Management & Leadership in the new civilization

8/8/2019 Management & Leadership in the new civilization

1/94

2009-2010 Jeremie Averous Visit www.thefourthrevolution.org

Management & leadership

in the new civilization


2/94

2 | 2009-2010 Jeremie Averous Visit www.thefourthrevolution.org

Objective

Objective

We are at the edge of a civilization shift discuss implicationsfor management & leadership

Explore management versus leadership

Practical glimpse into management and leadership in theCollaborative Age

At any age, in any position, we needto demonstrate both

leadership and management skills.

They can be learned and practiced
http://www.thefourthrevolution.org/http://www.thefourthrevolution.org/


3/94


Contents

Evolution of human civilization

The new worker the knowledge worker concept

the K.E.E.N. concept

Todays management challenge

Management and leadership

Definitions In a career perspective

Opposite or complementary ?

Theories of leadership

The Kouzes-Posner 5 practices of exemplary leadership

The level 5 leader


4/94

Evolution of humancivilization


5/94


HISTORICAL EVOLUTION OF CIVILIZATION


6/94


7/94



Human civilization can be divided in several stages

Each stage correspond to a particular production system

Productivity increase between stages is huge - x 10 or x 100

Population size & density increase is proportional

The value chain of past stages remains but only represents a verylow % of the new stage overall value chain

Each stage bears an intrinsic crisis potential that can create thefall of the civilization


8/94



HUNTER-GATHERER

AGRICULTURAL

INDUSTRIAL

COLLABORATIVE

5,0

00to

2,0

00

BC

1400-18

00

TODAY

NOMADIC

NOMADIC

SEDENTARY

SEDENTARY

RURAL

URBAN


9/94


TRANSITIONS BETWEEN STAGES

Transitions are progressive

Some local cluster(s) are more advanced and drive the change Change spreads geographically

Transitions always correspond to a crisis

Exhaustion of natural resources due to a new production system

Political crisis

new elite community taking advantage of the new productionsystem

New political system

Remaining people feeling lost

Categories previously representing majority become pressure groups

Sometimes, in some locations, transitions fail or are delayedbecause of these crisis


10/94


TRANSITIONS BETWEEN STAGES - examples

Transition from hunter-gatherer to agricultural

Crisis nomad against sedentary, the transhumance shepherdsyndrome

Transition from agricultural to industrial

Failed transition: China 1400s exhaustion of natural resources ?

Crisis: deforestation in Europe and energy crisis 1600s ; the French

Revolution New education: the scientific studies in university

The farmers become a pressure group after 1950s

Transition from industrial to collaborative

Current manufacturing industry crisis

Blue collar workers become a pressure group now

Globalization


11/94


TRANSITIONS BETWEEN STAGES the underlying root cause

Transition from one stage to the other corresponds to thedevelopment of new humankind collective cognitivecapabilities

Speech (100,000 BC) hunter-gatherers

Writing (8,000 BC) agricultural

Broadcasting (printing, then radio, TV) (1450-1700) industrial

Long distance communication/ networking (2000s) collaborative


12/94



Beforeprinting

Flow of information (per year)

Long distance Broadcast

After invention

of TV

40 DVDs

After inventionof radio

4 DVDs

Books &

newspapers


13/94



Alexandria

library

12 DVDs

Middle Age

monastery


14/94



Cost

years

Cost of long-distance interactive communication

(inflation-adjusted currency)

1800 1850 1900 1950 2000

Letter by post

Telegraph

Telephone

(Intercontinental)Telephone

(Intercity)


15/94


ATTRIBUTE OF EACH STAGE

A particular:

Political system Society hierarchy / elite

Education system

Economic system

Tax base

Social security-insurance

Typical organizations

Typical occupations for average persons

Typical management legitimacy

Typical values


16/94


HUNTER-GATHERER SOCIETY

Value production system: hunting & gathering naturally available food

Intrinsic potential crisis / limiting factor : local food availability

AttributesPolitical system: Extended family group / tribeHierarchy/ Elite: EldestEducation system: imitating parentsEconomic system: hunting, gathering / gifts, barter

