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Management 2.0 Cooperation for sustainable development of companies 23.06.2009 1 ® Friedag 2009
Management 2.0 Cooperation for sustainable development of companies
23.06.2009 1® Friedag 2009
Consultant focusing on:
Implementation of Balanced Scorecard
Workshops on Balanced Scorecard
Head of the PR committee at ICV (ICA)
Visiting lecturer at Humboldt University in Berlin
Hobbies: Outdoor activities, Volleyball,
Bicycle tours, Sailing
Herwig R. Friedag
Dr. Herwig R. FriedagFriedag Consult
Beskidenstr. 33, D 14129 Berlin
Fon +49 30 80 40 40 00
Fax +49 30 80 40 40 01
consult @ friedag.com
www.friedag.com
Born in 1950, Degree in National Economics
23.06.2009 2® Friedag 2009
1999, 2000, 2002
Friedag / Schmidt / Schwerk SS 2009 3
Publications
Total number of copies: >70.000
in CZ, GER, FIN, POL, RUS
2001
2003
2005
2004
2002, 2003, 2005
2009
2000, 2002, 2004
Management 2.0
Cooperation for a sustainable „successful“ business
activity
1. Definition of Management 2.0
2. Aspects of Management 2.0
3. Don´t worry, be happy – Go the “Management 2.0“ way
23.06.2009 4® Friedag 2009
Cooperation for sustainable development of companies
Management 2.0
Cooperation for a sustainable „successful“ business activity
1. Definition of Management 2.0
2. Aspects of Management 2.0
3. Don´t worry, be happy – Go the “Management 2.0“ way
23.06.2009 5® Friedag 2009
Cooperation for sustainable development of companies
How can a controller make the manager happy?
Markets and companies always experience ups and - as just now - downs
23.06.2009 6® Friedag 2009
DAX- / Dow Jones-development in 2008/2009
Definition of Management 2.0
?
Sustainable development of companies
Which business model will establish itself?
Shareholder-orientation:
- short-term goal orientation
- profit maximisation is topmost postulate
Stakeholder-orientation:
- balanced orientation to all relevant stakeholders:
customers
employees
production-partners
investors
23.06.2009 8® Friedag 2009
- The focus is on the sustainable profitability of the company and to
benefit the society- Reputation is priority task for the management
Definition of Management 2.0
Difficult times offer good chances:
It doesn‘t matter what the current environment is. What is more
important is whether we are better than our competitors:
Serve remaining customer needs faster and with better service
Build closer relationship to customers and suppliers
Set tied capital free over the whole supply chain
23.06.2009 10® Friedag 2009
Sustainable development of companies
Definition of Management 2.0
Management 2.0:
Cooperation
To be better, you should work with
Web-Generations
Web 1.0 1.5 2.0
Orientation Technology Advertising Community
Users Experts Commerce all
Focus Organisation Click-rates Interaction
Effect Rationalisation Information Socialisation
Approach Centralisation Quantification Qualification
Source: Smoke&Mirrors, Agency for Online-Communication
Web 2.0: Users themselves create, edit and distribute contents. Contents
are not anymore centralised by big media enterprises but
compiled by a multitude of users und distributed through
Internet. In addition they get linked with each other by means of
social software (Wikipedia)
23.06.2009 11® Friedag 2009
What is Management 2.0?
Definition of Management 2.0
Management-Generations
Management 1.0 1.5 2.0
Orientation Product Capital Community
Users Experts Financial world Society
Focus Organisation Interest Mutual benefit
Effect Cost degression Merger Sustainability
Approach Rationalisation Utilisation Cooperation
23.06.2009 12® Friedag 2009
What is Management 2.0?
