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Copyright Julian Birkinshaw 2014

Managing the Company of the Futurehas been developed collaboratively by University of London and London Business School.

www.london.edu

Managing the Company of the Future

Julian Birkinshaw

Overview ofthe course


The Business World is changing

Technology: Web 2.0

Social change: Gen Y

Emerging economies

Sustainability concerns

New strategic challenges

Purpose, Innovation,Agility, Engagement


Our management model is no longer fit for purpose

People motivated by

Decisions made according to

Rules & Procedures

Hierarchy

Extrinsic Rewards

Coordination achieved through

Bureaucracy

Objectives set throughLinear Alignment


Same as it ever was Radically different

Two different views of the future

Forces for stasis Forces for change


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Managingthe companyof the Future

What this course is about


Management versus

Leadership


What is Leadership?


Leadership: A process of social influenceA leader is someone who attracts followers by virtue

of what they say and how they act

Winston Churchill Richard Branson Steve Jobs

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What is Management?


Koontz & ODonnell, Principles of Management, 1955

What is Management?


Getting Work Done Through Others

Bringing People Together to Accomplish Desired Goals

Management has been squeezed out by Leadership


Copes with complexityPlans & budgetsOrganizes & staffControls & problem-solves

Promotes efficiencyIs a good soldierImitatesAccepts the status quo

Promotes effectivenessIs his/her own personOriginatesChallenges the status quo

Copes with changeSets a directionAligns peopleMotivates people

A Leader A Manager

John Kotter

Warren Bennis

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I equate management with bossy, insecure, weak people trying to intimidate

A manager is someone who interferes with someone elses work

I think in the National Health Service, manager is a particularly dark word if I am one of those managers, the implications is I am not that good, not that competent

Managing: The word that dares not speak its name


A false dichotomy: effective executives need to work on both The challenge is to get the right balance This course focuses on management to help redress the

balance

Management versus Leadership


How is the business world

changing?


Credit Default Swaps

Processor speed (MIPS)Processing power/$Number of internet hosts

Data transmission speeds

Cost of bandwidth (bits/second/$) Number of genes sequenced

Astronomical data collected

Exponential change is underwayin many technological areas


So how exactly is the world changing?


INDUSTRIAL ERA

KNOWLEDGE ERA

1980 2000196019401920

?

Transitioning from the industrial era to the knowledge era


Efficiency driving out

effectiveness

Productivity driving out motivation

CAPITAL

LABOUR

INFORMATION

KNOWLEDGE

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Transitioning beyond the knowledge era


Too much information

creates deficit of attention

Overemphasis on logic leads

to sterile decision making

DECISIVE ACTION

EMOTIONAL CONVICTION

INFORMATION

KNOWLEDGE

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The changing source of advantage


INDUSTRIALERA

Labour Capital

KNOWLEDGE ERA

InformationKnowledge

POSTKNOWLEDGE ERA

ActionConviction

The Failure of Traditional

Management


most of the mistakes and oversights at Macondo can be traced back to a single overarching failure - a failure of management

William Reilly, Co-Chair, National Oil Spill Commission, January 2010

Many high-profile management failures


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Employee engagement levels are lowacross most countries


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Highly Engaged Moderately Engaged Disengaged

Source: Towers Perrin Global Workforce Study via The Employee Engagement Group

Who are you happiest with?


Friends

Parents/relatives

Spouse

My children

Co-workers

Clients/customers

Alone

Boss

3.3

3.0

2.8

2.7

2.6

2.4

2.2

2.0(Rating is on a 1-5 scale)

How to routinise and standardise work?

How to maximise employee discipline and diligence?

How to organise complex work processes?

What problem was managementinvented to solve?


Source: Gary Hamel

How do we change fast enough to stay relevant in a turbulent world?

How do we innovate boldly enough to stay ahead of our competitors?

How do we create an organisationwhere people are able and willing to do their best work?

What are todays management challenges?


Agile

Innovative

Engaging

Source: Gary Hamel


Koontz & ODonnell, Principles of Management, 1955

The Need for Management

Innovation


Broadening our concept of innovation


FROM NEW PRODUCTS AND

SERVICES

TO NEW WAYS OF WORKING

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Innovations in management can be a source of long-term advantage


1900s-1920s 1930s-1960s 1970s-2000s

Ford GM Toyota

The Internet as inspirationand engine of change


Linus Torvalds Tim Berners-Lee Jimmy Wales

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Todays Management Innovators


Morning StarValve

TopcoderZappos

Todays Management Innovators


Terri Kelly, CEO, WL Gore Vineet Nayar, former CEO, HCL Technologies

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What does this mean for me?


The changing source of advantage


INDUSTRIALERA

KNOWLEDGE ERA

POSTKNOWLEDGE ERA

Monitor and

Controller

Information Conduit and

Expert

Implementer and

Empathiser

1. Be a good coach

2. Empower your team and don't micromanage

3. Express interest in team members' success and personal well-being

4. Don't be a sissy: Be productive and results-oriented

5. Be a good communicator and listen to your team

6. Help your employees with career development

7. Have a clear vision and strategy for the team

8. Have key technical skills so you can help advise the team.

Adam Bryant, New York Times, March 12th 2011

What makes a good manager?Googles Project Oxygen:


And what does this mean for the employee? Consider the mens world high-jump record


2.55m

2.45m

2.35m

2.25m

2.15m

2.05m

1.95m1900 1920 1940 1960 1980 2000

John Thomas vs. Valeriy Brumel


2.55m

2.45m

2.35m

2.25m

2.15m

2.05m

1.95m1900 1920 1940 1960 1980 2000

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The Straddle Jump

Dick Fosbury: Mexico Olympics Gold


2.55m

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2.35m

2.25m

2.15m

2.05m

1.95m1900 1920 1940 1960 1980 2000

OlympicsOlympicsOlympicsOlympics

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Athlete performing a Fosbury Flop

Three waves of innovation in the high jumping industry


2.55m

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1.95m1900 1920 1940 1960 1980 2000

The Fosbury Flop

The Straddle Jump

The Western Roll

Progress depends on unreasonable peopleGeorge Bernard Shaw:


Elon Musk and the Hyperloop proposal

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Understanding the changing world Evaluating the old and new ways of managing Managing others more effectively Taking the initiative to help shape the company of the future

What does this mean for me?


week 1 slides upload

Documents

management model

principles of management

business world

london business

social change

university of london

status quocopes

good soldierimitatesaccepts