The Future For Management & Leadership

The Future for Management & Leadership A Personal View

David Broadhead MA DMS BSc FCMI Managing Director – Partners in Management Ltd Ambassador – Chartered Management Institute

For discussion 

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the current economic crisis represents a failure of management, emanating from the consultancy-led, analytical, targetdriven mentalities that have developed over the last 20+ years. why is this and what does the future hold for management and leadership? 2

Structure  

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where are we now? where have we been and how have we got here? where are we going next and why?

Facts

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47% of workers have left due to bad management 49% would take a pay cut if they could work for a better manager 50% believe they can do a better job than their manager 68% are „accidental‟ not „aspirational‟ managers 40% don't want to manage people 63% had no management training

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Only 28% had a formal management qualification

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CMI UK Workforce Survey – 10 Nov 2009

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Man-made or natural economic disaster? 

the last 15 years have been a period of „managerial abundance‟ for both private and public sectors in terms of     

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growth opportunities new technologies alternative cheaper suppliers global labour supply and the means to pay for it - availability of cheap unregulated finance and creative accounting - PFI!

however, the current world economic crisis has „burst‟ that bubble and if anything can be attributed to a „failure of management and leadership‟ at all sectors and levels of society 5

Potential reasons          

an obsession with short-term returns and solutions acquisitive and aggressive growth – not organic the setting (often externally) and management to targets increasing centralisation of power the belief in one form of „best-practice‟ and „me2‟ organisations the accumulation of debt and long-term commitments lack of accountability and moral responsibility failure to challenge and debate the onerous growth of limiting legislation and compliance belief in „efficiency‟ before „effectiveness‟

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Underlying issues 

Social changes        

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material benefits from globalisation & 2nd world integration lessons of history not learnt – no more boom and bust! X factor mentality reliance on non-understood technology and organisations Reagan/Thatcher - Blair/Bush effect – (rise of individualism) hedonism is good lack of personal responsibility – (MP‟s? broke no rules....) everyone now exercising rights without responsibility

Education 

management & leadership seen as a science and not an art

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Legacy of heroic managers 

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The self-fulfilling belief that the elitist MBA guarantees success and wealth has led to the rise of the „heroic‟ manager! (Mintzberg – 2003) We now have to live with the consequences of this in both public and private sectors..… Rules for being a heroic leader

Look out – not in

Be dramatic

Focus on the present

Favour outsiders over insiders

Assess insiders by numbers

Reorganise constantly

Be a risk taker

Deliver, cash in and run! 8

Let‟s accept differences Management

Leadership

Creating an agenda

Planning and budgeting

Establishing direction

Developing people

Organising and staffing

Aligning people

Execution

Controlling and problem solving

Motivating and inspiring

Outcomes

Produces key results

Produces useful change

Efficient

Effective 9

Historical perspective? 

Early developments 

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based predominantly on military strategy and leadership through the Egyptian, Greek, Roman and British Empires notion of born leaders principles of command and control – lasted until……..

Scientific management theory 

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formulated by Taylor, Gantt and the Gilbreths, that sought to determine scientifically the best methods for performing any task, and for selecting, training and motivating workers timescale between 1885 and 1920‟s but still common classic example is Henry Ford and the Model T, but covers all forms of mass-production these organisations became hugely complex

Next developments 

Organisation theory school 

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pioneered by Weber, Follett and Barnard to identify the principles and skills that underlie effective management and relate more to complex organisations the concepts of the organisation as a mechanical and bureaucratic institution were developed scholars trained in sociology, psychology and related fields, used their diverse knowledge to propose more effective ways to manage people in organisations  Hawthorn effect - workers who receive special attention will perform better simply because they received attention  Maslow - hierarchy of motivational needs  McGregor - theory X and theory Y