Definition of Management 2.0
Management 2.0: By implementing cooperation
Achieve improvement of the company reputation,
generate benefit for all stakeholders to securesustainable profitability of the company
Cooperation: the basis for a successful business activity
23.06.2009 13® Friedag 2009
Management 2.0 -
Responsibility for sustainable development of companies:
Definition of Management 2.0
Management 2.0:
Cooperation
23.06.2009 14® Friedag 2009
Coming together is a beginning,
Keeping together is progress,
Working together is success.___________________
Henry Ford
Management 2.0
Cooperation for a sustainable „successful“ business activity
1. Definition of Management 2.0
2. Aspects of Management 2.0
3. Don´t worry, be happy – Go the “Management 2.0“ way
23.06.2009 15® Friedag 2009
Cooperation for sustainable development of companies
Aspects of Management 2.0
1. Goals – shared view for the journey together
2. Organisation – balance of stakeholders interests
3. Values – internal and external appreciation
4. Structures – scope for changes (redundancy)
5. Culture– competition and mistakes to get better
6. Responsibility– results orientation of all
7. Communication – open communication
23.06.2009 16® Friedag 2009
1. Goals – shared view for the journey together
Companies take their social responsibility seriously
Companies aim to generate benefits for society (CR or CSR)
A requirement for that is sustainable profitability and adequate rate
of return of the employed financial and intellectual capital
23.06.2009 17® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
1. Goals – shared view for the journey together
Companies take their social responsibility seriously
All relevant stakeholders are considered in the process of setting
the goals
- Every employee should know the company goals and ask himself
„How can I contribute to the achievement of those goals?“ –
because:
- Customers expect competent und timely decisions:
In b2b-business usually only the managers are customer-
oriented – for most employees who are not in Sales customer-
orientation is an abstract concept
In b2c-business on the other hand
usually only the employees in Sales
have customer contact – most managers
have little practical experience with
customers
23.06.2009 18® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
1. Goals – shared view for the journey together
Companies take their social responsibility seriously
All relevant stakeholders are considered
Lessons for the management:
Value orientation und creativity gain in importance
Lateral thinker have different views
Learn from the past, think of the future
Strategies are not for ever
- review and revise annually the strategic assumptions
- if necessary the strategy must be revised during the year
23.06.2009 19® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Aspects of Management 2.0
1. Goals – shared view for the journey together
2. Organisation – balance of stakeholders interests
3. Values – internal and external appreciation
4. Structures – scope for changes (redundancy)
5. Culture– competition and mistakes to get better
6. Responsibility– results orientation of all
7. Communication – open communication
23.06.2009 20® Friedag 2009
2. Organisation – balance of stakeholders interests
Strategic topics at all company levels are:
- Innovation at all levels in the company,
- Commitment of all employees / stakeholders and
- Avoidance of wastage through goal-oriented processes
23.06.2009 21® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
2. Organisation – balance of stakeholders interests
Strategic topics are innovation, commitment and wastage
How can we develop a spirit of cooperation in the company?
Internal markets for resources, talents and ideas
- identify and employ hidden talents
Do we sell our customers
products or benefits?
Internal performance-
agreements are instrument
for cooperative teamwork
23.06.2009 23® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
2. Organisation – balance of stakeholders interests
Strategische Themen sind Innovation, Engagement und
Verschwendung
Wie schaffen wir im Unternehmen ein Klima für Kooperation ?
Interne Märkte für Ressourcen, Talente und Ideen
- verborgene Talente erkennen und nutzen
Interne Leistungsvereinbarungen als Instrument kooperativer
Zusammenarbeit
Verkaufen wir dem Kunden ein Produkt oder einen Nutzen?
Do we compare us with our competitors?
23.06.2009 24® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Aspects of Management 2.0
1. Goals – shared view for the journey together
2. Organisation – balance of stakeholders interests
3. Values – internal and external appreciation
4. Structures – scope for changes (redundancy)
5. Culture – competition and mistakes to get better
6. Responsibility– results orientation of all
7. Communication – open communication
23.06.2009 25® Friedag 2009
3. Values – internal and external appreciation
Trust is the basis for cooperative business activity
- control is good, trust is better
- trust is based on values
Less control by the managers and open culture of all
- everybody looks after
results in his team
- mistakes are seen as
opportunity to learn
23.06.2009 26® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
3. Values – internal and external appreciation
Trust is the basis for cooperative business activity
- control is good, trust is better
- trust is based on values
No control by the managers but open culture of all
- everybody looks after results in his team
- mistakes are seen as opportunity to learn
Justified trust is more efficient and cost-saving than everyday life
with control mechanisms
Appreciation is the base – external and internal
Price is the measure of the customer appreciation of the seller,
that means that all employees must make efforts to win customer
appreciation
Appreciation, both external and internal, is the basis for cooperative
teamwork
Continual work on establishing a shared value structure is time
consuming, but is feasible 23.06.2009 27® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
3. Values – internal and external appreciation
Both customer and supplier are partners in the process – that is a
win-win-situation for all partners and a prerequisite for an effective
cooperation
Incentive systems with long-term effect
investor interests are not only for a quarter
for managers and also employees perennial,
long term programmes, based on cash flow
Why not to offer incentive systems to customers and suppliers as
well?
23.06.2009 28® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Aspects of Management 2.0
1. Goals – shared view for the journey together
2. Organisation – balance of stakeholders interests
3. Values– internal and external appreciation
4. Structures–scope for changes (redundancy)
5. Culture– competition and mistakes to get better
6. Responsibility– results orientation of all
7. Communication – open communication
23.06.2009 30® Friedag 2009
4. Structures – adapted to changes
Hierarchy is less effective –
Instructions and obedience hinder innovation und spontaneity
Small independent entities are more
flexible than bigger ones –
modern companies are fast,
flexible and creative
The management coordinate/moderate
co-operation of local entities
Networks overcome boundaries
- Involvement of customers and suppliers
- Promotion of in-house networks
Compromises have many winners
23.06.2009 31® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Aspects of Management 2.0
1. Goals – shared view for the journey together
2. Organisation – balance of stakeholders interests
3. Values– internal and external appreciation
4. Structures – scope for changes (redundancy)
5. Culture– competition and mistakes to get better
6. Responsibility– results orientation of all
7. Communication – open communication
23.06.2009 32® Friedag 2009
5. Culture – competition and mistakes to get better
Managers concentrate on presentation of values and strategies
- shared values facilitate the implementation of the strategy
- with Balanced Scorecard everybody is aware of the corporate
strategy
Diversity, contradiction and variety move
the company forward
- limited views do not live up to the reality
Mistakes should be seen and used as part
of the learning process – do not accuse
those who have made and admitted mistakes
Do we work with the right ratios?
