Post-industrial management requires a different skill set
The distinction between management and leadership is a critical one. Management is -- at its very best -- an exercise in coping while leadership is so much more. ...
Management is telling people what to do, which is a vital part of any industrial economy. Leadership is figuring out what ought to be done then getting people to do it, which is very different. It is a vital part of any successful post-industrial economy, too, but most managers don't know that.
...most businesses do a lot less explaining and pondering and a lot more laying down edicts. That's management, which works fine on an assembly line, but not at all well building a big software application or winning a war.
... Let's blame Charles Simonyi.
Charles is the guy who came up with Microsoft's development process -- an outgrowth of his research at Xerox PARC. I covered this extensively in my book, Accidental Empires, but the short version is that Charles came to advocate a strong program manager as the central controller of any development group. One person made all the decisions and as long as that one person was correct 85 percent of the time, it was better to have a dictatorship than a democracy or even a meritocracy. This was an effective way to extend Bill's will to Microsoft programmers Bill would never even meet. And to Charles' credit the system worked well enough if the dictator was really, really smart and the task at hand wasn't too complex. It was perfect for the 1980s.
Janna Raye's consulting business is called Strategems and here is her take on this issue:
"Modern corporations suffer from systemic-level issues that emerge in top-down hierarchies. Managers are there to control staff and budgets, not to lead. Although you can make valiant and often successful attempts to control things and processes, you will never again be able to control people. ...
"In fractal organizations, it's the staff deciding how to continuously improve processes in their functional areas for efficiency of time and resources. These organizations thrive with a new pay model also, based upon results or value of work delivered and not how much time it takes to do the task. Those who are really good will get to go home early! These are not the organizations that are shrinking. Like galaxies, they continue to expand, actually aided by a strong gravitational pull of the leaders at the center. Those who do it well create a compelling vision and keep it alive. They allocate resources to projects that align with the vision, and reward arm- and team-cluster leaders for the creative ideas their staff bring to the organization. It's a shared vision and collective goals that are missing from the vast majority of organizations, which is why failing projects continue to drain resources. Really caring about what you do and feeling proud to be a part of something special and wonderful is what every human desires, even if they say they don't."
"Most start-ups are fractal in their nature, especially those that have exciting visions and get everyone on the same page with collective purpose, goals, and objectives. Most investors, however, are bought into the conventional org chart; when the company devolves into top-down, the turnover begins. That's because of the internal competition that emerges in top-down organizations. The perception is that there's only so much room at the top. At each level of management, the competition increases as cooperation decreases. Thus are created the ubiquitous "silos" of information that thwart collaboration and encourage redundant, wasteful business practices.
"Managers are supposedly promoted because of their ability to outperform others and not because of an intention to provide inspiration, guidance, and mentoring to their staff, nor are they openly rewarded for this behavior, even though it usually produces a healthier bottom line. The usual way of rewarding based upon meeting financial goals and managing budgets keeps the focus on short-term financial results only, whereas continuous improvement leadership by frontline staff creates more long-term successes.
"When managers don't mentor staff, focusing only upon numbers and bossing people around, it leads to an illusion of control, of which there's no such thing. In these situations, they begin to feel they must continually prove their worthiness and so defend their territories against possibly brilliant staff working "beneath" them. This is a systemic issue, not a personality quirk, though some personalities are more susceptible than others. ...
(in toto)
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