Management: Doing it right

Rick Spence

From the March 2008 issue of PROFIT magazine

It’s the great mystery of business: how do successful businesspeople marshal their hopes, intentions and objectives and turn them into accomplishments?

Brendan Calder has worked on the solution for 40 years. The Toronto-based entrepreneur and mortgage czar has built and sold several companies, from Canavest House to FirstLine Trust (now CIBC Mortgages Inc.), all of them managed according to his evolving philosophy of focusing on results. He has turned that experience into an MBA course at Toronto’s Rotman School of Management called Getting It Done.

Armed with only a math degree from the University of Waterloo, Calder joined Rotman as entrepreneur-in-residence, but was recently promoted to “effective executive in residence.” Why not? His course in organizational effectiveness attracts some of Rotman’s best. And he promotes it by paraphrasing Ernest Shackleton’s famous advertisement for Antarctic adventurers: “MBAs wanted for hazardous journey. Small wages. Bitter cold. Long months of complete darkness. Constant danger. Safe return doubtful.”


Calder is only partly kidding. The crucial trait of an effective executive, he says, is courage: the bravery to buck existing systems by insisting on results, and the guts to be judged by them. “Courage is a necessary condition,” he insists. “Courage plus passion plus process equals results.”
As Calder embarked on a new class last month, I asked him to explain what makes for an effective executive. It’s difficult, but there’s a shortcut for you at the end of this story.

Organizational effectiveness begins with Peter Drucker, the late, great management strategist. Drucker bemoaned the recent emphasis on leadership; he believed businesses must focus on results. He popularized “management by objectives” as a way to get managers to stop focusing on mere activities, and instead seek out actions that move the entire organization forward. (Calder says the concept may have started with the Jesuits. “If you were building a mission in the wilderness,” he says, “the Jesuits would tell you to come back in a year and report on how it turned out.” They demanded results.)

Calder’s course emphasizes four of Drucker’s key points: focusing on results, managing by objectives, making effective decisions and prioritizing top management tasks. Sadly, not all of us are as disciplined as the Jesuits. In most companies, says Calder, “Management doesn’t know what the top management tasks are. They think they have to do everything, but they can’t.” It’s all about role clarity, he says. The hardest andmost courageous step is to “focus on contribution” — the key difference you can make — and then insist on measuring the results of your efforts and on being compensated for them.

Getting It Done also draws on the work of Michael Kami, a Florida-based business consultant who served as chief planner for IBM and Xerox in the 1950s and ’60s. In the ’60s, Kami coined the phrase “the speed of change” and urged organizations to become “fast, fluid and flexible.” He called for better, faster strategic planning by continually reviewing your SWOT (strengths, weaknesses, opportunities, threats), adjusting your goals and paying constant attention to market feedback.

But there’s one more side to effectiveness: understanding your personal management style. What creates results for Donald Trump may not work for you. So, Calder’s formula includes the 3-D Theory of William J. Reddin, a British-born, New Brunswick-based management expert of the 1970s. Reddin noted that most people tend to be relationship-oriented or task-oriented, and that both styles are appropriate in different situations. By applying an “effectiveness filter” to individual style, Reddin gave managers the awareness (and permission) to adapt their personal styles to the context. “If you want to get things done,” sums up Calder, “you have to learn to flex your style.”

Fittingly, most of the work in Calder’s class goes on outside the classroom. The 25 students spend much of their time observing Calder’s principles in action at one of several local organizations, such as FirstLine and the Toronto International Film Festival, that have embraced all or most of Calder’s effectiveness formula.

Anthony Pittiglio, a 2007 Rotman grad who now works as an internal consultant with RBC Financial in Toronto, says the key concept he took from Calder’s course is “alignment at all levels”: without alignment, there can be no shared objectives and no results. At first, he resisted Calder’s contention that seeming intangibles such as customer satisfaction can be quantified. But now, he says, he understands that “when you find the key activities that can be measured, that’s how you get a truly output-focused organization.”

Since Calder’s course can hardly be summarized in 800 words, I asked him to reveal his top three tips for PROFIT readers. He responded by tossing a book at me: The Effective Executive in Action, a vinyl-bound workbook that prompts you to take notes and generate your own effectiveness manifesto by following the Drucker framework. Calder’s three tips: “Buy it. Read it. Do it.”

