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LKCE’19 HAMBURG - NOVEMBER 6, 2019
Yves Morieux
Bringing Managers Back to Work
Creating value in an age of increased complexity
1
Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved.
Two trends led to this work
We analyzed the root causes of each trend and found a common driver — removing it results in
simultaneous increase in productivity and engagement
Source: Y. Morieux (2011), "Smart Rules: Six Ways to Get People to Solve Problems Without You", Harvard Business Review, volume 89, n°9, September: pp 78–86
The productivity crisis
despite technological
innovation, e.g. ICTs
The engagement crisis
despite "people initiatives"
across the board
2
Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved.Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved.
Common driver: organizations respond to the new business
complexity by becoming more complicated
Increasing
external complexity ....
• Multiple and often
contradictory performance
requirements to satisfy e.g.
speed and reliability
• Increasing amount of
regulations
• New competition
• Increasing customer
expectations
• New technologies
• Shorter product life cycles
• Traditional and new
globalization
... results in dramatic increase
of internal complicatedness
1955
35x
increase
1982 2010
Complexity index
Complicatedness index
6x
increase
... addressed to
maintain control ...
• Cumbersome structures
• Lengthy and unproductive
processes
• Overbearing KPIs
• Numerous coordination bodies
• Spreading bureaucracy
• Multiple systems
• …
Smart
simplicity
Real problem is not Complexity but Complicatedness: hinders agility, innovation and productivity while
disengaging people at work. Is there a smarter way to manage business complexity?
Source: Y. Morieux (2011), "Smart Rules: Six Ways to Get People to Solve Problems Without You", Harvard Business Review, volume 89, n°9, September: pp 78–86
Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved.
3
Competitive advantage:
Managing complexity
without getting
complicated
Beyond the skeleton (structure, org
chart, boxes…)
need
the right nervous system
(ways of working & behaviors)
Source: Y. Morieux (2011), ‘Management: a Sociological Perspective’. In: From Taylor to Today: The Multimedia
Encyclopedia of Organization Theory, Erhard Friedberg (coord.), Research & Organization
++
Cooperation
+
Engagement
+
+
Leadership
Managerial
value-added
Value -adding
execution
Each one’s behavior
increases the
effectiveness of others
Smart Simplicity
Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved.
4
The right way to
improve productivity
and performance
always increases
satisfaction work
Symmetrically…
The right way to
increase satisfaction
at work always
improves
productivity and
performance
Illustration of economic and organizational
effect
Over-consumption of resources
• Time (speed to market),
equipment, systems,
unrewarded product
complexity, inventories,
stock, working capital, rework,
teams, committees, extra
pressure on the individual …
Freeing resources for
value-adding activities
• Rather than using them to
compensate for deficient
cooperation
Source: Y. Morieux (2011), “Management: a Sociological Perspective.” In: From Taylor to Today: The Multimedia
Encyclopedia of Organization Theory, Erhard Friedberg (coord.), Research & Organization.
Resources
Cooperation
5
Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved.Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved.
How to change?
Interventions on the context makes change faster, deeper, safer and sustainable
Source: Y. Morieux (2011), “Resistance to Change or Error in Change Strategy?” In: From Taylor to Today: The Multimedia Encyclopedia of Organization Theory, Erhard Friedberg
(coord.), Research & Organization
Typical, yet ineffective approach Effective approach
“To change what people do, change their mindsets, feelings
and values”
“Desired behaviors spontaneously happen when you
adequately change the context. Then mindsets, values and
culture will follow”
Mindsets,
feelings, values
Context
Behaviors
Levers
for
change
Context
Behaviors
Levers
for
change
Mindsets,
feelings, values
Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved.
6
The six principles provide
guidelines to tackle the root-
causes in order to create
the optimal context
• They are based on the state
of the art in social and
behavioral sciences
First three principles are
about enhancing autonomy,
next three are about making
sure autonomy is put in the
service of cooperation and
the common good of the
company (instead of one's
silo only)
The spirit of "Agile" is a
specific application of some
of these principles
• Daily stand-ups,
retrospectives: #1
• Product owner: #2
• Sprints, Prototype vs.
