Chapter 2: Adapative Order Systems (Pages 49-63)

Personal take-aways:

The book states that people need state systems that are legitimized by their culture and governability. When applying this concept to business it creates several questions. Should companies be mirrors of local culture or should they create their own based on their international characteristics? If culture is determined to be an important factor in the productivity of employees how much of it should also be part of corporate culture and how can this be feasible when looking at different cultures working together across borders? In the end the question of how much glocalization is part of globalization appears to be an important aspect of effective leadership.

On another note, as stated that competition invariably leads to progress, it might be interesting to think about how competition in a balanced format can be made part of the daily work routine of employees in a way that teamwork and competition might coexist in the quest of innovation through cooperation and individualism.

Notes:

• Updating State Systems
  • money alone does not trigger innovation
    • example Africa: huge sums of money invested without any obvious longterm effects
      • must know more about the type of assistance needed to achieve cooperation we desire
      • aim should be to introduce democracy and a market economy as part of long-term development plan
        • not from the beginning as change would create too much of a shock
        • less than ideal government can be tolerated if success of policies create conditions for reform
        • people need time to understand and develop new goals
  • people need state system that is legitimized by their culture and governability
    • habits, vested rights play an important role
  • people feel strongest connection to their local/regional culture
• New Social Goals and Flexible Order Systems
  • failure of inherited systems
    • past social goals that have been handed down are still characterized by hierarchical origins
      • ruling classes claim to leadership has proved incapable of preserving stability
      • comparing various democratic systems is almost impossible due to individual democratic styles
      • view that those in power should be role models for others is questioned by interpretation of concept of liberalism
      • we now have a system that rewards conformity rather than competition oriented leadership
    • competition invariably leads to progress
  • many managers are far too slow to adopt new management techniques
    • from management through discipline to motivation
  • success is one thing: but MUST BE cautious in assuming that past experiences will enable to master the future
    • willingness to learn to deciding factor

Chapter 3: New Objectives in the Working World (Pages 93-101)

Personal take-aways:

Being innovative requires time – time to think, and time away from daily activities and processes. This is impossible when one’s calendar doesn’t allow for this. Thus, when trying to increase the innovation ability of a company and employees, leaders need to understand if sufficient time can be freed up by the staff to truly immerse itself in the innovation task. In others words, it might not be the lack of ideas or innovative abilities but simply time to develop existing ideas in addition to completing current and possibly inefficient processes and working habits.

On another note, once more, the wording and framing of working concepts appears to be very important. The book gives the example of profit-sharing and paying bonuses. One can see these things as additional costs or as necessary contributions to the efficient operation of the enterprise. Both views create very different financial models and motivation tools…but are also based on very different views on the importance of employees in a company. Combining this idea with the concept that people improve their performance if they can identify with the objectives of their organization AND the behavior of management, it becomes clear how different views influence company efficiency based on different behaviors of management that are seen as just or unjust by their employees.

Notes:

• Leadership Ability as a Determinant of Success
  • all cultures have confirmed that humans beings by their nature need andseek community
    • personal freedom must be accompanied by a sense of duty and responsiblity if the individual AND community are to thrive
    • it is important to question continuously culture’s design
      • cultures are supposed to facilitate human life and must continue to evolve
  • people appreciate that they can contribute to develop management techniques through their personal committment
  • the correct choice of objectives is often undervalued
    • leaders are usually best qualified to develop objectives
      • BUT leaders may not fall back on their own experiences for this purpose -> they must anticipate future developments
  • criteria such as maximizing profit and shareholder value will not any longer suffice
  • people need time to think about their objectives and strategies -> this is impossible when overburdening staff and management
    • people will master their daily routines but not more
  • it was believed that capital and labor were crucial forces exerting pressure on the economy
    • this is misleading as development has in the last two centuries not been based on capital but the initiative of creative entrepreneurs
  • PEOPLE WHO ARE WITHOUT HOPE LOSE THEIR STRENGTH AND POWER; THOSE WITHOUT DIRECTION AND GOALS LOSE COURAGE
  • progress demands the ability to find new paths
  • people improve their performance if they can identify with the objectives of their organization and the behavior of management
    • management must be willing to cooperate and be kind
      • the behavior of management will determine the company climate of motivation or opposition
        • the working atmosphere is always determined primarily by the direct superior
    • capital must be used to help people identify with the enterprise
      • if performance, success, and quality of workers is not acknowledged , company is felt to be unjust
        • the question of justice decides whether employees work to rule or endeavour to do their best
      • bonuses or profit-sharing are investments in the value of motivation; it should not be seen as costs
        • it is a necessary contribution tot he efficient operation of the enterprise

