From Core Competence From Core Competence to Edge Innovative to Edge Innovative

David Hawk, Professor & DeanDavid Hawk, Professor & Dean

New Jersey Institute of TechnologyNew Jersey Institute of Technology

American Management American Management Practices: Characteristics Practices: Characteristics

of Weaknessof Weakness

EthnocentricEthnocentric Low-riskLow-risk ArrogantArrogant EnglishEnglish

Harvard : Reconfirming Harvard : Reconfirming Centralized English Management Centralized English Management

Planning – formal processPlanning – formal process Positioning – analytical Positioning – analytical

processprocess Entrepreneurial – visionary Entrepreneurial – visionary Cognitive – mental processCognitive – mental process Learning – emergent processLearning – emergent process Design – process of Design – process of

conceptionconception Power – negotiation processPower – negotiation process Cultural – collective processCultural – collective process Environmental – reactive Environmental – reactive

processprocess Configuration – Configuration –

transformationtransformation

The “House of Business” appears The “House of Business” appears together, yet something seems together, yet something seems

wrong with its orientation.wrong with its orientation.

Cracks in 20Cracks in 20thth Century Century Management SystemsManagement Systems

Fear of the futureFear of the future Anger at the pastAnger at the past Irrelevance of the presenceIrrelevance of the presence Disassociation from realityDisassociation from reality From building values to From building values to

consuming valueconsuming value

Managing in a changing worldManaging in a changing world

1.1. Seeking differences that make a Seeking differences that make a difference to seeing the world, not difference to seeing the world, not showcasing the egocentric.showcasing the egocentric.

2.2. Rethinking management philosophy; Rethinking management philosophy; what it is, what it can and can’t do.what it is, what it can and can’t do.

3.3. Learning through seeing extreme Learning through seeing extreme examples of difference.examples of difference.

4.4. Experimenting with extreme Experimenting with extreme differences.differences.

Traditional differences Traditional differences reconsidered in Resendereconsidered in Resende

No Volkswagen employeesNo Volkswagen employees Suppliers assemble the Suppliers assemble the

suppliessupplies Volkswagen Truck plantVolkswagen Truck plant Quality is greatly improvedQuality is greatly improved R & D is more innovativeR & D is more innovative Factory was never repeatedFactory was never repeated

A Woman who made a difference: A Woman who made a difference: Sol Company of FinlandSol Company of Finland

A firm at the edges of A firm at the edges of changechange

Is internationalIs international 6,000 workers, no 6,000 workers, no

managersmanagers Clients manage workersClients manage workers Small overhead Small overhead

expensesexpenses No one has copied the No one has copied the

modelmodel

Shifting From Strategic Thinking Shifting From Strategic Thinking To Relationship forming:To Relationship forming:Reconnecting the partsReconnecting the parts We need to find ways to put 19We need to find ways to put 19thth

Century industrial pieces back together Century industrial pieces back together for a better world for more people. for a better world for more people.

Schools need to become 21Schools need to become 21stst Century Century places for innovation through novel places for innovation through novel relationships and activities.relationships and activities.

““New” models don’t helpNew” models don’t help

A new form for an American School of A new form for an American School of Business Business

New Jersey Institute of New Jersey Institute of Technology Technology

School of ManagementSchool of Management Our Ideal:Our Ideal:

Prepare students for managing ambiguity. Prepare students for managing ambiguity.

Our Objective:Our Objective: Shift business emphasis from centralized Shift business emphasis from centralized strategic thinking to relations at the edges.strategic thinking to relations at the edges.

Our Goal: Our Goal: Create multiple, flexible, renewable Create multiple, flexible, renewable programs for edge management. programs for edge management.

From doing the wrong thing more From doing the wrong thing more efficiently, to doing the right thingefficiently, to doing the right thing

How to make it better, not cheaperHow to make it better, not cheaper

Finding new Finding new relationshipsrelationships

Swedish wooden housesSwedish wooden houses 6 workers produce four houses a day6 workers produce four houses a day No unemployment via automationNo unemployment via automation Objective: to make better use of Objective: to make better use of

materials in better products, not materials in better products, not simple-minded productivesimple-minded productive

The China Edge: The China Edge: Higher Aspirations and Higher Aspirations and

more Inspiration more Inspiration

gravelends.com: a time to rethink

No plans/No designsNo plans/No designs Workers simply builtWorkers simply built No functional analysisNo functional analysis Innovative technology/ Innovative technology/

beautiful spaces.beautiful spaces. 30% less expensive30% less expensive

Our future requires that we Our future requires that we do betterdo better

Responding to a New Orleans CrisisResponding to a New Orleans Crisis