speech at 3rd controlling conference poznan 2009

1. Management 2.0 Cooperation for sustainable development of companies 23.06.2009 1 ® Friedag 2009

3. Workshops on Balanced Scorecard

4. Head of the PR committee at ICV (ICA)

5. Visiting lecturer at Humboldt University in BerlinHobbies: Outdoor activities, Volleyball, Bicycle tours, Sailing Dr. Herwig R. Friedag Friedag Consult Beskidenstr. 33, D 14129 Berlin Fon +49 30 80 40 40 00 Fax +49 30 80 40 40 01 consult @ friedag.com www.friedag.com 23.06.2009 2 ® Friedag 2009

6. Friedag / Schmidt / Schwerk SS 2009 3 2004 2003 2001 1999, 2000, 2002 2002, 2003, 2005 2005 Publications 2009 2000, 2002, 2004 Total number of copies: >70.000 in CZ, GER, FIN, POL, RUS

7. Management 2.0 Cooperation for a sustainable „successful“ businessactivity Definition of Management 2.0 Aspects of Management 2.0 Don´t worry, be happy – Go the “Management 2.0“ way 23.06.2009 4 ® Friedag 2009 Cooperation for sustainable development of companies

8. Management 2.0 Cooperation for a sustainable „successful“ businessactivity Definition of Management 2.0 Aspects of Management 2.0 Don´t worry, be happy – Go the “Management 2.0“ way 23.06.2009 5 ® Friedag 2009 Cooperation for sustainable development of companies

9. How can a controller makethemanager happy? Markets and companiesalwaysexperienceups and - as just now - downs 23.06.2009 6 ® Friedag 2009 Definition of Management 2.0 DAX- / Dow Jones-development in 2008/2009 ?

10. How can a controller makethemanager happy? For managers the ups and downs are a big challenge. Wouldn‘t managers be happier if they could be more relaxed about it in future? Tell your manager about Management 2.0: don´tworry, be happy: 23.06.2009 7 ® Friedag 2009 Definition of Management 2.0 Management 2.0: hasthe potential tomakemanagershappier

12. employees

13. production-partners

16. Difficult times offer good chances: It doesn‘t matter what the current environment is. What is more important is whether we are better than our competitors: Serve remaining customer needs faster and with better service Build closer relationship to customers and suppliers Set tied capital free over the whole supply chain 23.06.2009 10 ® Friedag 2009 Definition of Management 2.0 Sustainable development of companies Tobebetter, youshouldworkwith Management 2.0: Cooperation

17. Web-Generations Web 1.0 1.5 2.0 Orientation Technology Advertising Community Users Experts Commerce all Focus Organisation Click-rates Interaction Effect Rationalisation Information Socialisation Approach Centralisation Quantification Qualification Source: Smoke&Mirrors, Agency for Online-Communication Web 2.0: Users themselves create, edit and distribute contents. Contents are not anymore centralised by big media enterprises but compiled by a multitude of users und distributed through Internet. In addition they get linked with each other by means of social software(Wikipedia) 23.06.2009 11 ® Friedag 2009 Definition of Management 2.0 What is Management 2.0?

20. 23.06.2009 14 ® Friedag 2009 Coming together is a beginning, Keeping together is progress, Working together is success. ___________________ Henry Ford

21. Management 2.0 Cooperation for a sustainable „successful“ business activity Definition of Management 2.0 Aspects of Management 2.0 Don´t worry, be happy – Go the “Management 2.0“ way 23.06.2009 15 ® Friedag 2009 Cooperation for sustainable development of companies

22. Aspects of Management 2.0 Goals – shared view for the journey together Organisation – balance of stakeholders interests Values – internal and external appreciation Structures – scope for changes (redundancy) Culture– competition and mistakes to get better Responsibility– results orientation of all Communication – open communication 23.06.2009 16 ® Friedag 2009