Talent Management Essential for Companies to Withstand an Unpredictable Economy

(CNN Money, 17 march 08)

Taleo Research Analysis Finds Continuous Talent Management Is a Critical Business Function for Companies in Any Economic Climate

Taleo Corporation (NASDAQ: TLEO), the leading provider of on demand talent management solutions, today announced the availability of a Taleo Research whitepaper titled "Talent Management in a Down Economy." In the study, Taleo Research analyzes historical and current data to determine the impact of economic downturns on hiring and how the efficient acquisition and retention of top talent helps businesses thrive in slow economies.

Job creation continues even during challenging economic climates, according to Taleo Research analysis of hiring trends during the last economic slowdown. According to Bureau of Labor statistics, in Q1 2000, during the hiring peak of the last expansion, 8.8 million new jobs (or gross jobs) were created. In Q2 2001, as the dotcom bubble burst, 7.6 million new jobs were still created. Analysis shows that while net job creation can go to zero or negative in a down economy, the total of gross jobs created is still significant as the workforce shifts from sectors that are being hardest hit to areas that continue to show growth. This fuels the need for companies to utilize efficient talent management solutions and practices regardless of economic conditions.

In addition, analysis shows that voluntary turnover is not significantly lower during a recession. In 2007, voluntary turnover across all businesses in North America was reported at 23 percent. In 2001 and 2002 (during the last recession) it was at 22 percent. Regardless of the economic climate, more than one fifth of a company's workforce may still be leaving of their own volition. In order to mitigate financial drain from open positions or poor workforce productivity, companies need a strategic hiring process that captures the best talent quickly.

"Given our analysis that significant hiring still occurs even during the most challenging of times, running a business without a talent management system is an expensive and inefficient proposition no matter the economy," said Alice Snell, vice president of Taleo Research.

To view the complete white paper, "Talent Management in a Down Economy," visit the Taleo Website at: https://www.taleo.com/research/whitepapers/talent-management-down-economy-59.html.

Is There a Blue Ocean Strategy for the Health-care Industry?

Dr Sarah layton

23 March 08

It is the object of calls for reform on the presidential campaign trail. Its medical errors come under scrutiny on CBS News's “60 Minutes.” It undergoes the Michael Moore treatment in such biased films as “Sicko.” Yes, health care in America looks like it needs a fresh prescription. “Like it or not, our health-care system has become a price-driven commodity business,” says Florida-based corporate strategist Dr. Sarah Layton.

“Blue Ocean Strategy - an approach which creates brand-new market space where no competition yet exists based on creating value -- is not prevalent in this industry. Nevertheless, it is possible in any industry -- even in health care with its regulations and constraints.” So, how can Blue Ocean Strategy come to health care? “It just takes thinking along the right pathways to determine how to break out of the old competitive Red Ocean and into a new Blue Ocean with no competition,” Layton contends. “I believe that the health-care sector can be ripe for those organizations that have the creativity and wherewithal to leave their competitors behind and launch in a new direction.” The Blue Ocean Strategy concept originated from the research documented in the book, “Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant.”

The cornerstone of Blue Ocean Strategy is value innovation, according to Layton, which creates unprecedented value for the customer while simultaneously creating high profits for the company. The business strategist finds that there is hope for the health-care business. Here are examples of organizations which Layton sees as demonstrating a Blue Ocean Strategy: “NovoNordisk, the diabetics care company that reconstructed the traditional market boundary which had a focus on the physician (the influencer) and started focusing on the diabetic (the user). The result is that NovoNordisk has become a diabetic care company rather than just a provider of blood-sugar testing equipment and supplies. When someone is diagnosed with diabetes, that patient will go to the resource that can provide the best information and care, NovoNordisk.” “One trend on the horizon is the prevalence of women as chief health officers,” Layton says. “Women are making the majority of health-care decisions today. So, having a CHO who can speak effectively with women can potentially reach many more of them.” “There is this particular mental health-care company worth noting,” she says.

“Life Spring: after going through the Blue Ocean Strategy process, it realized that out-of-pocket cost, community reputation for quality and expertise, appointment availability, good locations and facilities and friendly and caring staff became the short list of values they most wanted in a mental health facility.” “A fresh prescription requires new thinking,” Layton says. “Blue Ocean can give health care the fresh water it needs today.”

Ask Dr. Marty: Time Management for Managers

By Martin Seidenfeld, Ph.D.
February 2008

As a manager of others, nothing is more important to you than managing your time well. Always feeling rushed and threatened by deadlines is a sure road to poor performance and personal burnout.

Managers often talk about not having enough time, or seeking ways to stretch their time, or finding ways to save time. But time cannot be saved, stretched, shortened, or otherwise altered; it is fixed and inelastic. Each of us has exactly the same amount of time: 60 minutes in each hour, 24 hours each day, 365 days each year.

