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10 Key Takeaways From

Management Reset
by Marco & Ana
Alchemy 9/15/2013
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Takeaway #1
Value Creation & The 3BL
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SMO Assumption: ever-changing VUCA environment
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SMO strategies different than CCOs & HIOs (stability/scale)
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Think of logic behind Porters Five Forces
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Difference between firefighting & value creation
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A management approach is required that maximizes value
creation, not sure share holder return. Value creation must be
judged by a proper accounting for an organizations impact on
the planet and people as well as its profits.
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People + Planet + Profit = Triple Bottom Line
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Takeaway #2
Futuring
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SMOs different relationship to risk than CCOs & HIOs
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Futuring on three levels: short, medium, & long term
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Look to future to prepare for possible obstacles instead of
only focusing on the present
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Scenario planning identifies future business assumptions &
develop a range of possible future strategic intents
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Inattentional blindness should be avoided; dont lose
sight of environment as a whole
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Current performance is as much a function of preparation as it
is execution.
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Takeaway #3
SMO Governing Boards
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Governing board should have both independent & employee
members who represent all of the orgs stakeholders:
" Customers, employees, investors, community
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Independent members most important; more likely less biased in
decision making
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Insiders/employees bring different perspective & necessary
information those outside the company may not have access to
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Unlike CCOs & HIOs where CEO of org fills leadership role, SMO
board leadership should be independent
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Board committees oversee: sustainability, social responsibility,
human resources, & organizational effectiveness
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Takeaway #4
Three Org Structures
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Sustainable functional structures start with managing resources, decide
what to focus on:
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Maximize surface area
" Feedback from multiple stakeholders; transparency important
" Flatter structure, better equipped to change easily
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Coordination & resource allocation dynamic capabilities
" What keeps business running; flexible resource allocation essential
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Ambidextrous organizations must balance innovation & efficiency
" Innovation driven by creative talent within org
" Technology, external environment, org culture affect innovation
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Network Organizations must balance effective execution & flexibility to
change
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Takeaway #5
Six Principles of Work Systems
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Based on activities, not jobs; no fixed job descriptions
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Guided by shared goals; perspective gained from differences of
opinion on goals
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Performed by multiple stakeholder teams; mostly group work
" Can be virtual
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Temporary & iterative
" Productivity is achieved & sustainable effectiveness supported through
small & frequent improvements in the product or service.
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Supported by the physical space & technology
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Managed strategically
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Takeaway #6
Performance Management
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Talent most important asset to sustainable effectiveness
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SMOs lack fixed job descriptions; performance evals harder;
effective performance mgt system counteracts this problem
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Six principles of performance management:
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Establish a balanced scorecard
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Set talent development objectives
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Dont assume an annual appraisal is often enough
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Use web-enabled technology
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Appraise team performance
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Have review discussions online
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Takeaway #7
12 Reward System Principles
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Universal reward principles
" Create rewarding work assignments
" Forget merit increases, give bonuses
" Pay for team performance
" Give people a piece of the action
" Dont be satisfied with a once-a-year reward cycle
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SMO reward principles
" Pay the person, not the job
" Define fairness strategically and ethically
" Individualize rewards
" Dont base rewards on hierarchy
" Dont base rewards on seniority
" Be transparent
" Use identity and purpose as rewards
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Takeaway #8
9 Principles of Managing Talent
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Use competencies to drive talent management
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Use targeted talent management
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Use contract labor
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Outsource nonpivotal work
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Create career diversity
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Build sustainable management brand
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Make career management the individuals responsibility
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Make executives the primary talent managers
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The HR function plays a strategic role
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Takeaway #9
Leading, Managing, & Following
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Not all leaders are managers; not all managers are leaders
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Leadership & leaders:
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Motivate, positively influence, & guide employees
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Leadership shared throughout the organization
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Therefore good leaders must, at times, be good followers
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Important for senior management to establish a sustainable
leadership brand:
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Build leadership capability
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Develop managerial & leadership skills
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Commit to transparency
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Takeaway #10
Transforming to an SMO
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To transform to SMO, orgs must redefine existing relationships
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Governing board & top management:
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Agree on objectives for sustainable effectiveness
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Appropriate targets & reasonable growth expectations
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Employees must accept that strategies, policies, practices, &
orgs identity will change
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Change begins within work system; followed by reinforcing
system to help restructure the org
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Transparency & clear, consistent communication of
expectations help in accelerating the transformation
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Management Reset
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Pros & Cons
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Could you apply the model to your current organization?
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How would you use this model on your current job?
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Could we apply the model to Alchemy?
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Could we apply the model to your self?
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Dynamic Capabilities
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Check-in
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What are dynamic capabilities?
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How do you identify dynamic capabilities?
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What are metaphors can help us understand dynamic
capabilities?
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Should we allocate more time for a deeper discussion on the
topic?
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Credits
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A Summary and Review of Management Reset by Edward
E. Lawler and Christopher G. Worley
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Published by David C. Wyld Southeastern Louisiana
University, May 3, 2013
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Read more: http://bookstove.com/book-talk/a-summary-and-
review-of-management-reset-by-edward-e-lawler-and-
christopher-g-worley/#ixzz2etjwjJmH