Waterfall: #4
• Co-located X-functional
teams: #5
Smart Rules to change the context
Managing complexity without getting complicated
Source: Y. Morieux, P. Tollman (2014), Six Simple Rules: How to Manage Complexity without Getting Complicated, Boston:
Harvard Business review Press
Understand what your people
really do
• Build true understanding of
their work
• Understand why people do
what they do
• Re-cognize work
Reinforce integrators
• Removing some rules
• Refusing escalation
• Delayering
Increase total quantity of
power
• Give all actors enough cards to
play a more collective game
• Create new power bases—a
positive-sum game, not a zero-
sum game
Expand the shadow of the
future
• Bring the future closer by
adjusting duration, frequency
of feedback loops, inversion
Increase reciprocity
• Set rich objectives: collective
output, individual input,
overlapping objective
• Remove the '2nd TVs', i.e. the
resources that fuel
dysfunctional self-sufficiency
• Eliminate internal monopolies
Reward those who cooperate
• Make those who don’t
cooperate bear the cost
• "Blame is not for failure – it is
for failing to help or ask for
help"
7
Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved.Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved.
TED Talks videos by Yves Morieux,
creator of Smart Simplicity®, director of
the BCG Institute for Organization
Select publications on Smart Simplicity
To know more about Smart Simplicity®
Battle-tested across industries and geographies (150+ BCG projects)
“As work gets more complex, six rules to simplify”
“How too many rules at work keep you from getting
things done”
• Top 10 TED talks 2014
• http://www.ted.com/talks/yves_morieux_as_work_gets
_more_complex_6_rules_to_simplify?
language=en
• https://www.ted.com/talks/yves_morieux_how_too_m
any_rules_at_work_keep_you_from_getting_things_done
5M+ views
Y. Morieux’s spotlight
article on Managing
Complexity “Smart Rules”
The Economist's interview
with Y. Morieux on the
new organization
Y. Morieux and P. Tollman’s
book on “Six Simple
Rules”, Harvard Business
Review Press

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LKCE19 Keynote Yves Morieux - Bringing Managers Back to Work

  • 1. LKCE’19 HAMBURG - NOVEMBER 6, 2019 Yves Morieux Bringing Managers Back to Work Creating value in an age of increased complexity
  • 2. 1 Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved. Two trends led to this work We analyzed the root causes of each trend and found a common driver — removing it results in simultaneous increase in productivity and engagement Source: Y. Morieux (2011), "Smart Rules: Six Ways to Get People to Solve Problems Without You", Harvard Business Review, volume 89, n°9, September: pp 78–86 The productivity crisis despite technological innovation, e.g. ICTs The engagement crisis despite "people initiatives" across the board
  • 3. 2 Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved.Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved. Common driver: organizations respond to the new business complexity by becoming more complicated Increasing external complexity .... • Multiple and often contradictory performance requirements to satisfy e.g. speed and reliability • Increasing amount of regulations • New competition • Increasing customer expectations • New technologies • Shorter product life cycles • Traditional and new globalization ... results in dramatic increase of internal complicatedness 1955 35x increase 1982 2010 Complexity index Complicatedness index 6x increase ... addressed to maintain control ... • Cumbersome structures • Lengthy and unproductive processes • Overbearing KPIs • Numerous coordination bodies • Spreading bureaucracy • Multiple systems • … Smart simplicity Real problem is not Complexity but Complicatedness: hinders agility, innovation and productivity while disengaging people at work. Is there a smarter way to manage business complexity? Source: Y. Morieux (2011), "Smart Rules: Six Ways to Get People to Solve Problems Without You", Harvard Business Review, volume 89, n°9, September: pp 78–86
  • 4. Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved. 3 Competitive advantage: Managing complexity without getting complicated Beyond the skeleton (structure, org chart, boxes…) need the right nervous system (ways of working & behaviors) Source: Y. Morieux (2011), ‘Management: a Sociological Perspective’. In: From Taylor to Today: The Multimedia Encyclopedia of Organization Theory, Erhard Friedberg (coord.), Research & Organization ++ Cooperation + Engagement + + Leadership Managerial value-added Value -adding execution Each one’s behavior increases the effectiveness of others Smart Simplicity
