Management Reset Essay Example

the importance of having a clear identity (long-term aspect of the strategy) and intent (short-term aspect of the strategy), which both contribute to and are influenced by culture and mission.

Understanding a company's approach to value requires comprehension of its identity. It is crucial for the organization to establish a strong and well-defined identity in order to align future strategic intents with the overall mission. This section introduces fresh perspectives on value creation, acknowledging the importance of financial value while also shedding light on how profit is generated and allocated. Additionally, the strategy emphasizes the significance of ecological value, not only in terms of being conscious of carbon footprint but also taking proactive steps to diminish it.

Organizations that follow this strategy measure their social value based on how they treat their employees, as well as the communities, cultures, and countries they operate in. It is important to note that SMOs operate by leveraging flexible momentary strategic advantages and strategic intent. Their mindset is focused on the belief that the key to performance lies in the ability to adapt to change, as no advantage is expected to be long-lasting. Unlike traditional management approaches, SMOs are capable of adjusting their breadth, aggressiveness, and differentiation in order to take advantage of opportunities or withdraw from ventures that prove to be mistakes. To guide their strategy development, SMOs employ a process known as "futuring".

"The foundations of this process being: current performance is as much a function of preparation as it is execution, to look at the future as much as possible, and spending time reflecting and learning on practice. This process is distinguished by time and goals. Every goal

needs to be financial, social, and environmental in nature. The time frames in which to plan for these goals must include short-, medium-, and long-term elements. The long-term planning uses scenarios to reduce future surprises and increase the number of available options. Medium-term planning generates forecasts and a list of the organization's capabilities."

Short-term planning is influenced by strategic intent and leads to immediate profits. However, many Chief Customer Officers (CCOs) and Heads of Innovation (HIOs) make the mistake of focusing too much on current trends at the expense of long-term considerations.

This section explores the organization of work, with key concepts including board governance, creating a structure for sustainable effectiveness, and implementing sustainable work systems. When it comes to corporate boards, there is a general problem of underperformance. To address this issue, Strategic Management Offices (SMOs) implement a board governance model.

The book provides a detailed discussion of the requirements for a SMO board, which include member independence, knowledgeable professionals, limited memberships, and diversity. In addition, an SMO board should have specific committees focused on sustainability, social responsibility, human resources, and organizational effectiveness. The system emphasizes the importance of talent development in an SMO, ensuring that the company has multiple options for hiring a new CEO from within. Furthermore, evaluations should be conducted throughout the entire organization, including the boards themselves. SMO boards have a distinct operating style compared to traditional management systems and have a significant impact on the company.

The book presents three main concepts that describe the structures for sustainable effectiveness in the company: Cisco's adaptation of the traditional functional structure, the ambidextrous structure, and network organization structure. These concepts involve three adaptations: reducing the

gaps between employees and customers (surface area), using sustainable practices in resource allocation and movement of people and money (resource allocation), and ensuring transparency in decision-making by having transparent information (decision-making). The ambidextrous structure aims to balance innovation and efficiency to address the current performance and the need for both innovation and transformation in the company’s operations.

The network organization structure uses maximum surface area and collaborative capabilities, as well as "independent units," to achieve its goals. Its key feature is the ability to quickly reconfigure while maintaining reliability in production. This structure shifts focus from individual roles to relationships and exchanges, resulting in improved outcomes. This concept was coined by W.

In the context of Gore, the concept of "lattice" refers to each individual's recognition and utilization of their own abilities and talents within the organization. However, it is also understood that without exchange, growth and development cannot take place. Another technique employed by Gore is the "real-win-worth" process. This process requires a team to first demonstrate that an opportunity is real, then show how they are positioned to succeed in the market place.

Show that the effort will benefit the company. In dealing with sustainable work systems, SMO must establish a framework that encourages innovation and fosters continuous improvement. The book suggests that work systems should be based on activities rather than specific jobs, with a focus on finding ways to contribute. It also stresses the importance of shared goals, allowing for a comprehensive purpose for groups and providing context for individuals' work. In addition, work should involve multiple stakeholders to bring diverse perspectives and decision-making abilities, while also enabling virtual meetings to reduce costs. Work

systems should be temporary and iterative, embracing small, constant, and frequent changes. The physical space and technology should complement the work being done, and the management should strategically involve the right individuals in processes to ensure things are carried out correctly.

