Yes, Virginia We Still Need Leaders!
I saw question on LinkedIn this week that really kind of caught me off guard. It was asking why we can't outsource management like other "non-core" functions.
That explains a lot to me about where we are in our current relationships between stakeholders and the financial crisis. One response to that question was that we already had outsourced management- their role is to represent the "owners" interest in interacting with customers.
Hmm, not much of a stakeholder viewpoint there.
I read a couple of excellent articles on BNET this week. The first was by Jeffrey Pfeffer, the professor and author from Stanford. He was talking about the real lessons we should be learning from the Detroit meltdown. He points out that indirectly the leadership of the auto industry has inferred that much of the issue can be laid at the feet of the UAW- that paying for health care and retirement benefits represents $1500 to $2000 per vehicle. He examined it a little deeper and said he believes the bigger issue is the $6000 per vehicle difference in revenue per vehicle between Detroit and Japan! He said he got those numbers from an industry report that is no longer published, because of resistance from the Big three.
Pfeffer says the real problem is one of desirability; American production vehicles are not as desirable so the big three has relied on incentives to create sales rather than design innovation, quality and other differentiators. He also talks about the the billions that GM and Chrysler paid out to appease shareholders. The Japanese reinvested in better equipment, better technology, and financial reserves. His indictment is that the people running Detroit (and Wall Street) have been obsessed with the numbers to the detriment of listening to customers and employees.
Steve Tobak talks about similar leadership failures in high technology and other industries- can you say AIG or the financial services sector? One of the things I have noticed over the last few months is a resounding silence around personal accountability from industry "leadership". He goes on to say we need to get it- we are not a global monopoly anymore. Customers have choices and will act on them.
We blame it on the economy, we blame it on the unions, and now we are itching to blame it on the Chinese for buying up our debt!
I have talked before about true engagement, your customers and your employees, and the resulting benefits. I have also discussed the issue Pfeffer focuses on ; we need real leadership, not management by the numbers. I am not suggesting that numbers aren't an important consideration, but I would submit if you focus on the core activities you need to create true engagement the numbers will follow.
The role of the leader is to create clarity for the entire organization, the role of management is to remove the ambiguity between the larger vision and the individual employee's job. If we have gotten to the stage where we truly believe that we can outsource those things we truly are in deep trouble.
That explains a lot to me about where we are in our current relationships between stakeholders and the financial crisis. One response to that question was that we already had outsourced management- their role is to represent the "owners" interest in interacting with customers.
Hmm, not much of a stakeholder viewpoint there.
I read a couple of excellent articles on BNET this week. The first was by Jeffrey Pfeffer, the professor and author from Stanford. He was talking about the real lessons we should be learning from the Detroit meltdown. He points out that indirectly the leadership of the auto industry has inferred that much of the issue can be laid at the feet of the UAW- that paying for health care and retirement benefits represents $1500 to $2000 per vehicle. He examined it a little deeper and said he believes the bigger issue is the $6000 per vehicle difference in revenue per vehicle between Detroit and Japan! He said he got those numbers from an industry report that is no longer published, because of resistance from the Big three.
Pfeffer says the real problem is one of desirability; American production vehicles are not as desirable so the big three has relied on incentives to create sales rather than design innovation, quality and other differentiators. He also talks about the the billions that GM and Chrysler paid out to appease shareholders. The Japanese reinvested in better equipment, better technology, and financial reserves. His indictment is that the people running Detroit (and Wall Street) have been obsessed with the numbers to the detriment of listening to customers and employees.
Steve Tobak talks about similar leadership failures in high technology and other industries- can you say AIG or the financial services sector? One of the things I have noticed over the last few months is a resounding silence around personal accountability from industry "leadership". He goes on to say we need to get it- we are not a global monopoly anymore. Customers have choices and will act on them.
We blame it on the economy, we blame it on the unions, and now we are itching to blame it on the Chinese for buying up our debt!
I have talked before about true engagement, your customers and your employees, and the resulting benefits. I have also discussed the issue Pfeffer focuses on ; we need real leadership, not management by the numbers. I am not suggesting that numbers aren't an important consideration, but I would submit if you focus on the core activities you need to create true engagement the numbers will follow.
The role of the leader is to create clarity for the entire organization, the role of management is to remove the ambiguity between the larger vision and the individual employee's job. If we have gotten to the stage where we truly believe that we can outsource those things we truly are in deep trouble.
Labels: accountability., commitment, Detroit, engagement, failure, Leadership, lessons, responsibility
posted by Mark at New Paradigms LLC at
2:18 PM
1 Comments:
Mark...you make an excellent point. I don't believe in outsourcing management and leadership. The best managers I have encountered have been engaged and involved. By engaged and involved I don't mean micro-management, rather I am referring to the fact that these individuals are effective because they bring energy to the task at hand with clarity and focus on clear achievable and measurable goals, simultaneously, with a high level of personal and emotional involvement. A very important part of a manager’s role is also to create and nurture the culture of an organization. It is culture that often works with or against moving forward in every organization. Culture is not a product that can be outsourced and it is a very central part of managing people. To have this kind of connection, a manager has to be present physically and emotionally in a place to interact dynamically with the culture and steer the ship in the wanted direction to get results. At the end of the day, management is about dealing with people. People want connection, a reality that they can touch, feel, and relate to so they can have a motive to perform besides just the basic reason of getting a paycheck. People want to be engaged. If that happens and the ship is steering in the right direction to begin with, as you pointed out, the numbers always follow.
Post a Comment
Subscribe to Post Comments [Atom]
<< Home