Thursday, May 31, 2012

Are you ready to go from Management 1.0 to 2.0?

In the current issue of Selling Power Magazine (April/May/June 2012), there is an interesting article with management guru Gary Hamel. He is thought to be one of the most influential management thinkers today.

Hamel describes two types of management- Management 1.0 and Management 2.0. Management 1.0 is the management style that we all have been taught for the past 100 years- standardization, specialization, hierarchy, alignment, control and the use of extrinsic controls.

On the other hand, Management 2.0 is based on developing adaptive, innovative and engaging places to work. The allows companies to meet the increase in competitive intensity worldwide. It allows companies to outgrow competitors or the economy by encouraging innovation and making it a systemic capability across a company's processes.

Hamel makes some predictions:

  • We are moving to a world where everything in configurable by the ultimate consumer.
  • As our economy becomes more of a service economy, value gets created in the interaction between employee and customer.
  • In order to make organizations more innovative we need new practices and new principles.
  • The most efficient companies will be the most democratic.


Okay. So what does this have to do with technology? Basically, everything.

You will need to set up processes that are extremely customizable and that involves a lot of flexibility. Let me give you an example- as the population ages, more and more of your employees may have a parent or spouse to care for. You will need to adapt your infrastructure and work practices to accommodate employees who, for obvious family issues, will have to work from home. Your communications infrastructure will have to adapt to this, your connectivity will have to adapt- your space and energy requirements will change - and so too will your corporate policies on security.

As interactions between customers (a.k.a clients, patients, guests,patrons etc...) become more important, you will have to adapt and perfect the art of customer interaction. You will need tools to measure performance, evaluate employee interaction, and standardize the customer experience to ensure that it creates value.

With a more distributed workforce, you will need to ensure internal communication to make sure that there is a cohesive esprit de corps. Mobile workers, tele-workers, remote offices need to be part of the total corporate body- not far flung fiefdoms or domestic exile. Remember, discipline from goofing off is a Management 1.0 principle. Management 2.0 companies rely on peers as motivators. The logic is simple- if what you do is transparent to your peers, they can see whether or not you are adding value.

The whole area of the technology cloud is an enabler for transforming your company from a Management 1.0 to a Management 2.0 company. Hosted PBX allows your remote employees to communicate freely, easily and cohesively. Hosted Call Center gives you the tools to enhance customer employee interactions and monitor performance. Managed wide area networks and managed cloud security give you the ability to connect your remote locations securely.

See how our clients have evolved from Management 1.0 to Management 2.0