The Future of Management Based on „The Future of Management“ by Gary Hamel Harvard Business School Press 2007
<ul><li>What is  management innovation ? </li></ul>16 March 2008 © Marc Sniukas
<ul><li>The Ultimate Advantage </li></ul>16 March 2008 © Marc Sniukas
<ul><li>„ Management innovation is anything that substantially alters the way in which the work of management is carried o...
<ul><li>Management Innovation changes the way managers do what they do,… </li></ul>16 March 2008 © Marc Sniukas
<ul><li>…  and does so in a way that enhances organizational performance. </li></ul>16 March 2008 © Marc Sniukas
From Management Innovation to Competitive Advantage <ul><li>3 conditions , the innovation is… </li></ul><ul><li>a  novel m...
<ul><li>„… management innovation follows a power law: for every truly radical idea that forever changes the practice of ma...
<ul><li>But that‘s no excuse not to innovate! </li></ul>
An Agenda for Management Innovation <ul><li>what are the  new challenges  the future has in store for your company? </li><...
<ul><li>Be Bold </li></ul>16 March 2008 © Marc Sniukas
Some inspiration <ul><li>Dramatically accelerating the pace of  strategic renewal  in organizations. </li></ul><ul><li>Mak...
Building a Resilient Organization <ul><li>Challenges </li></ul><ul><li>Overcoming  denial  for the need of a strategic reb...
Building a Resilient Organization <ul><li>Challenges </li></ul><ul><li>How do you ensure that discomforting information is...
Making Innovation Everyone‘s Job <ul><li>A few questions </li></ul><ul><li>How have you been equipped to be a business inn...
Making Innovation Everyone‘s Job <ul><li>Barriers </li></ul><ul><li>Creative Appartheid </li></ul><ul><li>Old Mental Model...
Making Innovation Everyone‘s Job <ul><li>Challenges </li></ul><ul><li>How can you enroll everyone within your company in t...
Creating a Company Where Everyone Gives Their Best <ul><li>Barriers </li></ul><ul><li>Too much management, too little free...
Creating a Company Where Everyone Gives Their Best <ul><li>Challenges </li></ul><ul><li>How can you broaden the scope of e...
Management Innovation in Action 16 March 2008 © Marc Sniukas
Creating a Community of Purpose <ul><li>the Whole Foods Market way </li></ul><ul><li>Freedom and Accountability </li></ul>...
Creating a Community of Purpose the Whole Foods Market way <ul><li>Lessons learned </li></ul><ul><li>Principles matter: un...
Creating a Community of Purpose the Whole Foods Market way <ul><li>Lessons learned </li></ul><ul><li>How do you empower pe...
Creating a Community of Purpose the Whole Foods Market way <ul><li>Lessons learned </li></ul><ul><li>How do you create a c...
Creating a Community of Purpose the Whole Foods Market way <ul><li>Lessons learned </li></ul><ul><li>How do you build an e...
Building an Innovation Democracy <ul><li>the W.L. Gore way </li></ul><ul><li>A lattice, not a hierachy </li></ul><ul><li>N...
Building an Innovation Democracy the W.L. Gore way <ul><li>Lessons learned </li></ul><ul><li>Management innovation often r...
Building an Innovation Democracy the W.L. Gore way <ul><li>Lessons learned </li></ul><ul><li>How do you enroll everyone in...
Building an Innovation Democracy the W.L. Gore way <ul><li>Lessons learned </li></ul><ul><li>How do you make sure that man...
Building an Innovation Democracy the W.L. Gore way <ul><li>Lessons learned </li></ul><ul><li>How do you create time and sp...
Aiming for an Evolutionary Advantage <ul><li>the Google way </li></ul><ul><li>a formula for innovation. 70-20-10 </li></ul...
Aiming for an Evolutionary Advantage the Google way <ul><li>Lessons learned </li></ul><ul><li>The internet itself may be t...
Aiming for an Evolutionary Advantage the Google way <ul><li>Lessons learned </li></ul><ul><li>How do you guard against the...
Aiming for an Evolutionary Advantage the Google way <ul><li>Lessons learned </li></ul><ul><li>How do you create a steady f...
