognizing the importance of integrating formal and informal elements in a company is essential. Companies should work to strengthen the capabilities of the formal but should also realize its limitations.