Management20 090623 Poznan English

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Management20 090623 Poznan English

  1. 1. Management 2.0 Cooperation for sustainable development of companies<br />23.06.2009<br />1<br />® Friedag 2009<br />
  2. 2. Herwig R. Friedag<br />Born in 1950, Degree in National Economics<br />Consultant focusing on:<br /><ul><li>Implementation of Balanced Scorecard
  3. 3. Workshops on Balanced Scorecard
  4. 4. Head of the PR committee at ICV (ICA)
  5. 5. Visiting lecturer at Humboldt University in Berlin</li></ul>Hobbies: Outdoor activities, Volleyball, Bicycle tours, Sailing<br />Dr. Herwig R. Friedag<br />Friedag Consult<br />Beskidenstr. 33, D 14129 Berlin <br />Fon +49 30 80 40 40 00<br />Fax +49 30 80 40 40 01<br />consult @ friedag.com<br />www.friedag.com<br />23.06.2009<br />2<br />® Friedag 2009<br />
  6. 6. Friedag / Schmidt / Schwerk SS 2009<br />3<br />2004<br />2003<br />2001<br />1999, 2000, 2002<br />2002, 2003, 2005<br />2005<br />Publications<br />2009<br />2000, 2002, 2004<br />Total number of copies: &gt;70.000<br />in CZ, GER, FIN, POL, RUS<br />
  7. 7. Management 2.0<br />Cooperation for a sustainable „successful“ businessactivity<br />Definition of Management 2.0<br />Aspects of Management 2.0<br />Don´t worry, be happy – Go the “Management 2.0“ way<br />23.06.2009<br />4<br />® Friedag 2009<br />Cooperation for sustainable development of companies<br />
  8. 8. Management 2.0<br />Cooperation for a sustainable „successful“ businessactivity<br />Definition of Management 2.0<br />Aspects of Management 2.0<br />Don´t worry, be happy – Go the “Management 2.0“ way<br />23.06.2009<br />5<br />® Friedag 2009<br />Cooperation for sustainable development of companies<br />
  9. 9. How can a controller makethemanager happy?<br />Markets and companiesalwaysexperienceups and - as just now - downs<br />23.06.2009<br />6<br />® Friedag 2009<br />Definition of Management 2.0<br />DAX- / Dow Jones-development in 2008/2009<br />?<br />
  10. 10. How can a controller makethemanager happy?<br />For managers the ups and downs are a big challenge. Wouldn‘t managers be happier if they could be more relaxed about it in future? <br />Tell your manager about Management 2.0: <br />don´tworry, be happy:<br />23.06.2009<br />7<br />® Friedag 2009<br />Definition of Management 2.0<br />Management 2.0:<br />hasthe potential tomakemanagershappier<br />
  11. 11. Sustainable development of companies<br />Which business model will establish itself?<br />Shareholder-orientation:- short-term goal orientation- profit maximisation is topmost postulate <br />Stakeholder-orientation:- balanced orientation to all relevant stakeholders:<br /><ul><li>customers
  12. 12. employees
  13. 13. production-partners
  14. 14. investors</li></ul>23.06.2009<br />8<br />® Friedag 2009<br />Definition of Management 2.0<br /><ul><li>The focus is on the sustainable profitability of the company and to benefit the society
  15. 15. Reputation is priority task for the management</li></li></ul><li>Use the crisis<br />Difficult times offer good chances:<br />timesarechanging<br />Downturns in the economy offer chances to those, <br />who think of the time afterwards and can adapt <br />to the coming changes:<br />See changes as chances<br />Review the business model<br />Secure sustainable growth through cooperation<br />23.06.2009<br />9<br />® Friedag 2009<br />Definition of Management 2.0<br />Management 2.0:<br />Cooperation<br />
  16. 16. Difficult times offer good chances:<br />It doesn‘t matter what the current environment is. What is more important is whether we are better than our competitors:<br />Serve remaining customer needs faster and with better service <br />Build closer relationship to customers and suppliers<br />Set tied capital free over the whole supply chain <br />23.06.2009<br />10<br />® Friedag 2009<br />Definition of Management 2.0<br />Sustainable development of companies <br />Tobebetter, youshouldworkwith<br />Management 2.0:<br />Cooperation<br />
  17. 17. Web-Generations<br />Web 1.0 1.5 2.0<br />Orientation Technology Advertising Community<br />Users Experts Commerce all<br />Focus Organisation Click-rates Interaction<br />Effect Rationalisation Information Socialisation<br />Approach Centralisation Quantification Qualification<br />Source: Smoke&Mirrors, Agency for Online-Communication<br />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)<br />23.06.2009<br />11<br />® Friedag 2009<br />Definition of Management 2.0<br />What is Management 2.0?<br />
  18. 18. Management-Generations<br />Management 1.0 1.5 2.0<br />Orientation Product Capital Community<br />Users Experts Financial world Society<br />Focus Organisation Interest Mutual benefit <br />Effect Cost degression Merger Sustainability<br />Approach Rationalisation Utilisation Cooperation<br />23.06.2009<br />12<br />® Friedag 2009<br />Definition of Management 2.0<br />What is Management 2.0?<br />Management 2.0: By implementing cooperation<br /><ul><li>Achieve improvement of the company reputation,
