copyright julian birkinshaw 2014 reinventing management professor julian birkinshaw london business...
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Copyright Julian Birkinshaw 2014
Reinventing Management
Professor Julian BirkinshawLondon Business School
Creating Happy Workplaces ConferenceMay 2014
Copyright Julian Birkinshaw 2014
Who are you happiest with?
Friends
Parents/relatives
Spouse
My children
Co-workers
Clients/customers
Alone
Boss
3.3
3.0
2.8
2.7
2.6
2.4
2.2
2.0(Rating is on a 1-5 scale)
Copyright Julian Birkinshaw 2014
What problem was management invented to
solve?• How to routinise
and standardise work?
• How to maximise employee discipline and diligence?
Copyright Julian Birkinshaw 2014
What are today’s management challenges?
• How do we change fast enough to stay relevant in a turbulent world?
• How do we innovate boldly enough to stay ahead of our competitors?
• How do we create an organisation where people are able and willing to do their best work?
Agile
Innovative
Engaging
Copyright Julian Birkinshaw 2014
Koontz & O’Donnell, Principles of Management, 1955
Copyright Julian Birkinshaw 2014
Broadening our concept of innovation
FROM NEW PRODUCTS
AND SERVICES
TO NEW WAYS OF WORKING
Copyright Julian Birkinshaw 2014
Reinventing management at HCL Technologies
• Employees first, customers second
• Value is created by client-facing employees
• Managers and support functions serve them through:
– Open 360º feedback– Smart Service Desk– You & I
Copyright Julian Birkinshaw 2014
Reinventing management:challenge the underlying
principle
EmergenceBureaucracy
How do we Coordinate How do we Coordinate Activities?Activities?
Traditional Principle Alternative Principle
Copyright Julian Birkinshaw 2014
Emergence
Shared Space: An intriguing analogy
Copyright Julian Birkinshaw 2014
Eliminating unnecessary processes
• 2001: Seeking growth
• Biggest blocker: the budgeting process
• Solution: Eliminated traditional budgeting, desk heads now evaluated on ROI versus peer units
01 02 03 04 05 06
3.2
2.6 2.6
3.5
4.1
5.1
Profit before tax for Wealth Management (ex US) in CHF Billion
Copyright Julian Birkinshaw 2014
Experimenting with a non-bureaucratic approach
Hypothesis:
Peer review is more effective than direct oversight for
managing the expense claim process
Copyright Julian Birkinshaw 2014
A new management process
Control group
Standard sign-off process for expense
claims
Test group
No sign-off required, employees put their expenses on-line for
all to see
Hypothesis: Peer review is more effective than bureaucracy for managing expense claims
After 4 months, employees
happier, total claims lower,
processing costs lower
Pre-measures of costs, employee satisfaction etc.
Copyright Julian Birkinshaw 2014
Part 2: Making it personal
Management: “Enabling your employees
to do their best work”
Copyright Julian Birkinshaw 2014
Key features of effective management
What employees need•Give your people important work to do•Provide them with space •Provide support when it is needed•Given people recognition & praise
What they often get•Confusing or unclear objectives•Micro-management and meddling•Lack of information, lack of concern•Limited or no feedback
Copyright Julian Birkinshaw 2014
Why don’t we do what we know we should?
Copyright Julian Birkinshaw 2014
DiscussionIf we know what “good management” looks like, why do we struggle to do it
consistently? And what techniques could we put in place to help us?
Copyright Julian Birkinshaw 2014
Is being a good manager an
“Unnatural Act”?
Copyright Julian Birkinshaw 2014
So how can you improve the quality of management in your
company?
Learn how to see the world
through the eyes of our employees
Copyright Julian Birkinshaw 2014
Copyright Julian Birkinshaw 2014
Cutting through the hierarchy: How do you get closer to the
front line?
• “Management by walking around”
• Skip-level meetings• Web-enabled chat / discussion• Front-line work• “Smokers corner”• Reverse mentoring
Copyright Julian Birkinshaw 2014
Turn your employees into promoters
Net Promoter Score: How likely is it that you would recommend this company to a friend or colleague?
1 2 3 4 5 6 7 8 910
Detractor Neutral Promoter
Extremely likely
Not at all likely
Copyright Julian Birkinshaw 2014
The “Net Management Promoter Score”
How likely is it that you would recommend your line manager to a colleague as someone they should work for in the future? (1=not at all likely, 10=extremely likely)
Detractor Neutral Promoter
Copyright Julian Birkinshaw 2014
A top quality boss is the best single predictor of employee
engagement
Copyright Julian Birkinshaw 2014
A new management style
Before
Traditional style of supervision
of team
After
Supervisor spends 5 hours more per week providing
feedback and coaching team
Hypothesis: A greater emphasis on ‘coaching’ will increase the effectiveness of my team
Intervention: Supervisor has 5 hours per week freed up (fewer meetings)
Team are asked to look for new ways of increasing cross-selling
Result: Team members more engaged, significant increase in cross-selling from lower performers