When managers or supervisors say “I didn’t have enough time,” what they actually mean is that they didn’t get done what they wanted to. Time is what your job – and your life – is made of. It is, in one sense, all you have. If you waste it and don’t accomplish what you really want to do, then you are not performing well on your job – and perhaps, in your life.

Managers must systematically plan their time. Your individual situation may call for very detailed plans or very loose ones, but without some sort of time plan ning, you will be disorganized and your organization’s productivity will be sub optimal.

Every manager must have a schedule book. It can be as simple as a pad of yellow paper, or as detailed as The Franklin Planner. The important thing is that you have some written method for planning your time. A basic time management sys tem, using these four steps, can help:

1. Listing
2. Prioritizing
3. Delegating
4. Scheduling

First, set aside 10 or 15 minutes each morning to go through these four steps.

Listing means exactly what it says. Write down all the things you hope to accomplish that day. They may be important things or trivial, or take lots of time or doable in just a few minutes. But unless it’s listed it’s too easy to forget.If an item is a major project, break it down into doable bits. For example, if you are developing a budget for your department, you might separate it into reviewing last year’s budget, sending a memo asking about department members’ anticipated needs, creating categories for budget requests, etc.

Prioritizing consists of organizing the day’s tasks according to their importance and their urgency. Its purpose is to keep you from being busy all day, feeling like you’ve accomplished a lot, and realizing at the end of the day that what you did was relatively unimportant, while some truly significant tasks went undone. Few things are more stressful than realizing you’ve “not had enough time” to take care of something that is really meaningful. This often is mere “crisis management” – the style favored by mid-level managers who never make any higher.

You should consider two kinds of truly important matters: those that help you grow and be better at whatever is your specific function and those that have to do with your relationships. Completing a project report at work might be important, and so might be meeting with your boss, to strengthen that relationship. For personal growth, learning such things as how to use a new piece of equipment can be important. In the long run, as a supervisor of others, maintaining and improving your relationships with your employees and your own boss may be the wisest use of your time.

Urgent matters are those that must be attended to right away and may or may not be important. Urgency may result from a deadline (anywhere from trying to finish a report your manager wants today, to seeing to it that an animal feeding schedule is maintained), a crisis situation (anywhere from a conflict between employees that suddenly threatens to engulf the entire workplace, to running out of paper clips), or simple physical need – what could be more urgent, and yet less important in the ‘Grand Scheme of Things,’ than having to go to the bathroom?

To prioritize the items you have listed, ask yourself, what is the single most important thing that I must accomplish today? Note that there you must choose only one such item, although several may seem awfully important. Pick one and call it your Grand Prize Goal.

Your Grand Prize Goal is one you promise yourself you absolutely will accomplish this day. No excuses, no extenuating circumstances, no limits on your time or energy – nothing will cause you to fail to complete your Grand Prize Goal, short of your sudden, untimely death!

Put your Grand Prize Goal at the top of a new list, and then cross out that item on the first list. Now, consider the remaining items on your to-do list. Choose some Second Place Goals. Add them to the new list, in order of importance, and cross them off the first list. These are things you’ll definitely want to accomplish this day, unless doing them would interfere in some way with your Grand Prize Goal.

Next, choose items that seem important, but not so important that you’ll be seriously upset if the day’s interruptions and emergencies prevent you from accomplishing them. These will be your Honorable Mentions — the ones you have a reasonable hope of getting done. Add them to the new list; cross them off the to-do list.

Now, look at what’s left. This is the stuff you wouldn’t mind getting done, but aren’t going to worry about if they get bumped for more important things. These are your Also-rans.

Delegating: Don’t laugh! Right now, you may be thinking that there isn’t anyone to delegate to. But you can manage it surprisingly often, once you get used to the idea.

Take a good, hard look at your now-prioritized list, and for each item, ask yourself, who can I get to do this task for me? Delegating creatively and effectively is an important and somewhat complex management skill and will be dealt with at length in a future column. For now, just think about which members of your work force might be able to do some of your tasks.

Now, cross those items you have delegated off your prioritized list — but note who’s doing what, and add ‘follow up’ to make sure delegated tasks are done.

Scheduling: If any activities are pre-scheduled, such as a staff meeting or a scheduled conference call, write it in your schedule book, and cross it off your prioritized list. Next, schedule your Grand Prize Goal as early as possible in the day — not just to allow maximum flexibility for unexpected interferences, but also because you’ll want to tackle it when you’re freshest and sharpest.

Next, schedule your Second Place Goals, then whatever Honorable Mentions can fit into the day, and if you can fit in a few Also-rans, schedule them too.

