The new urban paradigm: A radical departure in city management
“Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does...
Transcript of “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does...
“Lunch” with Steve & Peter
A conversation about radical management
Session will start at noon
Steve Denning
Steve’s blog http://blogs.forbes.com/stevedenning/
Twitter: @stevedenning
Peter Stevens Peter’s blog
http://www.scrum-breakfast.com/ Twitter: @peterstev
1. What is (the business case for) radical management? • Principle of disruptive innovation • Principle of maximizing shareholder value • Principle of customer delight
2. Application to the public sector
• From customers to stakeholders 3. A look at components of radical management
• Role of Agile • Role of storytelling
4. How on earth do you implement this?
Layout of the conversation
Part 1
What is (the business case for) radical management?
Three principles
• The principle of disruptive innovation
• The principle of maximizing shareholder value
• The principle of customer delight
A quick introduction to radical management
Firms dying faster & faster
Source: Richard Foster Creative Destruction (2001)
Quality
Time
1. The principle of disruptive innovation
Graph based on Clayton Christensen
Quality
Time
X
Low quality
competitor
High profitability
Larger market
1. The principle of disruptive innovation
Graph based on Clayton Christensen
Quality
Time
X
Low quality
competitor
High profitability
Larger market
1. The principle of disruptive innovation
• Oracle disrupted Cullinet
• Microsoft disrupted IBM
• DEC disrupted mainframes
• PCs disrupted DEC
• Laptops/tables disrupted PCs
• Industry after industry
• Why don’t they learn?
2. The principle of maximizing shareholder value
“The object of a firm is to
maximize shareholder value
i.e. make money”
• 1976: Mecklin & Jensen: “The theory of a firm”
• Most management textbooks
• Most business schools
• Pervasive in the Fortune 500
• The guiding principle of Wall Street
• Reinforced by the consulting firms
Make money for
shareholders
Goal 2. The principle of maximizing shareholder value
The elements are interlocking
Managers are controllers
of indivduals
Bureaucracy: rules, plans, reports
Top down commands
Efficiency, cost cutting
Role
Coordination Values
Communications
2009: Conclusive proof of the
failure of traditional management
Deloitte’s Center for the Edge: The Shift Index:
Rate of return on assets and invested capital: US firms: 1965-2011
Traditional management also fails
in employee engagement
Source: Deloitte’s Center for the Edge: The Shift Index
Only 1 in 5
workers is fully
engaged in his
or her work
1. Director of Information Technology
2. Director of Sales and Marketing
3. Product Manager
The Three Most Hated Jobs in the USA
http://www.forbes.com/sites/stevedenning/2011/08/11/think-your-job-is-bad-try-one-of-these/
Even managers hate their own jobs!
The elements are interlocking
Delighting customers
Goal
From controller to enabler
From bureaucracy to Agile, Scrum, Kanban
From command to conversations
From value to values
Role
Coordination Values
Communications
Transparency
Improvement
Sustainability
3. The principle of customer delight
Customer delight makes much more money…
The shift is inexorable …
“Implementing radical management is like learning a new language.”
It’s like: • “Up to now, we have spoken English. • From here on, we will speak in, say, [French].”
Why? I hate
it! *&^%*#@!
I’ll never learn it?
Why not stick to
what we know?
Bad idea!
Let’s take some questions…
Part 2 What about the public
sector?
How does radical management apply in public sector?
1. Public sector often has no customers Instead: multiple stakeholders
2. Often public sector agency has no clear mission Often no decision on who are primary stakeholders
3. Agency is entangled in politics One party wants the agency to flourish The other party wants to kill the agency Legislature tries to exercise control
4. Government afflicted by management fads Zero based budgeting, BPR, Six Sigma etc
6. Staff often demoralized
Constraints
How does radical management apply in public sector?
1. Public sector costs have risen rapidly • K-12 education has more than doubled in the last
three decades. • Between 1982 and 2007, college education has more
than tripled three times without any obvious improvement in quality.
• Health care: the steep and steady increase in governmental health care costs far outstrips inflation and the economy’s ability to pay.
2. Little or no perceived benefit. 3. Staff often highly committed
Opportunities
How does radical management apply in public sector?
4. Technology: “do more for less” • Criminal justice: electronic monitoring can replace
expensive jail terms with more than 60 percent savings.
• Defense: unmanned aerial vehicles (drones) cost a fraction of manned vehicles while capabilities are sometime superior.
• K-12 education: Today’s online learning courses are moving rapidly from test preparation and corre-spondence classes into mainstream education.
• Intelligence: large volumes of open sources and advance analytics can drastically reduce costs and improve quality.