The Way People are Treated. The focus of this section is on three key concepts: managing performance, reward systems, and managing talent. It emphasizes the importance of evaluations in SMOs and the need for them to be carried out effectively. The section provides an example of Siebel and their development of the "employee relationship management" (ERM) system, which streamlined evaluative and communicative processes into a single accessible portal. This successful system is now available for purchase. Effective management is crucial in SMOs due to their radical differences from traditional companies. Reasons include the absence of job descriptions and budgets as crutches for poorly functioning companies, the presence of virtual management, and the increased complexity and discretionary nature of tasks.

There are eight "universal performance management principles" and six specific "SMO performance management principles" that ensure effectiveness. The first eight principles apply to ANY management style: "Start at the top," "HR should support, not own the system," "Set measurable goals," "Rate outcomes, rate performance, but don't rank people," "Appraise the appraisers," etc. The last six are SMO specific and include: "Establish a balanced scorecard" (including social, environmental, and financial goals for employees), "Set talent development objectives" (assessing and improving employee talents), "Don't assume an annual appraisal is often enough" (performing appraisals after each project due to SMO's rapid change), "Use web-enabled technology" (enhancing communication and transparency while reducing HR department workload), "Appraise team performance" (evaluating interdependent SMO

teams as a whole), and "Have review discussions online" (eliminating face-to-face anxiety and allowing for individual preparation).When it comes to rewards, there are generally three types to consider. First, we have tangible extrinsic rewards, which have economic value. Second, we have recognition rewards, which can sometimes be tangible and are often based on personal relationships. And finally, we have intrinsic rewards.

The main concern in this section pertains to how rewards are managed within an SMO, rather than determining the best type of reward. When designing a rewards system, it is essential to adhere to universal principles such as "Create rewarding work assignments," "Replace merit increases with bonuses," and "Compensate for team performance." These principles should be followed by all organizations. In addition to these universal principles, SMOs should also focus on specific principles such as "Compensate the individual, not the job" (which emphasizes paying employees based on their talent, competency, and performance rather than adhering to a fixed job description), "Strategically and ethically define fairness" (as talent serves as the foundation of an SMO, it should offer above-average compensation for critical skills), "Personalize rewards" (when possible, allow individuals to choose their preferred form of reward), "Do not base rewards solely on hierarchy" (while a skills-based pay structure may create a form of hierarchy, rewards should not be based solely on a universal hierarchy), "Do not base rewards solely on seniority" (although it is common in traditional systems, long-term employees are not always desired due to the constant rate of change), "Embrace transparency" (public scrutiny reduces the likelihood of negative actions and highlights organizations with attractive compensation packages), and "Utilize identity and purpose as rewards" (organizational

efforts to instill in employees a sense of making a difference).The most effective method in SMO talent management is described as the "travel-light" approach. This approach includes virtual, temporary, and contingent employment, as well as outsourcing. It ensures rapid change and access to the best talent without any hesitation in termination or long-term development.

The exception to this strategy often applies to core leaders and highly complex advanced jobs. An SMO should follow nine basic management principles: "Use competencies to drive talent management" (hiring individuals based on the skills and competencies required by the company, even without a formal job description), "Use targeted talent management" (giving special attention when an individual's performance significantly affects the organization, unlike simple or repetitive jobs), "Use contract labor" (adopting a 'buy' rather than 'build' approach, easily hiring on contract terms and terminating when no longer necessary), "Outsource nonpivotal work" (making adaptation easier for an SMO), "Create career diversity" (providing diverse employment options, workspaces, and benefits due to workforce diversity), "Build a sustainable management brand" (having an employer brand that aligns with the organization's purpose and identity to attract desired talent), and possessing effective deals as their contracts do not provide job security.The text can beand unified as follows:

"Encourage individuals to take ownership of their career management by providing transparency and trend information. This allows individuals to make informed decisions about their own careers. Executives should take on the primary responsibility for talent management, rather than relying on HR. They should be equipped to make strategic decisions regarding talent. Additionally, the HR function plays a strategic role due to the importance of human capital in organizational success. Accurate data on the

state and capabilities of human capital is essential. The key concepts in this section revolve around the notions of leading, managing, and following, as well as the transformation towards sustainable management."

SMOs have a more specific approach than the former two management approaches and have four things necessary for sustained performance, that is not required elsewhere:
1. Compensate for the lack of structure (with flexibility and adaptability, an SMO must sacrifice structural stability. To assist in smooth operations, they must possess talented and effective leadership, not management. They need to lead not with job titles but with the knowledge and understanding of where the company needs to go, and they need an adequate level of power sharing.)
2. Focus on the importance of sustainable effectiveness (an SMO must be extremely aware and knowledgeable of the organization's positions with all three focuses to ensure a proper balance and level of quality is maintained)
3. Both lead and accommodate the changes and innovations that SMOs need to make continuously (to guarantee the company embraces change and innovation, the leadership must be fully committed to the identity as a positive role model, as well as instill and encourage the principles in its employees)
and 4.