26. In b2c-business on the other hand usually only the employees in Sales have customer contact – most managers have little practical experience with customers23.06.2009 18 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication

28. All relevant stakeholders are considered

29. Lessons for the management: Value orientation und creativity gain in importance

30. Lateral thinker have different views

31. Learn from the past, think of the future

32. Strategies are not for ever - review and revise annually the strategic assumptions- if necessary the strategy must be revised during the year23.06.2009 19 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication

33. Aspects of Management 2.0 Goals – shared view for the journey together Organisation – balance of stakeholders interests Values – internal and external appreciation Structures – scope for changes (redundancy) Culture– competition and mistakes to get better Responsibility– results orientation of all Communication – open communication 23.06.2009 20 ® Friedag 2009

36. How can we develop a spirit of cooperation in the company?23.06.2009 22 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication

38. How can we develop a spirit of cooperation in the company?

39. Internal markets for resources, talents and ideas- identify and employ hidden talents

40. Do we sell our customersproducts or benefits?

41. Internal performance- agreementsareinstrumentforcooperativeteamwork23.06.2009 23 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication

43. Wie schaffen wir im Unternehmen ein Klima für Kooperation ?

44. Interne Märkte für Ressourcen, Talente und Ideen- verborgene Talente erkennen und nutzen

45. Interne Leistungsvereinbarungen als Instrument kooperativer Zusammenarbeit

46. Verkaufen wir dem Kunden ein Produkt oder einen Nutzen?

47. Do we compare us with our competitors?23.06.2009 24 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication

48. Aspects of Management 2.0 Goals – shared view for the journey together Organisation – balance of stakeholders interests Values – internal and external appreciation Structures – scope for changes (redundancy) Culture – competition and mistakes to get better Responsibility– results orientation of all Communication – open communication 23.06.2009 25 ® Friedag 2009

50. Less control by the managers and open culture of all- everybody looks after results in his team- mistakes are seen as opportunity to learn23.06.2009 26 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication

52. No control by the managers but open culture of all- everybody looks after results in his team- mistakes are seen as opportunity to learn

53. Justifiedtrustismoreefficientandcost-savingthaneverydaylifewithcontrolmechanisms

54. Appreciation is the base – external and internal

55. Price is the measure of the customer appreciation of the seller, that means that all employees must make efforts to win customer appreciation

56. Appreciation, both external and internal, is the basis for cooperative teamwork

57. Continual work on establishing a shared value structure is time consuming, but is feasible 23.06.2009 27 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication

59. investor interests are not only for a quarter

60. for managers and also employeesperennial, longtermprogrammes, basedon cash flow

61. Why not to offer incentive systems to customers and suppliers as well?23.06.2009 28 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication

63. Aspects of Management 2.0 Goals – shared view for the journey together Organisation – balance of stakeholders interests Values – internal and external appreciation Structures–scope for changes (redundancy) Culture– competition and mistakes to get better Responsibility– results orientation of all Communication – open communication 23.06.2009 30 ® Friedag 2009

65. Small independent entities are more flexible than bigger ones –modern companies are fast, flexible and creative

66. The management coordinate/moderate co-operation of local entities

67. Networks overcome boundaries- Involvement of customers and suppliers- Promotion of in-house networks

68. Compromises have many winners23.06.2009 31 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication

69. Aspects of Management 2.0 Goals – shared view for the journey together Organisation – balance of stakeholders interests Values – internal and external appreciation Structures – scope for changes (redundancy) Culture– competition and mistakes to get better Responsibility– results orientation of all Communication – open communication 23.06.2009 32 ® Friedag 2009

71. Diversity, contradiction and variety move the company forward - limited views do not live up to the reality

72. Mistakes should be seen and used as part of the learning process – do not accuse those who have made and admitted mistakes

73. Do we work with the right ratios?- every innovation can be calculated- good managers take responsibility for innovation23.06.2009 33 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication

