Lecture on Building Organizations for the Future and Humans

Introduction

• Aim: Discuss building organizations fit for the future and human beings.
• Reflection: Greatest inventions of the last century:
  • Combustion engine, semiconductors, pharmaceuticals, the internet.
  • Argued most important: invention of management.

History of Management

• Early 20th century: Major shift from agriculture-focused economy to industrial.
  • 1890: 90% in agriculture; small manufacturing.
  • 1915: Major companies like Ford and US Steel revolutionizing production.
• Management 1.0:
  • Invented before 1920, tools like pay for performance, capital budgeting.
  • Evolution slowed, many principles unchanged for decades.

Current Challenges

1. Exponential Change

   • First generation coping with rapid change.
   • Examples: CO2 emissions, internet connections, data storage.

2. Hyper Competition

   • Barriers protecting old companies have fallen.
   • Requires constant innovation to maintain market position.

3. Knowledge as Commodity

   • Harder for companies to differentiate through knowledge.
   • Fast knowledge transfer among competitors.

Building Future Organizations

• Companies must evolve management models.
• Characteristics needed:
  • Adaptable
  • Innovative
  • Engaging

Case Study: HCL Technologies

• Indian IT services company, progressive management model.
• Practices:
  • Reverse accountability: Employee rates managers; ratings are public.
  • Strategy: 8,000 employees involved in strategy development.
  • Ticket system for employee complaints, escalates if unresolved.
  • Mantra: Employees first, customers second.

Path to Management Innovation

1. Aspiration

   • Innovation starts with high goals.

2. Challenge Dogma

   • Question traditional management beliefs.
   • Original management aimed to create programmable human-like efficiency.

3. Learn from the Fringe

   • Innovation often begins at the fringes.
   • Web as a model: Openness, meritocracy, collaboration.

Conclusion

• Building future-fit organizations requires adopting human-centric values.
• Encourages individual initiative in challenging the status quo of management.
• Importance of aligning organizational qualities with human adaptability.

• Call to Action: Be a champion for the future, a management innovator.