From Core Competence to Edge Innovative From Core Competence to Edge Innovative David Hawk, Professor & Dean New Jersey Institute of Technology New Jersey Institute of Technology

American Management Practices: Characteristics of Weakness Ethnocentric Ethnocentric Low-risk Low-risk Arrogant Arrogant English English

Cracks in 20 th Century Management Systems Fear of the future Fear of the future Anger at the past Anger at the past Irrelevance of the presence Irrelevance of the presence Disassociation from reality Disassociation from reality From building values to consuming value From building values to consuming value

Harvard : Reconfirming Centralized English Management Planning – formal process Planning – formal process Positioning – analytical process Positioning – analytical process Entrepreneurial – visionary Entrepreneurial – visionary Cognitive – mental process Cognitive – mental process Learning – emergent process Learning – emergent process Design – process of conception Design – process of conception Power – negotiation process Power – negotiation process Cultural – collective process Cultural – collective process Environmental – reactive process Environmental – reactive process Configuration – transformation Configuration – transformation

Managing in a changing world 1. Seeking differences that make a difference to seeing the world, not showcasing the egocentric. 2. Rethinking management philosophy; what it is, what it can and can’t do. 3. Learning through seeing extreme examples of difference. 4. Experimenting with extreme differences.

Traditional differences reconsidered in Resende No Volkswagen employees No Volkswagen employees Suppliers assemble the supplies Suppliers assemble the supplies Volkswagen Truck plant Volkswagen Truck plant Quality is greatly improved Quality is greatly improved R & D is more innovative R & D is more innovative Factory was never repeated Factory was never repeated

A Woman who made a difference: Sol Company of Finland A firm at the edges of change Is international 6,000 workers, no managers Clients manage workers Small overhead expenses No one has copied the model

Shifting From Strategic Thinking To Relationship forming: Reconnecting the parts We need to find ways to put 19 th Century industrial pieces back together for a better world for more people. Schools need to become 21 st Century places for innovation through novel relationships and activities.

New Jersey Institute of Technology School of Management Our Ideal: Our Ideal: Prepare students for managing ambiguity. Our Objective: Our Objective: Shift business emphasis from centralized strategic thinking to relations at the edges. Our Goal: Our Goal: Create multiple, flexible, renewable programs for edge management.

The “House of Business” appears together, yet something seems wrong with its orientation.

Newer models don’t seem to help An American School of Business

From doing the wrong thing more efficiently, to doing the right thing How to make it better, not cheaper How to make it better, not cheaper

Finding new relationships Swedish wooden houses Swedish wooden houses 6 workers produce four houses a day 6 workers produce four houses a day No unemployment via automation No unemployment via automation Objective: to make better use of materials in better products, not simple-minded productive Objective: to make better use of materials in better products, not simple-minded productive

The China Edge: Higher Aspirations and more Inspiration

gravelends.com: a time and place to rethink No plans or designs Workers simply started building No functional parts Values were innovative technology and beautiful spaces. 30 cheaper than normal

Our future requires that we do better Responding to a New Orleans Crisis