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Management Innovation

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Management Innovation

  1. 1. The Future of Management<br />Presentation<br />
  2. 2. Agenda of presentation<br />Why Management Innovation Matters<br />Management Innovation in Action<br />Building the Future of Management<br />
  3. 3. ?<br />Are the ENDof management<br />Try to imagine in the next 10 years,<br />What is the shape of business management in <br />the whole world.<br />
  4. 4. Revolution of theory<br />?<br />How about<br />21 century<br />
  5. 5. Surmountingnew challenges<br /><ul><li>Change acceleration
  6. 6. Deregulation
  7. 7. Disintermediation
  8. 8. Digitization & Internet
  9. 9. Short strategy life cycle
  10. 10. Globalization</li></ul>= New reality<br />
  11. 11. Limited byourDNA<br />“<br />”<br />WE ARE ALL PRISONERS <br />OF OUR PARADIGMS<br />
  12. 12. ?<br />Are theEndof<br />Management<br />or<br />The start ofnew conceptual<br />
  13. 13. What is Management Process today<br />- Strategic planning<br />- Capital budgeting <br />- Project management<br />- Hiring and promotion<br />- Training and development<br />- Internal communications<br />- Knowledge management<br />- Periodic business reviews<br />- Employee assessment and compensation<br />
  14. 14. What Manager do today ?<br />Planning<br />Organizing<br />Leading<br />Controlling<br />Commanding<br />Coordinating<br />…<br />- Henri Fayol 1917<br />AND everyone know these<br />
  15. 15. Time change,<br />Think ordinary, not win <br />We’re seeking for<br />The new<br />Ultimate <br />Advantage<br />
  16. 16. The Ultimate advantage<br /><ul><li>Significant shift in competitive </li></ul> advantage position<br /><ul><li> Confer long-lasting advantage</li></ul> on pioneer firm<br /><ul><li> Ordinary Innovation</li></ul> = advantage<br />Superior Innovation<br /> = Ultimate advantage<br />
  17. 17. The Innovationstack<br />Management innovation<br />Strategic innovation<br />Product/service innovation<br />Operational innovation<br />
  18. 18. The Innovationstack<br />What is thePoint ?<br />Management innovation<br /><ul><li>Not all types innovation </li></ul> are created equal<br />Strategic innovation<br />Product/service innovation<br />Operational innovation<br /><ul><li> Higher tiers signify higher level of value creation and competitive defensibility
  19. 19. Management Innovation, on top, possess a unique capacity to create difficult-to-duplicate advantage</li></li></ul><li>ThePowerof Management Innovation<br />Managing science<br />Allocating capital<br />Managing intangible assets<br />Capturing the wisdom of <br /> every employee<br />Building a global consortium<br />
  20. 20. Agenda for management innovation<br />Driver for new management<br />Management<br />Innovation<br />Changing<br />Company<br />that <br />adaptive<br />Innovation<br />to<br />Everyone’s<br />job<br />Company<br />For<br />everyone<br />best<br />Be Bold<br />
  21. 21. Be Bold <br />Let Start inside<br />Attitude & Heart<br />It’s not insightful analysis<br />But truly bold and imaginative alternatives<br />to the management status quo<br />with army of innovator from bottom up.<br />
  22. 22. st<br />20 century <br />st<br />21 century <br />Calibrate your Agenda<br />Whyis itpriority ?<br />Goal<br />Passion & Benchmark<br />“ The early bird ”<br />Is Winner <br />
  23. 23. Agenda # 1<br />Company that nimble to adaptive<br />Change<br />Fastly & Uncontrol<br />Maladaptation<br />- Are we change as fast as world<br />- Strategy, Biz model , core value<br />Challenge change the way you never seen before.<br />
  24. 24. Agenda # 1<br />Company that nimble to adaptive<br />Deep change<br />Goal<br />Build Org that : <br />Always Crisis-Led<br />Rarely Opportunity-Led<br />continuousself-renewal<br /> in the absence of a crisis<br />Challenge change the way you never seen before.<br />
  25. 25. Agenda # 1 Barrier<br />Denial<br />Dismiss<br />Download MP3<br />Rationalize<br />Mitigate<br />Confront<br />UnClose<br />
  26. 26. Agenda # 1 Barrier<br />Dearth of New Strategic option<br />Need New strategic option<br />Arithmetic Law<br />Process <br />for generate<br />1000 : 100 : 10 : 2<br />Why Innovation suffer<br />Who know which one hit ?<br />Focus in Portfolio<br />of strategic option<br />How to invest<br />Portfolio not surefire idea <br />
  27. 27. Agenda # 1 Barrier<br />Allocation Rigidity<br />Legacy program (what is)<br />Initiative (what could be)<br />Resist to allocate<br />Regardless of how attractive<br />Why disproportion<br />1 Monopsony<br />2 Allocation process <br />VCs vsLarge company<br />
  28. 28. Agenda # 2<br />Making Innovation everyone’s job<br />Fortification<br />Disempowered<br />customer<br />Scale<br />advantage<br />Patent<br />protection<br />Capital<br />hurdles<br />Regulatory<br />barriers<br />Distribution<br />monopoly<br />Proprietary<br />standards<br />Import<br />protection<br />