This four-step process (listing, prioritizing, delegating, and scheduling) should only take about 10 minutes, once you’ve had some practice.

Obviously, in most work environments crises happen and things come up that can totally destroy your carefully worked-out schedule. So stay tuned: in my next column I’ll discuss how to block interruptions and avoid time-wasters.

Corporate Leadership: Avoid the fatal flaws of management

(By Harry S. Dennis, III , for SBT)

A manager’s five fatal flaws:

1. Unclear and inconsistent communication.

I’ve written about this issue numerous times the last several years. Deliver the message. Be clear, specific and concise. Say it in 25 words or fewer, if possible. Then make sure your audience understands it.
Now, listen to the feedback. Listen for the intended meaning. Eliminate obvious distractions. Acknowledge your personal hidden assumptions and prejudices. Actively listen by asking probing questions. Listen with empathy for the “heart and soul” of what the other person is saying.

2. Failure to acknowledge change.

The one thing we know about change in the organizational context is that it’s elusive and hard to recognize on a day-to-day basis, but it’s real. To ignore it is to fall behind. It’s important to understand why managers ignore change when they’re surrounded by it:
• Emotion – like fear, anger and uncertainty – gets in the way.
• Perception gets in the way. They don’t see the need for it.
• Attitude gets in the way. They don’t believe it’s for the better.
• Reluctance gets in the way. They want to “wait and see.”To acknowledge change, a management team must do four things. It must identify the change and its source; make it patently clear why the change is necessary and what’s in it for the management team; show how the change itself will be negotiated; and be optimistic about the future.

3. Failure to manage team members differently.

Years ago, when I was the aircraft commander with a crew of 10 on a USAF C-141A Starlifter, my superiors warned me that I should always treat my officers and enlisted personnel on the aircraft’s long global missions the same, according to their rank and station. I never did.
And I don’t do it today in the corporate workplace. Every manager interacts with a variety of personalities. Each requires a different level of attention and “coaching” to maintain high individual performance. What’s important to one team member won’t necessarily be important to the next.

4. Failure to establish clear expectations.

Anyone who has a job should never doubt what’s expected. Here are ways to avoid that problem:
• Be clear and specific when explaining their tasks.
• Have well-defined performance appraisal standards.
• Write mutual contracts with problem employees.
• Measure team goals monthly and quarterly.
• Have a minimum one-year mentor program for new employees.

5. No sound time management principles.

CEOs, in particular, have always struggled to fit 24 hours into a 12-hour day. It simply doesn’t work. The annals of time management doctrine basically stipulate four decision points:
• It’s your time. Know what you want from it.
• Be assertive about the difference between urgent and everything less than that.
• Set your priorities and respect them.
• If something is wasting your time, get rid of it.
Five rights of managersLet’s turn to the other side of the equation. A manager can’t really deal with the five fatal flaws without having certain management rights to pre-empt the fatal flaws in the first place.

1. The right to set clear expectations.

I like the term “managerial paralysis” to describe a manager who is reluctant to spell out job expectations to an employee for fear of a harassment claim. Explaining job expectations is part of communicating well.
There were five specific expectations identified above, and these are all totally acceptable. Not included are issues such as work habits, use of company resources, compliance with company policy, and so on. The bottom line is that if expectations have never been discussed, it’s never too late to have the conversation.

2. The right to expect top performance.

Expecting top performance day-in and day-out from employees is a management prerogative. The caveat is that the company must define performance in terms of specific measurable objectives. That’s where the process typically breaks down. Or more specifically:
• The company talks about top performance in general terms.
• It doesn’t set the “bar” by mutual agreement.
• Employees see that it doesn’t apply to everyone.
• The company doesn’t reward top performance through recognition or incentives.

3. The right to change

Top management is not in business to protect the status quo. It’s in business to advocate change and to advocate this important management right. I’ve already explained how to accomplish change. But for any change process to work, there has to be a change contract, which doesn’t have to be complicated. At minimum, it must include:
• The employee’s participation in the change process.
• Management’s right to change the rules as the situation dictates.
• The employee’s right to discuss performance expectations that are affected as the result of changes.

4. The right to dismiss employees

“Management at will” seems to be old hat these days. But it’s true that if an employee isn’t right for the job, and there’s no other position for that employee, and training isn’t an option, then management has the right to dismiss.
That assumes, of course, that all the fundamental employment policies are in place, and that there have been no extraordinary breaches of management conduct or practice that would lead to a justifiable employee lawsuit.

