book

Management Reset: Organizing for Sustainable Effectiveness

by Edward E. Lawler III, Christopher G. Worley, David Creelman

March 2011

Intermediate to advanced

352 pages

8h 22m

English

Jossey-Bass

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1.1. A Brief History of Management1.2. Sustainable Management1.2.1. Organization Effectiveness1.2.2. The Way Organizations Are Managed1.3. Management: The Old1.3.1. Command and Control Management1.3.2. High Involvement Management1.4. Is a Reset Really Required?1.4.1. Agility Forces1.4.2. Stakeholder Forces1.4.3. A Reset Requires an Integrated Approach1.5. Facing the Challenge
2.1. The Way Value Is Created2.1.1. Identity and Purpose2.1.2. Strategizing2.1.3. Value Creation Differences2.2. The Way Work Is Organized2.2.1. Corporate Governance2.2.2. Structuring2.2.3. Work2.2.4. Information Transparency2.2.5. Organizing Differences2.3. The Way People Are Treated2.3.1. Managing Performance2.3.2. Rewarding Performance2.3.3. Managing Talent2.3.4. Managing Diversity2.3.5. Talent Treatment Differences2.4. The Way Behavior Is Guided2.4.1. Leading2.4.2. Transforming2.4.3. Guiding Behavior Differences2.5. Integration Is Needed
3.1. Robust Strategies3.2. A New Perspective on Creating Value3.2.1. Perspective on Creating Economic Value3.2.2. Perspective on Risk3.2.3. Perspective on Growth3.2.4. Perspective on Creating Ecological Value3.2.5. Perspective on Creating Social Value3.2.6. Perspective on Sustainable Effectiveness3.3. Identity as a Guidepost for Strategy3.3.1. Identity and Culture3.3.2. Identity and Brand or Reputation3.3.3. Identity in a Multi-Stakeholder World3.4. Strategic Intent Links Strategy to Execution3.4.1. The Dimensions of Intent3.4.2. Momentary Advantages in a Multi-Stakeholder World3.4.3. The Rest of the Story3.5. Conclusion3.6. Assessment Questions
4.1. Build a Strong Future Focus4.2. Long-Term Futuring4.2.1. Playing with the Future4.2.2. The Process of Scenario Planning4.2.3. Output of Long-Term Futuring4.3. Medium-Term Futuring4.3.1. Forecasting the Future4.3.2. The Process of Forecasting4.3.3. Output of Medium-Term Futuring4.4. Short-Term Futuring4.4.1. The Future Is Now4.4.2. The Process of Scanning4.4.3. Output of Short-Term Futuring4.5. Conclusion4.6. Assessment Questions
5.1. The Role of Boards5.2. Board Membership5.2.1. Member Independence5.2.2. Key Stakeholders5.2.3. Diversity5.2.4. Expertise5.2.5. Number of Board Memberships5.2.6. The Way Board Members Are Chosen5.3. Board Leadership5.4. Committee Structure5.4.1. Sustainability5.4.2. Social Responsibility5.4.3. Human Resources5.4.4. Organizational Effectiveness5.5. Succession Management5.6. Evaluation and Rewards5.7. Boards Must Be Effective5.8. Assessment Questions

