Management20 090623 English

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Management20 090623 English

  1. 1. Management 2.0 Cooperation for sustainable development of companies 23.06.2009 ® Friedag 2009 1
  2. 2. Herwig R. Friedag Born in 1950, Degree in National Economics Consultant focusing on:  Implementation of Balanced Scorecard  Workshops on Balanced Scorecard  Head of the PR committee at ICV (ICA)  Visiting lecturer at Humboldt University in Berlin Hobbies: Outdoor activities, Volleyball, Dr. Herwig R. Friedag Bicycle tours, Sailing Friedag Consult Beskidenstr. 33, D 14129 Berlin Fon +49 30 80 40 40 00 Fax +49 30 80 40 40 01 consult @ friedag.com www.friedag.com 23.06.2009 ® Friedag 2009 2
  3. 3. Publications 2003 2004 2001 1999, 2000, 2002 2009 2000, 2002, 2004 Total number of copies: >70.000 2002, 2003, 2005 in CZ, GER, FIN, POL, RUS Friedag / Schmidt / Schwerk SS 2009 2005 3
  4. 4. Cooperation for sustainable development of companies Management 2.0 Cooperation for a sustainable „successful“ business activity 1. Definition of Management 2.0 2. Aspects of Management 2.0 3. Don´t worry, be happy – Go the “Management 2.0“ way 23.06.2009 ® Friedag 2009 4
  5. 5. Cooperation for sustainable development of companies Management 2.0 Cooperation for a sustainable „successful“ business activity 1. Definition of Management 2.0 2. Aspects of Management 2.0 3. Don´t worry, be happy – Go the “Management 2.0“ way 23.06.2009 ® Friedag 2009 5
  6. 6. Definition of Management 2.0 How can a controller make the manager happy? Markets and companies always experience ups and - as just now - downs DAX- / Dow Jones-development in 2008/2009 ? 23.06.2009 ® Friedag 2009 6
  7. 7. Definition of Management 2.0 Sustainable development of companies Which business model will establish itself?  Shareholder-orientation: - short-term goal orientation - profit maximisation is topmost postulate  Stakeholder-orientation: - balanced orientation to all relevant stakeholders: customers employees production-partners investors - The focus is on the sustainable profitability of the company and to benefit the society - Reputation is priority task for the management 23.06.2009 ® Friedag 2009 8
  8. 8. Definition of Management 2.0 Sustainable development of companies Difficult times offer good chances: It doesn‘t matter what the current environment is. What is more important is whether we are better than our competitors:  Serve remaining customer needs faster and with better service  Build closer relationship to customers and suppliers  Set tied capital free over the whole supply chain To be better, you should work with Management 2.0: Cooperation 23.06.2009 ® Friedag 2009 10
  9. 9. Definition of Management 2.0 What is Management 2.0? Web-Generations Web 1.0 1.5 2.0 Orientation Technology Advertising Community Users Experts Commerce all Focus Organisation Click-rates Interaction Effect Rationalisation Information Socialisation Approach Centralisation Quantification Qualification Source: Smoke&Mirrors, Agency for Online-Communication Web 2.0: Users themselves create, edit and distribute contents. Contents are not anymore centralised by big media enterprises but compiled by a multitude of users und distributed through Internet. In addition they get linked with each other by means of social software (Wikipedia) 23.06.2009 ® Friedag 2009 11
  10. 10. Definition of Management 2.0 What is Management 2.0? Management-Generations Management 1.0 1.5 2.0 Orientation Product Capital Community Users Experts Financial world Society Focus Organisation Interest Mutual benefit Effect Cost degression Merger Sustainability Approach Rationalisation Utilisation Cooperation Management 2.0: By implementing cooperation  Achieve improvement of the company reputation,  generate benefit for all stakeholders to secure sustainable profitability of the company 23.06.2009 ® Friedag 2009 12
  11. 11. Definition of Management 2.0 Management 2.0 - Responsibility for sustainable development of companies: Cooperation: the basis for a successful business activity Management 2.0: Cooperation 23.06.2009 ® Friedag 2009 13
  12. 12. Coming together is a beginning, Keeping together is progress, Working together is success. ___________________ Henry Ford 23.06.2009 ® Friedag 2009 14
  13. 13. Cooperation for sustainable development of companies Management 2.0 Cooperation for a sustainable „successful“ business activity 1. Definition of Management 2.0 2. Aspects of Management 2.0 3. Don´t worry, be happy – Go the “Management 2.0“ way 23.06.2009 ® Friedag 2009 15