Tax base: noneSocial security-insurance: tribeTypical organizations: hunting partyTypical occupations: man hunter, woman - gathererTypical management legitimacy: strongest musclesTypical values: survival, oracle & other ways of predicting destiny

Value improvement factor: change location to benefit from fresh supplies


17/94


AGRICULTURAL SOCIETY

Transition crisis: nomads / sedentary territory occupation conflicts

Value production system: growing plants & raising animals

Intrinsic potential crisis / limiting factor : soil exhaustion

AttributesPolitical system: VillageHierarchy/ Elite: Feudal / Aristocratic - PriestsEducation system: imitating parents + read, write, countEconomic system: exchange, tangible money (gold, silver),

Tax base: agricultural productionSocial security-insurance: villageTypical organizations: clerical / craftsman corporationsTypical occupations: farmer, stockbreeder, specialized craftsman, slaveTypical management legitimacy: divineTypical values: conservatism, respect of established order, community

Value improvement factor: selection of plants & animals for productivityand adaptability


18/94


INDUSTRIAL SOCIETY

Transition crisis: urbanization, rural-urban migration

Value production system: mass production of commodities

Intrinsic potential crisis / limiting factor : class struggle, naturalresources exhaustion

AttributesPolitical system: Town State - territoryHierarchy/ Elite: Economic worth, capital / Merchant classEducation system: (scientific) universitiesEconomic system: non-tangible money, banks

Tax base: personal income, VAT, propertySocial security-insurance: public, linked to a territoryTypical organization: bureaucracy, manufacturing CorporationTypical occupations: skilled and unskilled workers in manufacturingTypical management legitimacy: unshared knowledge, command & controlTypical values: diploma, money, individualism, patriotism

Value improvement factor: production, productivity, cost


19/94


COLABORATIVE SOCIETY

Transition crisis: opposition nomadic - sedentary

Value production system: knowledge generation & utilization

Intrinsic potential crisis / limiting factor : world mobility /transportation ; link with reality

AttributesPolitical system: Worldwide governance & regulation, multilateralismHierarchy/ Elite: Potential future value / EntrepreneursEducation system: Life-time learningEconomic system: Electronic money

Tax base: VAT, capital, property, (income)Social security-insurance: Private multinationalTypical organization: Project-oriented organizationsTypical occupations: Knowledge workerTypical management legitimacy: Soft skills, leadershipTypical values: Egalitarian, networking, virtual worlds, communication

Value improvement factor: networking, tribe, creativity


20/94


The development centers

Hunting-gathering

Agricultural

Industrial

Digital


21/94

Deep into the digitalcivilization


22/94


Deep into the digital civilization

Tim Berners Lee on Opening Data

Access the video here

Sir Timothy John "Tim" Berners-Lee (born 8 June 1955)

British engineer and computer scientist and MIT professorcredited with inventing the World Wide Web, making the firstproposal for it in March 1989. On 25 December 1990, w ith thehelp of Robert Cailliau and a young student at CERN, heimplemented the first successful communication between anHTTP client and server via the Internet.
http://www.thefourthrevolution.org/http://www.ted.com/talks/lang/eng/tim_berners_lee_the_year_open_data_went_worldwide.htmlhttp://www.thefourthrevolution.org/


23/94

The know ledge workerconcept


24/94


The knowledge worker concept

The knowledge worker concept has been popularized byPeter Drucker in the 1980s and 1990s

It is the typical worker of the digital age

Opposed to the blue collar worker of the industrial age themiddle class, the most important population group in alldeveloped countries in the 1950s

1900 1950 2000

% of population (developed countries)

Farmers Blue collarworkers

Knowledgeworkers


25/94



I t is not a homogeneous group like the blue collar

proletariat The coherent, recognizable class of Marx

Knowledge worker gains access to work through (formal)education and development

specialization

Know ledge workers are on a competitive marketplacewhere they sell their own talents

they are nomads (both companies & locations)

Knowledge workers own their means of production Their brains !

