The Future for

Management & Leadership

A Personal View

David Broadhead MA DMS BSc FCMI

Managing Director – Partners in Management Ltd
Ambassador – Chartered Management Institute
For discussion
 the current economic crisis represents a
failure of management, emanating from
the consultancy-led, analytical, target-
driven mentalities that have developed
over the last 20+ years.
 why is this and what does the future
hold for management and leadership?

2
Structure
 where are we now?
 where have we been and how
have we got here?
 where are we going next and why?
Facts
 47% of workers have left due to bad management
 49% would take a pay cut if they could work for a better
manager
 50% believe they can do a better job than their manager
 68% are „accidental‟ not „aspirational‟ managers
 40% don't want to manage people
 63% had no management training

 Only 28% had a formal management qualification

 CMI UK Workforce Survey – 10 Nov 2009

4
Man-made or natural
economic disaster?
 the last 15 years have been a period of „managerial
abundance‟ for both private and public sectors in
terms of
 growth opportunities
 new technologies
 alternative cheaper suppliers
 global labour supply
 and the means to pay for it - availability of cheap
unregulated finance and creative accounting - PFI!
 however, the current world economic crisis has
„burst‟ that bubble and if anything can be attributed
to a „failure of management and leadership‟ at all
sectors and levels of society

5
Potential reasons
 an obsession with short-term returns and solutions
 acquisitive and aggressive growth – not organic
 the setting (often externally) and management to targets
 increasing centralisation of power
 the belief in one form of „best-practice‟ and „me2‟
organisations
 the accumulation of debt and long-term commitments
 lack of accountability and moral responsibility
 failure to challenge and debate
 the onerous growth of limiting legislation and compliance
 belief in „efficiency‟ before „effectiveness‟

6
Underlying issues
 Social changes
 material benefits from globalisation & 2nd world integration
 lessons of history not learnt – no more boom and bust!
 X factor mentality
 reliance on non-understood technology and organisations
 Reagan/Thatcher - Blair/Bush effect – (rise of individualism)
 hedonism is good
 lack of personal responsibility – (MP‟s? broke no rules....)
 everyone now exercising rights without responsibility

 Education
 management & leadership seen as a science and not an art

7
 Legacy of heroic managers
 The self-fulfilling belief that the elitist MBA
guarantees success and wealth has led to the rise of
the „heroic‟ manager! (Mintzberg – 2003)
 We now have to live with the consequences of this in
both public and private sectors..…
Rules for being a heroic leader

Look out – not in Be dramatic

Focus on the present Favour outsiders over insiders

Assess insiders by numbers Reorganise constantly

Be a risk taker Deliver, cash in and run!

8
Let‟s accept differences
Management Leadership
Creating an Planning and Establishing
agenda budgeting direction
Developing Organising and Aligning people
people staffing
Execution Controlling and Motivating and
problem solving inspiring
Outcomes Produces key Produces useful
results change
Efficient Effective
9
Historical perspective?
 Early developments
 based predominantly on military strategy and leadership
through the Egyptian, Greek, Roman and British Empires
 notion of born leaders
 principles of command and control – lasted until……..

 Scientific management theory

 formulated by Taylor, Gantt and the Gilbreths, that sought to
determine scientifically the best methods for performing any
task, and for selecting, training and motivating workers
 timescale between 1885 and 1920‟s but still common
 classic example is Henry Ford and the Model T, but covers all
forms of mass-production
 these organisations became hugely complex

10
Next developments
 Organisation theory school
 pioneered by Weber, Follett and Barnard to identify the
principles and skills that underlie effective management and
relate more to complex organisations
 the concepts of the organisation as a mechanical and
bureaucratic institution were developed
 scholars trained in sociology, psychology and related fields,
used their diverse knowledge to propose more effective ways
to manage people in organisations
 Hawthorn effect - workers who receive special attention

will perform better simply because they received

attention
 Maslow - hierarchy of motivational needs

 McGregor - theory X and theory Y

11
Post-war approaches
 Management science school
 operational research approached management problems via
the use of mathematical and logical techniques, for their
modeling, analysis and solution
 enhanced by the availability of computing facilities
 collapsed in the 70‟s with the oil crises
 was focused primarily upon numbers and structures so
missed out on people issues