Chapter 3: New Objectives in the Working World (Pages 116 – 135)

Personal take-aways:

While talking about the French Revolution and the Age of Enlightenment as times when people demanded progress, the books makes a particular statement that goes hand in hand with what leadership might be all about. It states that during these times, people started to see that ruling hierarchies had been poor guardians of the individual’s hope for better conditions.

Applying the meaning of this statement to management, and the art of motivating people and getting them to identify with the leadership at hand and the company, one needs to understand how one can satisfy this call for better conditions. Maybe it is human nature to always want more, and always want better conditions and improvements, but when assuming that one of the first questions that people have when a new leader is put in place is whether or not this person is able to improve the current conditions, then the leader might have found the first tasks to tackle to create the fellowship s/he needs for future projects to come.

In previous chapters the book talked about profit-sharing and motivation in connection with creative freedom. Bertelsmann has a specific procedure for this, which is the following:

1. After paying employees’ capital returns and income, half of the remainder is paid as a share of profits to each group
2. The employees’ profit share is reinvested in the firm and is available for sale on the stock market

The consequences of this approach are:

• employees’ stake consists today of around one-third of the company capital
• employees’ investments have contributed to the ability of the company to finance high rate growth over decades without outside capital
• the company’s independence eased the development of the corporate culture
• employees have additional financial security, which they can make use of now or later in life

Notes:

• objectives for corporate culture are as follows:
  • ultima goal of a business it to contribute to society
  • capital can strive for a high return but the way it defines its own interests contributes to this
  • management personal should receive entrepreneurial opportunities and share in success
  • employees expect career opportunities, fair pay, and security -> they need to be accepted as partners
• size management will be another managerial problem in the future
  • in the past, and still today, growth symbolizes success and power
    • huge inventory turn  + number of employees
      • it is easy to convey size and associate it with success
  • –> we should NOT value companies for the size but for their management style and productivity
    • innovation, growth rates, finance strategies, continuity of management, and corporate environment tell us more about a company
  • however, if growth is unavoidable, we should think about breaking size into more manageable units
• in the past we used regulated, decentralized managed units to achieve uniform results
  • now we want the opposite: escape stagnant hierarchies and grant creative freedom within a framework of delegated responsiblity
• today we no longer work with people that we can give orders to, but with citizens who think for themselves and are capable of assuming responsibility
• you need to INVEST in the motivation of your colleagues
• we need to delegate responsiblity and motivating people and encouraging them to identify with the firm are prerequisites for this
• Guaranteeing Continuity
  • management must see as one of its tasks guaranteeing the viability and continuity of the business
    • continuity as a corporate goal is expressed in the company’s strategy, management, finance and objectives
      • management must choose this goal in the interest of all participants
  • creative people and managers need: incentives for success, courage to take risks, and freedom to be creative
    • OWNERSHIP CARRIES AN OBLIGATION
• Family Traditions
  • not all goals are useful
    • the overemphasis on profitability – for example in shareholder value and profit maximization – can interfere with a company’s competitiveness
    • paths need to be reassessed from time to time as the conditions for success might have changed
  • !!cultures are founded firmly upon their people’s self-confidence!!
    • changing a culture involved providing people with a new self-perception, a new social system, and new customs

