Slides of "Reinventing Management" seminar by Prof. Dr. Aung Tun Thet, in the 2nd Anniversary of Myanmar B2B Management Magazine, organized by Hub Myanmar Company Limited, in 13-14 September, 2014 at National Theatre of Yangon, Myanmar.
2. Management
• Invented to solve two problems
1. Getting semiskilled employees to perform
repetitive activities competently, diligently,
and efficiently
2. Coordinating efforts to enabled complex
goods and services to be produced in large
quantities
• Efficiency
• Scale
5. Shifts
1. Firm’s goal shift to delighting clients
2. Role of manager shift from controller to
enabler
3. Mode of coordination shifts from
hierarchical bureaucracy to dynamic linking
4. Shift from value to values
5. Communications shift from command to
conversation
6. Five Shifts
• Not new
• Pursued on its own, without others
• Interdependent
• Undertaken simultaneously
• Sustainable change
7. Five Shifts
• Productive
• Innovation
• Satisfying those doing work and those
for whom work done
8. Five Shifts
• Productive
• Innovation
• Satisfying those doing work and those
for whom work done
10. Shift # 1
• Shift in balance of power from seller to
buyer – customer in command
• From ‘inside-out’ perspective (“We
make it and you take it.”)
• To ‘outside-in’ perspective (“We seek
to understand your problems and will
surprise you by solving them.”)
11. Shift # 1
• Beyond paying more attention to customer
service
• Orienting everyone and everything on
providing more value
• “There is only one valid definition of business
purpose:
• to create a customer. . . .
• The customer is the foundation of a business
and keeps it in existence.”
12. Shift # 1
• Customer willing to buy goods and
services both today and tomorrow
• Not transaction
• Forging relationship - customer more
than passively satisfied
13. Shift # 1
• Delight customer
• Deliver happiness (Delivering
Happiness) or joy (Peak)
• Do more than meet customer
expectations
• Generate continuous stream of new
value to clients
14. Shift # 1
• Meeting needs customers not even
know that they had
• Fundamental transformation in power
structure of marketplace
• From shareholder capitalism to
customer capitalism
15. Shift # 1
• From making money for shareholders
• To client primacy
• Making money result of delighting
customer,
• Not goal
16. Shift # 1
• Principle of obliquity: indirect goal
(delighting clients) more apt to make
money than direct focus on money-making
• Continuously generating more value
for customers operational goal of
everyone
17. Shift # 1
• Apple - iPod, iMac and iPad - delighted
customers and increased market
capitalization
• Customize product to specific needs
18. Shift # 2 New role for managers: From
controller to enabler
20. Traditional Bureaucracy
• Not designed for innovation or
delighting clients
• Designed to produce consistent
performance from largely non-skilled
workers
• Undermined key ingredient of
productivity: worker morale
21. New level of Performance
• Empower
• Facilitate
• Collaboration
• Rapid learning
• Innovation
22. Role of Manager
• From controller to enabler
• Not workers reporting to managers
• Managers accountable to those doing
work
• Removing impediments hindering
work
23. Reversal of Polarity
• Engine of productivity, innovation and
creativity resides in energy and ideas
of people doing work
• Working together across boundaries
• Drawing on new technology
• Enabling talent unlocks passion and
energy
25. 20th Century
• Distinction between leaders
(articulated goals and inspired
change), and
• Managers (who got things done)
26. 21st Century
• Distinction dissolves
• Managers-Leaders
• Articulate goals
• Inspire change
• Remove impediments
• Workers - those doing work - get
things done
27. New Role of Mangers
• Learning and collaboration
• Open platforms
• Get access, attract resources and
create networks of self-organizing
teams
28. New Role of Mangers
• Autonomy
• Intrinsic motivation
• Distributed, democratic, self-managing
• Empowerment
29. Shift # 3 New coordination: From Bureaucracy to
Dynamic Linkage
30. Shift # 3
• Bureaucracy inherently demotivating
• Not good for innovation
• Not agile to delight clients, cope with
social media or adjust to changes in
marketplace
31. Shift # 3
• “Dynamic linking”
• Work done in short cycles
• Management sets goals which delight
client
32. Shift # 3
• Decisions about how work carried out
responsibility of those doing work
• Progress measured by direct client
feedback
33. Shift # 3
• Setting things up in short, consecutive
waves of effort
• Foster deep, trust-based relationships
among participants
• Learn, innovate and perform better
and faster
34. Shift # 3
• Not specify activities in detail
• Specify what they want to come out
• Providing space for participants to
experiment, improvise and innovate
36. Shift # 4
• Traditional organization preoccupied
with value, rather than values
• Encouraged firms to cut costs
• Profits made at expense of customers
37. Shift # 4
• ‘Values’ different from ‘Value’
• Deep backward- and forward-looking
quality
• Providing more value to customers
• Delighting client and motivating
autonomous teams
46. Alignment
• Five shifts not new
• Putting all five shifts into operation at
once
47. Alignment
• Cannot achieve customer delight
through bureaucracy
• Cannot harness creativity of
autonomous teams without focus on
customer delight
48. Alignment
• Cannot embrace customer delight and
autonomous teams, without dynamic linkage
• Cannot embraces customer delight,
autonomous teams, and dynamic linkage
without focus on values rather than value
• Communicates values and goals through
conversations not commands
49. Five simultaneous shifts
• Strenuous
• Significant benefits
• High productivity and continuous innovation
• Disciplined execution
• Deep job satisfaction and client delight
50. Five simultaneous shifts
• Gains accomplished by transition from a
focus on things to focus on people
• People-centered goal
• People-centered role for managers
• People-centered coordination mechanism
• People-centered values
• People-centered communication