5. The right to make mistakes

No manager is perfect under any circumstance. Mistakes are inevitable. They’re also fixable, and that’s the sign of a great manager: to admit a mistake and fix it, and to be supported by the CEO in the process. The same is true with employees. They will make mistakes. They should also have the opportunity, working with their boss, to fix them.

These are challenging times for many companies. Sticking with the basics and staying focused will go a long way toward future success. History says so. Until next month, avoid those flaws and exercise your management rights!

80% of Organizations Using ‘Balanced Scorecard’ Reported Improvements in Operating Performance

(AlBawaba, 19/3/08)

80% of Organizations Using ‘Balanced Scorecard’ Reported Improvements in Operating Performance

66 percent of these organizations reported profit hikes

According to recent survey of more than 1,000 organizations, 80 percent of the organizations that regularly use the ‘Balanced Scorecard’ (BSC) reported improvements in operating performance and 66 percent of them also reported an increase in profits. Correspondingly, a significant majority, 61 percent, reported improvements in bottom-line financial results.

“Keeping focused on a strategy is tough,” said Dr. Robert Kaplan, Baker Foundation Professor at the Harvard Business School. “Balanced Scorecard Forum 2008 will provide business leaders with a unique opportunity to develop effective business strategies that are essential to the success of their organizations.” The forum will be held in JW Marriott Hotel, Dubai from 23 – 27 March 2008.

The BSC which is used extensively in business and industry, government, and nonprofit organizations worldwide was originated by Dr. Robert Kaplan and Dr. David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give executives a more ‘balanced’ view of organizational performance.

In order to introduce businesses in the Middle East region to the BSC concept and how it can help businesses clarify their vision and strategy and turn them into action, Institute for International Research (IIR) is organizing the “Balanced Scorecard Forum: The Art of Strategy Execution” to take place in Dubai on 23rd to 27th of March 2008.

Drs Kaplan and Norton will appear together for the first time in the Middle East and will deliver their insight into business management, through the use of BSC tools and highlight international and regional best practices during their two-day master class from 23 – 24 March. International case studies from Balanced Scorecard Hall of Fame winners Hilton Hotels Corporation Worldwide (USA) and Ricoh Corporation (USA) will follow during the two-day Balanced Scorecard Forum from 25 – 26 March. Regional case studies will also be presented by Microsoft EMEA (UK), Saudi Aramco (KSA), Emarat (UAE), National Bank of Kuwait (Kuwait), Dubai World (UAE) and Dubai eGovernment among others.“Employing the balanced scorecard leads to new business processes that can be used to link long-term strategies to short-term decisions,” concluded Dr. David Norton, the founder and president of Renaissance Solutions, a global consulting organization. “But in order to implement the BSC successfully, a business unit must effectively communicate the organization’s strategies for increasing shareholder value to all employees. That helps to get everyone behind the overall strategy.”

BSC allows better measurement of a firm’s capabilities to create long-term value by identifying the key drivers of this value. The drivers are then translated into four categories of measures- customer, internal/operational, innovation/learning, and financial. The financial measures are typically focused on short-term results; while the other three categories are coupled to future oriented activities needed to successfully sustain the firm.

“Strategy Maps and Balanced Scorecard have been instrumental for us in strategically monitoring the progress of our eGovernment initiative,” said Okan Geray, the Strategic Planning Consultant at Dubai eGovernment. “Balanced Scorecard has also assisted us in aligning our strategy with our resources, competencies and internal processes in order to pursue our vision of “Easing the lives of people and businesses interacting with the Government”.

Improving Management Performance

by SIR PETER PARKER

Quality of management is the prime mover of success in enterprise. It does not in my belief, matter whether the management's accent is Japanese orAmerican, or German, or French, or British, or whatever good management is good management. High-performing world winners come from all over the globe. Of course, there are national influences that condition the people's attitude to enterprise,cultural, historical, geographical-these explain agreat deal but do not explain the fact that goodmanagers everywhere overcome these to produceresults, and often seem to have more in common withone another than the contrast between the countrieswould suggest.

No wonder, therefore, that we have become obsessed with anatomising excellence. What are the common denominators of success? We lust after its secrets.We make out checklists of the desirable features ofthe competition some successful companies even drewup checklists of themselves a sort of laundry listof clean linen to be washed in public.

Management is currently heavily-breathing, heavily engaged in either checking-up on such lists ordrawing-up lists of their own. I find these lists fascinating in three ways. First, we expect too much of them. Such lists are not always useless, but, at best, they are always only sign-posts. They do not go anywhere. Something else must move management to act.

