This document summarizes a presentation given by Franz Röösli on January 25th, 2013 at the Stoos Connect event. The presentation discusses shifting from a traditional management paradigm of exploiting resources to a new paradigm of unfolding human potential. Some of the key findings highlighted include that striving for excellence is innate to human nature, motivating people externally is ineffective, and the purpose of companies is to serve society. The presentation advocates transforming management models from centralized hierarchies to decentralized networks through cultural change and paradigm shifts around leadership, goals, and processes.

1. STOOS CONNECT
JANUARY 25TH 2013
From Exploitation of Resources
to Unfolding Human
Potential
FRANZ RÖÖSLI
Franz Röösli / BBRT January 25th 2013 Slide 1

2. Stoos Communique
… that organizations can become
learning networks of individuals
creating value and that the role of
leaders should include the
stewardship of the living rather
than the management of the
machine.
Franz Röösli / BBRT January 25th 2013 Slide 2

3. Some Findings about Human Nature
BEHAVIOURAL SCIENCE ECONOMICS
Striving for excellence is Human nature assumptions
based on the hereditary of classical economics have
disposition of humankind. to be revisited.
Irenäus Eibl Eibesfeldt Ernst Fehr
NEUROBIOLOGY ANTHROPOLOGY
To motivate people from The core of humankind is
outside is braintechnical cooperative.
nonsense. Michael Tomasello
Gerald Hüther
Based on: Hans A. Wührich, The Universität der Bundeswehr München
Franz Röösli / BBRT January 25th 2013 Slide 3

4. Purpose of a Company
Profit maximization is meaningless
and even dangerous because it
elevates profitability to a myth.
The purpose of a company lies
outside of itself, it lies in the society,
because a company is an organ of
the society.
Peter Drucker
Franz Röösli / BBRT January 25th 2013 Slide 4

5. Roots of today’s prevailing
Management Model
Important assumptions
(F. W. Taylor, Scientific Management 1911):
•Separation of planning from doing
CENTRALIZED •Work is based on detailed and precise instructions
HIERARCHY •Division of labour / excessive use of specialisation
•Monetary incentives
Target Important assumptions
(J. O. McKinsey, Budgetary Control, 1922):
Budgetary Control, as an axiom of the
FIXED Fixed
Performance present day philosophy of business administration, is
PROCESSES Contract urgently needed for two purposes:
=
Budget 1. As a basis for centralized executive
control
Control 2. As a means of coordinating the activities
of the various functional departments.
Source: BBRT
Franz Röösli / BBRT January 25th 2013 Slide 5

6. Transforming a Management Model
means Paradigm Shift
“Centralized hierarchy” “Decentralized network”
Leadership / Organisation
Decentralisation of
Decisions (6 Principles)
Paradigm Shift towards:
Self-Organization
and Servant Leadership
TRANSFORMATION
“‘Fixed’ process”
IS A CULTURAL JOURNEY “Adaptive process”
Adaptive Management-
Target Self-adjusting,
Processes (6 Principles) relative Goals
Management-Processes
Paradigm Shift towards: Relative
Goals and Adaptive Processes
Fixed
Performance-
Contract Adaptive
Processes
Control
Franz Röösli / BBRT January 25th 2013 Slide 6

7. From Exploitation of Resources
to Unfolding Human
Potential New Paradigm
Traditional Paradigm New Paradigm
(non-living asset management;
(non-living asset management; (stewardship of the living; unfolding
(stewardship of the living; unfolding
exploitation of resources)
exploitation of resources) human potential)
human potential)
•
• Money making machines
Money making machines •
• Sustainable living systems
Sustainable living systems
•
• Centralized hierarchies
Centralized hierarchies •
• Decentralized networks
Decentralized networks
•
• ‘Hero’ leaders
‘Hero’ leaders •
• ‘Servant’ leaders
‘Servant’ leaders
•
• Command and control
Command and control •
• Freedom to act
Freedom to act
•
• Employees as costs
Employees as costs •
• Employees as value creators
Employees as value creators
•
• Centrally driven initiatives
Centrally driven initiatives •
• Continuous improvement
Continuous improvement
•
• High gearing
High gearing •
• Strong balance sheets
Strong balance sheets
•
• Low credit ratings
Low credit ratings •
• High credit ratings
High credit ratings
•
• Short life expectancy
Short life expectancy •
• Long life expectancy
Long life expectancy
•
• Roller coaster performance
Roller coaster performance •
• Sustained high performance
Sustained high performance
Based on: Joseph H. Bragdon (2006) ‘Profit for Life: How capitalism excels’
Franz Röösli / BBRT January 25th 2013 Slide 7

8. JOINT FORCES
ENCOURAGEMENT
INSPIRATION
MUTUAL SUPPORT
Let's Stoos be a movement of
movements for a dialogue to facilitate a
TIPPING POINT
Franz Röösli / BBRT January 25th 2013 Slide 8