Management needs reinventing

In this excellent video (click here) Gary Hamel, founder of Management Innovation Exchange (MIX) and one of the world’s most influential business thinkers, explains why management is out of date and needs reinventing to make it fit for the future and fit for human beings.

Many of management tools we use today were invented before 1920, as we entered the industrial revolution. The problem that management was invented to solve was – how do you organise human beings into semi-programmable robots that deliver consistently, efficiently and on time? How do we get farm hands to turn up on time, to do the same thing every day, over and over again? Our management structures were built to solve this problem and we were successful, but that is not our challenge today!

We face unprecedented challenges today: exponential change; hyper competition and creative destruction. Knowledge itself is becoming a commodity. Our challenges today are: how to create organisations that can change as fast as change itself; where innovation is the work of everybody, all of the time, everyday; where people are willing to bring to work the gifts of their creativity and passion. We are struggling to create organisations that are adaptable, innovative and engaging.

To deal with this Vineet Nayar, CEO of HCL Technologies (India) created ‘reverse accountability’ where all his employees rate their boss rather than the other way around. This is a culture where people hold their management accountable. It may not be for everyone but Vineet firmly believes that all value is created in the interface between the employee and the customer and so a manager’s job is to encourage the innovation there.

“My employees are more important than their managers; in fact they are more important than our customers. Unless I take care of my employees they are not going to work hard for my customers” – Vineet Nayar, HCL Technologies

In this video Gary Hamel says promotes aspiration, being a contrarian and learning from the fringe:

  1. Aspiration – Innovation starts with aiming high
  2. Be a Contrarian – Next you have to be willing challenge dogma, confront embedded and unexamined beliefs that limit us and our organisations
  3. Learn from the fringe – innovation happens at the edges.
To make our organisations future-proof we need to instil some of the values that underlie the success of the the Internet which is inherently adaptable, innovative and engaging.
We have an amazing opportunity to create organisations that are fit for human beings, because as humans we are already adaptable, innovative and engaging. We already have many of the qualities our organisations don’t, because they were built to serve another purpose.
I want to be a champion for the future and help build more human organisations that fully utilize and honour the gifts of every single person who comes there every day.
What about you?

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