Aiming for an Evolutionary Advantage the Google way <ul><li>Lessons learned </li></ul><ul><li>How do you accelerate the re...
New Principles <ul><li>Variety </li></ul><ul><ul><li>Experimentation beats planning </li></ul></ul><ul><ul><li>All mutatio...
Putting the Principles to Work <ul><li>Nominate a process and ask the following questions: </li></ul><ul><li>Who owns this...
Putting the Principles to Work <ul><li>Variety : How would you introduce a greater diversity of data, viewpoints, and opin...
Putting the Principles to Work <ul><li>Meaning : How would you use this process to help focus attention on the higher orde...
Challenges for Finding the Fringe <ul><li>How do you create an organization where everyone‘s voice gets heard and ideas co...
Lessons Learned <ul><li>To tackle a systemic problem, you need to understand it‘s deep roots. </li></ul><ul><li>It‘s easie...
<ul><li>Well folks…that‘s it! </li></ul><ul><li>All you‘ll have to do now is getting started! </li></ul>16 March 2008 © Ma...
Want more…? <ul><li>Visit  www.sevenprophets.com   for more resources on management innovation, strategic innovation and d...
Need help? Get in touch... <ul><li>Marc Sniukas </li></ul><ul><li>Senior Consultant  </li></ul><ul><li>  </li></ul><ul><li...
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  • what are the new challenges the future has in store for your company? What are the emerging discontinuities that will stretch management processes and practices to the breaking point? What‘s the „tomorrow problem“ that you need to start working on right now? what are the tough balancing acts your company never seems to get right? Is there a critical trade-offs where one side always seems to prevail at the expense of the other? What‘s frustrating „either/or“ you‘d like to turn into an „and“? what are the biggest gaps between rhetoric and reality in your company? What are the values it has the hardest time living up to, or finds most difficult to institutionalize? What‘s the espoused ideal you‘d like to turn into an embedded capability? what are you indignant about? What are the frustrating incompetencies that plague your company and the other organizations like it? What‘s the „can‘t do“ that needs to become a „can do“? 6. Mai 2010 © Marc Sniukas - www.sniukas.com
  • Serendipity = Glück, Zufall This slide needs further details. 6. Mai 2010 © Marc Sniukas - www.sniukas.com
  • The Future Of Management Hay

    1. 1. The Future of Management Based on „The Future of Management“ by Gary Hamel Harvard Business School Press 2007
    2. 2. <ul><li>What is management innovation ? </li></ul>16 March 2008 © Marc Sniukas
    3. 3. <ul><li>The Ultimate Advantage </li></ul>16 March 2008 © Marc Sniukas
    4. 4. <ul><li>„ Management innovation is anything that substantially alters the way in which the work of management is carried out, or significantly modifies customary organizational forms, and, by doing so, advances organizational goals.“ </li></ul><ul><li>Gary Hamel </li></ul>
    5. 5. <ul><li>Management Innovation changes the way managers do what they do,… </li></ul>16 March 2008 © Marc Sniukas
    6. 6. <ul><li>… and does so in a way that enhances organizational performance. </li></ul>16 March 2008 © Marc Sniukas
    7. 7. From Management Innovation to Competitive Advantage <ul><li>3 conditions , the innovation is… </li></ul><ul><li>a novel management principle , challenging some long-standing orthodoxy </li></ul><ul><li>systemic , encompassing a range of processes and methods </li></ul><ul><li>part of an ongoing program of rapid invention where progress compounds over time </li></ul>16 March 2008 © Marc Sniukas
    8. 8. <ul><li>„… management innovation follows a power law: for every truly radical idea that forever changes the practice of management there are dozens that are less valuable and less influential.“ </li></ul><ul><li>Gary Hamel </li></ul>
    9. 9. <ul><li>But that‘s no excuse not to innovate! </li></ul>
    10. 10. An Agenda for Management Innovation <ul><li>what are the new challenges the future has in store for your company? </li></ul><ul><li>what are the tough balancing acts your company never seems to get right? </li></ul><ul><li>what are the biggest gaps between rhetoric and reality in your company? </li></ul><ul><li>what are the frustrating incompetencies that plague your company? </li></ul>16 March 2008 © Marc Sniukas
