Post on 08-Apr-2018
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Introduction to Fourth Generation
Management for Members of
Industry, Government and Education
Enrique R. Suarez
International Management Consultant &Professor
suarezenrique@yahoo.com
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Themes
Changing the Way We
Manage in Industry,Education and
Government
Three Approaches for
Better Results
The Four Generations of
Management
The Deming Chain
Reaction How to Create and
Maintain Gains
How to Create a Winning
Work Environment
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Changing the Way We Manage
As a management consultant and Baldrige Examiner, Ihave studied, visited, and evaluated companies whosemanagers told me how great their companies were, how
well they were doing, and how they were getting betterevery year.
Having studied and evaluated companies that weremaking real progress, I could see these companies werenot as good as they thought they were. Where they sawimprovement, I saw inefficiency. Where they saw gains, Isaw a lack of real interest and concerns for customers.Where they saw effective action, I saw managersunintentionally making matters worse.
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Getting Better Faster
Time
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A Message from the President of International
Educational Enterprises:
In business we all want better figures: higher sales,lower costs, faster cycle times, lower absenteeism, lowerinventory, rapid learning and a better return on our
investment.
In government we all want more efficiency, more ethicsand a new socio-economic paradigm that can benefit allof its citizens.
In education, we all want higher performance andlearning organizations.
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There Are Three Ways to Get
These Results:
1. Improve the System: make fundamental changes that
improve quality, prevent errors, and reduce waste.Example in industry: reducing in-process inventory by
increasing the reliability of operations.
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Continue... Example in government: decreasing poverty by
increasing our understanding of what are the main
determinants of economic prosperity, growth and
development in a nation and how they work as a system
so that policy makers can make better informed
economic decisions for the nation as a whole.
The need for collaboration by members of industry,education and government
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Example in education: increasing the joy of learning in
the students by decreasing the heavy reliance of schoolsystems on standardized tests as the only medium to
improve the learning performance of the students.
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2. Distort the System: get the demanded results at the
expense of other results. Example in industry: You
want lower inventories? No Problem! Inventories
miraculously disappear... But at what cost elsewhere?!
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Example in government: government policies that
encourage the heavy concentration and allocation ofgovernment and industry (capital) resources in one or
two cities at the expense of the economic and social well
being of other cities of the nation.
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3. Distort the Figures: Use creative accounting. Example
in industry: Oh, we do not count those as inventoryany more...They are on the books of our suppliers.
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Example in government: overeliance on exports based
on natural resources industries as a means to increase
the number of jobs in the economy to boost keyeconomic indicators or the Gross National Product of a
nation when most of the international competition is
increasingly knowledge based.
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Example in education: overreliance on grades (externalmotivators) as a means to boost the learningperformance of the students.
The results are obvious: students concentrate on gradesor numbers (and manipulate or distort them) instead of
concentrating on learning and on the joy of learning(intrinsic motivators).
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The Four Generations of Management
Thought
The history of management thought teaches us that
there have been four broad general management
models that have been used to achieve higher quality,productivity and competitiveness in organizations.
They are:
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1st Generation: Management by
Doing
In the first generation of management the "manager"
does the task himself or herself. Capacity andproductivity under this system are, of course, limited.
The Multifaceted work of the artisan before the industrial
revolution focusing in the final product.
Pride of Workmanship.
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2nd Generation: Management by
Directing (Taylor & Fayol)
Also called Scientific Management, this system allows
experts to micromanage, leveraging their influence bygiving strict instructions on how to accomplish a task and
what standards should be maintained.
The focus is on mass production (quantity) instead ofquality.
Management by Specialists
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3rd Generation: Management by
Objectives/Results
Under this management system (MBO), the workforce isgiven quotas or targets and told to figure out themethodology for accomplishing the task independently.
The focus is in achieving financial goals (numericalresults) as the main indicator of company success asopposed to improving processes constantly.
This view does not recognize the intedependencyamong the parts within a system which leads to the sub-optimization of the system as a whole.
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A dedication to quality, as the customer defines it
A scientific approach to rapid learning
Creation of team relationships both inside and beyond
the business organization.
The Three Key Elements of
Fourth Generation ManagementAre:
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4th Generation Management
Quality
Scientific
Method/System
Thinking
All One
Team
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W
hat is Required for theTransformation to a System?
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The Deming Chain Reaction
Improve
Quality
Reduce
Costs
Improve
Productivity
Reduce
Prices
Expansion of
Markets
Stay in
Business
Creation of
JobsBetter ROI
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Eight Factors and the
Consequences of Omitting AnyofThem:
Aim: No aim, no sense of direction
Philosophy: no philosophy, no followersVision: no vision, confusion
Strategy: no strategy, false starts
Skills: no skills, anxiety
Resources: no resources, frustration
Rewards: no rewards, bitterness
Organization: no organization, no coordination
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If you would like to know more about Fourth Generation
Management, please contact Enrique R. Suarez at:suarezenrique@yahoo.com and/or contact him in Spain
at: 34 648 972 648
What Method are you Using and
with What Results?