Chapter 1: A New Understanding of Community (Pages 22-33)

Personal take-aways:

In management, one often encounters the problem of having to “manage” different generations at once. The easiest way would be to discover or create a “one style fits all” approach. However, as “rules” to regulate community life are determined by the member’s self-image and way of life, a management style that tries to put all eggs into one basket will be inefficient, as, although part of a community, in terms of the work environment, people are still individuals first. Thus, truly understanding “who” an employee really is should replace the search for a management recipe that fits all equally well. This becomes especially important when talking about the trend of having to manage more and more diverse teams; diverse employees might need equally diverse management styles and regulations.

On another note, like a democracy demands something in return of its citizens, managers ought to try to establish a similar relationship in the professional world. Although this balance is probably one of the toughest ones to create, getting employees to think in “give & take” is one of the most important mindsets to implement. However, this can only be established if companies see their employees as their own customers and act accordingly, while employees are able to be actively involved and change the professional community they are part of.

Another buzzword in management is “delegation.” The problem with delegation is that if it happens without transparency, employees might quickly start to think of it as a way for management to pass more tasks on to lower management, especially when a higher workload is involved from the beginning. There is a difference between delegating “tasks” and “responsiblity,” a difference that often goes unexplained and misudnerstood…by management and employees.

Notes:

• Moral and Cultural Values as Pillars of our Culture
  • the principles for regulating a community are determined by the members’ self-image and way of life
    • they are flexible and open to interpretation
      • based on experiences over long periods of time
  • important to enable people to excercise community leadership
    • individuals must see participation in a community as a personal/professional goal and understand its advantages
      • necessary to change people’s perception
  • assumption that strict discipline removes the need for people to identify with the state is a complete failure
    • failure to understand the potential contribution of each
  • rules of democracy demand something in return from citizens
    • citizens must learn to see the shaping of the community as another means of pursuing their own personal interests
  • Theory of the author in the book: people need and seek moral values
  • large organizations find reforms difficult
    • Personal Idea: try to develop a system that breaks bigger companies into sovereign small ones (like in politics) with different rules and processes but under the same roof
      • diversity might call for that
• Competition between Social Orders
  • New economic goals and methods:
    • sensible to restore better conditions for entrepreneurial management by delegating responsiblity to lower levels, especially in larger companies
      • news attitudes and skills are required of today’s employees:
        • willingness to learn, flexibility, and identification with the task
      • senior management alone cannot provide innovative ability any longer
        • as many employees as possible should be encouraged to assume responsibly, work independently with a certain amount of freedom, develop new ideas to ensure a company’s performance/competitiveness
      • in the past, large size meant high performance
        • demands for innovation and flexibility have turned this into a disadvantage
  • The management method of delegating responsiblity
    • employees who are directly responsible for their tasks perceive that part of their job is to think about improvements
      • sticking to rules is not the ultimate goals – > the optimal organization of the work process is
        • workers are lower levels must be encouraged to quickly make changes to the work process non-bureauticratically
          • courage to allow employees the freedom to experiment must be seen as most efficient way of achieving progress
• Components of motivation
  • a fair income
    • pay people as much so don’t worry about money and are able to focus on their tasks at hand
  • following procedure offers sensible solution:
    • parties agree on wage adjustments, with the help of an arbitration court if necessary
      • in an unemotional way
    • a company or sector wage scale guarantees fairness in assessing jobs
    • company rewards employees by paying them an agreed-upon share of the profits achieved

Book 2: Humanity Wins – A Strategy for Progress and Leadership in Times of Change (Pages 1-7)

Personal take-aways:

The first couple of pages of the book already foreshadow several ideas that could be applied to the political as well as the business environment, as there is an obvious connection between the two due to the humanity focus of the book based on its title. It appears that community building in its general essence will play a major role in many of the arguments to come – a principle that once more heavily draws on the importance of the human capital.

