Causes and consequences of managerial failure in rapidly changing organizations

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Causes and consequences of managerial failure in rapidly changing organizations

  1. 1. CAUSES AND CONSEQUENCES OF MANAGERIAL FAILURE IN RAPIDLY CHANGING ORGANIZATIONS By – Kevin Joseph MBA (Energy Trading)
  2. 2. Managerial Life in 21st Century  Rapid market restructuring  Rapid change  Frequent Internal reorganizations  Flattening of the world has made it easier for the companies around the globe to compete against each other.
  3. 3.  Change exposes weakness in managers  But can also create leadership opportunities for a few  A research study was conducted among 2000 managers in 2001 and 5000 managers in 1999.  Single most important factor to keep one’s job was getting results/excellent performance.
  4. 4.  Majority of managers do not have expertise to cope up with rapid change involving complex condition.  They are well versed in old ways of thinking and solving problems.  They are successful in more stable environment .  Fail due to inability to adapt to rapid changing environment.
  5. 5.  Hence it becomes very important to study and understand the reasons why managers fail.  So as to help reinforce the managers and indirectly the organization to cope up with this rapid change.
  6. 6. Finkelstein’s Research Five major causes of Failure of a CEO  Choosing to ignore change  Pursuing wrong vision  Being too closely connected to company  Exhibiting executing arrogance  Relying on past formulas for success
  7. 7. Reason for all this rapid changes Main driving force - The need to protect or improve the organization’s current competitive position in the market. This includes –           Infusing new technologies Process redesign Mergers Consolidations Acquisitions Reengineering activities Organizational restructuring Reconfiguring supply chains Major work redeployment Development activities
  8. 8. After Extensive Research  Top 15 Primary causes for managerial failure -
  9. 9. 90 80 70 60 50 40 30 20 10 0 Ineffective Poor interpersonal Communication skills skill person job mismatch Fail in performance expectation Failing to break old habits
  10. 10. 60 50 40 30 20 10 0 Lack of Delegation Lack of personal Unable to develop integrity and cooperation/ trustworthiness teamwork Unable to lead/motivate others Poor planning practices
  11. 11. 45 40 35 30 25 20 15 10 5 0 Failure to monitor Failing to remove actual performance performance and provide barriers/roadblocks feedback Ego, Attitude and Indifference problems Failing to select, promote and develop talanted people Lack or misuse of critical resources
  12. 12. Competencies necessary to survive First set (Social in nature):        Effective communication Relationship building Clarifying expectation Providing effective feedback Empowerment Team leadership Motivating others
  13. 13. Second set (Personality based):  Positive Attitude  Integrity  Character  Commitment  Risk taking  Looking for new and better ways to do things  Openness to change and adaptation
  14. 14.  Thee characteristics take quite a while to develop.  Therefore study them as early as possible and start implementing as early as you can.
  15. 15. THANK YOU

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