Manager New Model

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Practical Management for Career Readiness

Fundamentals of Management Module 1

with Dave Nagy

The Fundamental Business Model Old Economy Values Transition – Times Are Changing New Economy Values - New Model

The Fundamental Business Model

Old Economy Values Organizational Model • Little competition - Hierarchical - Stodgy - Individualistic

Management • Arrogant - Gave orders – Command and control – Status quo

Employees • Boring jobs – Pitted against each other – Role didn’t change

Product • Engineering Out – Good is good enough – Little quality concern

Processes • Conventional - Inefficient – Designed to build inventory – Big lots

Customers • Pent up demand - Little choice – Frustrated – No voice – Caveat emptor (Buyer Beware)

The Fundamental Business Model

Old Economy Values Organizational Model • Little competition - Hierarchical - Stodgy - Individualistic

Management • Arrogant - Gave orders – Command and control – Status quo

Employees • Boring jobs – Pitted against each other – Role didn’t change

Product • Engineering Out – Good is good enough – Little quality concern

Processes • Conventional - Inefficient – Designed to build inventory – Big lots

Customers • Pent up demand - Little choice – Frustrated – No voice – Caveat emptor (Buyer Beware)

The Fundamental Business Model

Old Economy Values Organizational Model • Little competition - Hierarchical - Stodgy - Individualistic

Management • Arrogant - Gave orders – Command and control – Status quo

Employees • Boring jobs – Pitted against each other – Role didn’t change

Product • Engineering Out – Good is good enough – Little quality concern

Processes • Conventional - Inefficient – Designed to build inventory – Big lots

Customers • Pent up demand - Little choice – Frustrated – No voice – Caveat emptor (Buyer Beware)

The Fundamental Business Model

Old Economy Values Organizational Model • Little competition - Hierarchical - Stodgy - Individualistic

Management • Arrogant - Gave orders – Command and control – Status quo

Employees • Boring jobs – Pitted against each other – Role didn’t change

Product • Engineering Out – Good is good enough – Little quality concern

Processes • Conventional - Inefficient – Designed to build inventory – Big lots

Customers • Pent up demand - Little choice – Frustrated – No voice – Caveat emptor (Buyer Beware)

The Fundamental Business Model

Old Economy Values Organizational Model • Little competition - Hierarchical - Stodgy - Individualistic

Management • Arrogant - Gave orders – Command and control – Status quo

Employees • Boring jobs – Pitted against each other – Role didn’t change

Product • Engineering Out – Good is good enough – Little quality concern

Processes • Conventional - Inefficient – Designed to build inventory – Big lots

Customers • Pent up demand - Little choice – Frustrated – No voice – Caveat emptor (Buyer Beware)

The Fundamental Business Model

Old Economy Values Organizational Model • Little competition - Hierarchical - Stodgy - Individualistic

Management • Arrogant - Gave orders – Command and control – Status quo

Employees • Boring jobs – Pitted against each other – Role didn’t change

Product • Engineering Out – Good is good enough – Little quality concern

Processes • Conventional - Inefficient – Designed to build inventory – Big lots

Customers • Pent up demand - Little choice – Frustrated – No voice – Caveat emptor (Buyer Beware)

The Fundamental Business Model

Old Economy Values Organizational Model • Little competition - Hierarchical - Stodgy - Individualistic

Management • Arrogant - Gave orders – Command and control – Status quo

Employees • Boring jobs – Pitted against each other – Role didn’t change

Product • Engineering Out – Good is good enough – Little quality concern

Processes • Conventional - Inefficient – Designed to build inventory – Big lots

Customers • Pent up demand - Little choice – Frustrated – No voice – Caveat emptor (Buyer Beware)

The Fundamental Business Model

Transition – Times Are Changing Organizational Model • Big and inefficient – Inflexible – Heavy debt – Hostile raiders

Management • Confused – Many disappearing – Emerging leaders

Employees • Losing jobs – Afraid to say anything – Frustrated – Low morale

Product • Still little quality - Dying on the shelf – Japanese quality the rage

Processes • Old - Time studies - Industrial Mgmt & Eng - Build it cheap - Outsource

Customers • Refusing to buy junk - More choice – Buy foreign – Ralph Nadar

The Fundamental Business Model

Transition – Times Are Changing Organizational Model • Big and inefficient – Inflexible – Heavy debt – Hostile raiders

Management • Confused – Many disappearing – Emerging leaders

Employees • Losing jobs – Afraid to say anything – Frustrated – Low morale

Product • Still little quality - Dying on the shelf – Japanese quality the rage

Processes • Old - Time studies - Industrial Mgmt & Eng - Build it cheap - Outsource