One of the first passages of the book mentions the role and nature of entrepreneurship. An argument can be made that “social well-being”  needs to become part of any business model of entrepreneurs. It is not anymore about “what is the problem, how can I solve it and why would somebody invest?”;  it is in addition about the question related to the impact that a new business and idea will have on society. In other words, like “innovation” needs to be part of any job description, the “impact question” should be a key ingredient for entrepreneurs.

On another note, future businesses like current political systems appear to lack the ability to distinguish between plans that lead to one-time reforms which will need to be actively monitored and updated in the future once the system changes, and plans that lead to the creation of a “learning society/ecosystem of innovation” that is based on flexibility and thus constant re-innovation spearheaded by the capabilities of the human capital. In other words, there appears to be a difference between being innovative for the sake of innovation and competition based on certain characteristics dictated by particular environments without having to change corporate culture, and being innovative up to the point when the word “innovation” loses its meaning as it has become part of the day-to-day fabric of  a company in the quest for constant advancement/improvements.

Interestingly, already in the first few pages the importance of creating the right conditions for “commitment” is discussed as well, describing it as one of the main tasks to be accomplished by top management in relation to the rest of the company.

Notes:

• Forward
  • entrepreneurs must seek more than just profits in shaping their corporate strategy
    • must consider the effect of their work on society, culture, and the environment
  • company’s success is significantly influenced by how it activates its human capital
  • globalization = challenge to established policies/political institutions, which are still largely anchored within the framework of the nation-state
    • need of  a creative revitalization of politics
  • author will share wealth of entrepreneurial experience to point out practical paths towards a civil society committed to individual responsiblity that will benefit the community
• Preface
  • vital communication regarding common interests and differences of opinion becomes increasingly rare and difficult to sustain
  • democracy and the market economy  must be reconceived and improved as part of globalization
    • modern cultures must set new goals, renew leadership structures and test systems of governance
• Introduction
  • like individuals, civilizations are shaped by experience and ability
  • because war and anarchy were usually a constant threat, those in power were compelled to maintain and protect the inherited system of order
    • maintaining traditions and cultures for the preservation of society as a whole was priority
    • two major weaknesses of this system: dependence on scarcely legitimate powers and inflexibility in authoritarian structures
    • change came along with (ability to examine outdated power structures critically):
      • humanity’s self-perception, influenced by the French Revolution
      • democracy as a form of government
      • scientific progress
      • technical advances
      • global communication and cooperation
  • Basics of Social Reform
    • culture and tradition influence us all more than we would like to think
      • adopting a new system of order requires parting with old habits and vested privileges
    • extensive change demands commitment, courage, and patience + participation of individuals and their willingness to learn and change
    • can avoid costly mistakes by exchanging our experiences internationally
    • for innovation to take place people must carry out reforms in a decentralized way as tasks at hand will become/are too multifaceted and completely to be controlled centrally
      • not one time reform but creation of ecosystem that supports a learning society
      • creating the CONDITIONS for such committment is an important task of the state
    • previous systems mainly based on premises of social and financial inequalities
    • management techniques require: identification with the objectives and regulations of the organization
      • adherence to rules is not any longer main priority
      • creativity, efficiency, and initiative are the new requirement
        • attitude, character and performance must emerge as decisive elements of executive recruiting
        • only people who identify with their jobs, who assume personal responsiblity for them, can succeed in future environments

Chapter 2: Adapative Order Systems (Pages 63 – 74)

Personal take-aways:

Leaders need to understand that their past successes aid to their experience but might not determine their future successes as the conditions for success might have changed drastically. Thus, being a lifelong learner is a mindset leaders should adapt to not fall into the trap of thinking that their past experiences are equal to the knowledge needed to stay successful in the future.

In addition, as the definition of leadership might be different from one context to another and between people in general, leaders need to try to understand how their employees think about leadership, as they will interpret all actions from that particular angle. Thus, leadership might be about being able to adapt different leadership styles from one context to another based on the differing leadership definitions among the employees. This understanding needs to be aided by knowledge of the actual tasks employees are doing, as to give advice, to help and to praise is only possible with a standard understanding of these tasks.