And, anyway, what list can cover the 360 variety ofbusiness situations: for instance the once-sound, mature business in need of a shake up, or even arescuing turn-round is different from the(embryonic) start-up of a venture; the organizationof a competitive public enterprise or, an essentialpublic service is different from a multinationalcorporation which can decide to change the formulaof a cosmically competitive drink- just like that. It was Solon, the constitution maker in ancient Greece, who when asked to draft a constitution,would nail the question by asking specifically, "Aconstitution for what?"

The second fascination of checklists for me is that they are always a bit of a shock. Their obviousnessis mildly shocking. And there is nothing wrong withobviousness: a litany of home-truths is arguably what we managers need. Actually, managers know wellenough what makes for quality and for money's worth,for success and for failure. Good management is not a bag of tricks, or of secrets, or of surprises . Good management in enterprise is such stuff asplatitudes are made of. Certainly, the litanies are what the manager is getting these days, and, if the market speaks truth, it seems to be what he and she likes.

For example,"In Search of Excellence", by Peters and Waterman,is a record breaking best seller. It explores agalaxy of international business and bringsmanagement back to earth with good, old home-truths.Belief is what makes things happen, belief in thebusiness, and that springs from keeping faith withthe customer. "In Search of Excellence" is born-again Samuel Smiles, racier and wittier, morefun but basically the one same clear message; thesecret of success is professional skill committed toa belief in the job and in the mission of theenterprise. This emphasises the third and most significantaspect of the best of current checklist; their recognition of management being as much a test ofcharacter as it is of professional technique.

This welcome emphasis emerges most clearly in anothercurrent and readable best-seller; "The Art of Japanese Management", by Pascale and Athos, who werein fact close with the ex- McKinsey team of Petersand Waterman. Pascale and Athos set off on their ownsuper-star-trek of international success inmanagement (not only Japanese, incidentally). Their formula is presented brilliantly as well. Their anatomy of success fairly hisses with S's, somehard, some soft. The hard S's are strategy, structure, and systems of management: the soft S'sare specified skills, style, staff, andsuperordinate goals. ("We chose alliteration", they say, "on the theory a little vulgarity enhancesmemory." Vulgarity-surely not. Blimey, I can't believe any well-brought up manager will dare dropany S in the blinding future) Athos and Pascale,like Peters and Waterman, are downright about management being an art, the title of their bookmakes that clear enough.

Outstanding organisations must be strong in strategy, structure and systems,but to rely on these is illusion; "the bestcompanies also have great sophistication on the foursoft S's." Academics and journalists traditionallyconcentrate on the mechanistic parts of managementfor some the soft S's are just froth. "That froth",this splendid Harvard team tells us, "has the powerof the Pacific". And, I would add, the Atlantic. Weon this side of the world are also witness to atransformation in the way management is seeingitself and is set on improving itself. Thesignificance in the best of the checklists is theirshift towards widening its scope and role of themanager. Recession and relentless competition havetaught British management more about the crucialcomponents that the hard S's stand for; they havealso taught us hard lessons about values of the soft S's.

Put another way, the shift is from the mechanics ofmanagement to entrepreneurial qualities. Improvingmanagement means developing the principle andpractice of entrepreneurial change and innovation.Naturally, the process is bound to vary in businesssituations, but in principle its relevance appliesto management in private and public enterprise, tomature industries as well as those aglow in thesunrise sectors, to large and small organizations,and also the public administration. Its applicationis now a central purpose to what we are about in theBIM. It is relevant, too, to the individual manager. Forhim and her, I suggest it involves a five point,self-demanding programme: 1. The continuing improvement of the individual'sprofessional capability - this means more than theessential mastery of functions, it calls forunderstanding of the technical and human values atstake in leading change at every level ofmanagement. On this first point, the other pointsdepend. 2. The personal commitment as a manager to close thegap between the world of work and the world ofeducation - it is not a question of "beinginterested in education and training as well as myjob." It is a vitalising part of the job, within theenterprise and in its external relations. 3. The widening awareness of the internationalhorizons of management, I have said before, nomanagement is an island; of course no manager iseither. International standards are vital tocompetitiveness. International markets andinternational organizations set the pace. 4. The ceaseless practice of communication - themanager is a communicator or nothing. There is noleadership without communication. In a modernworking community, constantly changing, this realityis more than ever a mark of a successful enterprise.What matters more than words are the qualities ofthe relationships expressed what a manager means isconveyed by amenities, by design and style, byaccessibility of authority, by example. In thehigh-tech, information future, flatter smallercommand structures are going to be possible.Communication will be what is expected ofmanagement; and a manager will communicate withmembers of any working community, not because theyare employees or trade unionist only, but becausethey are citizens at work and have the citizensright to information. This relates to the lastpoint. 5. The need to define the social policy ofenterprise this a manager has hitherto not seen withthe clarity and urgency that the priority nowcarries. For example, 200 leading companies arecommitted to the organization of Business in theCommunity BIC has special aims in enterprise andemployment but it is an outstanding illustration ofthe new realism in management. The agenda of socialpolicy is growing; priorities of the socialconsequence of change, of the environment, of equalopportunities of charity and sponsorship, ofestablishing flexible patterns of work-these aregiven increasing attention by the successfulenterprises Inevitably the individual manager has ajob to do in defining his or her role in this socialdimension. Improving management performance calls for aresponse from the individual manager as aprofessional of international standards, as aneducator, as a citizen- not only in the localcommunity, but as a competitive citizen of theworld.