  29. 29. Agenda # 2<br />Deregulation<br />Making Innovation everyone’s job<br />Web power<br />Web empowered customer<br />Ultra low cost<br />Outsource<br />Transaction cost free<br />Distribution free<br />Globaliztion & Longtail Effect<br />
  30. 30. Agenda # 2<br />Making Innovation everyone’s job<br />but from<br /> We have no choice <br /> except “INNOVATION”<br />Where<br />CEO<br />management<br />Innovation<br />Production<br />Only<br />IT<br />Everywhere<br />Finance<br />Product<br />Innovation<br />Marketing<br />R&D<br />HR<br />Operation<br />Innovation system<br />Coach+fund+process+compensate =<br />
  31. 31. Randy<br />Voss<br />Case study in Innovation <br /><ul><li> Unique solution
  32. 32. Real & sustain Competitive</li></ul>Define<br />advantage<br /><ul><li> Extraordinary value
  33. 33. Tools & Time
  34. 34. Portfolio Aggregation</li></ul>Process<br /><ul><li> Idea Crossing's Innovation</li></ul> Challenge program<br /><ul><li> Matrixed organization</li></ul>Senior Manager,<br />Global Strategy <br />and Business<br />development<br /><ul><li> Innovator mentor training</li></ul>Training<br /><ul><li> Option in training
  35. 35. Innovation 101</li></li></ul><li>How to use<br />Capability ofeachandeveryone<br />Agenda # 2 Barrier<br />Creative Apartheid<br />Give me <br />opportunity<br />Ordinarypeople vs<br />ExtraordinaryInnovator<br />Creative =muscle<br />Train 35,000 employee<br />Tools & Time required <br />
  36. 36. Agenda # 2 Barrier<br />Drag of old mental models<br />Biz model Challenge<br />Still step in the old success<br />Invented model like my son<br />
  37. 37. Agenda # 2 Barrier<br />No slack<br />but<br />How<br />Efficient<br />(balance)<br />time&space<br />slack<br />in operation<br />Innovation<br />
  38. 38. Agenda # 3<br />Company that every one give the best<br />Relative to Value creation<br />I can’t adapt & create.<br />Management <br />Principle & process<br />Company underperform <br />employee potential <br />
  39. 39. Agenda # 3<br />Company that every one give the best<br />Nature of organization<br />Contrast with <br />Nature of human<br />Goal:<br />Reinvent management <br />System that <br />Inspire everyone<br />
  40. 40. Agenda # 3<br />Company that every one give the best<br />Passion<br />Human capability<br />Creative<br />Intellect<br />Initiative<br />Diligence<br />Obedience<br />Competitiveness<br />5%<br />15%<br />20%<br />25%<br />30%<br />0%<br />
  41. 41. Case study in Innovation <br />What isKey success?<br />Designed in California<br />Made in China<br />Information<br />Knowledge<br />Creative<br />economy<br />economy<br />economy<br />
  42. 42. Agenda # 3 Barrier<br />Too much management, Too little freedom<br />AssignorTeamwork<br />Tools of management <br /> distort creative.<br />Manage employee Less<br />Empower the bottom<br /> level of employee<br />
  43. 43. individual<br />Contribution<br />Agenda # 3 Barrier<br />Too much hierarchy, Too little community<br />Exchange<br />Contractual <br />Voluntary<br />Dependency<br />Loyalty<br />Dedication<br />Control<br />Layer & Rule<br />Value, norm<br />Capability & disposition<br />Frame<br />Finance<br />Emotional<br />Reward<br />
  44. 44. Agenda # 3 Barrier<br />Too much Exhortation, Too little purpose<br />Moral Imperative<br />
  45. 45. Agenda of presentation<br />Why Management Innovation Matters<br />Building the Future of Management<br />Management Innovation in Action<br />
  46. 46. Building the future of management<br />Imagine it first<br />
  47. 47. Imagine # 1<br />Escaping the shackle<br /><ul><li> Standardize or Bad conformance
  48. 48. Specialization or Idea limitation
  49. 49. Goal alignment or Discourage idea
  50. 50. Hierarchy or Political
  51. 51. Extrinsic reward or Blind power
  52. 52. Planning & control or Stay too calm</li></li></ul><li>Imagine # 1<br />Escaping the shackle<br /><ul><li> Why Focus on Max operation efficiency and reliability
  53. 53. Why not believe the outsider power
  54. 54. Why not question to heritance
  55. 55. Why believe the old truth
  56. 56. Why asking the same question
  57. 57. Why not separate what & how
  58. 58. Why notexposing self interest
  59. 59. Why choose from a little choice
  60. 60. Why not beat to the core</li></li></ul><li>“<br />”<br />DNA of adaptability<br />Imagine # 2<br />Embracing new principle<br />What happen if…<br />we reinvent the new management DNA<br />
  61. 61. Imagine # 2<br />Embracing new principle<br />Life<br />Variety<br />Cities<br />Serendipity<br />Adaptive<br />Democracy<br />Activity<br />Market<br />Flexibly<br />Faith<br />Meaning<br />
