This article builds on survey data collected from senior managers in 119 global companies to examine their need and capacity for peripheral vision. We drew upon many sources when designing this survey, including our own work on assessing organizational capabilities and managing uncertainty. i. The second part of our survey focused on the organization’s overall capacity for vigilance in terms of five components: (1) leadership orientation, (2) knowledge management, (3) approach to strategy formulation, (4) organizational design or configuration and (5) organizational climate and culture. We posed three to six questions within each of these components to tap their multiple facets.
Of the total of 20 questions, four were strongly related (p < .05) to overall capacity as based on a multiple regression equation with an R2 of 0.69. While “sharing of information across functions” had the highest direct correlation with vigilance, the data exhibited considerable multi-colinearity. To uncover the underlying pattern, we used a combination of principal components factor analyses and stepwise regression. For example, the variable measuring the effectiveness of early warning systems was the first variable entered into the stepwise regression equations, with an R2 of 0.39, with the second variable entered being the attitude of leaders toward the periphery. In turn, the primary correlates of the leaders’ attitude were resources devoted to scanning (t = 4.09) and flexibility of the strategy process (t = 3.03). In sum, “attitude of leaders toward the periphery” showed the greatest direct and indirect effects through its influence on both resources devoted to scanning and the flexibility of the planning process.
This article builds on these statistical analyses as well as insights from an extensive literature review so as to better understand the qualities of leadership that most contribute to organizational vigilance and strong peripheral vision.
i. For the complete survey as well as specific citations to other relevant literatures, see G.S. Day and P.J.H. Schoemaker, “Peripheral Vision: Detecting the Weak Signals That Will Make or Break Your Company” (Boston: Harvard Business School Press, 2006), 191-205