Evolution in business – or are we Oxen?
Take a look at the evolution of thinking in business. Back in the 1920’s when management and business was becoming the subject of rigorous study the interface of man and machine was the focus. History has taught us that efficient management can reduce costs and has made operations in business lean and repeatable. We have Fredrick Winslow Taylor to thank for this in terms of ideas and Henry Ford, Arthur Sloan and McDonald’s to thank for the case studies in operational excellence. The essence of this approach to “scientific management “ is/was to take all the skill out of the operation and reduce the process to the simplest possible level of action. Result; people are treated like Oxen. At the time it was considered the epitome of business intelligence and lauded as progressive management. We now know better. The interface of man and man should be the real focus – leader and led.
The problem with repeatable processes, and anything that can be reduced to a documented process, is ultimately it’s also repeatable by someone else. Result: limited competitive advantage, short-term savings for short-term advantage – necessary but not sufficient. In business terms a good try but no
cigar for the winner.
We are now emerging into a new era where the demand on the organisation from talented knowledge workers is greater than at any other time in the history of mankind. Bright people, and let’s at least acknowledge that we are smart enough to hire bright people, ask better questions. They want to be engaged with their employer. There was a time when a job was a necessity. If you were good enough to employ people this was reason enough to gain their loyalty. Commitment was automatic. People were self-motivated. Fortunately, or unfortunately depending on where you stand, this does not compute now for the majority of knowledge workers or the corporate competents, as some would label them. For this group of talented individuals they want or more accurately demand a better deal. The psychological contract, that unspoken deal we all make with our employer, is getting more complex and more demanding to fulfil. Engaging them, really differentiating the employee value proposition to a level of the individual, is the way to get talent committed to your cause. 1-2-1 leadership is the case for Engagement.
It’s a global phenomenon not just a product of the west or the affluent northern hemisphere. Intelligent people need to know why and how they deliver their input to the greater organization. Whether you are from India, Indiana or Indonesia, talented employees want more than a just a pay packet. They want to be led, inspired to give their best and not just what you pay for. Discretionary effort is a worldwide untapped energy resource – there is no energy shortage, we are just looking in the wrong places.
Compliance is not enough to keep the best and brightest in your organisation. You need a compelling employment value proposition. Talented people have freedom of choice and you need to ensure for the best players in the game, that they chose to be on your team. Oxen you could beat into compliance, or at least reward with a suitable carrot. Taylorism was built on that simple principle. Times change, people change, expectations change, and management is no longer enough. What these demanding times require is exceptional leadership. 3E Leadership captures the essence of what times now demand of us.