74. Aspects of Management 2.0 Goals– shared view for the journey together Organisation – balance of stakeholders interests Values – internal and external appreciation Structures –scope for changes (redundancy) Cultur e– competition and mistakes to get better Responsibility – results orientation of all Communication – open communication 23.06.2009 34 ® Friedag 2009

77. Every employee should be given enough time to work out and give recommendations for better and customer-oriented activities

78. Encourage and support passion and commitment of those who want to work for the future of the company - the boss knows and sees a lot but not everything- many bosses see and know more

79. we waste many hidden potentials23.06.2009 36 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication

80. Aspects of Management 2.0 Goals – shared view for the journey together Organisation – balance of stakeholders interests Values – internal and external appreciation Structures – scope for changes (redundancy) Culture– competition and mistakes to get better Responsibilities – results orienations of all Communication – open communication 23.06.2009 37 ® Friedag 2009

82. Effective cooperation requires openness and trust23.06.2009 38 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication

84. Effective cooperation requires openness and trust

85. Speak the language of the employees - it doesn‘t matter what you say, but what and how that is understood by the people- involve all stakeholders

86. Use the knowledge of the whole organisation- only few know what kind of knowledge is available in the company!- and how much was already invested in the knowledge of the company23.06.2009 39 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication Check also: Gary Hamel et.al. „moonshots for management“, http://blogs.harvardbusiness.org/hamel/

87. Management 2.0 Cooperation for a sustainable „successful“ business activity Definition of Management 2.0 Aspects of Management 2.0 Don´t worry, be happy – Go the “Management 2.0“ way 23.06.2009 40 ® Friedag 2009 Cooperation for sustainable development of companies

88. Goals – shared view for the journey together Does your business model answer the following questions: Why should the customer still buy our product in 3 years? Do all employees know and understand (!) the strategic goals of the company? Does every employee know how he/she can contribute to the achievement of those goals? 23.06.2009 41 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication

89. Involve customers and employees in the process of setting goals Name the uniqueness of your products Does your product deserve itsprice or does it offer the customer - value? 23.06.2009 42 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication Organisation– balance of stakeholders interests

90. Is your travel cost arrangement 10 pages or only one? Do not budget every pencil! Internal month- or quarter reports should be on one page and every report should be recipient-oriented 23.06.2009 43 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication Values– internal and external appreciation

91. You should manage not more than 7 people directly Engage customers and suppliers in developments and make them partners 23.06.2009 44 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication Structures – adapted to the changes

92. Every supervisor is responsible that at least one process improvement is suggested per every employee per quarter Mistakes are communicated with the aim that others learn from them Managers should reserve one day a week for strategy 23.06.2009 45 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication Culture – competition and mistakes to get better

93. Look after that every employee accepts responsibility for results Make competency possible and give authority for taking decisions 23.06.2009 46 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication Responsibility – results orientation of all

94. You as a manager do try to talk to each employee personally once a week, once a month at his workplace Every team should announce its goals and the current results 23.06.2009 47 ® Friedag 2009 Goals – Organisation – Values – Structures – Culture – Responsibility - Communication Communication – open communication

95. 23.06.2009 48 ® Friedag 2009 Management 2.0 Can you imagine that your boss will sleep better with Management 2.0? If so: make the boss happy! Management 2.0: Cooperation for success Coming together is a beginning, Keeping together is progress, Working together is success. ___________________ Henry Ford

96. With Management 2.0 you will secure commitment - Manager, Controller and all other stakeholders have better chances to overcome the next crisis andto be happier … 23.06.2009 49 ® Friedag 2009 Management 2.0: Goals – Organisation – Values – Structures– Culture – Responsibility - Communication Be part of it! Management 2.0: with cooperation to the success

97. 23.06.2009 50 ® Friedag 2009 Management 2.0: Goals – Organisation – Values – Structures– Culture – Responsibility - Communication dziękujębardzoHvala Management 2.0