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8 Attributes of Management Excellence

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In their book In Search of Excellence, McKinsey consultants Tom Peters and Robert Waterman found 8 common themes which they argued were responsible for the success of 14 identified companies of "excellence." The framework is known as the 8 Attributes of Management Excellence. The research and theorizing of this framework was based on the McKinsey 7-S Model, also authored by Peters and Waterman.

The 8 attributes are:
1. A Bias for Action
2. Close to the Customer
3. Autonomy and Entrepreneurship
4. Productivity through People
5. Hands-on, Value-driven
6. Stick to the Knitting
7. Simple Form, Lean Staff
8. Simultaneous Loose-Tight Properties

In an interview, Peters later also added a 9th attribute: Capabilities Concerning Ideas, Liberation, and Speed.

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Publié dans : Business
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8 Attributes of Management Excellence

  1. 1. This is an exclusive document to the FlevyPro community - http://flevy.com/pro Framework Primer 8 Attributes of Management Excellence Presentation created by A Bias for Action Close to the Customer Autonomy and Entrepreneur -ship Productivity through People Hands-on, Value- driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties
  2. 2. 2This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Contents 9th Attribute of Management Excellence 8 Attributes of Management Excellence McKinsey 7-S Strategy Model Overview The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/8-attributes-of-management-excellence-2472
  3. 3. 3This document is an exclusive document available to FlevyPro members - http://flevy.com/pro The 8 Attributes of Management Excellence identifies 8 common themes that are responsible for the success of a company Presentation Overview In their book In Search of Excellence, McKinsey consultants Tom Peters and Robert Waterman found 8 common themes which they argued were responsible for the success of 14 identified companies of "excellence." The framework is known as the 8 Attributes of Management Excellence. The research and theorizing of this framework was based on the McKinsey 7-S Model, also authored by Peters and Waterman. The 8 attributes are: • A Bias for Action • Close to the Customer • Autonomy and Entrepreneurship • Productivity through People In an interview, Peters later also added a 9th attribute: Capabilities Concerning Ideas, Liberation, and Speed. Hands-on, Value-driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties4 3 2 1 8 7 6 5 The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/8-attributes-of-management-excellence-2472
  4. 4. 4This document is an exclusive document available to FlevyPro members - http://flevy.com/pro This is a high level overview to the McKinsey 7-S Model McKinsey 7-S Strategy Model The McKinsey 7-S Model is a business framework used to evaluate organizational effectiveness. The basic premise of the model is that there are seven internal, interrelated aspects of an organization that need to be aligned for the organization to be successful. This framework can be used to understand our organization and leverage it to maximize efficiency and profitability. It can also be used in situations where an alignment perspective is useful. The scope of these situations doesn’t matter—for instance, it can be applied to elements of a project or of a team. Structure Systems Style Staff Skills Strategy Shared Values For more on the McKinsey 7-S Strategy Model on organizational effectiveness, take a look here: http://flevy.com/browse/business-document/mckinsey-7-s-strategy-model-197 The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/8-attributes-of-management-excellence-2472
  5. 5. 5This document is an exclusive document available to FlevyPro members - http://flevy.com/pro This is a visualization of the 8 Attributes of Management Excellence 8 Attributes of Management Excellence A Bias for Action Close to the Customer Autonomy and Entrepreneur -ship Productivity through People Hands-on, Value-driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity through People 5. Hands-on, Value-driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous loose-tight Properties The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/8-attributes-of-management-excellence-2472
  6. 6. 6This document is an exclusive document available to FlevyPro members - http://flevy.com/pro First, let’s explain attributes 1) Bias for Action and 2) Close to the Customer Attributes of Management Excellence – Attributes 1 and 2 A Bias for Action Close to the Customer Autonomy and Entrepreneur- ship Productivity through People Hands-on, Value-driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties A BIAS FOR ACTION • This characterizes a company that can get things done—one that adopts a “ready, shoot, aim” philosophy • There is no paralysis by analysis • There are lots of small, experimental trials; learn from the inevitable mistakes, and try again; if we fail, we fail fast • Strong focus on communication • This attribute increases knowledge, interests, and commitments CLOSE TO THE CUSTOMER • Customers “intrude” in every nook and cranny of the company, are highly valued, and are often considered partners or stakeholders • There is an obsession with quality, reliability, and customer service—the focus is on improving customer satisfaction • Customer is truly King, not a “necessary evil” 1 2The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/8-attributes-of-management-excellence-2472