  • 5. Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved. 4 The right way to improve productivity and performance always increases satisfaction work Symmetrically… The right way to increase satisfaction at work always improves productivity and performance Illustration of economic and organizational effect Over-consumption of resources • Time (speed to market), equipment, systems, unrewarded product complexity, inventories, stock, working capital, rework, teams, committees, extra pressure on the individual … Freeing resources for value-adding activities • Rather than using them to compensate for deficient cooperation Source: Y. Morieux (2011), “Management: a Sociological Perspective.” In: From Taylor to Today: The Multimedia Encyclopedia of Organization Theory, Erhard Friedberg (coord.), Research & Organization. Resources Cooperation
  • 6. 5 Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved.Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved. How to change? Interventions on the context makes change faster, deeper, safer and sustainable Source: Y. Morieux (2011), “Resistance to Change or Error in Change Strategy?” In: From Taylor to Today: The Multimedia Encyclopedia of Organization Theory, Erhard Friedberg (coord.), Research & Organization Typical, yet ineffective approach Effective approach “To change what people do, change their mindsets, feelings and values” “Desired behaviors spontaneously happen when you adequately change the context. Then mindsets, values and culture will follow” Mindsets, feelings, values Context Behaviors Levers for change Context Behaviors Levers for change Mindsets, feelings, values
  • 7. Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved. 6 The six principles provide guidelines to tackle the root- causes in order to create the optimal context • They are based on the state of the art in social and behavioral sciences First three principles are about enhancing autonomy, next three are about making sure autonomy is put in the service of cooperation and the common good of the company (instead of one's silo only) The spirit of "Agile" is a specific application of some of these principles • Daily stand-ups, retrospectives: #1 • Product owner: #2 • Sprints, Prototype vs. Waterfall: #4 • Co-located X-functional teams: #5 Smart Rules to change the context Managing complexity without getting complicated Source: Y. Morieux, P. Tollman (2014), Six Simple Rules: How to Manage Complexity without Getting Complicated, Boston: Harvard Business review Press Understand what your people really do • Build true understanding of their work • Understand why people do what they do • Re-cognize work Reinforce integrators • Removing some rules • Refusing escalation • Delayering Increase total quantity of power • Give all actors enough cards to play a more collective game • Create new power bases—a positive-sum game, not a zero- sum game Expand the shadow of the future • Bring the future closer by adjusting duration, frequency of feedback loops, inversion Increase reciprocity • Set rich objectives: collective output, individual input, overlapping objective • Remove the '2nd TVs', i.e. the resources that fuel dysfunctional self-sufficiency • Eliminate internal monopolies Reward those who cooperate • Make those who don’t cooperate bear the cost • "Blame is not for failure – it is for failing to help or ask for help"
  • 8. 7 Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved.Copyright©2018byTheBostonConsultingGroup,Inc.Allrightsreserved. TED Talks videos by Yves Morieux, creator of Smart Simplicity®, director of the BCG Institute for Organization Select publications on Smart Simplicity To know more about Smart Simplicity® Battle-tested across industries and geographies (150+ BCG projects) “As work gets more complex, six rules to simplify” “How too many rules at work keep you from getting things done” • Top 10 TED talks 2014 • http://www.ted.com/talks/yves_morieux_as_work_gets _more_complex_6_rules_to_simplify? language=en • https://www.ted.com/talks/yves_morieux_how_too_m any_rules_at_work_keep_you_from_getting_things_done 5M+ views Y. Morieux’s spotlight article on Managing Complexity “Smart Rules” The Economist's interview with Y. Morieux on the new organization Y. Morieux and P. Tollman’s book on “Six Simple Rules”, Harvard Business Review Press