In order to achieve these goals, SMOs practice principles that include 1. leading and encouraging a culture where hierarchy is minimized and leadership is shared. The most effective form of leadership has often been shown to be the distribution of leadership from the CEO throughout the organization. Additionally, it is necessary for everyone to have the ability to take initiative and lead, as well as take a back seat and follow. Education and

development of leadership skills is also seen as a crucial requirement.

Establishing a sustainable leadership brand requires senior management support in building leadership capability. It also involves the development of managerial and leadership skills, as well as a commitment to transparency.

When discussing the transformation to sustainable management, the focal points revolve around the challenges associated with being an SMO and handling the transformation process. To introduce this section, the Interface example is presented as a case of long-term goal achievement, demonstrating that the process is difficult and may not always yield outstanding results in all three effectiveness dimensions. The primary challenges faced by an organization pertain to strategy, knowledge and awareness, and organizational capabilities. This implies that in striving towards enhancing the three p's (people, planet, profit), a company must collectively determine the value creation for all three matters rather than solely focusing on one, establish a realistic timeline and growth target for growth, profit, and performance, and align strategic intent with established values and goals. These challenges only represent part of the battle; supporting and planning for effectiveness alone is insufficient. An organization must also comprehend what it takes to accomplish these goals.

Organizations must evaluate their current abilities and management styles and establish a plan for incorporating the new structure. To effectively manage the transformation, it is essential for the organization to recognize that it involves a complete change in identity, as stated in the book. The book outlines the process of change as beginning with a shift in the work system and then implementing a reinforcing system using DAs. To expedite the transformation, the book suggests that employees should have a shared understanding of

the change's mission, a clear and systematic comprehension of the organization's structure and operations, utilize a formal learning process, and acknowledge that senior executives cannot control all changes despite initially driving them.

I found the concepts presented in this article to be highly interesting. When considering their practical application and whether they align with my personal experiences… I haven't held many positions that directly resemble those described in this book, nor have I learned about these techniques in other courses. However, I found myself wishing I had. In some of the restaurants I have worked at, the leadership roles were distributed among the staff instead of having a designated head hostess. Each individual was trained to possess the skills necessary for a head hostess, allowing everyone to take charge during busy nights. The transparency of pay rates wasn't completely adhered to as recommended, although the rates were fairly standardized. Additionally, I have also been employed by companies that prioritize profit but still demonstrate a commitment to treating people and the environment ethically.

They have conducted group evaluations of management and overall job satisfaction, with the CEO taking the results into account for the next quarter's goals. Additionally, they have shown their commitment to waste reduction by hiring an external company specifically for separating recyclable and non-recyclable garbage. Based on my limited experience, I believe this is an intelligent management model.

In my opinion, the three most important aspects of this book are how it guides work: the "leading, managing, following" approach is crucial. Given the significant differences in structure, I believe a company cannot function without possessing this skill set and knowledge base.

Repeatedly, research emphasizes that a major

obstacle for companies aiming to become an SMO is the management's inability to comprehend their new responsibilities within the organization. This lack of comprehension hinders their acceptance of the new identity and hampers maximal growth. Another prominent theme discussed in this book is the concept of futuring. Though I lack firsthand experience in a significant corporate role, I observe numerous companies facing failure in the market due to technological advancements.

If a solid foundation in futuring was established, this scenario could have been avoided. This concept stood out as the most intriguing in the book. Although it may appear time-consuming, a company that thrives on continual transformation cannot operate any differently. The notion of a continuous stream of competitive advantages is truly groundbreaking. Rather than constantly searching for the next major breakthrough, the focus is on identifying the next moderately significant and temporarily superior advancement. The capability to anticipate and plan ahead is vital for the success of an SMO.

The third most crucial concept is structure, which provides an approach for every type of business. This accessibility of the SMO business style and success to everyone is ensured by these three structures. They imbue in each employee the significance of their skillset for the company, highlighting the vital role of teamwork and knowledge sharing in achieving success. This mindset is essential in the management structure, as it allows the organization to allocate its employees effectively once a strong foundation is established.

The concept of transparency and practices that promote sustainable efficiency are the core ideas behind the structure. A solid foundation leads to prosperity, while a weak one results in failure. This concept guarantees strength at the

core.