    11. 11. <ul><li>Be Bold </li></ul>16 March 2008 © Marc Sniukas
    12. 12. Some inspiration <ul><li>Dramatically accelerating the pace of strategic renewal in organizations. </li></ul><ul><li>Making innovation everyone‘s everyday job. </li></ul><ul><li>Creating a highly engaging work environment that inspires employees to give the very best of themselves. </li></ul>16 March 2008 © Marc Sniukas
    13. 13. Building a Resilient Organization <ul><li>Challenges </li></ul><ul><li>Overcoming denial for the need of a strategic reboot </li></ul><ul><li>Developing a diverse portfolio of non-incremental strategic options </li></ul><ul><li>Achieving flexibility in resource allocation </li></ul>16 March 2008 © Marc Sniukas
    14. 14. Building a Resilient Organization <ul><li>Challenges </li></ul><ul><li>How do you ensure that discomforting information isn‘t ignored or simply „explained away“ as it moves up the hierachy? </li></ul><ul><li>How do you build a management process that continually generates hundreds of new strategic options? </li></ul><ul><li>How do you accelerate the redeployment of resources from legacy programs to future-focused initiatives? </li></ul>16 March 2008 © Marc Sniukas
    15. 15. Making Innovation Everyone‘s Job <ul><li>A few questions </li></ul><ul><li>How have you been equipped to be a business innovator? What training have you received? What tools have you been supplied with? </li></ul><ul><li>Do you have access to an innovation coach or mentor? Is there an innovation expert in your unit who will help you develop your breakout idea? </li></ul><ul><li>How easy is it for you to get access to experimental funding? How long would it take you to get a few thousand dollars in seed money? How many levels of bureaucracy would you have to go through? </li></ul><ul><li>Is innovation a formal part of your job description? Does your compensation depend in part on your innovation performance? </li></ul><ul><li>Do your company‘s management processes – budgeting, planning, staffing, compensation, etc. – and structures support your work as an innovator or hinder it? </li></ul>16 March 2008 © Marc Sniukas
    16. 16. Making Innovation Everyone‘s Job <ul><li>Barriers </li></ul><ul><li>Creative Appartheid </li></ul><ul><li>Old Mental Models </li></ul><ul><li>No Slack </li></ul>16 March 2008 © Marc Sniukas
    17. 17. Making Innovation Everyone‘s Job <ul><li>Challenges </li></ul><ul><li>How can you enroll everyone within your company in the work of innovation, and equip each one with creativity-boosting tools? </li></ul><ul><li>How can you ensure that top management‘s hallowed beliefs don‘t straitjacket innovation, and that heretical ideas are given the chance to prove their worth? </li></ul><ul><li>How can you create the time and space for grassroots innovation in an organization that is running flat out to deliver today‘s results? </li></ul>16 March 2008 © Marc Sniukas
    18. 18. Creating a Company Where Everyone Gives Their Best <ul><li>Barriers </li></ul><ul><li>Too much management, too little freedom </li></ul><ul><li>Too much hiearchy, too little community </li></ul><ul><li>Too much exhortation, too little purpose </li></ul>16 March 2008 © Marc Sniukas
    19. 19. Creating a Company Where Everyone Gives Their Best <ul><li>Challenges </li></ul><ul><li>How can you broaden the scope of employee freedom by managing less, without sacrificing focus, discipline, and order? </li></ul><ul><li>How can you create a company where the spirit of community, rather than the machinery of bureaucracy, binds people together? </li></ul><ul><li>How can you enlarge the sense of mission that people feel throughout your organization in a way that justifies extraordinary contribution? </li></ul>16 March 2008 © Marc Sniukas
    20. 20. Management Innovation in Action 16 March 2008 © Marc Sniukas
    21. 21. Creating a Community of Purpose <ul><li>the Whole Foods Market way </li></ul><ul><li>Freedom and Accountability </li></ul><ul><li>Trust </li></ul><ul><li>Equity </li></ul><ul><li>Purpose </li></ul>16 March 2008 © Marc Sniukas