Opportunities
http://www.deloitte.com/govdisrupted
How does radical management apply in public sector?
5. Open source is promising
Opportunities
Agencies have broad authority to conduct prize competitions: To date, 159 competitions from 40 agencies Invent a driver-less vehicle that could accelerate to 130mph in three seconds, position itself under a fleeing car from a checkpoint and automatically release an airbag to lift the vehicle and slide it to a stop? Develop an iPhone app that informs consumers about restaurants, hotels and shops that have wage or health and safety violations? Develop a method for unshredding documents: piecing together five documents that were shredded into more than 10,000 pieces using a combination of computer algorithms and human assembly?
http://opinionator.blogs.nytimes.com/2012/02/22/from-the-white-house-incentives-to-innovate/
How does radical management apply in public sector?
Suggestions
1. Be opportunistic
2. Be strategic
3. Create an oasis of excellence
4. Decide on your primary stakeholders
5. Consistently deliver more value to them sooner
6. Fend off the forces of evil
7. “Get a life”
Let’s take some questions…
Part 3 What’s the role of storytelling
What is the role of storytelling
1. One of the five principles
What is the role of storytelling
1. Storytelling is one of the five principles
Delighting customers
Goal
From controller to enabler
From bureaucracy to Agile, Scrum, Kanban
From command to conversations
From value to values
Role
Coordination Values
Communications
Transparency
Improvement
Sustainability
Leadership storytelling
Make money for
shareholders
Transactions, outputs
Doing only one of five principles doesn’t sustain
Managers are controllers
of indivduals
Bureaucracy: rules, plans, reports
Efficiency, cost cutting
What is the role of storytelling
1. Storytelling is one of the five principles
2. User stories are central to Agile/Scrum
Delighting customers
Goal
From controller to enabler
From bureaucracy to Agile, Scrum, Kanban
From command to conversations
From value to values
Role
Coordination Values
Communications
Transparency
Improvement
Sustainability
What is the role of storytelling
1. Storytelling is one of the five principles
2. User stories are central to Agile/Scrum
3. Springboard stories are central to winning support
“Implementing radical management is like learning a new language.”
It’s like: • “Up to now, we have spoken English. • From here on, we will speak in, say, [French].”
Why? I hate
it! *&^%*#@!
I’ll never learn it?
Why not stick to
what we know?
Bad idea!
Let’s take some questions…
Part 4 What about
implementation?
Even successful innovation initiatives don’t last
Bureaucracy: rules, plans, reports
Top down commands
Efficiency, cost cutting
Customer focus
Managers are controllers
of indivduals
Partial fixes don’t sustain
Even successful innovation initiatives don’t last
Fire all the managers!
Bureaucracy: rules, plans, reports
Top down commands
Efficiency, cost cutting
Make money for
shareholders
Transactions, outputs Partial fixes don’t sustain
Even successful innovation initiatives don’t last
Agile, Scrum, Lean
Top down commands
Efficiency, cost cutting
Make money for
shareholders
Transactions, outputs
Partial fixes don’t sustain
Managers are controllers
of indivduals
Even successful innovation initiatives don’t last
Top down commands
Quality: improvement drive out fear
Make money for
shareholders
Transactions, outputs
Managers are controllers
of indivduals
Bureaucracy: rules, plans, reports
Partial fixes don’t sustain
“A sense of urgency”
“Shared value”
20th Century thinking 21st Century thinking “Partial fixes” “New synthesis”
R U
B I
C O
N
Blogs and Twitter and Stoos
Steve Denning Steve’s blog
http://blogs.forbes.com/stevedenning/ Twitter: @stevedenning
Peter Stevens Peter’s blog
http://www.scrum-breakfast.com/ Twitter: @peterstev
Stoos Network www.StoosNetwork.org,
Twitter: @stoos
Monthly leadership gatherings
http://www.meetup.com/Washington-Leadership-Breakfast/
March 21 evening: Alan Shalloway “Four reasons why only 32% of software projects succeed” 4400 Massachussets Avenue NW (American University)
How do you learn a new language? Reading a book won’t do it Try intensive immersion with “native speakers” and other learners
http://stevedenning.typepad.com/steve_denning/2012/02/an-innovative-workshop-on-radical-management.html
Three-day workshops
• March 19-21 • April 18-20, 2012 • May 21-23, 2012
Discuss pricing with us….
Let’s take some questions…
Blogs and Twitter and Stoos
Steve Denning Steve’s blog
http://blogs.forbes.com/stevedenning/ Twitter: @stevedenning
Peter Stevens Peter’s blog
http://www.scrum-breakfast.com/ Twitter: @peterstev
Stoos Network www.StoosNetwork.org,
Twitter: #stoos