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I. A. WORLD OF SPEED I.A.1. DID YOU KNOW? VIDEO http://www.youtube.com/watch?v=YmwwrGV_aiE I.A.2. NEED FOR BEING ABLE TO CHANGE FAST IS BECOMING MORE AND MORE IMPORTANT I.A.2.a) A MATTER OF SURVIVAL The Fortune 500 List magazine was first published in 1955. Today less than 4% of those original companies continue to exist. The average age of a Fortune 500 company is 17 years. I.A.2.b) CHANGE BY YOUR OWN BEFORE BEING FORCED TO… This information could be frightening when you consider the size of the companies listed in the Fortunes 500 magazine. But it means that despite the size, if a company does not adapt to the new environment, then it will disappear… it is just a matter of time. Yet change management is crucial to the survival and development of organizations, the more effectively you deal with change, the more likely you are to thrive. Organizational change itself is a considerably complex activity. I.A.2.c) …IN SPITE OF RISING UNCERTAINTIES “ Patil, 37, is now an expert in chaos theory, among other mathematical disciplines. He has applied computational science to help the Defence Department with threat assessment and bio weapons containment; he worked for eBay on web security and payment fraud; he was chief scientist at LinkedIn, before joining venture-capital firm Greylock Partners. But Patil first made a name for himself as a researcher on weather patterns at the University of Maryland: &quot;There are some times,&quot; Patil explains, &quot;when you can predict weather well for the next 15 days. Other times, you can only really forecast a couple of days. Sometimes you can't predict the next two hours.&quot; The business climate, it turns out, is a lot like the weather. And we've entered a next-two-hours era. The pace of change in our economy and our culture is accelerating--fuelled by global adoption of social, mobile, and other new technologies--and our visibility about the future is declining. From the rise of Facebook to the fall of Blockbuster, from the downgrading of U.S. government debt to the resurgence of Brazil, predicting what will happen next has gotten exponentially harder. Uncertainty has taken hold in boardrooms and cubicles, as executives and workers (employed and unemployed) struggle with core questions: Which competitive advantages have staying power? What skills matter most? How can you weigh risk and opportunity when the fundamentals of your business may change overnight? ” For more than a decade, organisational environments have experienced radical changes. As a result of greater competition in the global marketplace the majority of organisations have greatly streamlined their operations (Collis and Montgomery, 1995). Every moment presents a diverse set of challenges and obstacles: laws and regulations are evolving, the economy is altering, and, most importantly, no one is aware of what problems or obstacles will arise. Furthermore, organisations can also perform well or poorly due to external forces, such as interest rates and taxation. To remain competitive in such an environment, a organisation needs to get the most out of its assets, especially the human assets. I.A.3. CHANGES HAVE BEEN ACCELERATED BY NEW TECHNOLOGIES AND GLOBALIZATION I.A.3.a) THE WORLD…IS A VILLAGE… GOOD OR BAD? WHATEVER… THAT’S THE REALITY… Globalization with new technologies has shrunk the World into a village. Globalization is the process by which markets integrate worldwide. Over the past 60 years, it has accelerated steadily as new technologies and management expertise have reduced transportation and transaction costs and as tariffs and other man-made barriers to international trade have been lowered. The impact has been stunning. More and more developing countries have been experiencing sustained growth rates of 7-10 percent; 13 countries, including China, have grown by more than 7 percent per year for 25 years or more. Although this was unclear at the outset, the world now finds itself just past the midpoint in a century-long process in which income levels in developing countries have been converging toward those in developed countries. Now, the emerging economies' impact on the global economy and the advanced economies is rising rapidly. I.A.3.b) …INTERNET IS A WINDOW SHOPPING CENTRE… Look at the global cell-phone business. Just a few years ago, three companies controlled 64% of the smartphone market: Nokia, Research in Motion, and Motorola. Today, two different companies are at the top of the industry: Samsung and Apple. This sudden complete swap in the pecking order of a global multibillion-dollar industry is unprecedented. Consider the meteoric rise of Groupon and Zynga, the disruption in advertising and publishing, the advent of mobile ultrasound and other &quot;mHealth&quot; breakthroughs (see &quot;Open Your Mouth And Say 'Aah!'). Online-education efforts are eroding our assumptions about what schooling looks like. Cars are becoming rolling, talking, cloud-connected media hubs. I.A.3.c) …SOCIAL MEDIAS… A WORLDWIDE SPEAKER… In an age where Twitter and other social-media tools play key roles in recasting the political map in the Mideast; where impoverished residents of refugee camps would rather go without food than without their cell phones; where all types of media, from music to TV to movies, are being remade, redefined, defended, and attacked every day in novel ways--there is no question that we are in a new world. I.A.3.d) WHAT ARE THE CONSEQUENCES OF THESE CHANGES? …MANAGEMENT HAS TO CHANGE TOO… The combination of new technology and social media has an impact on how to manage companies and hence employees/clients. Due to the globalization and the new technologies, people/employees/employers evolve at a very high pace. New technologies bring the speed/acceleration of the information. Social media bring a different way of working together. The world is becoming more cooperative (but still very individual and selfish). Social Medias magnify any movements in the company good or bad that tend to add complexity in the way to manage changes. Any business that ignores these transformations does so at its own peril. Despite recession, currency crises, and tremors of financial instability, the pace of disruption is roaring ahead. The frictionless spread of information and the expansion of personal, corporate, and global networks have plenty of room to run. And here's the conundrum: When businesspeople search for the right forecast--the road map and model that will define the next era--no credible long-term picture emerges. There is one certainty, however. The next decade or two will be defined more by fluidity than by any new, settled paradigm; if there is a pattern to all this, it is that there is no pattern. The most valuable insight is that we are, in a critical sense, in a time of chaos. I.A.4. TAKE MORE OFTEN DECISIONS AT THE TOP & IMPLEMENT THEM FASTER A key role of a CEO's is to communicate a vision and to guide strategic planning. Those who have successfully implemented strategic plans have often reported that involving teams at all levels in strategic planning helps to build a shared vision, and increases each individual's motivation to see plans succeed. I.A.4.a) THE NEED FOR SPEED HAS CREATED NEW DUTIES FROM CEO’S & TOP MANAGEMENT Clarity and consistent communication, from mapping desired outcomes to designing performance measures, seem to be essential to success. Successful leaders have often engaged their teams by simply telling the story of their shared vision, and publicly celebrating large and small wins, such as the achievement of milestones. To ensure that the vision is shared, teams need to know that they can test the theory, voice opinions, challenge premises, and suggest alternatives without fear of reprimand. I.A.4.b) THE NEED FOR SPEED REQUIRES NEW WAY OF MANAGING The high speed of changes in today’s world can’t be done by the use of authority only. There are too many changes to coop with to have only one way to manage. Implementing strategic plans may require leaders who lead through inspiration and coaching rather than command and control. Recognizing and rewarding success, inspiring, and modelling behaviours is more likely to result in true commitment than use of authority, which can lead to passive resistance and hidden rebellion .