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OrganizationalPhilosophy<br />Key factor to maintainsuccess<br />Heikki Hirvonen<br />
WillHutton, The Observer: ModernCapitalism is at moraldeadend.. <br />Chiefexecutivesmaketoomuch money<br />47 timesavg. w...
ProfessorJeffreyPfeffer (Stanford)in Newsweek<br />American business practicesaregoing to the wrongdirections<br />Compani...
John Hagel III, John Brown, Lang Davison: AreallemployeesKnowledgeWorkers?<br />Executivesidentify the talent in theirfirm...
Jim Collins: How the mightfall: And WhySomeCompaniesNeverGive In<br />The fall of mostsuccesfulcompaniesstartsfrom the suc...
ResilientPhilosophy<br />WasedaUniversitylecturerNaoshiTakatsuhad a coursenamedcreatingvalue in business<br />Some main po...
Conclusion<br />I donotknow<br />the rightlevel of compensation for top executives<br />whenit is the rightdecision to fir...
Itsnotabout the What, itsabout the Why and How!<br />Thankyou!<br />
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Heikki Hirvonen: Organizational philosophy @ TEDx AaltoUniversityOnTracks

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Heikki Hirvonen: Organizational philosophy @ TEDx AaltoUniversityOnTracks

  1. 1. OrganizationalPhilosophy<br />Key factor to maintainsuccess<br />Heikki Hirvonen<br />
  2. 2. WillHutton, The Observer: ModernCapitalism is at moraldeadend.. <br />Chiefexecutivesmaketoomuch money<br />47 timesavg. workerpay in 2000, 81 times in 2010<br />And havelostsight of what’simportant<br />Ove Arup: excessivepersonalpaydivideratherthanunitecompanies – dividedorg. Collapse<br />John Lewis: Differences of rewardmustbelargeenough to encourage to perform, butpresentdifferencesaretoogreat (in 1957)<br />Arup, Lewis: Firmsaremoralenterprises, point of profitserves the business purpose of the firm<br />
  3. 3. ProfessorJeffreyPfeffer (Stanford)in Newsweek<br />American business practicesaregoing to the wrongdirections<br />Companiesweakenthemselvesbyfiringpeople as problemsolving<br />Workmoralegoesdown, harder to hire new people<br />After 9/11 americanairlinesfired a lot of people<br />ExceptSouthwest - no peoplefired in 40 years*<br />Nowbiggestairline in U.S. and doeswellunlikeothers<br />Employeeswellmotivated, strongcompanyspirit<br />* due to productivityorefficiencyreasons<br />
  4. 4. John Hagel III, John Brown, Lang Davison: AreallemployeesKnowledgeWorkers?<br />Executivesidentify the talent in theirfirm<br />Top tiers of management and knowledgeworkers<br />When the focus is in knowledgeworkers, the sight in rutinizedjobimprovization is lost<br />Fasttalent and performanceimprovementhasbeenmeasured in outsourcedjobs<br />Callcenters and manufacturing in India and China<br />Whenworkersarepart of firmsthatviewthem as core to createvalue, verycreatingproblemsolving<br />Japanese Auto manufacturersseeemployees as knowledgeworkers and problemsolvers<br />
  5. 5. Jim Collins: How the mightfall: And WhySomeCompaniesNeverGive In<br />The fall of mostsuccesfulcompaniesstartsfrom the success and escalates in fivesteps<br />Step 1: arrogance in top management<br />Step 2: trying to grow to areaswherethere’s no competenceand forgetting the core business <br />Step 3: badsignals, butcompanystilldoes OK<br />Top management blames the environment<br />Step 4: problemsarise- new management<br />changemanagerstry to find a ”silverbullet”<br />Step 5: Managers and employeeslosefate<br />Company is ruined<br />According to Collins, this is whathappened to GM<br />
  6. 6. ResilientPhilosophy<br />WasedaUniversitylecturerNaoshiTakatsuhad a coursenamedcreatingvalue in business<br />Some main pointsfrom the course<br />Onlycompanieswithresilientphilosphyprevail in the long run (Checkforture 500 from the 70’s)<br />Philosophyhas to behighergoalthanprofits<br />Philosophy and itspurposehas to beactivelystrengthened and communicated<br />Philosophywillunite the company, and keepit in the righttracks<br />
  7. 7. Conclusion<br />I donotknow<br />the rightlevel of compensation for top executives<br />whenit is the rightdecision to firepeople<br />whenclassification of employees is beneficial<br />How to recognize a downfall for a companyhasstarted<br />But I dobelieve<br />Thatorganizationhashugeproblemsifitsdivided<br />Thatbestresultsareachievedwheneverybody in the organization is trying to achieve a common goal<br />Thatthiscanbeachievedbystrongorganizationalphilosophy<br />And thatthisappliesalso to otherorganizationsthan just companies, i.e. Universities<br />
  8. 8. Itsnotabout the What, itsabout the Why and How!<br />Thankyou!<br />

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