  14. 14. Aspects of Management 2.0 1. Goals – shared view for the journey together 2. Organisation – balance of stakeholders interests 3. Values – internal and external appreciation 4. Structures – scope for changes (redundancy) 5. Culture – competition and mistakes to get better 6. Responsibility – results orientation of all 7. Communication – open communication 23.06.2009 ® Friedag 2009 16
  15. 15. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 1. Goals – shared view for the journey together  Companies take their social responsibility seriously Companies aim to generate benefits for society (CR or CSR) A requirement for that is sustainable profitability and adequate rate of return of the employed financial and intellectual capital 23.06.2009 ® Friedag 2009 17
  16. 16. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 1. Goals – shared view for the journey together  Companies take their social responsibility seriously  All relevant stakeholders are considered in the process of setting the goals - Every employee should know the company goals and ask himself „How can I contribute to the achievement of those goals?“ – because: - Customers expect competent und timely decisions:  In b2b-business usually only the managers are customer- oriented – for most employees who are not in Sales customer- orientation is an abstract concept  In b2c-business on the other hand usually only the employees in Sales have customer contact – most managers have little practical experience with customers 23.06.2009 ® Friedag 2009 18
  17. 17. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 1. Goals – shared view for the journey together  Companies take their social responsibility seriously  All relevant stakeholders are considered  Lessons for the management: Value orientation und creativity gain in importance  Lateral thinker have different views  Learn from the past, think of the future  Strategies are not for ever - review and revise annually the strategic assumptions - if necessary the strategy must be revised during the year 23.06.2009 ® Friedag 2009 19
  18. 18. Aspects of Management 2.0 1. Goals – shared view for the journey together 2. Organisation – balance of stakeholders interests 3. Values – internal and external appreciation 4. Structures – scope for changes (redundancy) 5. Culture – competition and mistakes to get better 6. Responsibility – results orientation of all 7. Communication – open communication 23.06.2009 ® Friedag 2009 20
  19. 19. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 2. Organisation – balance of stakeholders interests  Strategic topics at all company levels are: - Innovation at all levels in the company, - Commitment of all employees / stakeholders and - Avoidance of wastage through goal-oriented processes 23.06.2009 ® Friedag 2009 21
  20. 20. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 2. Organisation – balance of stakeholders interests  Strategic topics are innovation, commitment and wastage  How can we develop a spirit of cooperation in the company?  Internal markets for resources, talents and ideas - identify and employ hidden talents  Do we sell our customers products or benefits?  Internal performance- agreements are instrument for cooperative teamwork 23.06.2009 ® Friedag 2009 23
  21. 21. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 2. Organisation – balance of stakeholders interests  Strategische Themen sind Innovation, Engagement und Verschwendung  Wie schaffen wir im Unternehmen ein Klima für Kooperation ?  Interne Märkte für Ressourcen, Talente und Ideen - verborgene Talente erkennen und nutzen  Interne Leistungsvereinbarungen als Instrument kooperativer Zusammenarbeit  Verkaufen wir dem Kunden ein Produkt oder einen Nutzen?  Do we compare us with our competitors? 23.06.2009 ® Friedag 2009 24
  22. 22. Aspects of Management 2.0 1. Goals – shared view for the journey together 2. Organisation – balance of stakeholders interests 3. Values – internal and external appreciation 4. Structures – scope for changes (redundancy) 5. Culture – competition and mistakes to get better 6. Responsibility – results orientation of all 7. Communication – open communication 23.06.2009 ® Friedag 2009 25
  23. 23. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 3. Values – internal and external appreciation  Trust is the basis for cooperative business activity - control is good, trust is better - trust is based on values  Less control by the managers and open culture of all - everybody looks after results in his team - mistakes are seen as opportunity to learn 23.06.2009 ® Friedag 2009 26
