Peter Drucker Global Forums: Lessons Learned

Global Drucker ForumsVienna, Austria

2014 - 2016

Key Takeaways — Implications for Management“Tell Me What You are Going to Do on Monday That’s Different”?

November 22, 2016

Mark BeliczkyThe Carlyle Group

Washington, DC/New York, NY

Hier Titel der Präsentation eingeben

Favorite Viennese Talent Exports

Dame Stephanie Shirley (1933 - ) Software start-up in the 60s in England Employed domestic part-time female employeesCompany Valued at $3BN70 staff members became millionaires

Peter Drucker: Father of Management Theory (1909 - 2005)Author of 39 books over a period of 60 yearsWriter, professor, management consultant and self-described “social ecologist”Annual Global Drucker Forum - ViennaRecipient of the US Presidential Medal of Freedom - Highest Civilian Award

Maria Amalia Deutschmann (1888 - 1979)Governess/Educator: Budapest & ViennaFamily Matriarch Global Mindset


Innovation“Creating Products and Services that Make Life Better”

Companies typically spend only 5% of time & resources on innovation HBR, Sept. 2014

Innovation: formerly “less fashionable”, today more a business imperative

“…Innovation has become the core driver of growth, performance and valuation.” McKinsey & Co.


50 Smartest Companies 2016MIT Technology Review:Top 10

Amazon (Seattle WA) $337BN valuation, Internet/Digital Media

Baidu (Beijing, China) $55BN, Internet Search and Ad Sales

Illumina (San Diego, CA) $20BN, World’s Largest DNA Sequencing Company

Tesla Motors (Palo Alto, CA) $28BN, Transportation

Aquino Energy (Pittsburgh, PA) $190MM capital raised, Batteries

Mobileye (Jerusalem, Israel) $8BN, Computing and Communication

23andME (Mountainview, CA) $1.1BN, Biotech - DNA Sequencing

Alphabet (Mountainview, CA) $491BN, Internet/Social Media

Spark Therapeutics (Philadelphia, PA) $918MM, Genetic Disease Treatment

Huawei (Shenzhen, China) Private, Computing/Communications/Mobile Devices


10th Annual “50 Most Innovative Companies”Boston Consulting Group

Top 5: Apple, Google, Tesla, Microsoft, Samsung

5 of Top 10 Non-Tech

Toyota, BMW, Daimler rank in Top 10

75% of Top 50 Non-Tech: Japan’s FastRetailing, Disney, Marriott

Chinese companies have not made inroads

Top 50 Global: 29 US 11 Europe 10 Asia

“Speed in Innovation” is on the Rise

#1 Obstacle to Innovation — Overly Long Development Times


4 Underpinnings of InnovationBCG 2015

Emphasis on Speed

Well Run, Lean R&D Processes

Use of Technological Platform

Systematic Exploration of Adjacent MarketsDr. Christie Nordhielm, University of MichiganNike example and industry model/benchmark for market expansion — golf


Leadership and InnovationMcKinsey & Co.

70% of Leaders Say Innovation Will Be a Top 3 Driver of Growth in Next 3-5 Years

65% of Executives Were Somewhat/Little/Not at All Confident About the Decisions They Make About Innovation

94% Say That People and Corporate Cultures Are the Most Important Drivers of Innovation

<50% Indicated That Innovation is Part of Their Strategic Planning

Top 2 Motivators of Behavior to Promote Innovation Strong leaders who encourage and protect Top executives who spend their time actively managing and driving innovation


The Building Blocks of an Innovation OrganizationMcKinsey & Co.

Integrate Innovation into the Strategic Management Agenda

Make Better Use of Existing & Untapped Talent for Innovation

Foster an Innovation Culture Based on Trust People Understand their Ideas are Valued Trust that it is Safe to Express Ideas Oversee Risk Collectively


Steps to Advance InnovationMcKinsey & Co.

Define the Kind of Innovation that Drives Growth and Helps to Meet Strategic Initiatives

Add Innovation to the Formal Agenda at Regular Leadership Meetings

Set Performance Metrics & Targets for Innovation


Global Innovation IndexA Macro Global View

Bloomberg

6 Tangible Activities that Can Contribute to Innovation R&D Manufacturing High Tech Companies Post Secondary Education Research Personnel Patents

Top Countries S. Korea Japan Germany Finland Israel US Sweden Singapore France UK


Employee Engagement“Involved in, enthusiastic about, and committed to their work and workplace.”

Gallup Global Employee Engagement Survey (2000-2015)

“A highly engaged workforce means the difference between a company that outperforms its competitors and one that fails to grow.”

Employee Engagement 2015: 13% Globally


Engaged EmployeesRating of Workplace Elements

Having an Opportunity to Do What They Do Best Every Day

Having someone at Work Who Encourages Their Development

Believing Their Opinions Count at Work

“Engaged Employees are Involved in and Are Enthusiastic about and Committed to Their Work.” — 2015 Gallup Tracking Interviews


Disengaged EmployeesWho they are and what they do…

Not Hostile or Disruptive

Show Up and Kill Time

Do the Minimum Required with Little Extra Effort to Go Out of Their Way for Customers

Less Vigilant

More Likely to Miss Work

Change Jobs When New Opportunities Arise

Thinking more about Lunch or Their Next Break


Ways to Improve Engagement

Integrate Engagement into the Company’s Human Capital Strategy

Use Scientifically Validated Instruments to Measure

Understand Where the Company is Today and Where it Wants to Be

Align Engagement With Other Workplace Priorities


Benefits of Improving Employee Engagement

“Research Reveals — Engaged Employees Have 5X Higher Shareholder Returns After 5 years” (Business2Community)

“Businesses with employee Engagement Scores Within the Top 25% Have 70% Fewer Safety Incidents Than Those in the Bottom 25%.” (2016 Gallup Meta-Analysis Study)

“Companies with Engaged Workers Have 6% Higher Net Profit Margins.” (Towers Perrin)


Driving Convergence: Business, Academia and Government Resources, Experiences and Expertise to Share and Leverage…

Business and/with Academia

“They are like oil and water because they have different goals. Researchers are striving to find truth and somebody working in the company is striving to find profit. The researcher wants to disclose his/her findings to the wider world and the company does not necessarily want that.”

