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http://www.managementexchange.com/video/gary-hamel-reinventing-technology-humanaccomplishment
1890 90% of people in agriculture average manufacturing company less than four employees 1915 Ford motor Company > million automobiles per year US Steel: a billion-dollar market capitalisation In that tiny sliver of time, almost all the tools of modern management had been invented. sliver: tiny slice PAY FOR PERFORMANCE CAPITAL BUDGETING TASK DESIGN DIVISIONALISATION BRAND MANAGEMENT MANAGEMENT 1.0 CLASSIC TECHNOLOGICY S-CURVE IN THE LAST 50-60 YEARS, THE WAY WE MANAGE HAS HARDLY CHANGED AT ALL PRINCIPLES,TOOLS, METHODS LEGACIES = hand-me-downs from gurus, ex-CEOS, management thinkers, long retired or long-in-the-tooth. CHALLENGE #1UNPRECEDENTED THE FIRST GENERATION IN HISTORY THAT HAS TO COPE WITH AN ACCELERATED RATE OF CHANGE. LITERALLY CHANGE HAS CHANGED INOUR LIFETIMES CHANGE IS SEDITIONS? UNRELENTING EVERY SURPRISING ACCELERATING CHANGE Think about the things in our world that are changing at an exponential pace. EXPONENTIAL CURVE: CO2 EMISSIONS INGTERNET CONNECTIONS DATA STORAGE MOBILE DEVICES CONNECTED TO THE INTERNET GENOME SEQUENCING THIS IS ENTIRELY NEW CHALLENGE #2 FUNDAMENTAL NEW REALITY HYPERCOMPETITION BARRIERS 2
If you go back a few years, there were all types of barriers which protected the incumbents from the winds of greater destruction. Protected companies margins Allowed them to keep their prices high Fattened the margins When those barriers come down, every company is in a bare knuckle fight to defend its MARGINS to defend it POSITION in the marketplace. The only way to do that is through INNOVATION. CHALLENGE #3 PERHAPS MAYBE THE MOST PRESSING ONE KNOWLEDGE is becoming a commodity; Harder for an organisation to bring something truly new, and unique, to the marketplace. Knowledge advantages dissipate very very quickly. your people go work for a competitor an army of consultants benchmarking all these companies and transferring knowledge companies use the same network of business partners and vendors Less about: WHAT KIND OF KNOWLEDGE ADVANTAGE DO I HAVE RIGHT NOW? ... ...than about ...HOW FAST AM I CREATING NEW KNOWLEDGE? ** CREATE Three kind of profound challenges: How can you build a company that can.. CHANGE AS FAST AS CHANGE ITSELF? How can you build a company where INNOVATION IS THE WORK OF EVERYBODY ALL THE TIME EVERY DAY? How can you build an organisation where people are willing to BRING THE GIFTS OF THEIR INITIATIVE THEIR CREATIVITY AND THEIR PASSION? 01 CHANGE AS FAST AS CHANGE ITSELF 02 INNOVATION IS THE WORK OF EVERYBODY ALL THE TIME EVERY DAY? 03 BRING THE GIFTS OF THEIR INITIATIVE THEIR CREATIVITY AND THEIR PASSION Companies that thrive will be companies that that evolve their management models of management faster than their competitors in ways that make them MORE ADAPTABLE, MORE INNOVATIVE and MORE ENGAGING places to work. What do you do to achieve that?
A company is working really hard at it. INDIA An I.T. SERVICES COMPANY It's one of the most progressive, fastest-growing I.T. Services companies. Tens of thousands of employees. Management model built on the principle of/ REVERSE ACCOUNTABILITY Turning the pyramid upside down. EMPLOYEES RATE THEIR BOSS... AND THEIR BOSS'S BOSS... ALL RATINGS ARE PUBLISHED ONLINE Reviewing their strategy: took those secret corporate strategies distributed them across their employees. 8000 people HELP BUILD STRATEGIES Ticketing system EMPLOYEE 6 DISAGREE WITH MANAGER HR INTERNAL DEPARTMENTS ticket (complaint).Visible. Can only be closed by the employee. Any ticket not closed within 24 hours is escalated to the next level. People holding their managers accountable. Are you really helping me succeed in my job? The reason: All the value is created at the interface between the employee and the customer. HCL TECHNOLOGIES: MANTRA: EMPLOYEES FIRST CUSTOMERS SECOND Vineet Nayar, CEO TAKE CARE OF EMPLOYEES TAKE CARE OF CUSTOMERS N 1. AIM HIGH START WORKING Don't be content to imitate somebody else's best practice. It's not good enough any more. N 2. TO BE A MANAGEMENT INNOVATOR CHALLENGE DOGMA Challenge the embedded, unexamined, wallpaper beliefs. That LIMIT FREEDOM WHAT PROBLEM WAS MANAGEMENT INVENTED TO SOLVE?
100 YEARS AGO: WHAT PROBLEM WERE THOSE PEOPLE TRYING TO SOLVE? It wasn't a problem of being ADAPTABLE INNOVATIVE INSPIRING The problem they were trying to solve was: HOW DO YOU TURN HUMAN BEINGS INTO SEMI PROGRAMMABLE ROBOTS? HOW DO YOU TAKE FARM HANDS HOUSE MAIDS CRAFTS PEOPLE to show up on time TEND TO THAT MACHINE DO THE SAME THING OVER and OVER OVER OVER OVER OVER AGAIN And, by golly, we've succeeded. DNA ORGANIZATIONG: THE GOAL is was SUPPOSED TO SERVE CHALLENGE FUNDAMENTAL BELIEFS N1 ASPIRATION N2 CONTRARIAN N3 LEARN FROM THE FRINGE FRINGE INNOVATION IN MANAGEMENT MAINSTREAM
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The future of management THE WEB MANAGEMENT FEUDALISM THE WEB A global operating system for INNOVATION The values that characterise the WEB We are going to have to bake them into our organisations today. DEEP VALUES OPENNESS MERITOCRACY FLEXIBILITY 5
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COLLABORATION Have to become the values of our organisations. Why? Because the web already is adaptable, is innovative, is amazingly engaging; has all the characteristics our organisations lack. If you want to be an imaginative innovator, you need to take, not just the TOOLS, but... these DEEP PRINCIPLES YOU FIND ON THE WEB and how do we bake them into our organisations. We've been told WE CAN'T CHANGE THE ORGANIZATIONS WE WORK IN That's the head of HR, VP.... NONSENSE. It's going to happen with people like JEFF SEVERTS at BEST BUY ROSS SMITH at MICROSOFT grassroots movement around trust JORDAN COHEN at Pfizer created a way ordinary employees can outsource boring part of their jobs off their desktop without getting anybody's permission FOR THE FIRST TIME SINCE THE INDUSTRIAL REVOLUTION? YOU CANNOT BUILD A COMPANY THAT'S FIT FOR THE FUTURE WITHOUT BUILDING ONE THAT'S FIT FOR HUMAN BEINGS. Those pioneers 100 years ago were working against the grain of what it means to be human. WE ARE NOT. HUMAN BEINGS ARE AMAZINGLY ADAPTABLE. People here who have CHANGED CAREERS GONE BACK TO SCHOOL CHANGED CONTINENTS DEAL WITH ENORMOUS CHALLENGES CHALLENGING CIRCUMSTANCES RESILIENT HUMAN BEINGS HUMAN BEINGS already have the essential qualities our ORGANIZATIONS lack. Because those organisations have inside a MANAGEMENT MODEL that was build to serve ANOTHER PURPOSE. CHAMPION FOR THE FUTURE FULLY HONOR THE GIFTS OF YOUR PEOPLE