    22. 22. Creating a Community of Purpose the Whole Foods Market way <ul><li>Lessons learned </li></ul><ul><li>Principles matter: unique management system based on a nexus of distinctive management principles: Love. Community. Autonomy. Egalitarism. Transparency. Mission. </li></ul><ul><li>The biggest obstacle to management innovation may be what you already believe about management: are management practices consistent with your principles? </li></ul><ul><li>Inspired management innovation can help to resolve intracable trade-offs </li></ul>16 March 2008 © Marc Sniukas
    23. 23. Creating a Community of Purpose the Whole Foods Market way <ul><li>Lessons learned </li></ul><ul><li>How do you empower people by managing less while retaining discipline and focus? </li></ul><ul><li>Give employees a large dose of discreation </li></ul><ul><li>provide them with the information they need to make wise decisions </li></ul><ul><li>hold them accountable for results </li></ul>16 March 2008 © Marc Sniukas
    24. 24. Creating a Community of Purpose the Whole Foods Market way <ul><li>Lessons learned </li></ul><ul><li>How do you create a company where the spirit of community binds people together? </li></ul><ul><li>Manage as if you really believe that the interests of stakeholders are interdependent </li></ul><ul><li>create a high degree of financial transparency </li></ul><ul><li>and limit compensation disparities. </li></ul>16 March 2008 © Marc Sniukas
    25. 25. Creating a Community of Purpose the Whole Foods Market way <ul><li>Lessons learned </li></ul><ul><li>How do you build an enlarged sense of purpose that merits extraordinary contributions? </li></ul><ul><li>Make the pursuit „Whole Foods, Whole People, Whole Planet“ as real and tangible to employees as the pursuit of profits. </li></ul>16 March 2008 © Marc Sniukas
    26. 26. Building an Innovation Democracy <ul><li>the W.L. Gore way </li></ul><ul><li>A lattice, not a hierachy </li></ul><ul><li>No bosses, but plenty of leaders </li></ul><ul><li>Sponsors instead of bosses </li></ul><ul><li>Free to experiment </li></ul><ul><li>Commitments, not assignments </li></ul><ul><li>Energizing and demanding </li></ul><ul><li>Big yet personal </li></ul><ul><li>Focused, but no core business </li></ul><ul><li>Tenacious, and risk averse </li></ul>16 March 2008 © Marc Sniukas
    27. 27. Building an Innovation Democracy the W.L. Gore way <ul><li>Lessons learned </li></ul><ul><li>Management innovation often redistributes power. </li></ul><ul><li>In the short run, the costs of management innovation may be more visible than the benefits </li></ul><ul><li>Don‘t be timid </li></ul>16 March 2008 © Marc Sniukas
    28. 28. Building an Innovation Democracy the W.L. Gore way <ul><li>Lessons learned </li></ul><ul><li>How do you enroll everyone in your company as an innovator? </li></ul><ul><li>Do away with hierachy </li></ul><ul><li>continually reinforce the belief that innovation can come from anyone </li></ul><ul><li>colocate employees with diverse skills to facilitate the creative process </li></ul>16 March 2008 © Marc Sniukas
    29. 29. Building an Innovation Democracy the W.L. Gore way <ul><li>Lessons learned </li></ul><ul><li>How do you make sure that management‘s hallowed beliefs don‘t strangle innovation? </li></ul><ul><li>Don‘t make „management“ approval a prerequisite for initiating new projects </li></ul><ul><li>minimize the influence of hierachy </li></ul><ul><li>use a peer-based process for allocating resources </li></ul>16 March 2008 © Marc Sniukas
    30. 30. Building an Innovation Democracy the W.L. Gore way <ul><li>Lessons learned </li></ul><ul><li>How do you create time and space for innovation when everyone‘s working flat out? </li></ul><ul><li>Carve out 10% of staff time for projects that would otherwise be „off budget“ or „out of scope“ </li></ul><ul><li>allow plenty of percolation time for new ideas </li></ul>16 March 2008 © Marc Sniukas
    31. 31. Aiming for an Evolutionary Advantage <ul><li>the Google way </li></ul><ul><li>a formula for innovation. 70-20-10 </li></ul><ul><li>a company that feels like grad school </li></ul><ul><li>the chance to change the world </li></ul><ul><li>a bozo-free zone </li></ul><ul><li>dramatically flat, radically decentralized </li></ul><ul><li>small, self-managing teams </li></ul><ul><li>the freedom to follow your nose </li></ul><ul><li>rapid, low-cost experimentation </li></ul><ul><li>differential rewards </li></ul><ul><li>a continous companywide conversation </li></ul><ul><li>an expansive business definition </li></ul>16 March 2008 © Marc Sniukas