Knowledge workers own capital

Pension funds, companies savings plans, stocks


26/94



Information civilization

Know ledge worker

Industrial civilization

Blue collar w orker

Specialized Not specialized

Highly educated & knowledgeable Poorly educated

Not easily replaced Easily replaced

Owns his production tools (brains) Does not own its production tools

Does not produce anything tangibleby himself requires anorganization

Produces something tangible butthat is not sufficient to constitute

the whole product

Flat management based onleadership

Bureaucratic management, manylayers, based on knowledge

Empowered, Entrepreneurial- TELL ARE TOLD - Follows instructions

Drives his career Career driven by Corporation

Several careers in a life span, nonlinear career

One linear career


27/94

The K.E.E.N. concept


28/94


The K.E.E.N. concept a new concept for theCollaborative Age

The knowledge w orker is a limited concept

Supposes employment by organizationsworker still has a connotation of alienation

Static view of knowledge, not evolving

Does not imply importance of teamwork

The typical elite member of the Collaborative Age w ill bethe K.E.E.N

Know ledge Exchanging EnhancingNetworker

E can also stand for Exploring, Experimenting

The nomadic K.E.E.N w ill be the typical representative ofthe new elite


29/94

Todays managementchallenge


30/94



Management has been recognized as a concept only after1850 in the Industrial Age

(ensuring that organizations work in a coordinated manner isa very old issue)

A lot of effort has gone into developing efficient industrialmanufacturing operations w ith standard techniques

Manufacturing productivity has increased incredibly

But, management in the Collaborative Age is still in itsinfancy

The productivity gain potential is immense

Productivity in the information civilization cannot yet beguaranteed consistently

There are no standard approaches to ensuring a knowledgebased organization can consistently produce at the maximumfor the long term


31/94



Typical issues not resolved consistently

Retention of the knowledge worker

Developing rewards, recognition and career opportunities forspecialists

Creating a unified vision in the digital organization

Devising the best management structure Ensuring the supply, preparation and testing of top

management executives

Responsibility for information and knowledge

Managing multiple careers for the benefit of the organization


32/94



HOW CAN WE ENSURE THAT

A KNOWLEDGE-BASED ORGANIZATION

IN THE COLLABORATIVE AGE

PERFORMS CONSISTENTLY ?


33/94

Leadership & Managementdefinitions


34/94


Definitions

Management

Management in all business and human organization activity issimply the act of getting people together to accomplish desiredgoals and objectives.

Management comprises planning, organizing, staffing, leading,directing, facilitating and controlling or manipulating anorganization (a group of one or more people or entities) or effort

for the purpose of accomplishing a goal.

Leadership: different definitions

process of social influence in which one person can enlist the aidand support of others in the accomplishment of a common task

Leadership is ultimately about creating a way for people tocontribute to making something extraordinary happen

effective Leadership is the ability to successfully integrate andmaximize available resources within the internal and externalenvironment for the attainment of organizational or societal goals


35/94


Efficiency & effectiveness

The difference between leadership and management is

the same as between effectiveness and efficiency


36/94


Leadership & management

Leadership ManagementLeaders are people who do

the right thing

Managers are people who dothings right

Leadership is about coping withChange

Management is about copingwith and optimizing Processes

Leaders are concerned withwhat things mean to people

Managers are concerned abouthow things get done

Leaders are the architects Managers are the builders

Leadership focuses on thecreation of a common vision

Management is the design ofwork it is about controlling

From Stephen R. Covey, the 8th habit


37/94



Level of controlHIGH LOW

Level ofcomplexity

HIGH

LOW

TheLeadership

Zone

TheManagement

Zone


38/94




Leadership Management

People

Spontaneity, serendipity

Release, empowerment

Effectiveness

Programmer

InvestmentPrinciples

Discernment

Direction

Top line

PurposesPrinciples

Is the ladder against the rightwall

Things

Structure

Control

Efficiency

Program

ExpenseTechniques

Measurement

Speed

Bottom line

MethodsPractices

Climbing the ladder fast


39/94




Issue Old industrial age Know ledge worker age

Leadership

Management

Structure

Motivation

Performance appraisal

Information

Communication

Culture

Budgeting

Training & development

People

A position (formal authority)

Control things & people

Hierarchical, bureaucratic

External, carrot & stick

External, sandwich technique

Short term financials

Primarily top-down

Social rules of workplace

Primarily top-down

Sideshow, skill-oriented,expendable

Expense on P&L

A choice (moral authority)

