roger martin at implement thought leaders 2015
TRANSCRIPT
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REAL MANAGEMENT REAL PEOPLE, REAL CAPABILITIES & REAL MOTIVATIONS
Thought Leader 2015 Copenhagen, Denmark
September 25, 2015
@RogerLMartin
Martin Prosperity Institute Rotman School of Management
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Copyright © 2015 Roger L. Martin
THEORETICAL MANAGEMENT
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• Conceptual People • Imaginary Capabilities • Notional Motivations
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THEORETICAL MANAGEMENT
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• Conceptual People • Imaginary Capabilities • Notional Motivations
What are examples?
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THEORETICAL MANAGEMENT
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• Conceptual People • Imaginary Capabilities • Notional Motivations
What are examples? - Bond Raters - Audit Partners - Stock Brokers - Independent Board Members - Pension Fund Managers
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REAL MANAGEMENT
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• Real People • with Real Capabilities • & Real Motivations
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REAL MANAGEMENT
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• Real People • with Real Capabilities • & Real Motivations
What does this mean?
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REAL MANAGEMENT
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• Real People • with Real Capabilities • & Real Motivations
What does this mean? - A real person, with the capabilities to
really do the job required, could really be attracted to the job in the first place, and, once in the job, could be reasonably motivated to do what the job requires
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THEORETICAL INNOVATION
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Shareholders
The Assumed Actors/System
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THEORETICAL INNOVATION
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Shareholders Board of Directors
The Assumed Actors/System
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THEORETICAL INNOVATION
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Shareholders Board of Directors
Encourage Optimal
Level
The Assumed Actors/System
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THEORETICAL INNOVATION
11
Shareholders Board of Directors CEO
Encourage Optimal
Level
The Assumed Actors/System
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Copyright © 2015 Roger L. Martin
THEORETICAL INNOVATION
12
Shareholders Board of Directors CEO
Encourage Optimal
Level
Enforce Optimal
Level
The Assumed Actors/System
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Copyright © 2015 Roger L. Martin
THEORETICAL INNOVATION
13
Shareholders Organization Board of Directors CEO
Encourage Optimal
Level
Enforce Optimal
Level
The Assumed Actors/System
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THEORETICAL INNOVATION
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Shareholders Organization Board of Directors CEO
Encourage Optimal
Level
Enforce Optimal
Level
Mandate Optimal
Level
The Assumed Actors/System
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REAL INNOVATION
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Shareholders Organization Board of Directors CEO
- Pension Funds - Mutual Funds - Hedge Funds
The Real Actors
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REAL SHAREHOLDERS
16 Adapted from: Federal Reserve Board and Goldman Sachs Global Investment Research.
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REAL INNOVATION
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Shareholders Organization Board of Directors CEO
- Pension Funds - Mutual Funds - Hedge Funds
The Real Actors
- Misaligned - Capability-
Challenged
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REAL BOARDS OF DIRECTORS
18 Source: McKinsey Global, 2013.
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REAL INNOVATION
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Shareholders Organization Board of Directors CEO
- Pension Funds - Mutual Funds - Hedge Funds
The Real Actors
- Misaligned - Capability-
Challenged
- Short-term incentivized
- Reliability- focused
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Copyright © 2015 Roger L. Martin
REAL INNOVATION
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Shareholders Organization Board of Directors CEO
- Pension Funds - Mutual Funds - Hedge Funds
The Real Actors
- Misaligned - Capability-
Challenged
- Short-term incentivized
- Reliability- focused
- Reliability- focused
- Incrementally- incentivized
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REAL INNOVATION
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CEO
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REAL INNOVATION
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Board of Directors CEO
Seek Protective Assistance
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REAL INNOVATION
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Shareholders Board of Directors CEO
Attempt to Ameliorate
Damage
Seek Protective Assistance
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REAL INNOVATION
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Shareholders Organization Board of Directors CEO
Attempt to Ameliorate
Damage
Seek Protective Assistance
Support & Nurture
Innovation
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THEORETICAL ‘EXECUTION’
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The brain makes the choices
The arms and legs execute the choices of the brain
THE VIEW OF THE HUMAN BODY
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THEORETICAL ‘EXECUTION’
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Senior Leaders • The brains of the organization • Formulate the decisions • Create control procedures • Sell to get “buy-in” The Rank and File • The arms and legs of the organization • Implement the decisions • Controlled by procedures • Get “bought-in”
THE IMPLICIT METAPHOR OF THE CORPORATION
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THE EXECUTION TRAP
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What is the Biggest Enemy of Execution?
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THE EXECUTION TRAP
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What is the Biggest Enemy of Execution?
The Word Execution
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REAL MANAGEMENT: STRATEGY IS CHOICE
What is our winning aspiration?
Where will we play?
How will we win?
What capabilities must we have?
What management systems are required?
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REAL MANAGEMENT: NESTED CHOICE CASCADES
How to Win
Management Systems
Winning Aspiration
Capabilities
Where to Play
How to Win
Management Systems
Winning Aspiration
Capabilities
Where to Play
How to Win
Management Systems
Winning Aspiration
Capabilities
Where to Play
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How to Win
Management Systems
Winning Aspiration
Capabilities
Where to Play
How to Win
Winning Aspiration
Where to Play
Capabilities
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MAKING CHOICES ACROSS MULTIPLE CASCADES
1. Make only the set of choices you are more capable of making than anyone else
2. Explain the choice that has been made and the
reasoning behind it 3. Explicitly identify the next downstream choice 4. Assist in making the downstream choice, as
needed 5. Commit to revisit and modify the choice based on
downstream feedback
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TAK!
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Twitter: @RogerLMartin Email: [email protected] Website: www.RogerLMartin.com
Strategy Toolkit: www.hbr.org/tools/PTW