New Commodity We are in an information society. we are out of the industrial society. Before things were a commodity of value, today information is the value. Today the most influential person is the disgruntled worker.
People Now Educated / informed from media Less formal
Information Age Rapid Change Networked Process Using Technology Expectations of Excellence
Customized Services Global Competition Fiscal Constraints
Cutting Red Tape A Shift from a system in which people are accountable for following the rules to a system in which they are accountable for achieving results
Putting Employees First Listen carefully to their employees using surveys and focus groups Use incentives that drive their employees to put customers first
Empowering Employees- for Results Empowering front line workers to make more of their own decisions and solve more of their own problems. Embrace labor management cooperation, provide training and other tools for employees for Humanizing the workplace.
Defining Purpose Industrial Find it in statutes, rules, and policies. Authority-based Do things right. Information Find it in mission, vision, strategy, and values Customer-based Do the Right things
What Matters Industrial Adherence to rule and procedure Supervision, audits,hearings,gr ievances Information Results that customers value Self-directed work teams.
Work is organized toward Industrial Interests of the organization are paramount. Quality is defined by experts. Information Interests of customers and employee are paramount. Quality defined by customers /experts / employee
How it is controlled Industrial Control is focused on inputs. At the top and through the chain of command. Compliance is focused on enforcement. Information Control is focused on results customers value. Through customer /employee chain of value Motivating people to comply
Conditions Employees Industrial Assume people will screw up: build system of controls to prevent them from doing so. Formal hierarchy is important; focus on your job,specialization Information Assume people will perform; empower them to succeed. Flexibility important: focus on big picture
The Catalytic Manager Traditional: Authority Based Information Age: Separate policy decisions (steering) from service delivery (rowing).
Employee Centered n Traditional:Manager does all / employees become depended on manager, no control n Information: Employee Based, advisory groups, surveys, Self-directed work teams.
Mission-Driven Business Traditional: Make money follow rules. Information:Turns employees free to pursue the business mission with the most effective methods they can find.
Result-oriented Traditional: Focus on inputs, ignores pays little attention to outcomes Information: Focus on outcomes, dedication factor
Customer-Driven Traditional :Pay does not come from customer satisfaction, one size fits all. No complaints your ok. Information:Changes rules to help the needs of the customer and employee. Focus is on customer satisfaction.
Anticipatory Traditional: Write employee up in order to solving problems. Information: Spends time and energy and training in order to prevent worker dissatisfaction.
Decentralized Traditional: Hierarchy top down. Informational: Participation and Teamwork Example: TQM, Quality Circles, Labor Management Committees, Employee Development Programs, Attitude Surveys
Here’s How n Create a clear sense of mission. n Steer more, row less. n Delegate authority and responsibility. n Replace regulations with incentives.
Here’s How n Develop pay based on outcomes. n Measure our success by customer satisfaction and income.
Survey of employees: n 68% “it is important to believe that their work was appreciated by others.” n 63% “said they would like more recognition for their work.” n 67% “agreed that most people need appreciation for their work.” n 8% “thought people should not look for praise.”
Train your employees up-front n Urine Test up front or suggestion of it on the application. n Spend an hour, morning or day with director / president. n Introduce to all employees
An executive must learn to be a leader who is... n more of a symphony conductor n an architect n a coach n not a general, an authoritarian type
The day of the know–everything manager is over they do not know everything and everybody knows they don’t know everything.
Old Operating System; n manager had the knowledge and n the power was based on that knowledge. You had insight. n People weren’t going to make decisions unless you said it
New Operating System n The object now is to take the brilliance of the ideas of the people who work with you and focus them… n to affect the direction of the business, n to affect growth, and to affect strategic issues.
New Operating System n new unit of business is the individual, not the company. n person can carry around the computing power that a medium-size company had in 1985
New Operating System n Their marketplace is not domestic, it’s global. n They are fundamentally going to have to change the way they lead and manage people. n The speed of change is only going to be faster.
Things are moving so fast that if you hold onto your experience too long, you’ll get trapped into old ways of looking at things.
New Operating System Can you learn faster then the person next to you.