Control things, release people(empower)

Flatter, boundary-less, flexible

Internal whole person

Self-evaluation, 360 deg feedback

Balanced scorecard (long & short)

Open up, down, sideways

Principle centered values

Open, flexible, synergistic

Maintenance, strategic, wholeperson, values

Investment with the highest leverage


40/94


Leadership is not just charisma

Leadership can be learned

There are definite skills that can be taught and practiced


41/94


42/94


Leadership & management: Industrial Age view

Level of controlHIGH LOW

Level ofcomplexity

HIGH

LOW

CAREER

TheLeadership

Zone

TheManagement

Zone


43/94


Management to leadership

The classical Industrial Age career view

20s 30s 40s 50s 60s

Management

Leadership

the gap the crisis

% of tasks

age


44/94


Management to leadership

The classical Industrial Age career view

20s 30s 40s 50s 60s

Management

Leadership

% of tasks


45/94


Thinking time !!!

Consider the know ledge worker

The linear career assumption doesnot stand

What is the consequence for thismodel draw a new model


46/94


Thinking time !!!

Provocation:

Management and leadershipshould not be opposed, theyare complementary skill-sets

to be used simultaneously


47/94



48/94



There are many theories about leadership

These theories are dependent on the civilization

Hunter-gatherer: muscles, age, magic

Agricultural: muscles, divine

Industrial: many theories developed since late 1800s


49/94



Need to recognize that the approach to leadership needsto be adapted to the situation

Organizational context (open, closed, etc)

Situation faced

Different approaches w ill work well in different situations


50/94


Four modern approaches to leadership

The command & control approach

The rationalist approach

The transformational approach

The mutual learning approach

Dependency

Hierarchy

Formal visibility

Buy-in


51/94




52/94



VERY ADAPTED TO CERTAIN SITUATIONS


53/94



FORMAL VISIBILITYOF THE LEADER


54/94



Leading through expertise the leader knows what to doand how to do it

Predictable, certain situations

Willing followers

Purpose is to Get the job done just tell them what to do

Leader as a controller, sets clear directions and standards,decisive (quick decisions)

Hierarchy, power, status, control

Example: armies, old IBM


55/94




56/94



Managing people and events, bringing them under control, inorder to achieve results

The initial Business School MBA approach

Still privileged in many business schools

Harvard university the first management degree 1908

The McKinsey / BCG type consulting approach McKinsey - Founded 1926

McKinsey already had an established practice in budgeting andfinance when he decided to test his theory that so-called"management engineers" could go beyond rescuing sick companies tohelping healthy companies thrive and grow. His vision opened the

door to others who shaped a new profession as they built one of theworld's best-known professional services firms (from the Companywebsite 2009)


57/94


The rationalist approach - historical

Developed in the XXth century

Taylorism / Fordism

FW Taylor Principles of scientific management - 1911

Henry Gantt the Gantt chart 1910s

Ford assembly line, 1910s

F.W. Taylor H. Gantt H. Ford

The rationalist approach history


58/94


The rationalist approach - history

Patent for a method of shop management


59/94


The rationalist approach - history


60/94


The modern rationalist approach

The rationalist approach developed and expanded towardstrategy

Michael Porter (Harvard business school professor) is typical of therationalist approach

Example of tools & techniques

Porters 5 forces

Directional policy matrix Key success factors

Value chains

BCGs product matrix

etc


61/94


Example of the rationalist approach The directional policy matrix

Attractiven

ess

Strength vs competitionLOW

LOW

HIGH

HIGH

Considerwithdrawal

Consolidate

Defend orgrow


62/94

62 | 2009-2010 Jeremie Averous

Visit www.thefourthrevolution.org

Example of the rationalist approach The BCG matrix - 1970

Marketgro

wth

Market share LOW

LOW

HIGH

HIGH

CASH COW

STAR PROBLEM CHILD /QUESTIONMARK

DOG

6%


63/94



The modern rationalist approach

A rational solution based approach

we share a structured problemsolving approach, where allopinions and options are considered, researched, andanalyzed carefully before recommendations are made McKinsey website 2009