Customers • Refusing to buy junk - More choice – Buy foreign – Ralph Nadar

The Fundamental Business Model

Transition – Times Are Changing Organizational Model • Big and inefficient – Inflexible – Heavy debt – Hostile raiders

Management • Confused – Many disappearing – Emerging leaders

Employees • Losing jobs – Afraid to say anything – Frustrated – Low morale

Product • Still little quality - Dying on the shelf – Japanese quality the rage

Processes • Old - Time studies - Industrial Mgmt & Eng - Build it cheap - Outsource

Customers • Refusing to buy junk - More choice – Buy foreign – Ralph Nadar

The Fundamental Business Model

Transition – Times Are Changing Organizational Model • Big and inefficient – Inflexible – Heavy debt – Hostile raiders

Management • Confused – Many disappearing – Emerging leaders

Employees • Losing jobs – Afraid to say anything – Frustrated – Low morale

Product • Still little quality - Dying on the shelf – Japanese quality the rage

Processes • Old - Time studies - Industrial Mgmt & Eng - Build it cheap - Outsource

Customers • Refusing to buy junk - More choice – Buy foreign – Ralph Nadar

The Fundamental Business Model

Transition – Times Are Changing Organizational Model • Big and inefficient – Inflexible – Heavy debt – Hostile raiders

Management • Confused – Many disappearing – Emerging leaders

Employees • Losing jobs – Afraid to say anything – Frustrated – Low morale

Product • Still little quality - Dying on the shelf – Japanese quality the rage

Processes • Old - Time studies - Industrial Mgmt & Eng - Build it cheap - Outsource

Customers • Refusing to buy junk - More choice – Buy foreign – Ralph Nadar

The Fundamental Business Model

Transition – Times Are Changing Organizational Model • Big and inefficient – Inflexible – Heavy debt – Hostile raiders

Management • Confused – Many disappearing – Emerging leaders

Employees • Losing jobs – Afraid to say anything – Frustrated – Low morale

Product • Still little quality - Dying on the shelf – Japanese quality the rage

Processes • Old - Time studies - Industrial Mgmt & Eng - Build it cheap - Outsource

Customers • Refusing to buy junk - More choice – Buy foreign – Ralph Nadar

The Fundamental Business Model

Transition – Times Are Changing Organizational Model • Big and inefficient – Inflexible – Heavy debt – Hostile raiders

Management • Confused – Many disappearing – Emerging leaders

Employees • Losing jobs – Afraid to say anything – Frustrated – Low morale

Product • Still little quality - Dying on the shelf – Japanese quality the rage

Processes • Old - Time studies - Industrial Mgmt & Eng - Build it cheap - Outsource

Customers • Refusing to buy junk - More choice – Buy foreign – Ralph Nadar

The Fundamental Business Model

New Economy Values – New Model Organizational Model • Transparent – Short term vision – Objectives critical to success – Rise of small business

Management • Less levels – High stress – Desktop managers – Revolving door

Employees • We - Self directed – Empowered – Involved – Motivated - Graying

Product • Short model life – lot of brand competition & models

Processes • Continuous improvement – ISO – Six Sigma - Metrics - Green

Customers • Demand quality – want it now – Lot of choices – Internet – VOC/Yelp

The Fundamental Business Model

New Economy Values – New Model Organizational Model • Transparent – Short term vision – Objectives critical to success – Rise of small business

Management • Less levels – High stress – Desktop managers – Revolving door

Employees • We - Self directed – Empowered – Involved – Motivated - Graying

Product • Short model life – lot of brand competition & models

Processes • Continuous improvement – ISO – Six Sigma - Metrics - Green

Customers • Demand quality – want it now – Lot of choices – Internet – VOC/Yelp

The Fundamental Business Model

New Economy Values – New Model Organizational Model • Transparent – Short term vision – Objectives critical to success – Rise of small business

Management • Less levels – High stress – Desktop managers – Revolving door

Employees • We - Self directed – Empowered – Involved – Motivated - Graying

Product • Short model life – lot of brand competition & models

Processes • Continuous improvement – ISO – Six Sigma - Metrics - Green

Customers • Demand quality – want it now – Lot of choices – Internet – VOC/Yelp

The Fundamental Business Model

New Economy Values – New Model Organizational Model • Transparent – Short term vision – Objectives critical to success – Rise of small business

Management • Less levels – High stress – Desktop managers – Revolving door

Employees • We - Self directed – Empowered – Involved – Motivated - Graying

Product • Short model life – lot of brand competition & models

Processes • Continuous improvement – ISO – Six Sigma - Metrics - Green

Customers • Demand quality – want it now – Lot of choices – Internet – VOC/Yelp

The Fundamental Business Model

New Economy Values – New Model Organizational Model • Transparent – Short term vision – Objectives critical to success – Rise of small business