  19. 19. generate benefit for all stakeholders tosecure sustainable profitability of the company</li></li></ul><li>Cooperation: the basis for a successful businessactivity<br />23.06.2009<br />13<br />® Friedag 2009<br />Definition of Management 2.0<br />Management 2.0 -Responsibility for sustainable development of companies:<br />Management 2.0:<br />Cooperation<br />
  20. 20. 23.06.2009<br />14<br />® Friedag 2009<br />Coming together is a beginning, <br />Keeping together is progress, <br />Working together is success.<br />___________________<br /> Henry Ford<br />
  21. 21. Management 2.0<br />Cooperation for a sustainable „successful“ business activity<br />Definition of Management 2.0<br />Aspects of Management 2.0<br />Don´t worry, be happy – Go the “Management 2.0“ way<br />23.06.2009<br />15<br />® Friedag 2009<br />Cooperation for sustainable development of companies<br />
  22. 22. Aspects of Management 2.0<br />Goals – shared view for the journey together<br />Organisation – balance of stakeholders interests<br />Values – internal and external appreciation <br />Structures – scope for changes (redundancy)<br />Culture– competition and mistakes to get better<br />Responsibility– results orientation of all<br />Communication – open communication<br />23.06.2009<br />16<br />® Friedag 2009<br />
  23. 23. Goals – shared view for the journey together<br /><ul><li>Companies take their social responsibility seriously</li></ul>Companies aim to generate benefits forsociety (CR or CSR)<br />A requirement for that is sustainable profitability and adequate rate of return of the employed financial and intellectual capital <br />23.06.2009<br />17<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  24. 24. Goals – shared view for the journey together<br /><ul><li>Companies take their social responsibility seriously
  25. 25. All relevant stakeholders are considered in the process of setting the goals</li></ul> - Every employee should know the company goals and ask himself „How can I contribute to the achievement of those goals?“ – because:<br /> - Customers expect competent und timely decisions:<br /><ul><li>In b2b-business usually only the managers are customer-oriented – for most employees who are not in Sales customer-orientation is an abstract concept
  26. 26. In b2c-business on the other hand usually only the employees in Sales have customer contact – most managers have little practical experience with customers</li></ul>23.06.2009<br />18<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  27. 27. Goals – shared view for the journey together <br /><ul><li>Companies take their social responsibility seriously
  28. 28. All relevant stakeholders are considered
  29. 29. Lessons for the management: Value orientation und creativity gain in importance
  30. 30. Lateral thinker have different views
  31. 31. Learn from the past, think of the future
  32. 32. Strategies are not for ever - review and revise annually the strategic assumptions- if necessary the strategy must be revised during the year</li></ul>23.06.2009<br />19<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  33. 33. Aspects of Management 2.0<br />Goals – shared view for the journey together<br />Organisation – balance of stakeholders interests<br />Values – internal and external appreciation<br />Structures – scope for changes (redundancy)<br />Culture– competition and mistakes to get better<br />Responsibility– results orientation of all<br />Communication – open communication<br />23.06.2009<br />20<br />® Friedag 2009<br />
  34. 34. Organisation – balance of stakeholders interests<br /><ul><li>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</li></ul>23.06.2009<br />21<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  35. 35. Organisation – balance of stakeholders interests <br /><ul><li>Strategic topics are innovation, commitment and wastage
  36. 36. How can we develop a spirit of cooperation in the company?</li></ul>23.06.2009<br />22<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  37. 37. Organisation – balance of stakeholders interests <br /><ul><li>Strategic topics are innovation, commitment and wastage
  38. 38. How can we develop a spirit of cooperation in the company?
  39. 39. Internal markets for resources, talents and ideas- identify and employ hidden talents
  40. 40. Do we sell our customersproducts or benefits?
  41. 41. Internal performance- agreementsareinstrumentforcooperativeteamwork</li></ul>23.06.2009<br />23<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  42. 42. Organisation – balance of stakeholders interests <br /><ul><li>Strategische Themen sind Innovation, Engagement und Verschwendung
  43. 43. Wie schaffen wir im Unternehmen ein Klima für Kooperation ?
