e dward law built to change - mgmt reset needed

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  • 1. Built to Change:Management Reset NeededNHDRN ConferenceEdward E. Lawler IIIMarshall School of BusinessNovember 17, 2011Center for Effective OrganizationsBangalore, IndiaUniversity of Southern California 2011 University of Southern California

2. Drivers of the New Normal TechnologicalChangeDrivers of Agility GlobalizationThe New Normal: Faster and FasterChange Workforce ChangeFinancial, Socialand Environmental The Rise of AccountabilityCommunity Drivers of Responsibility The Rise ofEnvironmentalConcerns 2011 University of Southern California 2 3. Signs of ChangeBut look at 2006 through a differentlens and youll see another story, onethat isnt about conflict or great men.Its a story about community andcollaboration on a scale never seenbefore. Its aboutWikipediaYouTube and MySpace.Its about the many wresting powerfrom the few and helping one anotherfor nothing and how that will not onlychange the world, but also change theway the world changes. 2011 University of Southern California 4. The B2 Model Why does planned change go so wrong sooften? 1) We need better models, tools, andprocesses of organization change anddevelopment. 2) The concept of stability is a pervasiveassumption in principles of organizationdesign and buried deep in themanagerial psyche. Most organizationsare anti-change. Avoiding the In Search of Excellencetrap. 2011 University of Southern California CW95R (4) 5. Nature of Episodic vs. Continuous ChangeEpisodic ChangeContinuous Change Amount of ChangeAmount of Change TimeTime Relatively long periods of Relatively higher levelsstability are punctuated by of change over longshort bursts of periods of timetransformational change 2011 University of Southern California 6. Implications of Episodic vs. Continuous Change Episodic Change Continuous ChangeAmount of ChangeAmount of Change Time TimeChange capability lacking rented when Change capability embedded in neededorganization designFocus on efficiency over innovation Focus on ambidexterityStability = Effectiveness Change = EffectivenessChange = Enemy Stability = EnemyPerformance reflects change pattern Performance reflects change patternDecision making centralized Decision making shared/decentralizedResources allocated through budgets Resources allocated through accountabilities 2011 University of Southern California 7. From Omar El Sawy, USC Marshall School of Business 2011 University of Southern California EL14V 8. The Four Ways of An Agile, Sustainable Management OrganizationThe way value is createdutilize a differentiated future focus, a sustainability-friendly identity, anda robust strategic intentThe way work is organizedemploy a maximum surface area structure, a flexible resource allocationsystem, transparent information, and a dynamic work systemThe way talent is treatedfocus on human capital development and flexible reward systemsThe way behavior is guidedleverage a shared leadership philosophy and a remodeled board ofdirectors 2011 University of Southern California 8 9. SMO Performance ManagementPrinciples Establish a balanced scorecard that includes social andenvironmental goals as well as performance objectives Set talent development objectives that include theacquisition of sustainability related competencies,including collaboration, networking, relevant subjectmatter knowledge, and so on Dont assume an annual appraisal is often enough agility requires relatively short cycle times of projectprogress taking Use web-enabled technology to support flexibleperformance management processes 2011 University of Southern California 9 10. SMO Talent Principles Build a Travel Light Talent Brand to Support Agility Use Competencies to Drive Talent Management Identify Pivotal Work Skills Create Career Diversity Give Individual Choices Make Career Management the IndividualsResponsibility 2011 University of Southern California 10 11. The Ways of a Sustainable ManagementOrganization My definition of leadership is very simple: if you positively influence someone, you are a leader. Paul Polman, CEOUnilever I think we are at the end of a difficult generation of business leadership. Tough-mindednesswas replaced by meanness and greed. The richest people made the most mistakes with the least accountability. In too many situations, leaders divided us instead of bringing us together. Jeff Immelt, CEO G.E.The way behavior is guidedleverage a shared leadership philosophy and a remodeled board ofdirectors 2011 University of Southern California 12. MANAGEMENT APPROACHES MEANSTo what extent do the following approachesdescribe how your organization is managed?USA1 CANADA2AUSTRALIA3EUROPE4UK5INDIA6 CHINA7Bureaucratic (hierarchical structure, tight job2.82.5 2.8 2.62.72.62.8descriptions, top down decision making)Low cost operator (low wages, minimumbenefits, focus on cost reduction and 2.0671.867 1.967 2.1672.27 2.912342.812345controls)High involvement (flat structure,participative decisions, commitment to3.07 3.1 3.273.27 2.93.12.7134employee development and careers)Global competitor (complex interesting work,hire best talent, low commitment to2.772.346 2.6 3.1273.07 3.2272.31456employee development and careers)Sustainable (agile design, focus on financial3.33.673.5 3.43.43.77 3.026performance and sustainability)Response Scale: 1 = Little or Not Extent; 2 = Some Extent; 3 = Moderate Extent; 4 = Great Extent; 5 = Very Great Extent1234567 Significant differences between countries (p .05) 2011 University of Southern California 13. There is nothing wrong with change, if it is in the right direction. Winston Churchill 2011 University of Southern California