    32. 32. Aiming for an Evolutionary Advantage the Google way <ul><li>Lessons learned </li></ul><ul><li>The internet itself may be the best metaphor for 21st-century management. </li></ul><ul><li>Experienced mangers may not make the best management innovators. </li></ul><ul><li>Management innovations that humanize work are irresistible. </li></ul>16 March 2008 © Marc Sniukas
    33. 33. Aiming for an Evolutionary Advantage the Google way <ul><li>Lessons learned </li></ul><ul><li>How do you guard against the dangers of hubris and denial? </li></ul><ul><li>Open up the strategy process – make sure it isn‘t dominated by the old guard </li></ul><ul><li>keep the hierachy flat – don‘t insulate top management from the views of front-line employees who are in the best position to see the future coming </li></ul><ul><li>encourage dissent. </li></ul>16 March 2008 © Marc Sniukas
    34. 34. Aiming for an Evolutionary Advantage the Google way <ul><li>Lessons learned </li></ul><ul><li>How do you create a steady flow of new strategic options? </li></ul><ul><li>Make it easy for folks to experiment with new ideas – the give them time and minimize the number of approval levels </li></ul><ul><li>build a „just try it“ culture – emphasize „test and learn“ instead of „plan and execute“ </li></ul><ul><li>create outsized rewards for individuals who up with game-changing ideas; don‘t truncate the business definition. </li></ul>16 March 2008 © Marc Sniukas
    35. 35. Aiming for an Evolutionary Advantage the Google way <ul><li>Lessons learned </li></ul><ul><li>How do you accelerate the reallocation of resources from legacy projects into new initiatives? </li></ul><ul><li>Encourage people to work on „out of scope“ projects – formalized with the 70-20-10 rule </li></ul><ul><li>give people the freedom to do market experiments so they can build a solid case for their ideas. </li></ul>16 March 2008 © Marc Sniukas
    36. 36. New Principles <ul><li>Variety </li></ul><ul><ul><li>Experimentation beats planning </li></ul></ul><ul><ul><li>All mutations are mistakes </li></ul></ul><ul><ul><li>Darwian selection doesn‘t need SVPs </li></ul></ul><ul><ul><li>The broader the gene pool, the better </li></ul></ul><ul><li>Flexibility </li></ul><ul><ul><li>Markets are more dynamic than hierachies </li></ul></ul><ul><ul><li>Build a market and the innovators will come </li></ul></ul><ul><ul><li>Operational efficiency ≠ strategic efficiency </li></ul></ul><ul><li>Activism </li></ul><ul><ul><li>Leaders are accountable to the governed </li></ul></ul><ul><ul><li>Everyone has a right to dissent </li></ul></ul><ul><ul><li>Leadership is distributed </li></ul></ul><ul><li>Meaning </li></ul><ul><ul><li>The mission matters </li></ul></ul><ul><ul><li>People change for what they care about </li></ul></ul><ul><li>Serendipity </li></ul><ul><ul><li>Diversity begets creativity </li></ul></ul><ul><ul><li>You can organize for serendipity </li></ul></ul><ul><ul><li>Pigeonholes are for pigeons, not for people </li></ul></ul>16 March 2008 © Marc Sniukas
    37. 37. Putting the Principles to Work <ul><li>Nominate a process and ask the following questions: </li></ul><ul><li>Who owns this process? Who has the power to change it? </li></ul><ul><li>What purpose does this process serve? What contribution is it supposed to make to business performance? </li></ul><ul><li>Who gets to participate in this proces? What voices get heard? </li></ul><ul><li>What are the inputs to this process? What data gets considered? </li></ul><ul><li>Whose opinions get weighted the most heavily? Who has final decision-making authority? </li></ul><ul><li>What decision tools get used? What kind of analysis gets done? </li></ul><ul><li>What are the criteria for decision making? How are decisions justified? </li></ul><ul><li>What events or milestones drive this process? Is it calendar-driven or real-time? </li></ul><ul><li>Who are the „customers“ of this process? What work does it most directly impact? </li></ul>16 March 2008 © Marc Sniukas