Post-war approaches 

Management science school 

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operational research approached management problems via the use of mathematical and logical techniques, for their modeling, analysis and solution enhanced by the availability of computing facilities collapsed in the 70‟s with the oil crises was focused primarily upon numbers and structures so missed out on people issues

Contingency 

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the management technique that best contributes to the attainment of organisational goals which technique is best in a particular situation, under particular circumstances and at a particular time

70‟s onwards 

Systems approach  

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all systems have inputs > transformation > outputs influences come from the external environment but feedback is needed to improve the system use of models and theoretical planning tools the rise of the consultants, strategists and marketers

Dynamic engagement 

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the view that time and human relationships are forcing management to rethink traditional approaches in the face of constant, rapid change managers are the chief stumbling block when implementing change managers need to be prepared for change and to recognise the benefits - not purely the threats

Issues of dynamic engagement 

New organisational environments 

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Ethics and social responsibility 

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complex organisational environments, limited promotional opportunities and radically altered work patterns focus on competitive strategies and core competencies values, culture and commitment to excellence of both key individuals and organisations awareness and involvement of stakeholders

Globalisation – role of politicians? 

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concept of “world cars” and global financial trading are typical examples facilitated by technology tri-polar or bi-polar markets? think globally but market locally

Further issues 

Inventing and reinventing organisations 

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Cultures and multiculturalism 

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reengineering corporations and processes as championed by Tom Peters, Hammer & Champy why do we do something - not how can we do it better perspectives, contributions, values and challenges of different cultural backgrounds growing awareness of individual cultural traditions and minority groups.

Quality  

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influences of TQM and business excellence models impact of W. Edwards Deming and others Kaizen philosophy customer expectations and rights

The Trap? 

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the „social‟ experiment of negative liberty through the promotion of mutual suspicion and self-interest cold-war gaming theories moved into a mathematical economical society model the destruction of purpose and meaning politicians give us what we want all about targets and figures!!!

The future – Sociocapitalism? 

The next decade will provide new challenges to all of our organisations from;   

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protectionism environmental needs political instability terrorism and threat to security lack of available investment and working-capital finance loss of purpose and direction

But also tremendous opportunities provided by;    

de-globalisation de-centralisation localisation, and growth in personal and social responsibility and direction

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Challenges of information age  

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don‟t manage using 1st & 2nd wave principles the “knowledge based worker and organisation” concept knowledge resides at the bottom – the specialists? need for specialists who organise themselves teamwork and synchronisation the key – Google Wave? how to create a unified vision fewer managers and levels of management how to devise an appropriate management structure how to develop rewards, recognition and career opportunities for specialists the development of top management people output and bottom line are not real measures of performance and growth results exist only on the outside of an organisation

Future managerial needs 

To survive and prosper in this new world scenario, we will need managers that can: 

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embrace the Information Age - quickly understand themselves and others and act collaboratively understand their market‟s real needs – including the public sector (only one colour – black) determine appropriate „new‟ solutions and methods to achieve them evaluate realistically the risk and potential outcomes of alternatives lead and manage the innovation process through obtaining and maximising all resources available to them develop themselves and those around them acting within a new emerging moral framework challenge the existing „status-quo‟ of concepts, targets, analysis and methods

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A manager‟s journey – issues? 1.

The conformist implementer 

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The independent experimenter 

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Controlled by outsiders by rules, procedures, analysis, consultants or correct behaviour

Moves away from doing the approved thing and finds out what is true, right and correct

The autonomous agent 

About changing the world

Future managerial ideal? 

Manager as G.P.     

identify symptoms diagnose the disease decide upon treatment initiate the treatment monitor the treatment Charles Handy - (1993)

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Model of managing Knowing Doing

PERSONAL DEVELOPMENT

Being 22

“we need learning managers, not just learned ones”

CMI – A Better Managed Britain 

Manifesto   

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Government Employers Managers

Accredited courses Ambassador Programme Chartered Manager 23

The End www.partnersinmanagement.co.uk www.managers.org.uk