- 1 - CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP The Inescapable Conundrums of Managing Henry Mintzberg Edward Reilly

- 2 - CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Today’s Presenter - Henry Mintzberg  Professor of Management Studies at McGill University in Montreal  Winner of awards from the most prestigious academic and practitioner institutions in management (Harvard Business Review, Academy of Management, Association of Management Consulting Firms, and others).  Author of fifteen books, including Managers Not MBAs, Strategy Safari, The Rise and Fall of strategic Planning, and Managing.

- 3 - CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Edward Reilly  Edward Reailly is President and CEO of American Management Association, a leading global not-for-profit, membership-based management development, research and publishing organization. Reilly previously served as president and chief executive officer of Big Flower Holdings, Inc. Prior to that, he spent over 25 years in a variety of senior executive positions with the broadcast and book publishing groups of The McGraw-Hill Companies.

- 4 - CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Major lessons from the findings in the book  It’s time to go back to management  There has been too much emphasis on leadership

- 5 - CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Engaged management  People are in touch. They know what’s going on in their industries and their companies  There is a connect between the manager and the company  Management is a natural process. Effective managers are normal, healthy people who know what’s going on.

- 6 - CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Too much leadership and not enough management?  “Cover your back and keep your head down”is the style of management that’s become prevalent in too many companies

- 7 - CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Management By “Deeming”  It is easy to sit in an office and deem results.  It is more important to get on the ground and help people grow results  Need to create the culture that people want to work cooperatively and enthusiastically.  Not micromanaging, but supporting. Problem is with macro leading, which are leaders who are too removed.  MBA programs have played a major role in causing a lot of theseproblems because MBA programs teach people to become managers out of context. You can manage anything by going to Harvard Business school.

- 8 - CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP From 30 years ago to today  Many more businesses have moved from traditional manufacturing to being knowledge worker businesses  Varieties of managing. Factors that influence managing national culture. Are Chinese managers different from American managers.  Most influential factor was the kind of organization people were working in as managers. Particularly professional organizations.

- 9 - CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Skills Managers Need to be Successful  You can train people in each of these competencies:Negotiation skills, decision making, etc.  Managing is a blending and integrating of these skills.  Management is not a profession. Management is a practice. Mostly based on experience. You learn it on the job.

CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Competency sharing  Put up a problem  When people share their experiences and what worked for them in the past they can create a very powerful resource

CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP What lessons can apply to uncertain times?  The crisis is caused largely by inept management  We must rethink the whole process of how we’re managing

CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Goal setting  Community-ship vs. Leadership  Leadership is about the individual –we need to get away from individualistic performances  Need to enhance community-ship Managing is a practice, not a science or profession. It encompasses leadership, and is embedded in community- ship.

CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Risk-taking and the bonus system  The bonus system has encouraged risk.  If you succeed and the short term stock price goes up, you get a bonus  Its like getting paid for drawing cards in poker without showing your hand and we reward it  To promote community-ship in your organization you shouldn’t rethink bonuses. You should get rid of them.

CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Where Has All the Judgment Gone?  Too much executive selection is from the outside in  “Kiss-up and kick- down”management  Listen to those who know best  Stop discouraging good judgment

CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP How do managers find the right balance?  Effective managers are both reflective and active  Take time to discuss issues with others  Periods of reflection and correction can help avoid a “downward spiral”of behavior

CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Engaging in the Global Marketplace  The “Worldly”vs. “Homogenous global”manager “Homogenous Global”– subscribing to a cookie cutter model and forgetting your roots “Worldly”- to get into someone else's world and understand deeply and as a consequence know your world even better

CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP The Internet  The Internet is not changing the practice of management.  It is reinforcing characteristics that we have been seeing for decades.  In so doing, the Internet may be driving much management practice over the edge.  Making it so frenetic that it has become dysfunctional: too superficial, too disconnected, too conformist.

CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP People for the study  29 managers  No way to get a representative sample  Tried to vary the sample as much as possible

CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP How Professional Organizations Deal with Management  M.D. or M.B.A.?  Professionals have to realize that management is necessary among them too.  The effectiveness of a manager can only be judged in context.  There are no effective managers in general (i.e., no professional managers).  All of this has to be judged; it cannot just be measured by numbers.

CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Development Interventions with managers  Weaknesses of MBA programs  “What are you doing about it?”  MBA programs are great for functional kinds of skills like marketing and finance, but they don’t teach management.  You can’t create a manager in a classroom  Build the learning around managerial experience  Bring teams of managers to work on an issue – “Friendly Consulting”

CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Q&A Time  Is the leader the guy at the top or the person who shares vision and provides motivation  What is the major difference between leadership and management?  Leaders don’t what to manage because it requires hard work. How do you overcome that?  Managers are forced to make unpleasant decisions. How can they motivate the rest of the team to successfully contribute to productivity and at the same time win trust?  Performance measurement as a metric. Is that the right metric to create communityship?  How does training play a role ion management?  How do you know what is good judgment?  Which are the most important management activities and has it changed from the past?  How do we promote new ideas in an organization and avoid the fear of failure amongst our employees?

CZECH SOCIETY FOR STRATEGIC MANAGEMENT, INNOVATION & ENTREPRENEUSHIP Thank you!