- every innovation can be calculated
- good managers take responsibility
for innovation
23.06.2009 33® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Aspects of Management 2.0
1. Goals– shared view for the journey together
2. Organisation – balance of stakeholders interests
3. Values– internal and external appreciation
4. Structures –scope for changes (redundancy)
5. Cultur e– competition and mistakes to get better
6. Responsibility – results orientation of all
7. Communication – open communication
23.06.2009 34® Friedag 2009
6. Responsibility – results orientation of all
Give all employees enough scope for creativity
- new ideas need time to ripe
- ideas want / need to be tested
- there are always many reasons not to dare new things
therefore seek for good reasons why new ideas can be
successful
23.06.2009 35® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Ideas
create
future
6. Responsibility – results orientation of all
Give all employees enough scope for creativity
Every employee should be given enough time to work out and give
recommendations for better and customer-oriented activities
Encourage and support passion and commitment of those who
want to work for the future of the company
- the boss knows and sees a lot but not everything
- many bosses see and know more
we waste many hidden potentials
23.06.2009 36® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Aspects of Management 2.0
1. Goals – shared view for the journey together
2. Organisation – balance of stakeholders interests
3. Values – internal and external appreciation
4. Structures – scope for changes (redundancy)
5. Culture– competition and mistakes to get better
6. Responsibilities – results orienations of all
7. Communication – open communication
23.06.2009 37® Friedag 2009
7. Communication – open communication
Information concerns everybody
- dare active participation and openness
- transparency stimulates and contributes to more comittment
Effective cooperation requires openness and trust
23.06.2009 38® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
7. Communication – open communication
Information concerns everybody
- dare active participation and openness
- transparency stimulates and contributes to more comittment
Effective cooperation requires openness and trust
Speak the language of the employees
- it doesn‘t matter what you say,
but what and how that is understood by the people
- involve all stakeholders
Use the knowledge of the whole organisation
- only few know what kind of knowledge is available in the company!
- and how much was already invested in the knowledge of the
company
23.06.2009 39® Friedag 2009
Check also: Gary Hamel et.al. „moonshots for management“, http://blogs.harvardbusiness.org/hamel/
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Management 2.0
Cooperation for a sustainable „successful“ business activity
1. Definition of Management 2.0
2. Aspects of Management 2.0
3. Don´t worry, be happy – Go the “Management 2.0“ way
23.06.2009 40® Friedag 2009
Cooperation for sustainable development of companies
Goals – shared view for the journey together
Does your business model answer the following questions:
Why should the customer still buy our product in 3 years?
Do all employees know and understand (!) the strategic goals of the
company?
Does every employee know how he/she can contribute to the
achievement of those goals?
23.06.2009 41® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Involve customers and employees in the process of setting goals
Name the uniqueness of your products
Does your product deserve its price or does it offer the customer -
value?
23.06.2009 42® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Organisation – balance of stakeholders interests
Is your travel cost arrangement 10 pages or only one?
Do not budget every pencil!
Internal month- or quarter reports should be on one page and every
report should be recipient-oriented
23.06.2009 43® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Values – internal and external appreciation
You should manage not more than 7 people directly
Engage customers and suppliers in developments and make them
partners
23.06.2009 44® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Structures – adapted to the changes
Every supervisor is responsible that at least one process
improvement is suggested per every employee per quarter
Mistakes are communicated with the aim that others learn from them
Managers should reserve one day a week for strategy
23.06.2009 45® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Culture – competition and mistakes to get better
Look after that every employee accepts responsibility for results
Make competency possible and give authority for taking decisions
23.06.2009 46® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Responsibility – results orientation of all
You as a manager do try to talk to each employee personally once a
week, once a month at his workplace
Every team should announce its goals and the current results
23.06.2009 47® Friedag 2009
Goals – Organisation – Values – Structures – Culture – Responsibility - Communication
Communication – open communication
23.06.2009 48® Friedag 2009
Coming together is a beginning,
Keeping together is progress,
Working together is success.___________________
Henry Ford
Management 2.0: Cooperation for success
Management 2.0
Can you imagine that your boss will sleep better with Management 2.0?
If so: make the boss happy!
With Management 2.0 you will secure commitment -
Manager, Controller and all other stakeholders have better chances
to overcome the next crisis and
to be happier …
23.06.2009 49® Friedag 2009
Management 2.0:
with cooperation to the success
Management 2.0: Goals – Organisation – Values – Structures– Culture – Responsibility - Communication
23.06.2009 50® Friedag 2009
Management 2.0
Management 2.0: Goals – Organisation – Values – Structures– Culture – Responsibility - Communication
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