On a different note, it appears that a good tool to increase employee motivation is to expand the scope of their work by adding responsibilities that are outside of their general job descriptions. The book gives the example of NGO work in the name of the company which consequently also might lead to a more intense feeling of belonging to a community.

Side take-away: Leaders need to be  able to measure impact of their decisions as if not their decisions will be turned into mere opinions which opens up the discussion of whose opinion counts more.

Notes:

• Calling the democratic system into question
  • the young no longer accept the habitual ways of thinking
  • civil society is not hierarchical -> people assume responsibilities that are ignored/poorly handled by the government
    • people ARE willing to contribute their time and skills to the shaping of democratic institutions
    • people’s view of themselves as part of a community makes them willing to perform community-oriented tasks
      • Personal note: this also should apply to business -> business as a community
  • people need to learn to think in terms of the community at large to take on responsibilities and acknowledge the principles of subsidiarity
  • people who assume responsibility for nonprofit tasks find their work motivating and fulfilling
• From the goal of propriety to the goal of competitiveness
  • delegation can only work if the objectives and working conditions meet the expectations of the people working at those levels
  • modern management must identify its goals and the guidelines,while specific means by which these goals are achieved are determined by the people responsible and those under them
  • corporate culture includes a form of cooperation that is largely based on employee identification with management
    • this identification is influenced by working conditions and by the conviction  that they are being treated fairly
    • NOTE: we must acknowledge that the conduct of immediate superiors has a decisive impact on the working atmosphere and employee morale
      • managers must advise, help and praise
  • absentee rates provide a clear evidence of the difference  that motivation, as opposed to discipline, can make
  • goal should not be to optimize performance but to encourage each person’s capacity to become part of the community at large
• Developing Leadership Qualities
  • election, capital, and appointment clout no longer legitimize authority
    • person’s qualifications for the task at hand must be decisive factor
    • educational qualifications and practical experience support claim to leadership but ability to successfully coordinate people matters even more
  • when analyzing job requirements we need to look job related know-how, and at personal aptitude and a command of management techniques
    • management skills can be taught by assigning practical responsibilities
  • power panders vanity, pride comes before the fall
    • problem for high-ranking older executives -> self-esteem is based on their past success
      • duration of their success makes them believe they know best without realizing that the conditions on which that success is based have changed over the years and no longer exist
        • people under them will not voice their opinions because realize that it is not in their personal interest
  • leadership is most important component of success but also the greatest potential danger
  • HR and adequate personal planning needs to have a bigger stake in any company to nurture the leadership needed in the future
    • finding leaders with aid of headhunters is NOT ideal
      • better to promote new leaders from the company within

 

Chapter 1: A New Understanding of Community (Pages 7-22)

Personal take-aways:

One of the reasons that “committment” might be so tough to create is a possible consequence due to disconnect that appears to exist between the perceived responsibilities of companies towards their employees and vice versa. Oftentimes, it is arguable that on the one hand employees see their companies as responsible for serving their needs, without actively taking part in making sure that the business is healthy enough to “serve.” On the other hand though, companies might still follow the old principles of making money as primary objectives, instead of accepting an obligation to contribute to society and their employees as primary drivers. Although it appears to be a chicken or egg question, problems like these might become more and more important looking at generational shifts and the accompanying differences in motivating factors and work ethics.

The fact that younger people are often single longer, that marriage is not as important now than it once was might represent anecdotes for describing similar things in the job world, where job-hopping becomes a norm while adapting to company rules and its required discipline might be perceived as a threat to freedom and a reason to reject long-lasting committment on a professional level.

The book states that centralized hierarchical state systems are now paseé; this appears also to be the case in the business world. One of the reasons might be the improved accesses to education and therefore the decreased degree of differences in perceived abilities that might have made the system possible in the first place due to inequalities. In other words, as bachelor and master degrees become a standard, the “I can also do that” attitude might increase, which is something that might not have been like that in the past.

