- Posted by J. Nirdosh Reddy
- On September 25, 2016
- Management Ideas
Are these business realities keeping you up at night?
- Higher costs and lower profits
- Constant Firefighting
- Quality issues, and recurring problems
- Conflicts between departments
- Low employee morale
- Inability to sustain gains
Root Causes – Inadequate Accountability
The bulk of the root causes for the above scenario lie in the systems and processes of your enterprise, not your employees. Inadequate accountability and role clarity, commonly found in conventional task-driven management approaches, contribute to finger-pointing and blaming people resulting in low morale, under-utilization of resources and lower profits.
The Emerging Style of Management – A Comparison
High performance enterprises of today have adopted an emerging style of management – a holistic approach, dismantling silos, working together and managing processes – that differs from the conventional style of management.
The Conventional Style of Management
- Inward Focused
- Compartmentalization / Silos
- Reductionist Thinking / Taylorism
- Divide and Control
- Task Driven / Manage People
The Emerging Style of Management
- Customer Focus
- Holistic Approach / No Silos
- Integration / Systems Approach
- Unite and Inspire / Teamwork
- Manage Processess Through People
These management concepts are rooted in Dr. Deming’s “14 obligations of management” that spawned the thought revolution of TQC, TQM, PI, BPI, BPR, BPM, Kaizen, Lean, 6-sigma, etc. These methods are spreading worldwide because of their effectiveness.
Good Leaders vs. Great Leaders
Good leaders manage people; however, great leaders manage processes through people.
Alan Mulally, a firm advocate of the emerging style of management, transformed the work culture of Ford Motor Company, and the enterprise is thriving. It is the only major American automotive company that did not declare bankruptcy during the Great Recession of 2008. His famous quote is “Working together works”.
Louis Gerstner reshaped IBM and turned around its fortunes. He asserted in his book ‘Who says elephants can’t dance?’ that organization’s culture was the most important component of his strategy for turning around IBM. Process-based thinking is rooted in the new culture.
The Role of the CEO / Business Head
We live in a world that is becoming increasingly competitive. It has been proven that the emerging style of management offers a competitive edge over the conventional style. A CEO or a Business Head can transform the work culture of their enterprises to the emerging style and thus improve and sustain profitability and excellence by following the steps listed below.
1. Change the mindset of the leadership team to:
- Holistic thinking – optimize the entire enterprise, not departments
- Constancy of purpose for improvement of systems and processes
2. Adopt the 6 guiding principles of business management:
- Salaries are paid by satisfied customers
- Results come from processes
- Continually improve processes
- Manage with facts, not opinions
- Management must establish priorities
- Involve everyone through teamwork
3. Institute process-based management practices; more specifically:
- Define organizational processes and identify internal customers
- Establish a system to review processes regularly
- Adopt process-based annual planning
- Nurture a continual improvement methodology
- Revamp performance appraisal to reward teamwork and process management
Drive the Change Process
One person, at the right place (at or near the top), can make a difference. Institute regular reviews – keep in mind that what gets reviewed gets done (daily activities of employees will change if you do this). Institute process-based management practices and make working together a way of life. Instill a passion for excellence for your products and services and for customer satisfaction.
Difficulties faced during the transformation process
Typical difficulties faced during the transformation include: changing habits – we are creatures of habit – but it is possible to let go of the normal tendency to manage people; and staying the course of the changes we begin.
Our 25 years’ experience has shown that with proper guidance and the use of proper methodologies, such as APRS, Anaar’s process documentation system, that these difficulties can be overcome.
Creating a new business reality
By properly implementing the above strategy, you improve and sustain profitability, improve customer satisfaction and create a new business reality for your enterprise that fosters:
- Pride in workmanship
- Better employee morale
- Increased respect for people
- A culture of listening
- Reduced defensiveness
- Increased teamwork
Your enterprise becomes an exciting place to work, not merely a place to earn a salary!
More on the guiding principles of business management in my future posts.
What do you think? I’d love to hear from you.
- A Process-centric Tool ForSustaining ISO and Improving Profitability - January 6, 2019
- Culture, Competitiveness and Untapped Potential - December 13, 2018
- Transform Work Culture to Sustain Excellence and Profitability - October 18, 2018