Help Reinvent Management for the 21st Century

Posted on 05/20/2008

by Gary Hamel

The first rule of blog-writing is this: keep it current. So apologies. I haven’t posted anything in a few months because I’ve been working flat out to pull together a conference that will focus on the challenge of inventing the future of management. This invitation-only event will take place in Half Moon Bay, California on the 29th and 30th of May, and the attendees will include . . .

Academic heavyweight like Henry Mintzberg (McGill), Peter Senge, (MIT) Chris Argyris (Harvard), C.K. Prahalad (Michigan), Tom Malone (MIT), Jeffery Pfeffer (Stanford), and Linda Hill (Harvard).

Big thinkers like James Surowiecki (The Wisdom of Crowds), Eric Beinhocker (The Origins of Wealth), Lowell Bryan (Mobilizing Minds), Steven Weber (The Success of Open Source) and David Wolfe (Firms of Endearment).

Stars from the venture capital world, including Steve Jurvetson (Draper Fisher Jurvetson) and Leighton Reed, MD (Alloy Ventures).

Distinguished editors and writers like Kevin Kelly (former editor of Wired) and Tom Stewart (editor of Harvard Business Review).

And some very progressive business leaders, including: Terri Kelly (CEO, W.L. Gore), John Mackey (CEO, Whole Foods), Tim Brown (CEO, IDEO), VineetNayar (CEO, HCL Technologies), and Marissa Mayer (Google’s VP for search products).

The animating thought behind the conference is this: What would happen if you invited 35 really smart folks to reinvent management for the 21st century? Hence, the guest list. OK, so nobody’s going to reinvent management over the course of a two day schmooze-fest, but at a minimum, this august group of management thinkers and CEOs ought to be able to come up with a first-cut agenda for tomorrow’s management innovators—don’t you think? Well, we’re going to find out when we get this Ferrari dealership’s worth of intellectual focused on the following four questions:

1. What are the deep-seated impediments, or “design flaws,” that limit the capacity of organizations to adapt (to change without trauma); to innovate (to mobilize the imagination of everyone, every day); and to engage (to create environments that inspire extraordinary contributions).

2. Given these systemic impediments, and the new demands that will confront organizations in the years ahead, what should be the agenda for 21st century management innovators? That is, what are the “moonshot challenges” that must be addressed if we are to create organizations that are truly fit for the future?

3. Can we imagine, even in outline form, some potential solutions to these challenges, and if so, what sorts of experiments might be useful in helping us to test these ideas in real world settings?

4. More generally, what could be done to help accelerate the evolution of management in the years to come, that is, what is it that limits the pace of management innovation and how might these limits by overcome?

Of course, a few dozen brainiacs are no substitute for a “crowd” of unconventional and inspired thinkers. So, if YOU have a view on any or all of these questions, I and my colleagues at the MLab would like to hear from you. (You can post a comment below.) We’ll weave your ideas into the conversations we’ll be having in Half Moon Bay—so you let us know what you think, and be sure to append your name to your comment, so we can give credit where credit’s due.

And in a few weeks I’ll come back and tell you what happened when we gave the experts a couple of days to imagine the future of management.

Comments

What happened?

Have the results of Half Moon Bay been published yet?

Help Reinvent Management for the 21st Century

Alberto Da Silva offered two comments about this piece on the Harvard Business Publishing website that we would like to build on. First the preliminary results from Gary's May conference published in the latest Labnotes seem to reflect the difficulty Da Silva identified of experts escaping their own paradigms to find a completely new approach to management. The attendees did not build upon Gary’s innovative thinking and instead identified 25 challenges for Management 2.0, most of which have been studied for years without success. Viewed from the perspective of Thomas Kuhn’s work, they produced a list of "anomalies" with the dominant hierarchical control paradigm that can be resolved only by a management paradigm shift.