Thus, as committment and even respect are no longer “automatic responses” that once were created through the image, seniority and reputation of a company or senior manager, these drivers might only be created through giving employees the chance to participate in the design and implementation of corporate goals while communicating that this is their responsiblity to be used to make sure the company will stay healthy enough to serve their needs.

Although in a decentralized system, one must discover who should assume responsiblity and what the tasks will be, employees need not only to be able to examine outdated regulations critically, they need to be asked to do it as part of their job describtion. Thus, the task of top management might not anymore be to take the decisions, but to give everybody a part in deciding together the goals and directions of the company, being mediators of an internal discussion lead by its human capital due to the fact that hierarchical differences based on seniority might not be a differentiating factor in deciding who leads and who doesn’t anymore.

On another note the book talks about the role of the family in a state. As the family is the building block of any communal living, companies might need to start thinking about how families can be integrated into the entire ecosystem. The goes against generally accepted norms to separate the personal and the professional, but a company that goes-beyond the professional and supports in the personal might start bridging the gab between the initially described disconnect.

Finally,  although again more seen more from a political perspective, how companies work together with schools might become more and more important in creating and looking for the right work force. Like we teach how governments work, classes might need to be taught on how actual companies function, starting from company history, major problems, breakthroughs, company culture and current developments among others. Only this way, will one possibly create an “educated” workforce that can align and commit to a company 100% even before actually working there, based on transparency and a true understanding of the future employer. Although this transparency might be utopian, it only is until major players are not afraid of it.

In the end, a competitive company appears to have to become like a community that assumes responsibilities, and is transparent and innovative in accordance with its aims.
Notes:

• community as a form of self-fullfillment and commitment
  • until 18th century, demands of society and those in power were considered more important that those of individuals
  • during time, we have come to view government as responsible for serving the needs of its citizens
    • but citizens are called on to do their part as well
      • citizens expect to benefit from the state while contributing as little as possible
    • they need to participate in the design and implementation of social goals
      • state needs to inform people about what needs to be done and convince them to participate
        • benefits one receives from the state are contingent on the state´s ability to function
  • new social order cannot come about with people feeling alienated from the state and jobs
    • centralized hierarchical systems practiced for thousands of years are now pasee
  • a viable system for the future needs to consider:
    • a community without order is not stable
    • people seek and need to be part of a community
    • we must discover, who in a humane society, should assume responsiblity and what the tasks will be
    • returning to the “good old days” will not work
  • if outdated regulations cannot be examined critically, the system will not develop and its demise will be inevitable
  • people can be creative when given the chance
    • allow more freedom for creative people and sufficient scope for trail and error
    • there is no lack of creative people, only of the insight and courage to grant them the freedom they need
  • Fitness for Community Living in Different Areas of Life
    • all want to be part of a community but not everybody can behave in a way that is conducive to community life
      • cooperation needs to be learned and practiced
    • The Family
      • there is a good reason to reflect the meaning and role of the family unit as a basis for community living
        • to reflect from a social standpoint on what the family can offer toward accomplishing certain goals
      • the state can further strengthen the family by transferring educational authority back to the parents
    • Partnerships
      • young people are increasingly unwilling to commit themselves to marriage
      • communal living requires discipline and willlingness to adapt may be perceived as a threat to their freedom and a reason to reject partnerships
    • Schools
      • to ensure that the educational aims of schools are in line with those of parents, schools must ensure  that a vital dialogue takes place between the two
    • The Work World
      • management by directives wont get the job done
      • success of delegated responsiblity depends upon middle management´s conviction that the company´s aims and working conditions are acceptable to all personnel
      • a competitive company must become like a community that assumes responsibilities and is innovative in accordance with its aim
        • company accepts its obligation to contribute to society as a primary goal while also respecting subordinate goals such as the self-realization of management, staff and the capital
    • The State
      • it must regard its citizens as consumers and give them the same courtesy they would expect from any service industry
      • must learn to let its citizens evaluate its services
      • restoring  society’s ability to live as a community is the most important condition for securing our future