PS - "A management not concentrated on improving itself is not worthy of the name: better call itbureaucracy, damn it, leave it and competition willclean up the mess."

PPS - "A manager who has not experienced the forcethat being changed can give is no manager: he's notup to his job which is changing andleading-moreover, he's in for a big surprise."

Think better

Why is it important?

Today's fast-paced work world means that the ability to think on your feet, react to a range of situations as well as spot an opportunity at five paces are integral to being a modern manager.
We are often required to make quick decisions under pressure, and such decisions must be based on a proper analysis of the facts rather than on conjecture or preconceptions. Sharpening your thought processes will help ensure you know the right thing to do at the right time and help to apply new ways of thinking to situations that arise.
Many of us believe that we have little control over the way we think. This isn't the case, and learning more about how your mind works will also help with self-improvement and career advancement.

Where do I start?

An analysis of your thought processes begins with heightened self-awareness and an assessment of your thinking style and how you usually solve problems. Do you take an analytical approach or does it tend to be more intuitive? Are you experimental? Or is your style more reflective?
If you've never taken one before, perform an online emotional intelligence test. The higher your emotional intelligence rating, the greater your self-knowledge and self-awareness, both of which are key to understanding your thought processes. Similarly, psychometric questionnaires such as the Myers-Briggs Type Indicator (MBTI) will help you learn more about your core mental functions.
"Knowing your default preferences and habits, you are in a better position to broaden your thinking skills toolbox," says Phil Smith, senior consultant at business psychology company YSC.
Explore other viewpoints
Avoid taking the path of least resistance. A common trap we all fall into is to simply look for something that confirms what we are doing rather than challenge it.
The 20th century philosopher Karl Popper alerts us to this tendency to look for evidence to support our actions, explains Rachel Short, senior consultant at YSC.
"When often one piece of contradictory evidence would be enough to make us reject our line of thinking and look elsewhere," she says. "We need to challenge our almost automatic tendency to filter out pieces of data that do not support initial assumptions and challenge our own most comfortable assumptions."
Train your brain
Like any part of your body, your brain will respond to exercise. Put yourself in the position of being challenged mentally whenever possible. Take on new tasks, reappraise how you approach existing ones, play devil's advocate in meetings rather than accept the party line and force yourself out of your comfort zone and into situations where you know you will learn something. Look at different perspectives and listen to the points of view of others. Open your mind, be experimental and don't limit your thinking. Above all, don't be afraid to fail as fear will limit your thinking. Stimulate the mind even when not at work whether by reading more or doing a crossword or Sudoku puzzle at lunchtime or even playing computer games.
Record your experiences
Make a note of how you react to significant situations at work and what your decision or actions led to, whether the outcome was positive or negative. When things haven't worked out for the best, are there any trends or traits in your thinking and subsequent actions that you can pick up on? What caused you to approach the problem in this way? Did you make assumptions and base a decision on previous experience rather than challenge what went before. Visualise what the outcome might have been if you'd been more experimental in your thinking. Study the professionals.
While it is easy to get swamped by some of the theories that surround thinking and how the mind works, reading up on the work of experts such as Edward de Bono, who pioneered the concept of lateral thinking, and Tony Buzan, originator of the Mind Map, will further enlighten you as to how your mind works and offer plenty of mental stimulation.
If you only do 5 things
1 Develop your self-awareness.
2 Refrain from looking for affirmation of your theories.
3 Place yourself in mentally challenging situations.
4 Keep a log of the effect of your actions.
5 Devote time to mental activities outside of work.