The rationalist leadership

Rigorous thinking to know where to go

Thorough planning

Toughness to align the organization to the objective

Weakness of the rationalist leadership

The people side

h f l l d h h


64/94



The transformational leadership approach

Th f i l l d hi h


65/94




The lengthened shadow of one great person WarrenBennis

Th t f ti l l d hi h


66/94




Guiding vision

Passion

Integrity

Trust

Curiosity

Daring

From Warren Bennis On becoming a leader - early 1990s

You are a transformational leader when you have

A clear idea with the strength to persevere

A vocation you love what you do

Know your strengths and weaknesses, be true to yourprinciples, learn from and work with others

You have earned it

Wonder about everything and learn as much as you can

Experiment and take risks

Wh t b t f ti l l d


67/94



When to be a transformational leader

If you need people to follow you on a risky mission

restructuring, downsizing, re-engineering, starting up

When Change has to be implemented

When people are de-motivated and lack inspiration

When people are demanding clarity and direction

Within an already existing organization

Th t l l i h


68/94



The mutual learning approach

Th t l l i h t l d hi


69/94



The mutual learning approach to leadership

Leadership in the context of

an unpredictable future fuzzy organization boundaries, people networks

Leadership is communicating to people their w orth andpotential so clearly that they come to see it in themselves S. Covey, the 8th habit

Leadership in the context of a mutual exchange based onlearning

Th t l l i h t l d hi


70/94




Future is truly unknowable, and it is absolutely impossibleto reason back from a desired state to the actions neededto produce it

Strategy & leadership require action and feedback

Strategy formulation and implementation are not separate,

sequential processes

Successful leaders move forward incrementally so that bythe time strategies begin to crystallize, pieces of them arealready being implemented

(Mintzberg, 1990s)

The m t al lea ning app oach to leade ship


71/94




The mutual learning leadership does not require anyformal position in the network

It is based a mutual, equal exchange of know ledge

Important tools are

Influencing

Coaching

Networking (face-to-face & virtual)

Creative, Lateral thinking



72/94




Typical leader behavior include

The job of the leader is to make sense of the present, not topretend to foretell the future

Be prepared to say I dont know

Strategies grow like weeds - be on the look out for emergingopportunities and patterns

Tell the truth as you see it

Identify and challenge assumptions / patterns

Recognize and learn from strategy in action

Encourage variation and experimentation

Influence

Develop an environment in which mutual learning can happen

Help others find their voice

Emotional exchanges lead to everybodys development



73/94




Typical leader behavior include

Overcome the tyranny of the OR by showing the genius of theAND

Overcome apparent paradox of opposites by finding a 3rd

way


74/94

The 5 practices of exemplaryleadership (Kouzes-Posner)

The 5 practices of exemplary leadership


75/94




One of the transformational leadership approaches

Book first edition dates 1995

Effective in an organizational context

CAUTION: while it can be a useful leadership style, itmight not be applicable in all situations in the newCollaborative Age



76/94




Model the way

Inspire a shared vision

Challenge the process

Enable others to act

Encourage the Heart

Model the way


77/94



Model the way

Leaders establish principles concerning the way peopleshould be treated and the ways goals should be pursued

Leaders create standards of excellence and then setexample for others to follow

Leaders set interim goals so that people can achieve small

w ins as they work toward larger objectives

Leaders unravel bureaucracy when it impedes action

Leaders put signposts when people are unsure of where

to go or how to get there

Leaders create opportunities for victory



78/94




Leaders passionately believe they can make a difference

Leaders envision the future, creating and ideal and uniqueimage of what the organization can become

Leaders enlist others in their dreams through magnetismand persuasion

Leaders breathe life into their visions and get people tosee exciting possibilities for the future


