Limited byourDNA “ ” WE ARE ALL PRISONERS OF OUR PARADIGMS
? Are theEndof Management or The start ofnew conceptual
What is Management Process today - Strategic planning - Capital budgeting - Project management - Hiring and promotion - Training and development - Internal communications - Knowledge management - Periodic business reviews - Employee assessment and compensation
What Manager do today ? Planning Organizing Leading Controlling Commanding Coordinating … - Henri Fayol 1917 AND everyone know these
Time change, Think ordinary, not win We’re seeking for The new Ultimate Advantage
The Innovationstack What is thePoint ? Management innovation
Not all types innovation
are created equal Strategic innovation Product/service innovation Operational innovation
Higher tiers signify higher level of value creation and competitive defensibility
Management Innovation, on top, possess a unique capacity to create difficult-to-duplicate advantage
ThePowerof Management Innovation Managing science Allocating capital Managing intangible assets Capturing the wisdom of every employee Building a global consortium
Agenda for management innovation Driver for new management Management Innovation Changing Company that adaptive Innovation to Everyone’s job Company For everyone best Be Bold
Be Bold Let Start inside Attitude & Heart It’s not insightful analysis But truly bold and imaginative alternatives to the management status quo with army of innovator from bottom up.
st 20 century st 21 century Calibrate your Agenda Whyis itpriority ? Goal Passion & Benchmark “ The early bird ” Is Winner
Agenda # 1 Company that nimble to adaptive Change Fastly & Uncontrol Maladaptation - Are we change as fast as world - Strategy, Biz model , core value Challenge change the way you never seen before.
Agenda # 1 Company that nimble to adaptive Deep change Goal Build Org that : Always Crisis-Led Rarely Opportunity-Led continuousself-renewal in the absence of a crisis Challenge change the way you never seen before.
Agenda # 1 Barrier Dearth of New Strategic option Need New strategic option Arithmetic Law Process for generate 1000 : 100 : 10 : 2 Why Innovation suffer Who know which one hit ? Focus in Portfolio of strategic option How to invest Portfolio not surefire idea
Agenda # 1 Barrier Allocation Rigidity Legacy program (what is) Initiative (what could be) Resist to allocate Regardless of how attractive Why disproportion 1 Monopsony 2 Allocation process VCs vsLarge company
Agenda # 2 Making Innovation everyone’s job Fortification Disempowered customer Scale advantage Patent protection Capital hurdles Regulatory barriers Distribution monopoly Proprietary standards Import protection
Agenda # 2 Deregulation Making Innovation everyone’s job Web power Web empowered customer Ultra low cost Outsource Transaction cost free Distribution free Globaliztion & Longtail Effect
Agenda # 2 Making Innovation everyone’s job but from We have no choice except “INNOVATION” Where CEO management Innovation Production Only IT Everywhere Finance Product Innovation Marketing R&D HR Operation Innovation system Coach+fund+process+compensate =
Challenge # 1 Creating ademocracy of idea Start encouraging bottom-up thinking !
Challenge # 2 Amplifying Humanimagination Startcreate tools of creativity and free imagination ! Time + Space + Tools
Challenge # 3 Dynamically reallocate resource Start create flexible system for deploying the capital and talent projects !
Challenge # 4 Aggregate collective wisdom Start making process that decision reflect the collective knowledge of organization !
Challenge # 5 Minimizing the drag of old mental models How much does their total age ? Start Making more flat structure & grant authority of an out-of-date executive !
Challenge # 6 Giving everyone the chance to opt in Start create policy of self-chosen commitment !
Agenda of presentation Why Management Innovation Matters Building the Future of Management Management Innovation in Action
Case study in Innovation Purpose Whole Food Whole people Whole Planet Creating community of purpose
Case study in Innovation Freedom & Accountability Basic organizational unit is not The store but the empowered small team. Trust No secretmanagement philosophy that have noclosed data. Equity 93% of stock granted to non executive Giving employee to exercise their initiative, imagination and passion
Case study in Innovation Principles matter Over 25 years, Management system is based on a management principles Love / Community / Autonomy / Egalitarianism / Transparent Not stick in old management Executive often able to invent an novel management. Resolve two side of trade-offs Find ways to reconciling trade-offs and take benefit from both sides. Freedom & Responsibility / Discipline & Innovation
Case study in Innovation Not Hierarchy Network organization, not hierarchy, and committed for it Plenty of Leader No word like Boss, manager, VP Sponsor instead of command. Free to experiment Have ‘Dabble time’ which they can devote to an initiative of their own choosing
Case study in Innovation Focused ,but No Core Business With more than 1,000 products in its portfolio and having freedom to purse own interest with own team Redistribute power Always delegate power downward & outward. Most manager support the idea of empowerment Long term reward In short term, Cost seem more tangible than benefit but be patient and optimism .
70 20 10 Case study in Innovation Formula for innovation 70 -Enhancing of google ’s core business 20 -Focus on service that extend the core 10 –Allocate to fringe ideas Bozo freezone Hiring only the brightest of the bright. Weed out anyone who only average. Small, self managing teams Average of 3 engineers per team and one work more than one team. Small team make google like lively company not an bureaucratic giant.
Case study in Innovation Rapid, Low cost experimental ‘ Just-try-it ’philosophy Freedom to follow your nose Innovation is everyone responsibility. Consequently, make portfolio of strategic option A continuous & companywide conversation Misc list MOMA Snippets TGIF
Case study in Innovation Experience Manager May not make the best management innovator. Highly empowerment environment That convince best people to work at Google Differential reward Having ‘Founder reward’for remarkable contribution to firm’ s success
Reference of presentation Author Gary hamel with Bill breen Press Harvard Business School Press