This is not a lecture or new theory but some insights into the new management era based on lessons learned from Business leaders and the new management thinking and I strongly believe that there will be a major shift in management philosophy(ies) in next five to ten years.
If we fail to change our notions in the field of management and apply the new management style for our own business or profession, we are planning for a slow death of our organization.
Idea no. 1.Innovation:The first most important aspect in Management today is to innovate on continuous basis
Corollary to Idea No. 1 – If not you, Somebody Else:If you are not innovating, somebody somewhere in this world is innovating and they are your direct competition, they are working on building or making something which will make your product or service irrelevant in future or they will become a fierce competitor.
Idea No. 2.– Employees are not yours forever:All other things being equal, employees won’t stay with you for longer duration
Corollary to Idea No. 2 – All other things being equal, employees will leave you for better pay or better working environment or better culture of other organization.
Corollary to Idea No. 2 – If you fail to create a better working world in your organization, you will observe a slow-down in business and high employee turnover ratio.
Corollary to Idea no. 2 – Some of your competitors, unlike you, are innovating their management style to compete in better manner. Mind it!
Idea No. 3 – Global Leaders are working towards culture and better working environment: Slowly and gradually business leaders and managers worldwide are realizing that the principles of management they were using for long time and which are not upgraded for last few decades and they are resulting in loss of productivity and loss of revenue ultimately. These business leaders (especially new generation of leaders) are working towards making working world a better place than ever.
Corollary to Idea No. 3 – All other things being equal, you can create and run a corporation by spending more money. People will stand in queue if you are providing pay better than others in the industry (Because developing countries are producing skilled and educated workforce). But you need deep pockets for the same, which you may or may not have.In this case, the only chance you have is to create better work environment and culture. One more thing to mention about giving better pay than other players is that it doesn’t always retain your super brains, star performers, the innovators and the creative minds.
Idea No. 4 – Generation Y workforce:The next generation employees may not necessarily work for better pay, they may be longing for better working environment and better culture and better opportunities in manifesting their truest self. (Remember the Maslow’s Hierarchy of needs)
Corollary to Idea No. 4 – There will be plenty of employers in the industry who will be providing better working world and better culturethan your and that will draw away your talent. Talents who are not working just for money will choose better working world over better pay. (Ref – Maslow’s hierarchy of needs)
Idea No. 5 – Employee Turnover is Hindrance to Growth: To grow, employee turnover has to be controlled, less than ten percent turnover is an achievement
In money, there are competitors. In case of infrastructure, there are competitors. What will you compete with?
Idea No. 6 – What can be your next Competitive Advantage: After reading all the aspects discussed in above paragraphs, you may be wondering as to how you should compete and what will be your competitive advantage in this case.
Things that cannot be copied are (a) Culture of your organization, (b) The environment of belonging, family, friendships and bonding, (c) The environment of freedom of expression of thoughts and ideas, (d) Environment of appreciation (e) Environment of recognizing the future leaders and developing leaders within the organization (f) Environment of encouraging innovation and creative expression of the employees (g) Work Environment where making mistake is allowed as a part of the learning process (h) Work environment where each individual is respected as human being and not treated as a RESOURCE (as they say it in working world)
Idea No. 7 – What cannot be copied by competitors?
a) How you treat your employees
b) Culture of innovation
c) Culture of freedom of thinking and experimenting that May have been created over a period of time, even if can be copied it cannot be copied immediately. The effect will come into picture after a little longer and not immediately.
d) One more thing that cannot be copied is the environment of family, friendship and bonding that world have been created in the organization
Idea No. 8 –Small is Beautiful: Big organizations won’t be able to give the amount of respect you give to your employees in small or medium size enterprises
Corollary to Idea No. 8 – Bigger the size of the organization, tougher it is to create family like environment and open culture
Corollary to Idea No. 8 – Smaller organizations have to compete with invisible forces and not visible forces like better infrastructure and better pay. (it’s not feasible for them)
Idea No. 9 – Work is not all about money:Money cannot satisfy all the desires of human beings working at workplaces, it satisfies only one or probably few.
Idea No. 10 – Money can’t buy happiness: It is becoming increasingly clear that money can’t buy happiness after reaching a certain level of earning and class. More money does not mean more success, as a corollary of the idea.
As a second corollary to idea no. 10, talented people will slowly find their way to finding happiness and joy of work rather than better pay always.
Idea No. 11 – Meaning in Life and Job:There are great chances that you will lose your top talents of you don’t provide meaning in their lives and fun, joy, fulfillment of contributing something to Society or the world.
Idea No. 12 – Purpose for life:You need to make it very clear what purpose they are serving in the world by working for your organization. (Remember Aaron Hurst on purpose economy)
Hope this article will help you in creating and rethinking your management style for the new era.
Hamel, G. (2000). Leading the Revolution. New York: Penguin Group.
Chip Conley, American hotelier, author, and speaker.
Tony Hseih, Tony Hsieh is an American internet entrepreneur and venture capitalist. He is the CEO of the online shoe and clothing shop Zappos.com
(Authored by CA Rajesh Pabari, Partner at DreamOptimus Consulting (dreamoptimus.com). For any further communication regarding the article, am an email away [email protected])