79/94



80/94




Leaders foster collaboration and build spirited teams

Leaders actively involve others

Leaders understand that mutual respect is what sustainsextraordinary efforts

Leaders strive to create and atmosphere of trust andhuman dignity

Leaders strengthen others, making each person feelcapable and powerful

Encourage the Heart


81/94


Encourage the Heart

Leaders recognize contributions that individual make, tokeep hope and determination alive, because

accomplishing extraordinary things in organizations ishard work

Leaders celebrate accomplishments, because in everyw inning team, the members need to share in the rewards

of their efforts

Leaders make people feel like heroes


82/94

The level 5 leader

The level 5 leader


83/94


The level 5 leader

A concept developed in the Good to Great book

Identified as a significant attribute of the companies thatsucceed in the transition from good to great

The 5 levels of leadership


84/94


The 5 levels of leadership

Level 5

Level 4

Level 3

Level 2

Level 1

Level 5 executiveBuilds enduring greatness through a paradoxical blend ofpersonal humility and professional will

Effective leaderCatalyzes commitment to and vigorous pursuit of a clear andcompelling vision, stimulating higher performance standards

Competent managerOrganizes people and resources toward the effective andefficient pursuit of pre-determined objectives

Contributing team memberContributes individual capabilities to the achievement of group

objectives and works effectively with others in a group setting

Highly capable individualMakes productive contributions through talent, knowledge,skills, and good work habits

Characteristics of a level 5 leader


85/94


Characteristics of a level 5 leader

HUMILITY

Look ordinary, w ith simple tastes

Generally not know n from the general public, self effacing, shy

Who knows the leaders from 3M etc

Channel their ego into building a great organization

A compelling modesty

WILL

Focused on the organization (in the long term)

Incurable need to achieve results, never satisfied

Inspiring standards

Succeed in succession planning and focus on grooming successors

Extreme personal HUMILITY w ith intense professional WI LL

The 2 sides of level 5 leadership


86/94


The 2 sides of level 5 leadership

PROFESSIONAL WILL

Creates superb results

Demonstrates anunw avering resolve to dowhatever it takes for thebest long term results

Sets the standard ofbuilding an enduring greatcompany

Looks at oneself toapportion responsibility for

poor results, never blamingothers, bad luck

PERSONAL HUMILITY

Demonstrates compelling

modesty, never boastful

Acts with quiet, calmdetermination, relies on inspiredstandards

Channels ambition into company,not the self; sets up successorsfor greater future success

Apportion credit for the successof the Company to other people,

external factors and good luck


87/94

Modern leadership practices

Some modern leadership practices


88/94



Ask the executive coach

Marshall Goldsmith interview: How is the leader from thefuture different from the leader of today ?

http://www.thefourthrevolution.org/http://www.youtube.com/watch?v=m0ARtWgAEvs&p=6320942CC0FB9B41&playnext=1&index=17http://www.thefourthrevolution.org/


89/94



Leveraging the informal organization by Katzenbach &Khan video

Leaders everywhere: leveraging the informali i
http://www.thefourthrevolution.org/http://www.youtube.com/watch?v=xjSyz_GiyCghttp://www.thefourthrevolution.org/


90/94


organization

HOW I T REALLY W ORKS

Leaders everywhere: leveraging the informali ti


91/94


organization

Conclusion: it is OK to

have coffee w ith yourpeers in the morning !

Also to have an HR

policy to move betweenfunctions and fosterinformal organization


92/94

References

References


93/94


Know ledge worker Different books and articles by Peter Drucker

The effective executive on the profession of management the essential Drucker Etc

Great Organizations today Jim Collins Good to great Jim Collins & J. Porras Built to last Mavericks at work Taylor & Labarre Total Quality Management literature

Collaborative Age Here comes everybody Clay Shirky The wisdom of crowds James Surowiecki Purple cow, tribes etc - Seth Godin Register to the blog of Seth Godin !

REFERENCES


94/94

Evolution of civilization

Jared Diamond

Collapse: how societies choose to fail or succeed

Guns, Germs and Steel: the fate of human societies

Jacques Attali

A Brief History of the Future: A Brave and Controversial Look atthe Twenty-First Century

Transformational Leadership Model

The leadership challengeKouzes & Posner

Other

The 8th habit - Stephen Covey

Success built to last - Jerry Porras, Stewart Emery, Mark Thompson Linchpin: are you indispensable - Seth Godin

Leader without title - Robin Sharma

Documents

Management & Leadership in the new civilization