  24. 24. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 3. Values – internal and external appreciation  Trust is the basis for cooperative business activity - control is good, trust is better - trust is based on values  No control by the managers but open culture of all - everybody looks after results in his team - mistakes are seen as opportunity to learn  Justified trust is more efficient and cost-saving than everyday life with control mechanisms  Appreciation is the base – external and internal  Price is the measure of the customer appreciation of the seller, that means that all employees must make efforts to win customer appreciation  Appreciation, both external and internal, is the basis for cooperative teamwork  Continual work on establishing a shared value structure is time consuming, but is feasible ® Friedag 2009 23.06.2009 27
  25. 25. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 3. Values – internal and external appreciation  Both customer and supplier are partners in the process – that is a win-win-situation for all partners and a prerequisite for an effective cooperation  Incentive systems with long-term effect  investor interests are not only for a quarter  for managers and also employees perennial, long term programmes, based on cash flow  Why not to offer incentive systems to customers and suppliers as well? 23.06.2009 ® Friedag 2009 28
  26. 26. Aspects of Management 2.0 1. Goals – shared view for the journey together 2. Organisation – balance of stakeholders interests 3. Values – internal and external appreciation 4. Structures –scope for changes (redundancy) 5. Culture – competition and mistakes to get better 6. Responsibility – results orientation of all 7. Communication – open communication 23.06.2009 ® Friedag 2009 30
  27. 27. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 4. Structures – adapted to changes  Hierarchy is less effective – Instructions and obedience hinder innovation und spontaneity  Small independent entities are more flexible than bigger ones – modern companies are fast, flexible and creative  The management coordinate/moderate co-operation of local entities  Networks overcome boundaries - Involvement of customers and suppliers - Promotion of in-house networks  Compromises have many winners 23.06.2009 ® Friedag 2009 31
  28. 28. Aspects of Management 2.0 1. Goals – shared view for the journey together 2. Organisation – balance of stakeholders interests 3. Values – internal and external appreciation 4. Structures – scope for changes (redundancy) 5. Culture – competition and mistakes to get better 6. Responsibility – results orientation of all 7. Communication – open communication 23.06.2009 ® Friedag 2009 32
  29. 29. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 5. Culture – competition and mistakes to get better  Managers concentrate on presentation of values and strategies - shared values facilitate the implementation of the strategy - with Balanced Scorecard everybody is aware of the corporate strategy  Diversity, contradiction and variety move the company forward - limited views do not live up to the reality  Mistakes should be seen and used as part of the learning process – do not accuse those who have made and admitted mistakes  Do we work with the right ratios? - every innovation can be calculated - good managers take responsibility for innovation 23.06.2009 ® Friedag 2009 33
  30. 30. Aspects of Management 2.0 1. Goals – shared view for the journey together 2. Organisation – balance of stakeholders interests 3. Values – internal and external appreciation 4. Structures –scope for changes (redundancy) 5. Cultur e – competition and mistakes to get better 6. Responsibility – results orientation of all 7. Communication – open communication 23.06.2009 ® Friedag 2009 34
  31. 31. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 6. Responsibility – results orientation of all  Give all employees enough scope for creativity - new ideas need time to ripe - ideas want / need to be tested - there are always many reasons not to dare new things  therefore seek for good reasons why new ideas can be successful Ideas create future 23.06.2009 ® Friedag 2009 35
  32. 32. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 6. Responsibility – results orientation of all  Give all employees enough scope for creativity  Every employee should be given enough time to work out and give recommendations for better and customer-oriented activities  Encourage and support passion and commitment of those who want to work for the future of the company - the boss knows and sees a lot but not everything - many bosses see and know more  we waste many hidden potentials 23.06.2009 ® Friedag 2009 36
  33. 33. Aspects of Management 2.0 1. Goals – shared view for the journey together 2. Organisation – balance of stakeholders interests 3. Values – internal and external appreciation 4. Structures – scope for changes (redundancy) 5. Culture – competition and mistakes to get better 6. Responsibilities – results orienations of all 7. Communication – open communication 23.06.2009 ® Friedag 2009 37
