Reinventing Management (Prof. Dr. Aung Tun Thet)
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The document discusses five fundamental shifts in management practice aimed at enhancing customer satisfaction and employee engagement. These shifts include focusing on delighting clients, changing the role of managers from controllers to enablers, transitioning from bureaucratic structures to dynamic coordination, prioritizing values over mere value, and evolving from command-based to conversational communication. Implementing these interdependent shifts simultaneously can lead to significant improvements in productivity, innovation, and overall satisfaction for both customers and employees.
Reinventing Management (Prof. Dr. Aung Tun Thet)
- 1. REINVENTING MANAGEMENT Prof.Dr.Aung Tun Thet
- 2. Management • Invented to solve two problems 1. Getting semiskilled employees to perform repetitive activities competently, diligently, and efficiently 2. Coordinating efforts to enabled complex goods and services to be produced in large quantities • Efficiency • Scale
- 3. Management • Solution • Bureaucracy • Hierarchical structure • Cascading goals • Precise role definitions • Elaborate rules and procedures
- 4. Five Fundamental and Interdependent Shifts in Management Practice
- 5. Shifts 1. Firm’s goal shift to delighting clients 2. Role of manager shift from controller to enabler 3. Mode of coordination shifts from hierarchical bureaucracy to dynamic linking 4. Shift from value to values 5. Communications shift from command to conversation
- 6. Five Shifts • Not new • Pursued on its own, without others • Interdependent • Undertaken simultaneously • Sustainable change
- 7. Five Shifts • Productive • Innovation • Satisfying those doing work and those for whom work done
- 8. Five Shifts • Productive • Innovation • Satisfying those doing work and those for whom work done
- 9. Shift #1 Goal: From inside-out to outside in
- 10. Shift # 1 • Shift in balance of power from seller to buyer – customer in command • From ‘inside-out’ perspective (“We make it and you take it.”) • To ‘outside-in’ perspective (“We seek to understand your problems and will surprise you by solving them.”)
- 11. Shift # 1 • Beyond paying more attention to customer service • Orienting everyone and everything on providing more value • “There is only one valid definition of business purpose: • to create a customer. . . . • The customer is the foundation of a business and keeps it in existence.”
- 12. Shift # 1 • Customer willing to buy goods and services both today and tomorrow • Not transaction • Forging relationship - customer more than passively satisfied
- 13. Shift # 1 • Delight customer • Deliver happiness (Delivering Happiness) or joy (Peak) • Do more than meet customer expectations • Generate continuous stream of new value to clients
- 14. Shift # 1 • Meeting needs customers not even know that they had • Fundamental transformation in power structure of marketplace • From shareholder capitalism to customer capitalism
- 15. Shift # 1 • From making money for shareholders • To client primacy • Making money result of delighting customer, • Not goal
- 16. Shift # 1 • Principle of obliquity: indirect goal (delighting clients) more apt to make money than direct focus on money-making • Continuously generating more value for customers operational goal of everyone
- 17. Shift # 1 • Apple - iPod, iMac and iPad - delighted customers and increased market capitalization • Customize product to specific needs
- 18. Shift # 2 New role for managers: From controller to enabler
- 19. EMPLOYEES FIRST Customer Second
- 20. Traditional Bureaucracy • Not designed for innovation or delighting clients • Designed to produce consistent performance from largely non-skilled workers • Undermined key ingredient of productivity: worker morale
- 21. New level of Performance • Empower • Facilitate • Collaboration • Rapid learning • Innovation
- 22. Role of Manager • From controller to enabler • Not workers reporting to managers • Managers accountable to those doing work • Removing impediments hindering work
- 23. Reversal of Polarity • Engine of productivity, innovation and creativity resides in energy and ideas of people doing work • Working together across boundaries • Drawing on new technology • Enabling talent unlocks passion and energy
- 24. Managers • Inspire • Motivate • Encourage • Collaboration • Workplace meaningful
- 25. 20th Century • Distinction between leaders (articulated goals and inspired change), and • Managers (who got things done)
- 26. 21st Century • Distinction dissolves • Managers-Leaders • Articulate goals • Inspire change • Remove impediments • Workers - those doing work - get things done
- 27. New Role of Mangers • Learning and collaboration • Open platforms • Get access, attract resources and create networks of self-organizing teams
- 28. New Role of Mangers • Autonomy • Intrinsic motivation • Distributed, democratic, self-managing • Empowerment
- 29. Shift # 3 New coordination: From Bureaucracy to Dynamic Linkage
- 30. Shift # 3 • Bureaucracy inherently demotivating • Not good for innovation • Not agile to delight clients, cope with social media or adjust to changes in marketplace
- 31. Shift # 3 • “Dynamic linking” • Work done in short cycles • Management sets goals which delight client
- 32. Shift # 3 • Decisions about how work carried out responsibility of those doing work • Progress measured by direct client feedback
- 33. Shift # 3 • Setting things up in short, consecutive waves of effort • Foster deep, trust-based relationships among participants • Learn, innovate and perform better and faster
- 34. Shift # 3 • Not specify activities in detail • Specify what they want to come out • Providing space for participants to experiment, improvise and innovate
- 35. Shift # 4 From Value to Values
- 36. Shift # 4 • Traditional organization preoccupied with value, rather than values • Encouraged firms to cut costs • Profits made at expense of customers
- 37. Shift # 4 • ‘Values’ different from ‘Value’ • Deep backward- and forward-looking quality • Providing more value to customers • Delighting client and motivating autonomous teams
- 38. Shift # 4 • Radical transparency • Continuous improvement • Trust • Honesty • Caring for environment • Openness to outside ideas
- 39. Shift # 5 Communication: From Command to Conversation
- 40. Shift # 5 • Three elementary social relationships: 1. Social norms 2. Authority 3. Market pricing
- 41. Management Challenges • Elicit energies, imagination, and creativity of workers • Communicate predominantly through language of social norms
- 42. Social Norms • Front and center at all times • Warmth
- 43. 21st Century • Shift in communication from command to conversation • Adult-to-adult interactions • Human being to human being
- 44. 21st Century • Using stories, metaphors and open-ended questions • Authentic storytelling
- 46. Alignment • Five shifts not new • Putting all five shifts into operation at once
- 47. Alignment • Cannot achieve customer delight through bureaucracy • Cannot harness creativity of autonomous teams without focus on customer delight
- 48. Alignment • Cannot embrace customer delight and autonomous teams, without dynamic linkage • Cannot embraces customer delight, autonomous teams, and dynamic linkage without focus on values rather than value • Communicates values and goals through conversations not commands
- 49. Five simultaneous shifts • Strenuous • Significant benefits • High productivity and continuous innovation • Disciplined execution • Deep job satisfaction and client delight
- 50. Five simultaneous shifts • Gains accomplished by transition from a focus on things to focus on people • People-centered goal • People-centered role for managers • People-centered coordination mechanism • People-centered values • People-centered communication
- 51. 21st Century • Not about things • But about people