  44. 44. Interne Märkte für Ressourcen, Talente und Ideen- verborgene Talente erkennen und nutzen
  45. 45. Interne Leistungsvereinbarungen als Instrument kooperativer Zusammenarbeit
  46. 46. Verkaufen wir dem Kunden ein Produkt oder einen Nutzen?
  47. 47. Do we compare us with our competitors?</li></ul>23.06.2009<br />24<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  48. 48. Aspects of Management 2.0<br />Goals – shared view for the journey together<br />Organisation – balance of stakeholders interests<br />Values – internal and external appreciation <br />Structures – scope for changes (redundancy)<br />Culture – competition and mistakes to get better<br />Responsibility– results orientation of all<br />Communication – open communication<br />23.06.2009<br />25<br />® Friedag 2009<br />
  49. 49. Values – internal and external appreciation<br /><ul><li>Trust is the basis for cooperative business activity- control is good, trust is better- trust is based on values
  50. 50. Less control by the managers and open culture of all- everybody looks after results in his team- mistakes are seen as opportunity to learn</li></ul>23.06.2009<br />26<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  51. 51. Values – internal and external appreciation<br /><ul><li>Trust is the basis for cooperative business activity - control is good, trust is better- trust is based on values
  52. 52. No control by the managers but open culture of all- everybody looks after results in his team- mistakes are seen as opportunity to learn
  53. 53. Justifiedtrustismoreefficientandcost-savingthaneverydaylifewithcontrolmechanisms
  54. 54. Appreciation is the base – external and internal
  55. 55. Price is the measure of the customer appreciation of the seller, that means that all employees must make efforts to win customer appreciation
  56. 56. Appreciation, both external and internal, is the basis for cooperative teamwork
  57. 57. Continual work on establishing a shared value structure is time consuming, but is feasible </li></ul>23.06.2009<br />27<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  58. 58. Values – internal and external appreciation<br />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<br /><ul><li>Incentive systems with long-termeffect
  59. 59. investor interests are not only for a quarter
  60. 60. for managers and also employeesperennial, longtermprogrammes, basedon cash flow
  61. 61. Why not to offer incentive systems to customers and suppliers as well?</li></ul>23.06.2009<br />28<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  62. 62. Values– internal and external appreciation <br /><ul><li>Operating figures show valuation for the management </li></ul>  they must be understandable, manageable and relevant for the managing of processes<br /><ul><li>Early indicators are for managing, late indicators for review</li></ul>Appreciation is also a cooperative interaction in the company<br />But: in the end „the boss“ is in charge<br />23.06.2009<br />29<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  63. 63. Aspects of Management 2.0<br />Goals – shared view for the journey together<br />Organisation – balance of stakeholders interests<br />Values – internal and external appreciation <br />Structures–scope for changes (redundancy)<br />Culture– competition and mistakes to get better<br />Responsibility– results orientation of all<br />Communication – open communication<br />23.06.2009<br />30<br />® Friedag 2009<br />
  64. 64. Structures – adapted to changes<br /><ul><li>Hierarchy is less effective – Instructions and obedience hinder innovation und spontaneity
  65. 65. Small independent entities are more flexible than bigger ones –modern companies are fast, flexible and creative
  66. 66. The management coordinate/moderate co-operation of local entities
  67. 67. Networks overcome boundaries- Involvement of customers and suppliers- Promotion of in-house networks
  68. 68. Compromises have many winners</li></ul>23.06.2009<br />31<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  69. 69. Aspects of Management 2.0<br />Goals – shared view for the journey together<br />Organisation – balance of stakeholders interests<br />Values – internal and external appreciation <br />Structures – scope for changes (redundancy)<br />Culture– competition and mistakes to get better<br />Responsibility– results orientation of all<br />Communication – open communication<br />23.06.2009<br />32<br />® Friedag 2009<br />
  70. 70. Culture – competition and mistakes to get better<br /><ul><li>Managers concentrate on presentation of values and strategies- shared values facilitate the implementation of the strategy- with Balanced Scorecard everybody is aware of thecorporate strategy
  71. 71. Diversity, contradiction and variety move the company forward - limited views do not live up to the reality
  72. 72. Mistakes should be seen and used as part of the learning process – do not accuse those who have made and admitted mistakes
  73. 73. Do we work with the right ratios?- every innovation can be calculated- good managers take responsibility for innovation</li></ul>23.06.2009<br />33<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  74. 74. Aspects of Management 2.0<br />Goals– shared view for the journey together<br />Organisation – balance of stakeholders interests<br />Values – internal and external appreciation <br />Structures –scope for changes (redundancy)<br />Cultur e– competition and mistakes to get better<br />Responsibility – results orientation of all<br />Communication – open communication<br />23.06.2009<br />34<br />® Friedag 2009<br />
