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HBR IdeaCast

The Case For Becoming a Project-Based Org

30 min episode · 2 min read
·
Antonio Nieto Rodriguez

Episode

30 min

Read time

2 min

Topics

Productivity, Investing, Fundraising & VC

AI-Generated Summary

Key Takeaways

  • Ruthless Prioritization: Leaders should launch new projects only after finishing or canceling two to three existing ones, as most organizations could eliminate 80 percent of current projects without impact. Use company purpose as the filter to cut half of initiatives immediately, ensuring capacity exists for strategic work rather than creating organizational overload.
  • Leadership Time Allocation: Senior executives currently spend less than half a day per week on transformation work, dedicating 80 percent of time to operational comfort zones. Leaders must shift to spending at least three days weekly on change projects, making quick decisions in uncertain environments and personally sponsoring cross-departmental initiatives.
  • Six-Month Project Cycles: All transformation projects should run maximum six months before evaluation, allowing organizations to stop, pivot, or accelerate based on results. This strategic fluidity replaces long-term rigid planning with iterative cycles that match the pace of market and technology changes, requiring trust from boards and shareholders focused on long-term capability building.
  • Internal Transformation Capability: Companies must stop outsourcing change to consultants and build transformation muscles within existing employees. Reskill operational workers whose tasks face automation into project roles rather than layoffs. Organizations like Haier tripled profits within five years by redeploying staff into self-directed teams working on innovation rather than repetitive tasks.
  • Structural Experimentation: Start organizational redesign by fully empowering one critical transformation team with 90 percent decision-making authority and priority resource access. This creates visible success that generates demand across the organization, avoiding the resistance that comes from eliminating hierarchy company-wide overnight. Let the snowball effect drive adoption rather than forcing top-down structural change.

What It Covers

Antonio Nieto Rodriguez argues organizations must transition from operations-focused to project-driven models to survive rapid technological change. This requires restructuring around temporary, cross-functional teams that prioritize transformation work over routine tasks, with leaders spending at least half their time on strategic projects rather than daily operations.

Key Questions Answered

  • Ruthless Prioritization: Leaders should launch new projects only after finishing or canceling two to three existing ones, as most organizations could eliminate 80 percent of current projects without impact. Use company purpose as the filter to cut half of initiatives immediately, ensuring capacity exists for strategic work rather than creating organizational overload.
  • Leadership Time Allocation: Senior executives currently spend less than half a day per week on transformation work, dedicating 80 percent of time to operational comfort zones. Leaders must shift to spending at least three days weekly on change projects, making quick decisions in uncertain environments and personally sponsoring cross-departmental initiatives.
  • Six-Month Project Cycles: All transformation projects should run maximum six months before evaluation, allowing organizations to stop, pivot, or accelerate based on results. This strategic fluidity replaces long-term rigid planning with iterative cycles that match the pace of market and technology changes, requiring trust from boards and shareholders focused on long-term capability building.
  • Internal Transformation Capability: Companies must stop outsourcing change to consultants and build transformation muscles within existing employees. Reskill operational workers whose tasks face automation into project roles rather than layoffs. Organizations like Haier tripled profits within five years by redeploying staff into self-directed teams working on innovation rather than repetitive tasks.
  • Structural Experimentation: Start organizational redesign by fully empowering one critical transformation team with 90 percent decision-making authority and priority resource access. This creates visible success that generates demand across the organization, avoiding the resistance that comes from eliminating hierarchy company-wide overnight. Let the snowball effect drive adoption rather than forcing top-down structural change.

Notable Moment

A risk management executive with 25 years in the same banking role faced displacement when automation replaced his department. After two months leading cross-European transformation projects, he reported never feeling more engaged, crediting diverse teams, daily variety, and meaningful challenges that utilized his expertise in ways repetitive operational work never allowed.

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Episode Transcript

AI is transforming the world, and it starts with the right compute. Arm is the AI compute platform trusted by global leaders, proudly NASDAQ listed, built for the future. Visit arm.com/discover. I'm Allison Beard. I'm Adi Ignatius, and this is the HBR IdeaCast. Adi, one of the biggest goals for organizations today is to become more nimble. So you can quickly respond to change, constantly capitalize on new opportunities, and continuously transform your business as the market demands. So we talk about that a lot. Right? We need to be more nimble, but how do you actually do that? Well, our guest today argues that the best way is by moving to a more project driven model of work, up and down the organization from the corporate level to individual teams. He wants us to both ruthlessly prioritize as well as stay fluid so that we're identifying strategic goals, assembling teams to go after them, evaluating as we go, and then either continuing shifting or disbanding based on our outcomes. So that sounds really positive and it sounds different from the traditional model of maintaining and growing operations, managing talent. It also sounds really hard. Yes. And I think we know that from experience having worked on projects ourselves. But our guest today, Antonio Nieto Rodriguez, has studied a bunch of companies around the world who have adopted this model organization wide, and he's here to give us a play by play on how leadership,org design, and ideas about value creation need to change in order to make that happen, and to reap the benefits, which he says are both financial in terms of new revenue streams, but also psychological in terms of more energized and engaged employees. So here's my conversation with Antonio Nieto Rodriguez, CEO of Projects and Company and author of the HBR article, The Project Driven Organization, as well as the book Powered by Projects, Leading Your Organization in the Transformation Age. Antonio, thanks so much for being on the show. Thank you for inviting me. So project management has been your life's work for decades. What is different now in early twenty twenty six than even a few years ago in terms of how companies need to think about projects. Allison, I'm sure you've experienced that too. I think you see more projects, and you see longer projects, projects that never end. Right? So I think what we've seen over the last five years is that it's just more difficult to manage, and people are getting a bit saturated, overload, and I think there's a need for doing projects for sure. This is critical. Projects are your future, but in different ways. My first book, which was called the project handbook, was for practitioners, for people who are leading, managing projects. Many of them are part time project managers because they have a daily job. With this one, I'm talking to the senior leaders, to the CEO, to the executives. And I'm telling them the …

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