2. Agenda for today
• Today I’m going to:
– Share with some bad news on “management
science”
– Show you “modifiers” which significantly changes
how management is done
– Give very basic ideas how you should manage
taking into account these modifiers
– Give you opportunity to figure out if you are
manager
7. Who is manager?
Management in all business and organizational
activities is the act of getting people together to
accomplish desired goals and objectives using
available resources efficiently and effectively.
Management comprises planning, organizing,
staffing, leading or directing, and controlling an
organization (a group of one or more people or
entities) or effort for the purpose of accomplishing
a goal. Resourcing encompasses the deployment
and manipulation of human resources, financial
resources, technological resources, and natural
resources.
8. Acid Test
• I can call myself «manager» if:
– Part of responsibility delegated to me
– I have a budget to accomplish what
expected from me
– I can hire & fire people
– Assign Tasks to them and set
deadlines & constraints
– Assess their performance
– That’s my prerogative to set salaries &
bonuses for them
10. You can have “leading” assignments:
Oh
yes, sure
Am I a you are!
manager?
11. What does it mean for you::
• Different level of management assume
different levels of responsibility and authority
• Don’t get your head broken by things that are
not in your authority and responsibility – you
can point them but you cant fix them
• Work on things that was delegated to you –
this strategy work despite your level
12. Management is re-invented depending on:
Company Organization Your Area of
Type Paradigm Responsibility
Your Boss’s Your Level in
Size
Type Company
13. Functional structure
Director
Line Line Line
Manager Manager Manager
Subordinate Subordinate Subordinate
Subordinate Subordinate Subordinate
Subordinate Subordinate Subordinate
14. Project Structure
Director
Project Team Team Team
Member Member Member
Manager
Project Team Team Team
Member Member Member
Manager
Project Team Team Team
Member Member Member
Manager
15. Matrix Structure
Director
Resource Resource Resource Head of
Manager Manager Manager Delivery
Project A Subordinate Subordinate Subordinate PM
Project B Subordinate Subordinate Subordinate PM
Project C Subordinate Subordinate Subordinate PM
16. What does it mean for you:
• Functional Managers should be good in building
processes:
– Building conveyor
– Maximizing throughoutput
• Project Managers should be good in delivering
expected results in time:
– Organizing as shift happens
– Managing changes
• Matrix Managers should be good in supplying
resources:
– Building up resource skill
– Setting manageability
17. Management is re-invented depending on:
Company Organization Your Area of
Type Paradigm Responsibility
Your Boss’s Your Level in
Size
Type Company
18. What does it mean for you:
Type: Likes and not likes: What you expected to do:
Volcano Assumes everybody is stupid and requires his Play fool.
guidance all the time – “put some pressure”.
Doesn’t like those with opinion.
Country Club Think his dept is kind of family. No matter what Become friend.
Manager everyone should be friend. Hates tension even
if team function dropped.
Bank There are procedures and responsibilities, he Follow the rules.
Manager hates those doesn’t follow.
Cowboy Assumes that every problem should Ride with him.
immediately attacked and solved. Hates those
who points failures.
Asshole Assumes that only he is smart and everybody Quit.
else are shit so he didn’t need to take into
account their opinion and keep promises.
Rationale Expects that you are partners in business. Partner with him.
While you keep your promises – he will keep
his too. Hates failed agreements.