  75. 75. Responsibility – results orientation of all<br /><ul><li>Give all employees enough scope for creativity- new ideas need time to ripe- ideaswant / need to be tested- there are always many reasons not to dare new things  therefore seek for good reasons why new ideas canbe successful</li></ul>23.06.2009<br />35<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />Ideascreatefuture<br />
  76. 76. Responsibility – results orientation of all<br /><ul><li>Give all employees enough scope for creativity
  77. 77. Every employee should be given enough time to work out and give recommendations for better and customer-oriented activities
  78. 78. 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
  79. 79. we waste many hidden potentials</li></ul>23.06.2009<br />36<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  80. 80. Aspects of Management 2.0<br />Goals – shared view for the journey together<br />Organisation – balance of stakeholders interests<br />Values – internal and external appreciation <br />Structures – scope for changes (redundancy)<br />Culture– competition and mistakes to get better<br />Responsibilities – results orienations of all<br />Communication – open communication<br />23.06.2009<br />37<br />® Friedag 2009<br />
  81. 81. Communication – open communication<br /><ul><li>Information concerns everybody - dare active participation and openness - transparency stimulates and contributes to more comittment
  82. 82. Effective cooperation requires openness and trust</li></ul>23.06.2009<br />38<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  83. 83. Communication – open communication<br /><ul><li>Information concerns everybody - dare active participation and openness - transparency stimulates and contributes to more comittment
  84. 84. Effective cooperation requires openness and trust
  85. 85. 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
  86. 86. 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</li></ul>23.06.2009<br />39<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />Check also: Gary Hamel et.al. „moonshots for management“, http://blogs.harvardbusiness.org/hamel/<br />
  87. 87. Management 2.0<br />Cooperation for a sustainable „successful“ business activity<br />Definition of Management 2.0<br />Aspects of Management 2.0<br />Don´t worry, be happy – Go the “Management 2.0“ way<br />23.06.2009<br />40<br />® Friedag 2009<br />Cooperation for sustainable development of companies<br />
  88. 88. Goals – shared view for the journey together<br /> Does your business model answer the following questions:<br />Why should the customer still buy our product in 3 years?<br />Do all employees know and understand (!) the strategic goals of the company?<br />Does every employee know how he/she can contribute to the achievement of those goals?<br />23.06.2009<br />41<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />
  89. 89. Involve customers and employees in the process of setting goals<br />Name the uniqueness of your products<br />Does your product deserve itsprice or does it offer the customer - value?<br />23.06.2009<br />42<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />Organisation– balance of stakeholders interests<br />
  90. 90. Is your travel cost arrangement 10 pages or only one?<br />Do not budget every pencil!<br />Internal month- or quarter reports should be on one page and every report should be recipient-oriented <br />23.06.2009<br />43<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />Values– internal and external appreciation <br />
  91. 91. You should manage not more than 7 people directly <br />Engage customers and suppliers in developments and make them partners <br />23.06.2009<br />44<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />Structures – adapted to the changes<br />
  92. 92. Every supervisor is responsible that at least one process improvement is suggested per every employee per quarter <br />Mistakes are communicated with the aim that others learn from them<br />Managers should reserve one day a week for strategy<br />23.06.2009<br />45<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />Culture – competition and mistakes to get better<br />
  93. 93. Look after that every employee accepts responsibility for results<br />Make competency possible and give authority for taking decisions <br />23.06.2009<br />46<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />Responsibility – results orientation of all<br />
  94. 94. You as a manager do try to talk to each employee personally once a week, once a month at his workplace<br />Every team should announce its goals and the current results<br />23.06.2009<br />47<br />® Friedag 2009<br />Goals – Organisation – Values – Structures – Culture – Responsibility - Communication<br />Communication – open communication<br />
  95. 95. 23.06.2009<br />48<br />® Friedag 2009<br />Management 2.0<br />Can you imagine that your boss will sleep better with Management 2.0? If so: make the boss happy!<br />Management 2.0: Cooperation for success<br />Coming together is a beginning, <br />Keeping together is progress,<br />Working together is success.<br />___________________<br /> Henry Ford<br />
  96. 96. With Management 2.0 you will secure commitment - Manager, Controller and all other stakeholders have better chances to overcome the next crisis andto be happier …<br />23.06.2009<br />49<br />® Friedag 2009<br />Management 2.0: Goals – Organisation – Values – Structures– Culture – Responsibility - Communication<br />Be part of it!<br />Management 2.0: with cooperation to the success<br />
  97. 97. 23.06.2009<br />50<br />® Friedag 2009<br />Management 2.0: Goals – Organisation – Values – Structures– Culture – Responsibility - Communication<br />dziękujębardzoHvala<br />Management 2.0<br />

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