Properties of Management Fads 1.They are relatively simple. 2.They are falsely encouraging. 3.One size fits all. 4.Easy to cut and paste. 5.They resonate with today’s problems. 6.They are novel but not necessarily radical. 7.They are legitimized by Gurus and Disciples. Source: HBR 2002

Type A Type J Employment Short-term Long-term Decision Making IndividualConsensual (nonroutine) Responsibility IndividualCollective Eval. & Promotion RapidSlow Control System Explicit/Implicit/ FormalInformal Career Path Specialized Unspecialized Concern for SegmentedHolistic Employees American vs Japanese Orgs.

EmploymentLong-term Decision MakingConsensual (nonroutine) ResponsibilityIndividual Eval. & PromotionSlower Control SystemImplicit/Informal with Explicit Measures Career PathModerately Specialized Concern forHolistic Employees (including family) Theory Z Organizations

1. Customer Focus 2. Continuous Improvement 3. Teamwork 3 Common TQM Elements

2. Constantly improve every system 3. Eliminate financial goals & quotas 4. Drive out fear 7. Remove barriers between depts. 9. Eliminate annual ratings 10. Education & self-improvement 11. Abandon slogans 12. Cease dependence on mass inspection A sampling of Deming’s 14 points

Traditional Learning Dimension View Organization Org. MetaphorMachine Organism Main ConstraintCapital Creativity ValueStability Change FocusProfits Consumers/Empl. MarketsDomestic Global Strategic Obj.Efficiency Effectiveness StructureHierarchy Work Teams Org. PrincipleDiv. of Labor Synthesis of Minds LeadershipAutocratic Empowerment RelationshipsCompetition Cooperation Information Power Source Open Access Daft, 5th edition & Wall Street Journal (2/26/99, p. B1) The Learning Org: A Change in Values

Data Miners In Search of Excellence Good to Great What Really works

1. A bias toward action 2. Closeness to the customer 3. Autonomy & entrepreneurship 4. Productivity through people 5. Hands-on and value-driven 6. Sticking to the knitting 7. Simple form and lean staff 8. Simultaneous loose-tight properties 8 attributes of “excellent” firms

Good To Great: Jim Collins Why some companies make the leap to Great and others don’t Good is the enemy of Great Level 5 leadership First who … then what Hedgehog not a fox – What are you deeply passionate about What can you be the best in the world at A culture of discipline (never lose faith)

Good to Great Good to Great Companies – cumulative returns 3X market over 15 years Abbott Labs Circuit City Fannie Mae Gillette Kimberly-Clark Walgreens Wells Fargo

What Really Works: William Joyce et al 10 years of data on 160 companies and 200 management practices Identified winners (Walmart), tumblers (LA Gear), climbers (Target) & losers (K Mart) in terms of total return to shareholders & other financial measures Most practices were unrelated to financial performance Found: successful companies mastered 6 practices all not equally important: 4X2 model

What Really Works 4 Primary practices: Must do Clear and focused strategy Execute flawlessly Build a performance based culture Make your organization flexible, fast and flat 2 Secondary practices: Pick any 2 Keep and develop talent Leaders who are committed to the business Make industry transforming innovations Growth through mergers and joint ventures

Research on Management Fads 1.Fads tend to display a symetrical life-cycle discovery wild acceptance digestion disillusionment only hard core remain 2. Source: 1. Gibson & Tesone AME 2001, ; 2. Carson et al AMJ, 2000, ; 3. Staw & Epstein ASQ,2000, (quality, empowerment, teams) More recent fads are Broader based Shorter-lived More difficult for management to implement 3.There is little evidence they improve profits They do have reputational value They do affect top management salaries