  62. 62. Imagine # 2<br />Embracing new principle<br /><ul><li> Variety & Selection - Responsiveness - Experimental - Mistake make mutation </li></ul>Life<br />Variety<br />Cities<br />Serendipity<br /><ul><li> Flexibly allocation -Decentralization - Apolitical - Build market and they -will come - Operational efficiency - vs Strategic efficiency</li></ul>Adaptive<br />Democracy<br />Activity<br />Market<br />Flexibly<br />Faith<br />Meaning<br /><ul><li> Mission matter - People change – for what the care </li></li></ul><li>Imagine # 2<br />Embracing new principle<br /><ul><li> Increasing the odds of - serendipity - Diversity beget creativity - No pigeonholes </li></ul>Life<br />Variety<br />Cities<br />Serendipity<br /><ul><li> Bottom up - Accountability to the - governed - Right of dissent - Distributed leadership</li></ul>Adaptive<br />Democracy<br />Activity<br />Market<br />Flexibly<br />Faith<br />Meaning<br />
  63. 63. Building the future of management<br />Challenge of practice<br />How to Start<br />
  64. 64. Startwith your ownProcess<br />
  65. 65. Challenge # 1<br />Creating ademocracy of idea<br />Start encouraging bottom-up thinking !<br />
  66. 66. Challenge # 2<br />Amplifying Humanimagination<br />Startcreate tools of creativity and free imagination !<br />Time + Space + Tools<br />
  67. 67. Challenge # 3<br />Dynamically reallocate resource<br />Start create flexible system for deploying <br />the capital and talent projects !<br />
  68. 68. Challenge # 4<br />Aggregate collective wisdom<br />Start making process that decision reflect the <br />collective knowledge of organization !<br />
  69. 69. Challenge # 5<br />Minimizing the drag of old mental models<br />How much<br />does their <br />total age ?<br />Start Making more flat structure & grant authority<br />of an out-of-date executive !<br />
  70. 70. Challenge # 6<br />Giving everyone the chance to opt in<br />Start create policy of self-chosen commitment !<br />
  71. 71. Agenda of presentation<br />Why Management Innovation Matters<br />Building the Future of Management<br />Management Innovation in Action<br />
  72. 72. Case study in Innovation <br />Purpose<br />Whole Food<br />Whole people <br />Whole Planet<br />Creating community of purpose<br />
  73. 73. Case study in Innovation <br />Freedom & Accountability<br />Basic organizational unit is not <br />The store but the empowered small team. <br />Trust<br />No secretmanagement philosophy that have noclosed data. <br />Equity<br />93% of stock granted to non executive<br />Giving employee to exercise their initiative, imagination and passion<br />
  74. 74. Case study in Innovation <br />Principles matter <br />Over 25 years, Management system is based on a management principles <br />Love / Community / Autonomy / Egalitarianism / Transparent<br />Not stick in old management<br />Executive often able to invent an novel management. <br />Resolve two side of trade-offs<br />Find ways to reconciling trade-offs and take benefit from both sides.<br />Freedom & Responsibility / Discipline & Innovation<br />
  75. 75. Case study in Innovation <br />Product Innovation<br />
  76. 76. Case study in Innovation <br />Not Hierarchy<br />Network organization, not hierarchy, and committed for it<br />Plenty of Leader<br /> No word like Boss, manager, VP Sponsor instead of command.<br />Free to experiment<br />Have ‘Dabble time’ which they can devote to an initiative of their own choosing<br />
  77. 77. Case study in Innovation <br />Focused ,but No Core Business<br />With more than 1,000 products in its portfolio and having freedom to purse own interest with own team<br />Redistribute power <br />Always delegate power downward & outward. Most manager support the idea of empowerment<br />Long term reward<br />In short term, Cost seem more tangible than benefit but be patient and optimism .<br />
  78. 78. Case study in Innovation <br />
  79. 79. 70<br />20<br />10<br />Case study in Innovation <br />Formula for innovation<br />70 -Enhancing of google ’s core business 20 -Focus on service that extend the core 10 –Allocate to fringe ideas <br />Bozo freezone<br />Hiring only the brightest of the bright. Weed out anyone who only average.<br />Small, self managing teams<br />Average of 3 engineers per team and one work more than one team. Small team make google like lively company not an bureaucratic giant.<br />
  80. 80. Case study in Innovation <br />Rapid, Low cost experimental<br />‘ Just-try-it ’philosophy<br />Freedom to follow your nose<br />Innovation is everyone responsibility. Consequently, make portfolio of strategic option<br />A continuous & companywide conversation<br />Misc list<br />MOMA<br />Snippets<br />TGIF<br />
  81. 81. Case study in Innovation <br />Experience Manager<br />May not make the best management innovator.<br />Highly empowerment environment<br />That convince best people to work at Google<br />Differential reward<br />Having ‘Founder reward’for remarkable contribution to firm’ s success<br />
  82. 82. Reference of presentation<br />Author<br />Gary hamel with Bill breen<br />Press<br />Harvard Business School Press<br />