  7. 7. 7This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Now, let’s look at 3) Autonomy and Entrepreneurship; and 2) Productivity through People Attributes of Management Excellence – Attributes 3 and 4 A Bias for Action Close to the Customer Autonomy and Entrepreneur- ship Productivity through People Hands-on, Value-driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties AUTONOMY AND ENTREPRENEURSHIP • Primary responsibility for innovation is pushed to the front lines • Risk taking, innovation, “bootlegging,” and “championing” are encouraged • Employees are not penalized when things go wrong—failure is tolerated • Successful product or program champions rise quickly up the ranks PRODUCTIVITY THROUGH PEOPLE • The ideas and actions of the frontline workforce, customers, and suppliers are the main source of productivity gains • We are enthusiastic and respectful toward others—treat all employees as adults, as partners, with dignity, and show respect • Provide job security and safety • Broadly share gains from productivity improvement 3 4 The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/8-attributes-of-management-excellence-2472
  8. 8. 8This document is an exclusive document available to FlevyPro members - http://flevy.com/pro The next 2 attributes are 5) Hands-on, Value-Driven; and 6) Stick to the Knitting Attributes of Management Excellence – Attributes 5 and 6 A Bias for Action Close to the Customer Autonomy and Entrepreneur- ship Productivity through People Hands-on, Value-driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties STICK TO THE KNITTING • Companies should stick with what they know best • The excellent companies expanded and diversified primarily internally, one small, manageable step at a time • Contain risks and get out if not working • Robert Wood Johnson, founder of Johnson & Johnson, said “Never get into businesses you don’t know thoroughly or know how to run.” HANDS-ON, VALUE-DRIVEN • This attribute embodies company philosophy and values • Two common key values were 1) striving to be the best and 2) delivering superior quality and service • We should be clear on what our company stands for and takes the process of shaping values seriously • Leaders are positive role models—there are highly visible and close to the frontlines 6 5The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/8-attributes-of-management-excellence-2472
  9. 9. 9This document is an exclusive document available to FlevyPro members - http://flevy.com/pro The 7th attribute is Simple Form, Lean Staff; and the 8th, Simultaneous Loose-Tight Properties, is actually a summary of the other 7 Attributes of Management Excellence – Attributes 7 and 8 A Bias for Action Close to the Customer Autonomy and Entrepreneur- ship Productivity through People Hands-on, Value-driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties SIMPLE FORM, LEAN STAFF • There is a simple organizational structure • It is a “flat organization”—one employee, one boss—there is minimal top-level staffing • People know who they report to • Organization realignments are rare • Responsibility for results, along with commensurate authority and resources, is pushed far down the line 7 SIMULTANEOUS LOOSE-TIGHT PROPERTIES • This last attribute is a summary of the other 7 • There is tight financial and strategic control, but decentralized authority • The key values of the organization (Quality, Service, Ethics, and so on) are articulated and known—all employees are charged with tightly adhering to them, but are given leeway as to how the daily business is performed • There are opportunities for creativity 8 The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/8-attributes-of-management-excellence-2472
  10. 10. 10This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Organizations go through 5 stages of maturity in Six Sigma adoption and development Attributes of Management Excellence – Attribute 9 + Capabilities Concerning Ideas, Liberation, and Speed A Bias for Action Close to the Customer Autonomy and Entrepreneur -ship Productivity through People Hands-on, Value- driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties • Peters said in a 2001 interview that were he to write In Search of Excellence today, he would not tamper with any of the eight themes, but he would add to them: Capabilities Concerning Ideas, Liberation, and Speed • Simply put, this 9th attribute is saying not to micro-manage people and try to control their actions too much 9 The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/8-attributes-of-management-excellence-2472
  11. 11. 11This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Here is our framework visualization with all 9 attributes—we kept Simultaneous Loose-Tight Properties in the central position 9 Attributes of Management Excellence Close to the Customer Autonomy and Entrepreneur -ship Productivity through People Hands-on, Value-driven Stick to the Knitting Simple Form, Lean Staff Capabilities Concerning Ideas, Liberation, and Speed A Bias for Action Simultaneous Loose-Tight Properties 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity through People 5. Hands-on, Value-driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous loose-tight Properties 9. Capabilities Concerning Ideas, Liberation, and Speed The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/8-attributes-of-management-excellence-2472
  12. 12. 12This document is an exclusive document available to FlevyPro members - http://flevy.com/pro This presentation was created by PPT Lab. PPT Lab is a PowerPoint design firm specializing in consulting-quality presentations. View our available presentations on Flevy here: https://flevy.com/seller/PPTLab The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/8-attributes-of-management-excellence-2472
  13. 13. 13This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/8-attributes-of-management-excellence-2472
  14. 14. 1 Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com

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