peter drucker global forums: lessons learned
TRANSCRIPT
Global Drucker ForumsVienna, Austria
2014 - 2016
Key Takeaways — Implications for Management“Tell Me What You are Going to Do on Monday That’s Different”?
November 22, 2016
Mark BeliczkyThe Carlyle Group
Washington, DC/New York, NY
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Favorite Viennese Talent Exports
Dame Stephanie Shirley (1933 - ) Software start-up in the 60s in England Employed domestic part-time female employeesCompany Valued at $3BN70 staff members became millionaires
Peter Drucker: Father of Management Theory (1909 - 2005)Author of 39 books over a period of 60 yearsWriter, professor, management consultant and self-described “social ecologist”Annual Global Drucker Forum - ViennaRecipient of the US Presidential Medal of Freedom - Highest Civilian Award
Maria Amalia Deutschmann (1888 - 1979)Governess/Educator: Budapest & ViennaFamily Matriarch Global Mindset
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Innovation“Creating Products and Services that Make Life Better”
Companies typically spend only 5% of time & resources on innovation HBR, Sept. 2014
Innovation: formerly “less fashionable”, today more a business imperative
“…Innovation has become the core driver of growth, performance and valuation.” McKinsey & Co.
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50 Smartest Companies 2016MIT Technology Review:Top 10
Amazon (Seattle WA) $337BN valuation, Internet/Digital Media
Baidu (Beijing, China) $55BN, Internet Search and Ad Sales
Illumina (San Diego, CA) $20BN, World’s Largest DNA Sequencing Company
Tesla Motors (Palo Alto, CA) $28BN, Transportation
Aquino Energy (Pittsburgh, PA) $190MM capital raised, Batteries
Mobileye (Jerusalem, Israel) $8BN, Computing and Communication
23andME (Mountainview, CA) $1.1BN, Biotech - DNA Sequencing
Alphabet (Mountainview, CA) $491BN, Internet/Social Media
Spark Therapeutics (Philadelphia, PA) $918MM, Genetic Disease Treatment
Huawei (Shenzhen, China) Private, Computing/Communications/Mobile Devices
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10th Annual “50 Most Innovative Companies”Boston Consulting Group
Top 5: Apple, Google, Tesla, Microsoft, Samsung
5 of Top 10 Non-Tech
Toyota, BMW, Daimler rank in Top 10
75% of Top 50 Non-Tech: Japan’s FastRetailing, Disney, Marriott
Chinese companies have not made inroads
Top 50 Global: 29 US 11 Europe 10 Asia
“Speed in Innovation” is on the Rise
#1 Obstacle to Innovation — Overly Long Development Times
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4 Underpinnings of InnovationBCG 2015
Emphasis on Speed
Well Run, Lean R&D Processes
Use of Technological Platform
Systematic Exploration of Adjacent MarketsDr. Christie Nordhielm, University of MichiganNike example and industry model/benchmark for market expansion — golf
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Leadership and InnovationMcKinsey & Co.
70% of Leaders Say Innovation Will Be a Top 3 Driver of Growth in Next 3-5 Years
65% of Executives Were Somewhat/Little/Not at All Confident About the Decisions They Make About Innovation
94% Say That People and Corporate Cultures Are the Most Important Drivers of Innovation
<50% Indicated That Innovation is Part of Their Strategic Planning
Top 2 Motivators of Behavior to Promote Innovation Strong leaders who encourage and protect Top executives who spend their time actively managing and driving innovation
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The Building Blocks of an Innovation OrganizationMcKinsey & Co.
Integrate Innovation into the Strategic Management Agenda
Make Better Use of Existing & Untapped Talent for Innovation
Foster an Innovation Culture Based on Trust People Understand their Ideas are Valued Trust that it is Safe to Express Ideas Oversee Risk Collectively
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Steps to Advance InnovationMcKinsey & Co.
Define the Kind of Innovation that Drives Growth and Helps to Meet Strategic Initiatives
Add Innovation to the Formal Agenda at Regular Leadership Meetings
Set Performance Metrics & Targets for Innovation
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Global Innovation IndexA Macro Global View
Bloomberg
6 Tangible Activities that Can Contribute to Innovation R&D Manufacturing High Tech Companies Post Secondary Education Research Personnel Patents
Top Countries S. Korea Japan Germany Finland Israel US Sweden Singapore France UK
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Employee Engagement“Involved in, enthusiastic about, and committed to their work and workplace.”
Gallup Global Employee Engagement Survey (2000-2015)
“A highly engaged workforce means the difference between a company that outperforms its competitors and one that fails to grow.”
