1.
REINVENTING MANAGEMENT
Prof.Dr.Aung Tun Thet

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

3.
Management
• Solution
• Bureaucracy
• Hierarchical structure
• Cascading goals
• Precise role definitions
• Elaborate rules and procedures

4.
Five Fundamental and Interdependent
Shifts in Management Practice

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

9.
Shift #1 Goal: From inside-out to outside in

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

19.
EMPLOYEES FIRST
Customer Second

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

24.
Managers
• Inspire
• Motivate
• Encourage
• Collaboration
• Workplace meaningful

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

35.
Shift # 4 From Value to Values

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

38.
Shift # 4
• Radical transparency
• Continuous improvement
• Trust
• Honesty
• Caring for environment
• Openness to outside ideas

39.
Shift # 5 Communication: From Command to
Conversation

40.
Shift # 5
• Three elementary social relationships:
1. Social norms
2. Authority
3. Market pricing

41.
Management Challenges
• Elicit energies, imagination, and
creativity of workers
• Communicate predominantly through
language of social norms

42.
Social Norms
• Front and center at all times
• Warmth

43.
21st Century
• Shift in communication from command
to conversation
• Adult-to-adult interactions
• Human being to human being

44.
21st Century
• Using stories, metaphors and open-ended
questions
• Authentic storytelling

45.
Bottom Line: Alignment

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

51.
21st Century
• Not about things
• But about people