  34. 34. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 7. Communication – open communication  Information concerns everybody - dare active participation and openness - transparency stimulates and contributes to more comittment  Effective cooperation requires openness and trust 23.06.2009 ® Friedag 2009 38
  35. 35. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication 7. Communication – open communication  Information concerns everybody - dare active participation and openness - transparency stimulates and contributes to more comittment  Effective cooperation requires openness and trust  Speak the language of the employees - it doesn‘t matter what you say, but what and how that is understood by the people - involve all stakeholders  Use the knowledge of the whole organisation - only few know what kind of knowledge is available in the company! - and how much was already invested in the knowledge of the company Check also: Gary Hamel et.al. „moonshots for management“, http://blogs.harvardbusiness.org/hamel/ 23.06.2009 ® Friedag 2009 39
  36. 36. Cooperation for sustainable development of companies Management 2.0 Cooperation for a sustainable „successful“ business activity 1. Definition of Management 2.0 2. Aspects of Management 2.0 3. Don´t worry, be happy – Go the “Management 2.0“ way 23.06.2009 ® Friedag 2009 40
  37. 37. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication Goals – shared view for the journey together Does your business model answer the following questions:  Why should the customer still buy our product in 3 years?  Do all employees know and understand (!) the strategic goals of the company?  Does every employee know how he/she can contribute to the achievement of those goals? 23.06.2009 ® Friedag 2009 41
  38. 38. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication Organisation – balance of stakeholders interests  Involve customers and employees in the process of setting goals  Name the uniqueness of your products  Does your product deserve its price or does it offer the customer - value? 23.06.2009 ® Friedag 2009 42
  39. 39. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication Values – internal and external appreciation  Is your travel cost arrangement 10 pages or only one?  Do not budget every pencil!  Internal month- or quarter reports should be on one page and every report should be recipient-oriented 23.06.2009 ® Friedag 2009 43
  40. 40. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication Structures – adapted to the changes  You should manage not more than 7 people directly  Engage customers and suppliers in developments and make them partners 23.06.2009 ® Friedag 2009 44
  41. 41. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication Culture – competition and mistakes to get better  Every supervisor is responsible that at least one process improvement is suggested per every employee per quarter  Mistakes are communicated with the aim that others learn from them  Managers should reserve one day a week for strategy 23.06.2009 ® Friedag 2009 45
  42. 42. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication Responsibility – results orientation of all  Look after that every employee accepts responsibility for results  Make competency possible and give authority for taking decisions 23.06.2009 ® Friedag 2009 46
  43. 43. Goals – Organisation – Values – Structures – Culture – Responsibility - Communication Communication – open communication  You as a manager do try to talk to each employee personally once a week, once a month at his workplace  Every team should announce its goals and the current results 23.06.2009 ® Friedag 2009 47
  44. 44. Management 2.0 Can you imagine that your boss will sleep better with Management 2.0? If so: make the boss happy! Management 2.0: Cooperation for success Coming together is a beginning, Keeping together is progress, Working together is success. ___________________ Henry Ford 23.06.2009 ® Friedag 2009 48
  45. 45. Management 2.0: Goals – Organisation – Values – Structures– Culture – Responsibility - Communication With Management 2.0 you will secure commitment - Manager, Controller and all other stakeholders have better chances to overcome the next crisis and to be happier … Management 2.0: with cooperation to the success 23.06.2009 ® Friedag 2009 49
  46. 46. Management 2.0: Goals – Organisation – Values – Structures– Culture – Responsibility - Communication dziękuję bardzo Hvala Management 2.0 23.06.2009 ® Friedag 2009 50

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