19. Management is re-invented depending on:
Company Organization Your Area of
Type Paradigm Responsibility
Your Boss’s Your Level in
Size
Type Company
22. Because you need to hire more people…
Complexity
% High Performance Employees
23. So eventually chaos emerges…
Chaos and errors spikes here – business
has become too complex to run
informally with this talent level Complexity
% High Performance Employees
23
24. And process Emerges to stop the Chaos…
Procedures
(No one loves process, but
feels good compared to the
pain of chaos)
26. 4 exits available:
• Stop growing
• Add more process focus
• Pay a lot of money for hiring smarties
• Split company into number of teams
27. What does it mean for you:
• In “Bonsai” companies you will most like act on your
own – self-management
• In “process-focused” organization you are not
supposed to think, you supposed to follow rules &
escalate if rules cannot be followed – rules
management
• In “smarties” company you can will cooperate with
others and build alliances to reach your
interdependent goals – relationships management
• In “atomistic” companies you will manage your single
team like small farm in Kansas – team management
28. Management is re-invented depending on:
Company Organization Your Area of
Type Paradigm Responsibility
Your Boss’s Your Level in
Size
Type Company
29. Changes implied by size:
NOTE: For really large companies independent parts of company can be in different stages
1 2 3 4 5
CATEGORY 1 – 5 people Up to 20 Up to 100 Up to 1000 More than 1000
MANAGEMENT efficiency of consolidation of problem solving &
make & sell expansion of market
FOCUS operations organization innovation
ORGANIZATION centralized & decentralized & line-staff & product
informal matrix of teams
STRUCTURE functional geographical groups
TOP
individualistic & delegative watchdog
MANAGEMENT directive participative
entrepreneurial supervising escalation point
STYLE
CONTROL standards & cost reports & profit plans & investment
market results mutual goal setting
SYSTEM centers centers centers
MANAGEMENT
salary & merit profit sharing &
REWARD ownership individual bonus team bonus
increases stock options
EMPHASIS
30. What does it mean for you:
• You should understand where is your
company or “company” – this will help you:
– Identify top-management priorities
– Realize how company is managed
– What you expected to do & how
– What you can successfully negotiate in terms of
permissions and reward
31. Management is re-invented depending on:
Company Organization Your Area of
Type Paradigm Responsibility
Your Boss’s Your Level in
Size
Type Company
33. Business Model – where are you?
You
supposed How do you
to deliver? contribute to
bottom line? Or to sell?
34. What does it mean for you:
• If you are “cost center” – you are in trouble:
– Budgeted as %
– No permissions
– Often misbalanced expectations & budget
• You should be “profit center”:
– How do you contribute to Value?
– How it can be measured?
35. Very special question:
Company Organization Your Area of
Type Paradigm Responsibility
Promotion & Reward System
Your Boss’s Your Level in
Size
Type Company
36. In fact there 2 cybernetics:
Cybernetics of
system that
manages
Cybernetics of
system being
managed
37. What does it mean for you:
Promotion Principles: Visual indicators: How to get to the top:
Performance-based Employees always have goals or Take more.
metrics. They will be regularly Overdeliver on it.
assessed. Top performers are Make everyone agree that’s your
promoted. achievement. You will get it.
Relationship-based Those who are exposed to top Know a lot of people on the top.
management and managed to build Build good relationships with
good work relationships are them. Keep in touch and wait for
promoted. right moment.
Loyalty-based There are some people who Follow the sun. Praise the chief.
doesn’t look talented or top- Do as you told. Don’t bring any
performing but neither argue or do unexpected stuff to the table. One
something unexpected. They are day you will find yourself
promoted. promoted.
Qualification-based There are people who knows a lot, Attend every training you can. Get
certified, etc. They are promoted. as many certs as you can. Bring to
performance review.
Lottery-based Somebody gets promoted and Get as much lottery tickets as
nobody can explain how it possible – your shoe should be in
happened. every door.
38. Ok, here you can teach management
• On L1 find yourself trusted
Mentor
– Behold what going on
– Ask questions
• After getting few levels up
find yourself Mentees
– Mentees, not sycophants
– Point things they should
think about
39. Conclusion:
• Know your level – what you can change?
• Know your Value – and measure it
• Set right focus – build process, organize project, grow
up resource pool
• Manage – and do it how to your Boss likes
• And company culture assumes – live on island, build
partnerships or follow rules
• Build your career – according to company “game rules”
• Be aware that no matter which size you have you will
have trouble – just different kind