Expert's view: improving your thinking
What should be done?
Apart from developing self-awareness about your thinking style, set up challenging mechanisms, get others to play devilÕs advocate, test yourself against rigorous standards, raise your goals, take on more challenging problems, take on different kinds of problems, and deliberately try to learn things you normally do not enjoy.
Research shows that the gradual decay of mental ability with age can be significantly slowed by remaining deliberately mentally active.
How can improvements be measured?
One method is to keep track of critical incidents when your thinking has let you down or led you astray, and analyse and reflect on them to see if you can spot any patterns.
Another is to be disciplined about keeping before and after mental records. If you are devoting time to mental training, can you point to the kind of result where you are expecting a difference? Is there a difference?
Top tips:
Don't assume what has worked in the past works now or will continue to work in the future - always look for current supporting (and undermining) evidence.
Beware the sunk-cost effect - don't fall into the trap of investing more effort into shoring up a poor decision when it is rational to cut your losses and start over.
Engage others to challenge and broaden your perspective. Get everyone to brainstorm individually before sharing, as this improves the range and variety of ideas.

by Rachel Short, Senior consultant, YSC

Managing Human Resources: Personnel and performance management

Any expert in 'human resources' (once simply known as 'personnel') can explain the importance for business results of 'interpersonal problems'. In simple non-jargon, getting on badly with others at work is a well-trodden path to business and personal failure.
To activate the dreaded problems, just be 'insensitive, manipulative, critical, demanding, authoritarian, self-isolating, or aloof', according to two of those HR experts. By the same token, adopting the opposite behaviour should achieve the magic aim: getting the best from those who work with and for you.
The key lies in the word 'authoritarian', a fault especially prevalent, it seems, in Europe. True-blue authoritarians never explain orders, expect those who receive commands to do exactly as they are told, ruthlessly punish failure and capriciously reward success - again without explanation.
Some of these tough nuts make fortunes: like Linda Wachner, the Warnaco textile tycoon, who once ordered a manager to head office and kept him waiting three days for a two-minute interview. Tom Watson, the founder of IBM, had similar rude habits ('They're well-paid,' he said when Tom, Jr. complained about the waiting minions). But so did the awful, disastrous Robert Maxwell.
Don't make the mistake of assuming that authoritarianism equates with success. Brutes might well do better with the anti-authoritarian methods of properly organised feedback, review and appraisal. In fact, one study of 437 companies showed spectacular before-and-after results from introducing this so-called 'performance management.'
Productivity soared by 94.2%, while the shareholders were better off by a quarter. The study's authors, though, report that the managers involved didn't think much of the procedures, rating them only 'slightly effective' or 'somewhat effective' in helping to achieve a company's ambitions. So what produced the bumper results?
The researchers, quoted in the Harvard Business Review, say that people need to know clearly what's expected of them: to be told clearly how they have lived up to expectations - or haven't: and, in the latter case, to discuss how to improve. Mismanaging subordinates, by ignoring this trio of needs, isn't going to help them, the mismanagers, or the business.
But there's a fascinating point about those expectations. Pitch them high. That doesn't mean setting impossible targets, but it does mean high rating of people's ability and potential. Do that, and you'll benefit from what Professor Dov Eden, who teaches at Tel Aviv University, calls 'the Pygmalion effect.'
To turn Eliza Doolittles into stars, try regarding them as such. Working with the Israeli military, Eden found that soldiers whose potential was rated 'high' received superior grades, and got more out of their training, than comrades whose rating, so their instructors were told, was only 'regular' or 'unknown'.
The catch was that the ratings were fictitous, entirely random. They plainly influenced the attitudes of the instructors, however. The same thing happens with managers and the managed. It's another proof of the old adage, 'Give a dog a bad name.' Give a dog a good name, though, and he becomes even better.
The crafty Eden arranged for soldiers to be told, again at random, that they had high potential for success. The blessed 'considerably' outperformed course members who believed themselves to be only average. In other words, if somebody is under-performing, maybe it's because they're underrated - by you and consequently by themselves.
That helps explain the irritating phenomenon, which every boss has experienced, of the man or woman who is sacked for under-performance, but proceeds to work wonderfully well elsewhere. Review, feedback and appraisal will help avert such waste, but you need something extra: reward
One school of thought pays more for performance against clear targets. Another advises paying extra only for super-performance. A third says that super-performance should be part of the expectation, and that bonus payments should only come from profit-sharing schemes. Whatever the system, the interpersonal success formula includes sharing that wealth.
Also, consider the virtues of another piece of jargon: 'upward appraisal.' Not only do subordinates get their performance reviewed, but so do the bosses - by the bossed. That should finally scotch the authoritarians who think that in all circumstances father knows best. He doesn't. --(ThinkingManagers)

Tom Peters: Gain Respect by Giving It