Chapter 3: New Objectives in the Working World (Pages 101-116)

Personal take-aways:

Delegation of responsiblity needs committed and capable people at the end of the line. In other words, the mere act of delegation is dangerous, when the responsiblity falls into the “wrong” hands. This sounds simple, but it appears that often managers treasure more the act of having “delegated” without having done their proper research on whether or not this delegated power can be handled responsibly by another person. In the end, the cycle comes to an end, as the training of employees and increasing the ability to delegate responsiblity go hand in hand.

On another note, many of us have been in the following situation: coming out of a 3 hour-long meeting, feeling exhausted and without any concrete measures of what to do next. Making the most out of the time available, appears to be one management technique great leaders use on a daily basis. The problem with many meetings appears to be that too many ideas enter the discussion without being filtered or fully developed. This does not mean that not all ideas should be discussed but when the meeting turns more into a “selling of ideas,” the time spend on actual concrete steps and milestones is minimized. Thus, given all stakeholders or participants the time and space to develop, analyze and discuss their ideas with possible ombudsman (experts) before the actual meeting takes place, might increase the value received based on the time spent in the meeting itself. In addition, once several ideas are developed it might be advisable to have all participants familiarize themselves with them to have arguments and comments for the coming discussion prepared. But in the end, time is money; and great leaders might know how to make the most out of it in any situation.

Notes:

• advancement of staff must be coordinated with long-term corporate goals
  • clear development plan must take into account future needs of company and staff
• a new manager or staff usually is only seen as a substitute for a specific skill
  • the person will often need a significant period of time before s/he can be effective
• increasing people’s income so that it commensurate with their years of work is not worthy of discussion
  • income should be based on basis of achieved successes
• personality is the most important qualification for success
• management technique that cannot be delegated: the coordination and implementation of performance contributions and recommendations in the spirit of corporate objectives
  • development of a more highly efficient coordination procedure
• Foundation of Labor: standing teams from interest groups examine premises of a solution, alternative solutions are presented, and in the end people are invited to discuss and agree
  • in addition: possibly to call in an ombudsman -> an expert who brings in consumer interests into play
  • hope for reducing dispute by making things measurable and assessable in all areas
• in a democracy – and business – people demand clarity
• Long term strategy:
  • improvement of learning capabilities between people
  • increase of human performance potential through delegating responsiblity
  • securing innovative capability through performance-oriented management
  • global coordination through common goals and rules
  • ensuring the ability to live in a community
  • release of creativity
  • new conditions for management through conviction, identification, and willingness to accept responsiblity
• The development of the Bertelsmann corporate culture
  • never see yourself as a member of the elite but as a responsible co-worker
  • often we cannot wait for customers to come but have to go looking for them
  • one of the goals should be to retain a sense of collective responsiblity
  • delegation of responsiblity needs employees that identify with the firm
    • committment is based on their conviction that they are committed to the right goals
  • we often ask our employees about the corporate environment, conduct of management and promotion opportunities
    • the concept of partnership in the workplace proved superior to every other management techniques

Chapter 2: Adapative Order Systems (Pages 83-93)

Personal take-aways:

Sometimes the wording behind a “goal” makes all the difference, as it shifts the focus and thus the mindset. In a company setting people often talk about “profit” and maximizing shareholder value as the alpha and the omega. However, when approached from another perspective, one could state that these two “goals” are merely the consequences of having achieved different ones. For example: The goal is to focus on helping employees reach their true potentials in a company setting which is thought to lead to profit and maximizing shareholder value based on the interest of the employees to grow and thus improve the functioning of the company itself. In other words, a goal should possibly always focus on the “mean” and not the “consequence.”

