0. Changing the Role of Top Management (Beyond Structure to Processes)

1. Summary
The hierarchical organization based on the strategy-structure-systems doctrine of
management no longer delivers competitive results. While a top-down structure of
corporate divisions gives managers tight control and allows companies to grow, it also
fragments resources and creates a vertical organization that prevents small units from
sharing their strengths with one another. Structural fixes, such as skunk works, alliances,
and acquisitions, have not solved the problem. Based on a study of 20 companies with
vanguard management styles, the authors predict a managerial revolution that will focus
on horizontal processes rather than vertical structures. The job of management will be to
promote three core organizational processes: frontline entrepreneurship, competence
building, and renewal

2. Classical doctrine of Top Management
Three core responsibilities
- To be the chief strategist
- Structural architect
- developer and manager of information and control system
But,
Today’s hierarchical structure no longer delivers competitive results.
Large companies were becoming increasingly inflexible, slow to
innovate, and resistant to change.

3. Portfolio of Dynamic Process
Managers have begun to notice horizontal process matter (Reengineering)
- Not top-down
- Separating organizational units
- Integrating functionally separated tasks into unified horizontal work process
- Organizing in some fu fundamentally different ways, not hierarchy of static
roles

4. Core Organization Process Entrepreneurial Process Competence-Building
Renewal
The externally oriented, opportunity seeking attitude that motivates employees to run their operations as if they owned them
Exploiting big-company’s advantage in scale economics and depth and breath of employee’s talents and knowledge
Challenging conventional wisdom, overturning existing knowledge base, and reconfiguring the source of date

5. Entrepreneurial Process
Encouraging bottom-up ideas and initiatives
Our employees are our most important assets
Not controlling behaviors maximizing the risk of individual idiosyncrasies
Top managers should hold in high regard individual employee’s capabilities and have to
persuade the organization that they do
Self-discipline
- Establishing internal discipline and setting performance standards
- Reduce reliance on formal control systems and increase self-discipline
- A clear set of company-wide expectations and management practices
Ex) Respect for the individual is an unquestioned article of faith

6. Competency-Building Process
Ability to develop scarce skills, knowledge, and other resources
Not controlling or allocating, but creating an environment that allows to develop and diffuse
deep within the organization
Entrust the operation units with the challenge of creating the competencies
Access powerful information Network – giving front-line managers access to information
throughout the organization, ex) Value-Added Network on Kao Corporation in Japan
Creating a sense of community exceeding personal interests and particular responsibilities
Sharing organization's ambitions and values, which will be a stronger incentive and
allowing to contribute
Educational institution – everyone is both teacher and student
Creating mutual dependence and reciprocity in the organizational environments

7. The Renewal Process
Ecdysis – Biological process in which certain animals shed their shells to take on new forms
Having the organization continuously questioning the past for renewing ourselves
Designing to challenge a company’s strategy
Top managers should take a role, disturbing the organizational equilibrium
Supplementing traditional call for compliance with another voice that challenges
their organizations to stretch beyond the predictable goals set by long-range plans
The goal is to encouraging employees to see themselves and
the organization for future possibilities
Organizational process – top management has a direct role to play because someone
must resolve the healthy conflicts and challenges that are cultivated within an organization

8. Discussion 귀사 에서는 Core Organization Process 를 실천하고 있습니까?
3개의 Process 중에 어떤 Process 가 제일 중요하다고 생각하십니까?
귀사에서는 위 Processes 를 실천하는데 제일 큰 장애요소는
어떤 것입니까?