    38. 38. Putting the Principles to Work <ul><li>Variety : How would you introduce a greater diversity of data, viewpoints, and opinions into this process? How would you design the process so that it facilitates, rather than frustrates, the continual development of new strategic options and encourages relentless experimentation? </li></ul><ul><li>Flexibility : How would you redesign this process so that it exploits the wisdom of the market, rather than just the wisdom of the experts? How might this process be used to help speed up the reallocation of resources from legacy programs to new initiatives? How could we make it easier for innovators to get the resources they need to advance their ideas? </li></ul><ul><li>Activism : How would you change this process so that it encourages, rather than discourages, dissenting voices? How would you make this process more responsive to the needs and concerns of those working on the front lines? How do we give folks on the ground a bigger voice in shaping policy and strategy? </li></ul>16 March 2008 © Marc Sniukas
    39. 39. Putting the Principles to Work <ul><li>Meaning : How would you use this process to help focus attention on the higher order goals our company claims to serve (or should be serving)? How could this process help employees to identify and connect with the goals they care about personally? </li></ul><ul><li>Serendipity : How could this process be redesigned in a way that would help our company to become an even more exciting and vibrant place to work and a magnet for creative talent? How could this process be used to facilitate the collision of new ideas? </li></ul>16 March 2008 © Marc Sniukas
    40. 40. Challenges for Finding the Fringe <ul><li>How do you create an organization where everyone‘s voice gets heard and ideas compete solely on their merits? How do you build a democracy of ideas ? </li></ul><ul><li>How do you turn ordinary employees into extraordinary innovators? How do you amplify human imagination ? </li></ul><ul><li>How do you accelerate the redeployment of capital and talent? How do you dynamically reallocate resources ? </li></ul><ul><li>How do you ensure that decisions fully reflect the collective knowledge of the organization? How do you aggregate collective wisdom ? </li></ul><ul><li>How do you keep top management‘s out-of-date beliefs from impeding strategic renewal? How do you minimize the drag of the old mental models ? </li></ul><ul><li>How do you turn an army of conscriptts into a community of volunteers? How do you give everyone the chance to opt in ? </li></ul>16 March 2008 © Marc Sniukas
    41. 41. Lessons Learned <ul><li>To tackle a systemic problem, you need to understand it‘s deep roots. </li></ul><ul><li>It‘s easier to augment than supplant. </li></ul><ul><li>Commit to revolutionary goals, but take evolutionary steps. </li></ul><ul><li>Metrics are essential. </li></ul><ul><li>Keep at it. </li></ul><ul><li>Minimize your political risk. </li></ul><ul><li>Start with volunteers. </li></ul><ul><li>Make it a game. Keep it informal. </li></ul><ul><li>Run the new process in parallel with the old. </li></ul><ul><li>Iterate. </li></ul>16 March 2008 © Marc Sniukas
    42. 42. <ul><li>Well folks…that‘s it! </li></ul><ul><li>All you‘ll have to do now is getting started! </li></ul>16 March 2008 © Marc Sniukas
    43. 43. Want more…? <ul><li>Visit www.sevenprophets.com for more resources on management innovation, strategic innovation and download a complete guide to the theory and practice of strategic innovation, reinventing your business and creating new growth businesses. </li></ul><ul><li>To learn about Marc visit www.sniukas.com . </li></ul>16 March 2008 © Marc Sniukas
    44. 44. Need help? Get in touch... <ul><li>Marc Sniukas </li></ul><ul><li>Senior Consultant </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>Lainzer Strasse 80 </li></ul><ul><li>A-1130 Vienna, Austria </li></ul><ul><li>  </li></ul><ul><li>M +43 (0) 699 122 333 03 </li></ul><ul><li>T  +43 (0) 1 306 33 66 </li></ul><ul><li>F  +43 (0) 1 306 33 66 9 </li></ul><ul><li>  </li></ul><ul><li>[email_address] </li></ul><ul><li>www.doujak.eu </li></ul>16 March 2008 © Marc Sniukas
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