On another note, a leader’s success appears to always depend on the ability of his/her followers to understand the leader’s actions and successes. In other words, leaders always appear to be defined by their visible successes and not their overall performance. The best example is Obama: “Corporate profits are at record highs, the country’s adding 200,000 jobs per month, unemployment is below 6%, U.S. gross national product growth is the best of the Organization for Economic Cooperation and Development (OECD) countries. The dollar is at its strongest levels in years, the stock market is near record highs, gasoline prices are falling, there’s no inflation, interest rates are the lowest in 30 years, U.S. oil imports are declining, U.S. oil production is rapidly increasing, the deficit is rapidly declining, and the wealthy are still making astonishing amounts of money.” Still, Obama is considered a failure by many. Why? Because what they see, understand and use to define their leader is for example that salaries did not go up. Thus, when talking about having a long-lasting impact, leaders need to understand how to achieve quick wins that their followers can understand and see.

Notes:

• The Civil Society
  • in the past leadership meant the strong decided what was to be done without any further legitimization
  • maintaining status-quo was preferable to not threaten the ruler’s claim to mastery
  • the concept of self-actualization based on personal freedom without any rules and forms does not work in a community -> example of the avantgarde movement
  • theses:
    • we must formulate our goals anew
    • we must learnt o save and to improve methods
    • political leaders and schools must again demand that citizens excise individual responsibility
    • citizens want to identify with the state-> they feel: We are the state!
    • committment to the community is understood to be a part of self-actualization
      • –> personal note: this applies to a company as well
  • leaders need to be assessable by the results they produce
    • the possibility of measuring and assessing performance creates personal success-based confirmation for all participants
  • we need to explain to people why we are setting new goals and seeking to change work procedures with the aid of examples
    • leadership operates less effectively with constraints and discipline and far better with participant motivation
      • tool: dialogue
  • competition has an advantage: it exerts pressure to act

Chapter 2: Adapative Order Systems (Pages 74-83)

Personal take-aways:

Although decentralization is a concept that might lead to better management and effectiveness in companies, it will also lead to “expert” thinking due to the possible specialization of tasks. This needs to be taken into consideration, as usually expert knowledge might lead to certain paradigms of thought and thus to stagnation in the overall innovation process. Thus, decentralization might need to be accompanied by a higher degree of diversity as to minimize people thinking into the same direction.

 

 

Notes:

• Restoring Steering Ability and competitiveness
  • in the past the whole human knowledge could be mastered by particular gifted individuals
    • electronic media are making the access of knowledge open to an extend thought impossible in the past
  • people want to participate in the community
  • the managerial’s staff excessive workload indicated that their work style has not kept pace with the increasing demands on them
    • this problem cannot be solved by more personal effort
      • on the contrary: this would reduce the organization’s ability to quickly change course as necessary
    • possible solution: division of labor together coupled with decentralization of management responsiblity
      • decentralized functions offer greater efficiency through specialization and improved sector-specific expertise
        • drawbacks: specialists tend to consider themselves particular important and to give one-sided advice that might not lead to an actual solution
          • BUT: the task of management is to request and use the contributions of their staff in the right manner -> responsiblity for coordinating the contribution is a management technique
          • coordination is best handled by superiors due to their big picture understanding
  • even a sophisticated and well-functioning reposting system cannot replace confidence in an employee
  • company rules: all individuals should contribute as best as they can to the welfare of the community
  • in business: possibilities of progress by means of competition are almost unlimited
• Performace-oriented leadership
  • politicians are not ideal figures -> react humanly, which means in their own interest and to the advantage of their party
    • reports would detail the target and actual results of politicians’ actions
      • these reports would reveal mistakes and successes and permit appropriate corrective action
        • public discussion on quarterly results achieved by local authorities (like major stock companies) would lead to clear information
          • increase scope of idea by consider results achieved by municipalities to judge the performance of their local politicians
            • –> this performance oriented leadership technique would trigger competition with the aid of performance comparison