Management • Less levels – High stress – Desktop managers – Revolving door

Employees • We - Self directed – Empowered – Involved – Motivated - Graying

Product • Short model life – lot of brand competition & models

Processes • Continuous improvement – ISO – Six Sigma - Metrics - Green

Customers • Demand quality – want it now – Lot of choices – Internet – VOC/Yelp

The Fundamental Business Model

New Economy Values – New Model Organizational Model • Transparent – Short term vision – Objectives critical to success – Rise of small business

Management • Less levels – High stress – Desktop managers – Revolving door

Employees • We - Self directed – Empowered – Involved – Motivated - Graying

Product • Short model life – lot of brand competition & models

Processes • Continuous improvement – ISO – Six Sigma - Metrics - Green

Customers • Demand quality – want it now – Lot of choices – Internet – VOC/Yelp

The Fundamental Business Model

New Economy Values – New Model Organizational Model • Transparent – Short term vision – Objectives critical to success – Rise of small business

Management • Less levels – High stress – Desktop managers – Revolving door

Employees • We - Self directed – Empowered – Involved – Motivated - Graying

Product • Short model life – lot of brand competition & models

Processes • Continuous improvement – ISO – Six Sigma - Metrics - Green

Customers • Demand quality – want it now – Lot of choices – Internet – VOC/Yelp

Traditional and New Models of Leaders…

2000 will move away from managerial “…Workplace control to employee self-control…With the change to employees becoming self-directed and selfcontrolling, traditional (managers) will no longer be required…With these changes, tremendous responsibilities will be shifted to the workers and their peers for planning, scheduling, organizing, directing, and controlling their own work process.



Joseph H. Boyett and Henry P. Conn Workplace 2000: The Revolution Reshaping American Business

During 2008, we will spend considerable resources to ensure that all six of our global business units are aligned with the new model; in fact, we intend to set the standard on how the new model can transform the fundamental business operating culture. Jack F. Welch Former CEO, General Electric 2008 Annual Report to the Shareholders

US Auto Industries Bailout Plan Dies in the Senate (12/12/08) WASHINGTON – Senator Chris Dodd, Chairman of the Senate Banking committee said after the Senate failed to pass the $14 billion bailout.

US auto manufacturers have had two decades “The to watch the Japanese car manufactures change to a new model lean manufacturing organization. Detroit doesn’t get it. We cannot ask the American taxpayer to bailout failure.



http://www.msnbc.msn.com

SAS

BOEING TOYOTA

GE

Google

So what does this new model look like? Ford

Walgreens

Nintendo

AIRBUS INDITEX

Tencent

NOKIA

Samsung

The New Leader Model Traditional Old Model - Manager

New Model – Manager/Leader

• The manager uses an autocratic style

• The leader coaches and facilitates team members

• The manager makes the final decision

• Employees and teams make many decisions

• The manager receives, processes and communicates all information to employees

• Anyone on the team gets information and shares with team members

• Jobs are very specialized

• Jobs are broadly defined; cross training is the norm

• People are expendable

• People are truly the most important asset

• The organization is a hierarchy

• The organization structure is flat

• Teams are formed when needed

• Teams are part of the organizational structure

• The manager gives out rewards and punishment

• The team gives rewards, evaluations and celebrations

• The manager has power and control

• Control is minimal and shared

• The manager sets and interprets goals

• Team members share in setting goals and then buy-in

• The manager schedules and monitors all work

• The team schedules and monitors their own work

The Models for Manager/Leaders can each be described in one word…

The New Leader Model Traditional Old Model - Manager

New Model – Manager/Leader

• The manager uses an autocratic style

• The leader coaches and facilitates team members

• The manager makes the final decision

• Employees and teams make many decisions

• The manager receives, processes and communicates all information to employees

• Anyone on the team gets information and shares with team members

• Jobs are very specialized

• Jobs are broadly defined; cross training is the norm

• People are expendable

• People are truly the most important asset

• The organization is a hierarchy

• The organization structure is flat

• Teams are formed when needed

• Teams are part of the organizational structure

• The manager gives out rewards and punishment

• The team gives rewards, evaluations and celebrations

• The manager has power and control

• Control is minimal and shared

• The manager sets and interprets goals

• Team members share in setting goals and then buy-in

• The manager schedules and monitors all work

• The team schedules and monitors their own work

I

WE

Module 2: Objectives You will be able to.. • Cite the required skills for a new manager’s success • Describe the Five Functions of Management • Explain the new model management operating philosophy