Employee Engagement 2015: 13% Globally
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Engaged EmployeesRating of Workplace Elements
Having an Opportunity to Do What They Do Best Every Day
Having someone at Work Who Encourages Their Development
Believing Their Opinions Count at Work
“Engaged Employees are Involved in and Are Enthusiastic about and Committed to Their Work.” — 2015 Gallup Tracking Interviews
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Disengaged EmployeesWho they are and what they do…
Not Hostile or Disruptive
Show Up and Kill Time
Do the Minimum Required with Little Extra Effort to Go Out of Their Way for Customers
Less Vigilant
More Likely to Miss Work
Change Jobs When New Opportunities Arise
Thinking more about Lunch or Their Next Break
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Ways to Improve Engagement
Integrate Engagement into the Company’s Human Capital Strategy
Use Scientifically Validated Instruments to Measure
Understand Where the Company is Today and Where it Wants to Be
Align Engagement With Other Workplace Priorities
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Benefits of Improving Employee Engagement
“Research Reveals — Engaged Employees Have 5X Higher Shareholder Returns After 5 years” (Business2Community)
“Businesses with employee Engagement Scores Within the Top 25% Have 70% Fewer Safety Incidents Than Those in the Bottom 25%.” (2016 Gallup Meta-Analysis Study)
“Companies with Engaged Workers Have 6% Higher Net Profit Margins.” (Towers Perrin)
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Driving Convergence: Business, Academia and Government Resources, Experiences and Expertise to Share and Leverage…
Business and/with Academia
“They are like oil and water because they have different goals. Researchers are striving to find truth and somebody working in the company is striving to find profit. The researcher wants to disclose his/her findings to the wider world and the company does not necessarily want that.”
Dr. Mark Ebers University of Cologne
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Business/Academic Centers of Excellence
Microsoft-Cisco-Intel - University of Melbourne
Aalto University Formal Business Partnership Programs, Finland
BP’s Energy BioSciences Institute - UC Berkeley
Audi’s Ingolstadt Institute - TU Munich
Karolinska Institute, Sweden
California Institute for Telecommunications and Information Technology - UC San Diego, UC Irvine
IBM - ETH Zurich
SKM - Imperial College London
GE Global Research - Munich
Siemens - TU Berlin, MIT
Nokia - Aalto University, UC Berkeley
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Insights From The Science/Business Innovation BoardBringing Together Europe’s Leading Innovators, in Industry, Academia and Policy…
“Where companies and universities work in tandem to push from tiers of knowledge they become a powerful engine for innovation and economic growth.”
“…dense web of rich and long-running collaborations in the region have given rise to new technologies and a break neck pace and transformed industries while modernizing the role of the university.”
“Today’s universities largely embrace a model of higher education developed over 100 years ago. A new vision should include producing the highly-skilled workforce for a globally competitive economy.”
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Collective Future Vision for Business Education: AACSB InternationalDr. Santiago Iñiguez, Dean and Professor of Strategic Management at IE Business School, Board Chair od AACSB International
5 Main Roles for Business Schools in Society Going Forward Acting as Catalysts for Innovation Co-Creators of Knowledge Hubs of Life-Long Learning Leaders on Leadership Enablers of Global Prosperity
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Closing the Research-Practice Gap: Evidence-Based Management (“EBM”)Managerial Decisions and Organizational Practices Informed by the Best Available Scientific Evidence
Key Benefits of EBM Improved Managerial Decision Making/Outcomes Reduces the Use of Ineffective Management Practices Well-Informed Managers Developing Substantive Expertise Brings Together Scholars, Educators and Management Practitioners
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Evidence-Based Management (“EBM”)Managerial Decisions and Organizational Practices Informed by the Best Available Scientific Evidence
Business Students Often Give More Attention to Colorfully Written, Unsubstantiated Opinion Than to Less Vivid Research EvidenceManagement Field Lacks a Repository/Community Which Translates Evidence into its ImplicationsBest Practice Examples: Medicine and PolicingMore and More Management Scholarly Research Includes “Practice Implications”
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EBM Case StudyGoogle: Project Oxygen
Google Historical Belief of Manager Success: “Deep Technical Expertise”Bosses Left Their People Alone and They Helped Mainly with Technical SupportGoogle Chose to Dig Deeper and Conduct ResearchAccumulated and Analyzed 10,000 Observations About Managers
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Google: Project OxygenKey Findings
Behaviors of Highly Effective Managers (rank order)1. Be a Good Coach2. Empower Your Team and Don’t Micromanage3. Express Interest in Team Members’ Success and Personal Well-Being4. Don’t Be a Sissy: Be Productive and Results-Oriented5. Be a Good Communicator and Listen to Your Team6. Help Your Employees with Career Development7. Have a Clear Vision and Strategy for the Team8. Have Key Technical Skills
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Google: Project OxygenKey Findings Continued…
OutcomesEarly Adopters Led Top-Performing TeamsHappier EmployeesLower Employee TurnoverStatistically Significant Improvement in Manager Quality for 75% of Worst Performing Managers
CEO AlignmentSpeed Up Decision-MakingSimplify ManagementRecapture Nimbleness and Innovative Spirit
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Partnership Potentials of Business and Governments/SocietyBusiness Partnership Action (BPA)
Hubs/Centers for Excellence — Bringing/Working Together Government Business Donors UN NGOs
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UN Post 2015 Sustainable Development Goals
5 Action Areas: Business, NGOs, Government, UN and Communities Building Trust Across Sectors Open and Inclusive Planning & Development Create In-Country Multi-Stakeholder Platforms Partnership Best Practices Build Institutional Capacity for Partnering
The Partnering Initiative: Dr. Darian StibbeSupporting and Building Partnerships to Achieve Prosperous, Inclusive and Sustainable Business and Society
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“What I Decided to Do Differently Monday Morning”
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New and Emerging
Drucker Forum 2016
Blockchain: 2nd Era of the Internet (Ethereum Platform)
Distracted Management
Struggle Stories vs. Achievement Stories: Do Not Have to Be a Genius
Fix vs. Growth Mindsets: Dr. Carol Dweck
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“Management is doing things right; leadership is doing the right things.”
Peter Drucker
Mark BeliczkyThe Carlyle Group