Dr. Mark Ebers University of Cologne


Business/Academic Centers of Excellence

Microsoft-Cisco-Intel - University of Melbourne

Aalto University Formal Business Partnership Programs, Finland

BP’s Energy BioSciences Institute - UC Berkeley

Audi’s Ingolstadt Institute - TU Munich

Karolinska Institute, Sweden

California Institute for Telecommunications and Information Technology - UC San Diego, UC Irvine

IBM - ETH Zurich

SKM - Imperial College London

GE Global Research - Munich

Siemens - TU Berlin, MIT

Nokia - Aalto University, UC Berkeley


Insights From The Science/Business Innovation BoardBringing Together Europe’s Leading Innovators, in Industry, Academia and Policy…

“Where companies and universities work in tandem to push from tiers of knowledge they become a powerful engine for innovation and economic growth.”

“…dense web of rich and long-running collaborations in the region have given rise to new technologies and a break neck pace and transformed industries while modernizing the role of the university.”

“Today’s universities largely embrace a model of higher education developed over 100 years ago. A new vision should include producing the highly-skilled workforce for a globally competitive economy.”


Collective Future Vision for Business Education: AACSB InternationalDr. Santiago Iñiguez, Dean and Professor of Strategic Management at IE Business School, Board Chair od AACSB International

5 Main Roles for Business Schools in Society Going Forward Acting as Catalysts for Innovation Co-Creators of Knowledge Hubs of Life-Long Learning Leaders on Leadership Enablers of Global Prosperity


Closing the Research-Practice Gap: Evidence-Based Management (“EBM”)Managerial Decisions and Organizational Practices Informed by the Best Available Scientific Evidence

Key Benefits of EBM Improved Managerial Decision Making/Outcomes Reduces the Use of Ineffective Management Practices Well-Informed Managers Developing Substantive Expertise Brings Together Scholars, Educators and Management Practitioners


Evidence-Based Management (“EBM”)Managerial Decisions and Organizational Practices Informed by the Best Available Scientific Evidence

Business Students Often Give More Attention to Colorfully Written, Unsubstantiated Opinion Than to Less Vivid Research EvidenceManagement Field Lacks a Repository/Community Which Translates Evidence into its ImplicationsBest Practice Examples: Medicine and PolicingMore and More Management Scholarly Research Includes “Practice Implications”


EBM Case StudyGoogle: Project Oxygen

Google Historical Belief of Manager Success: “Deep Technical Expertise”Bosses Left Their People Alone and They Helped Mainly with Technical SupportGoogle Chose to Dig Deeper and Conduct ResearchAccumulated and Analyzed 10,000 Observations About Managers


Google: Project OxygenKey Findings

Behaviors of Highly Effective Managers (rank order)1. Be a Good Coach2. Empower Your Team and Don’t Micromanage3. Express Interest in Team Members’ Success and Personal Well-Being4. Don’t Be a Sissy: Be Productive and Results-Oriented5. Be a Good Communicator and Listen to Your Team6. Help Your Employees with Career Development7. Have a Clear Vision and Strategy for the Team8. Have Key Technical Skills


Google: Project OxygenKey Findings Continued…

OutcomesEarly Adopters Led Top-Performing TeamsHappier EmployeesLower Employee TurnoverStatistically Significant Improvement in Manager Quality for 75% of Worst Performing Managers

CEO AlignmentSpeed Up Decision-MakingSimplify ManagementRecapture Nimbleness and Innovative Spirit


Partnership Potentials of Business and Governments/SocietyBusiness Partnership Action (BPA)

Hubs/Centers for Excellence — Bringing/Working Together Government Business Donors UN NGOs


UN Post 2015 Sustainable Development Goals

5 Action Areas: Business, NGOs, Government, UN and Communities Building Trust Across Sectors Open and Inclusive Planning & Development Create In-Country Multi-Stakeholder Platforms Partnership Best Practices Build Institutional Capacity for Partnering

The Partnering Initiative: Dr. Darian StibbeSupporting and Building Partnerships to Achieve Prosperous, Inclusive and Sustainable Business and Society


“What I Decided to Do Differently Monday Morning”


New and Emerging

Drucker Forum 2016

Blockchain: 2nd Era of the Internet (Ethereum Platform)

Distracted Management

Struggle Stories vs. Achievement Stories: Do Not Have to Be a Genius

Fix vs. Growth Mindsets: Dr. Carol Dweck


“Management is doing things right; leadership is doing the right things.”

Peter Drucker

Mark BeliczkyThe Carlyle Group

[email protected]

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Peter Drucker Global Forums: Lessons Learned

Business

Transcript of Peter Drucker Global Forums: Lessons Learned