6.1. Sustainable Functional Structures6.1.1. Maximum Surface Area6.1.2. Coordination and Resource Allocation Systems6.1.2.1. Coordination Processes6.1.2.2. Flexible Resource Allocation Systems6.1.3. Transparent Decision-Making Processes6.1.4. Summary6.2. Ambidextrous Organization—Balancing Innovation and Efficiency6.2.1. Two-Structure Design6.2.2. Independent Units6.2.3. Summary6.3. The Network Organization—Balancing Flexibility and Execution6.3.1. A Network Organization6.3.2. Creating Surface Area, Flexibility, and Transparency6.3.3. Future of Networks6.3.4. Summary6.4. Conclusion6.5. Assessment Questions
7.1. The Evolution of a New Work System7.2. The Natural Occurrence of New Work Systems7.3. The Characteristics of Sustainable Work Systems7.3.1. Work Is Based on Activities, Not Jobs7.3.2. Work Is Guided by Shared Goals7.3.3. Work Is Performed by Multiple Stakeholder Teams and Can Be Virtual7.3.4. Work Is Temporary and Iterative7.3.5. Work Is Supported by the Physical Space and Technology7.3.6. Work Is Managed Strategically7.4. Conclusion7.5. Assessment Questions
8.1. Doing Performance Management Right8.2. Need for Effective Performance Management8.3. Keys to Success8.3.1. Universal Performance Management Principles8.3.1.1. Universal Performance Management Principle 1: Start at the Top8.3.1.2. Universal Performance Management Principle 2: HR Should Support, Not Own, the System8.3.1.3. Universal Performance Management Principle 3: Set Measurable Goals8.3.1.4. Universal Performance Management Principle 4: Rate Outcomes, Rate Performance, but Don't Rank People8.3.1.5. Universal Performance Management Principle 5: Appraise the Appraisers8.3.1.6. Universal Performance Management Principle 6: Train Managers and Employees to Do Performance Management8.3.1.7. Universal Performance Management Principle 7: Link Rewards to Performance and Discuss Development Separately8.3.1.8. Universal Performance Management Principle 8: Use 360-Degree Appraisals but Not for Rewards8.3.2. SMO Performance Management Principles8.3.2.1. SMO Performance Management Principle 1: Establish a Balanced Scorecard8.3.2.2. SMO Performance Management Principle 2: Set Talent Development Objectives8.3.2.3. SMO Performance Management Principle 3: Don't Assume an Annual Appraisal Is Often Enough8.3.2.4. SMO Performance Management Principle 4: Use Web-Enabled Technology8.3.2.5. SMO Performance Management Principle 5: Appraise Team Performance8.3.2.6. SMO Performance Management Principle 6: Have Review Discussions Online8.4. Conclusion8.5. Assessment Questions
9.1. How Rewards Affect Behavior9.1.1. Rewards and Performance Motivation9.1.2. Attraction, Retention, and Satisfaction9.2. Designing a Reward System9.2.1.9.2.1.1. Universal Reward Principle 1: Create Rewarding Work Assignments9.2.1.2. Universal Reward Principle 2: Forget Merit Increases, Give Bonuses9.2.1.3. Universal Reward Principle 3: Pay for Team Performance9.2.1.4. Universal Reward Principle 4: Give People a Piece of the Action9.2.1.5. Universal Reward Principle 5: Don't Be Satisfied with a Once-a-Year Reward Cycle9.3. Designing an SMO Reward System9.3.1.9.3.1.1. SMO Reward Principle 1: Pay the Person, Not the Job9.3.1.2. SMO Reward Principle 2: Define Fairness Strategically and Ethically9.3.1.3. SMO Reward Principle 3: Individualize Rewards9.3.1.4. SMO Reward Principle 4: Don't Base Rewards on Hierarchy9.3.1.5. SMO Reward Principle 5: Don't Base Rewards on Seniority9.3.1.6. SMO Reward Principle 6: Be Transparent9.3.1.7. SMO Reward Principle 7: Use Identity and Purpose as Rewards9.4. Conclusion9.5. Assessment Questions
10.1. Talent Management Approaches10.2. Travel Light in Action10.3. Talent Management Principles10.3.1.10.3.1.1. SMO Talent Principle 1: Use Competencies to Drive Talent Management10.3.1.2. SMO Talent Principle 2: Use Targeted Talent Management10.3.1.3. SMO Talent Principle 3: Use Contract Labor10.3.1.4. SMO Talent Principle 4: Outsource Nonpivotal Work10.3.1.5. SMO Talent Principle 5: Create Career Diversity10.3.1.6. SMO Talent Principle 6: Build a Sustainable Management Brand10.3.1.7. SMO Talent Principle 7: Make Career Management the Individual's Responsibility10.3.1.8. SMO Talent Principle 8: Make Executives the Primary Talent Managers10.3.1.9. SMO Talent Principle 9: The HR Function Plays a Strategic Role10.4. Conclusion10.5. Assessment Questions
11.1. Compensate for the Lack of Structure11.1.1. Leaders and Managers11.1.2. Effective Attention Management11.1.3. Limits on the Sharing of Power11.2. Focus on the Importance of Sustainable Effectiveness11.3. Lead and Accommodate Continuous Change11.4. Create and Encourage a Culture in Which Leadership Is Shared11.4.1. Have No Imperial CEOs11.4.2. Be a Good Leader and a Good Follower11.5. What Leaders Who Are Managers Should Do11.6. What Leaders Who Are Not Managers Should Do11.7. Create a Leadership Capability11.7.1.11.7.1.1. SMO Leadership Principle 1: Establish a Sustainable Leadership Brand11.7.1.2. SMO Leadership Principle 2: Senior Management Must Support Building the Leadership Capability11.7.1.3. SMO Leadership Principle 3: Develop Managerial and Leadership Skills11.7.1.4. SMO Leadership Principle 4: Commit to Transparency11.8. Conclusion11.9. Assessment Questions
12.1. The Interface Transformation12.2. Dilemmas Associated with Being an SMO12.2.1. Strategy Dilemmas12.2.1.1. The Nature of Value Creation12.2.1.2. Setting Appropriate Target Metrics12.2.1.3. Reconciling Strategic Intent12.2.2. The Knowledge and Awareness Dilemma12.2.3. The Capabilities Dilemma12.3. Managing the Transformation Process12.3.1. The Identity Journey12.3.2. The Sequence of Change12.3.2.1. Lead with the Work System12.3.2.2. Create a Reinforcing System12.3.3. Accelerating the Transformation12.3.3.1. Change Acceleration Practices12.3.3.2. Leadership Behaviors That Accelerate Change12.4. Conclusion

Content preview from Management Reset: Organizing for Sustainable Effectiveness

Chapter 5. Board Governance

All too often, today's corporate boards perform poorly. A close look at them suggests that most are ill-prepared to govern complex organizations.^[30] They failed to prevent Lehman Brothers and other financial institutions from making risky decisions that led to their bankruptcies and government bailouts. At Lehman the risk committee of the board met just twice a year during the two years before the company went bankrupt as a result of its high-risk failed investments.

In the cases of Enron and Tyco, illegal activities were overlooked or not detected by the board before they went bankrupt. The board of BP has consistently failed to deal with its poor safety record and now faces decades-long litigation and reputation damage ...