More relevant to this blog and Management for the 21st Century is Da Silva suggesting “self-reinvented leaders” as a source for “reinventing Management.” In retrospect that has been the focus of our 10+ years of research which produced remarkable findings. For example we discovered that we and the “self-reinvented” leaders who built Hewlett Packard, Wal-Mart, Nucor Steel, Southwest Airlines, and Herman Miller intuitively utilized a paradigm shift from traditional hierarchical control to "vision-based freedom." Trial and error attempts to emphasize freedom-based leadership in our companies produced remarkable business successes for all. Further the learnings extracted from these experiences suggest the potential to transform management. We have seen nothing that empowers and motivates more effectively than management valuing employee knowledge, skills, and creativity, and creating an organizational culture within which they can be trusted to do their best without management controlling them. Key elements of these cultures include:
* Everybody understanding the enterprise vision for success—mission, aspirations, shared values and beliefs, and how their unit contributes to that success.
* Personal responsibility for focusing on the mission and aspirations;
- behaving consistently with shared values;
- maximizing one’s contributions;
- deciding and acting with competence and appropriate knowledge;
- respecting rights and property of others; and
- managing one’s own development.
* All business information openly available to everybody.
* Encouragement to take risks and learn from mistakes.
* Sufficient financial and other authorities to freely fulfill responsibilities, and accountability to colleagues and the organization for doing so.
* Encouragement and help to develop and fully utilize one’s potential.
* Sharing the intrinsic and financial rewards of business success.
* Freedom to question, to investigate, to decide, to act, and at times to fail.
* Freedom from boundaries and arbitrary limitations like work hours, location, dress, etc.

Freedom-based organizations require managers, but their responsibilities shift to leading, coaching, and serving employees—instead of directing and controlling them. Management retains responsibility for controlling areas such as the vision for success, business strategies, company policies, and large financial commitments, but shifts primary responsibility for control of day-to-day activities to employees. Experience shows that this shift in control responsibilities improves organizational control—in part because employees think and act like an army of internal auditors.

If peer review confirms our findings, FREEDOM-BASED MANAGEMENT© seems to offer the paradigm shift Gary seeks for 21st Century Management.

Regards, Bill Nobles and Paul Staley
billnobles@optonline.net

Gary, Any updates/summaries

Gary,

Any updates/summaries of key findings available?

Thanks!

The Optimal Solution

Dear Gary,

I know this will sound heretical, but I think there is a single, optimal solution to reinventing management in the 21st century. The best way to organize human beings, I will argue, is the one that aligns harmoniously with nature's elegant motivational design--an ancient survival mechanism built deeply into our brains. In other words, our biology and evolved motivational psychology put constraints on what will work in the 21st, or any other century thereafter.

If we accept the premise that companies should align with human nature, the next question becomes--what, exactly, does human nature look like and how can companies align with it. I argue in my book, "Primal Management: Unraveling the Secrets of Human Nature to Drive High Performance," that human nature can be viewed as a set of biologic and social drives, or appetites, that create pleasant, rewarding feelings when we act in ways that promote survival. Feelings, according to this scheme, are proxies for the vital survival needs of our species and they tell us in which direction we should go (which direction is optimal).

Nature, I propose, seduces us into productive, cooperative and innovative behavior with pleasant, rewarding feelings created by neurotransmitters like dopamine and serotonin; neuropeptides like vasopressin and oxytocin; and natural, endogenous opiates. The optimal management scheme is therefore the one that feeds the social appetites and thereby maximizes the natural productive pleasures that nature built into the system to promote survival--or, as Aristotle proclaimed, pleasure in the job put perfection in the work.

The idea that employees should enjoy their work is similar to what you propose in "The Future of Management." "Primal Management" simply provides some biologic underpinning regarding how these productive pleasures work and how to unleash them in the workplace.

If you'd like to learn more about the five productive pleasures that drive human achievement, I'd be happy to give you a sneak peak at Primal Management (publication date April, 2009 by AMACOM Books).

By the way, I love your work and your books! You're awesome!

Best Regards,

Paul Herr
peherr@paulherrconsulting.com
608-833-9446

the conclusions

So what happens next?

Hello I presume that the

Hello

I presume that the most important item to look at in reinventing management or in accelerating the evolution of management processes in the 21st century is the psychology of management. This area in my point of view is of crucial importance and surprisingly we are not witnessing any considerable work pertaining to the psychology of management. Would it sound absurd if one comes and argues that all the failures and all the problems that an organization faces, has its roots in the phenomenological psychology of management in that organization? The question then will be how to delve into the subjective experiences of management? How to combine human factors psychology, developmental psychology, educational psychology, cognitive psychology and so on to explain the happenings in the organizational context. I remember once when I was talking to a psychologist; he made a point that every illness or disease can be traced back to the mind and nervous system. I guess this analogy may work if we consider an organization as a human body. Then the task will be to determine the psyche and nervous system of the body and study them in a way that helps us explain the situations or plan for future experimentations. In this point, I guess the psychology of management arises as an important factor that can strongly explain success or failures of the real world. Maybe we need to delve into the psychological aspects of organizational management to identify the reality of the relationship between developmental, educational and cognitive aspects of management as a phenomenon and the organizational performance.

Jamal Ghamari
Jamal_ghamari@yahoo.com