 Contingency
 the management technique that best contributes to the
attainment of organisational goals
 which technique is best in a particular situation, under
particular circumstances and at a particular time

12
70‟s onwards
 Systems approach
 all systems have inputs > transformation > outputs
 influences come from the external environment but feedback
is needed to improve the system
 use of models and theoretical planning tools
 the rise of the consultants, strategists and marketers
 Dynamic engagement
 the view that time and human relationships are forcing
management to rethink traditional approaches in the face of
constant, rapid change
 managers are the chief stumbling block when implementing
change
 managers need to be prepared for change and to recognise
the benefits - not purely the threats

13
 Issues of dynamic
engagement
 New organisational environments
 complex organisational environments, limited promotional
opportunities and radically altered work patterns
 focus on competitive strategies and core competencies
 Ethics and social responsibility
 values, culture and commitment to excellence of both key
individuals and organisations
 awareness and involvement of stakeholders
 Globalisation – role of politicians?
 concept of “world cars” and global financial trading are
typical examples facilitated by technology
 tri-polar or bi-polar markets?
 think globally but market locally

14
 Further issues
 Inventing and reinventing organisations
 reengineering corporations and processes as championed
by Tom Peters, Hammer & Champy
 why do we do something - not how can we do it better
 Cultures and multiculturalism
 perspectives, contributions, values and challenges of
different cultural backgrounds
 growing awareness of individual cultural traditions and
minority groups.
 Quality
 influences of TQM and business excellence models
 impact of W. Edwards Deming and others
 Kaizen philosophy
 customer expectations and rights

15
The Trap?
 the „social‟ experiment of negative
liberty through the promotion of mutual
suspicion and self-interest
 cold-war gaming theories moved into a
mathematical economical society model
 the destruction of purpose and meaning
 politicians give us what we want
 all about targets and figures!!!
 The future – Sociocapitalism?
 The next decade will provide new challenges to all of
our organisations from;
 protectionism
 environmental needs
 political instability
 terrorism and threat to security
 lack of available investment and working-capital finance
 loss of purpose and direction
 But also tremendous opportunities provided by;
 de-globalisation
 de-centralisation
 localisation, and
 growth in personal and social responsibility and direction
17
Challenges of information age
 don‟t manage using 1st & 2nd wave principles
 the “knowledge based worker and organisation”
concept
 knowledge resides at the bottom – the specialists?
 need for specialists who organise themselves
 teamwork and synchronisation the key – Google Wave?
 how to create a unified vision
 fewer managers and levels of management
 how to devise an appropriate management structure
 how to develop rewards, recognition and career
opportunities for specialists
 the development of top management people
 output and bottom line are not real measures of
performance and growth
 results exist only on the outside of an organisation
18
 Future managerial needs
 To survive and prosper in this new world scenario,
we will need managers that can:
 embrace the Information Age - quickly
 understand themselves and others and act collaboratively
 understand their market‟s real needs – including the public
sector (only one colour – black)
 determine appropriate „new‟ solutions and methods to
achieve them
 evaluate realistically the risk and potential outcomes of
alternatives
 lead and manage the innovation process through obtaining
and maximising all resources available to them
 develop themselves and those around them acting within a
new emerging moral framework
 challenge the existing „status-quo‟ of concepts, targets,
analysis and methods
19
A manager‟s journey – issues?
1. The conformist implementer
 Controlled by outsiders by rules, procedures,
analysis, consultants or correct behaviour
2. The independent experimenter
 Moves away from doing the approved thing
and finds out what is true, right and correct
3. The autonomous agent
 About changing the world
 Future managerial ideal?
 Manager as G.P.
 identify symptoms
 diagnose the disease
 decide upon treatment
 initiate the treatment
 monitor the treatment

Charles Handy - (1993)

21
Model of managing

Knowing
Doing

“we need learning

PERSONAL
DEVELOPMENT
managers, not just
learned ones”
Being

22
CMI –
A Better Managed Britain
 Manifesto
 Government
 Employers
 Managers
 Accredited courses
 Ambassador Programme
 Chartered Manager

23
The End

www.partnersinmanagement.co.uk
www.managers.org.uk