24 November 2016

♟️Strategic Management: Strategic Planning (Just the Quotes)

"[Planning] means both to assess the future and make provision for it." (Henri Fayol, General and industrial management, 1919)

"To succeed, planning alone is insufficient. One must improvise as well." (Isaac Asimov, The Merchant Princes, 1944)

"Organization planning is the process of defining and grouping the activities of the enterprise so that they may be most logically assigned and effectively executed. It is concerned with the establishment of relationships among the units so as to further the objectives of the enterprise." (Ernest Dale, "Planning and developing the company organization structure", 1952)

"Planning is essentially the analysis and measurement of materials and processes in advance of the event and the perfection of records so that we may know exactly where we are at any given moment. In short it is attempting to steer each operation and department by chart and compass and chronometer - not by guess and by God." (Lyndall Urwick, "The Pattern of Management", 1956)

"Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources." (George R Terry, "Principles of Management", 1960)

"Planning is thinking beforehand how something is to be made or done, and mixing imagination with the product - which in a broad sense makes all of us planners." (Paul Williams, "The Influence of Planning on Man's Destiny", [speech] 1962) 

"[...] long-range plans are most valuable when they are revised and adjusted and set anew at shorter periods. The five-year plan is reconstructed each year in turn for the following five years. The soundest basis for this change is accurate measurement of the results of the first year's experience with the plan against the target of the plan." (George S Odiorne, "Management by Objectives", 1965)

"Targets set by individual managers are relevant to the company's goals because the entire management group is involved in the total planning process." (Walter S Wilkstrom, "Managing by-and-with Objectives", 1968)

"Planning is the design of a desired future and of effective ways of bringing it about." (Russell L Ackoff, "A concept of corporate planning", 1969) 

"The leading attempt at a complete normative theory of planning and resource allocation is provided by the concept of 'strategy'." (Joseph L Bower, "Managing the resource allocation process", 1970)

"As in war, strategic success depends on tactical effectiveness, and no degree of planning can lessen management's tactical imperatives. The first responsibility of the executive, anyway, is to the here and now. If he makes a shambles of the present, there may be no future; and the real purpose of planning - the one whose neglect is common, but poisonous - is to safeguard and sustain the company in subsequent short-run periods." (Robert Heller, "The Naked Manager: Games Executives Play", 1972)

"Good results without good planning come from good luck, not good management." (David Jaquith, "The Time Trap", 1972

"How executives plan or what numbers they choose doesn't count; what does is the standard of performance they are ready to exact. The essence of any objective is that reaching it should be reasonable. The precondition is that you expect it to be met." (Robert Heller, "The Naked Manager: Games Executives Play", 1972)

"In the objectives system, the corporation's aims, or plans, are broken down into a hierarchy of lesser aims or plans; and the grand total of all those objectives adds up to those of the corporation. Then all the executives have to do is meet their planned and agreed objectives and - hey presto - the corporation does the same. Perfection in management, at last, has arrived, except that it hasn't and won't." (Robert Heller, "The Naked Manager: Games Executives Play", 1972)

"Planning and management by objectives have their point as devices for compelling thought, so long as executives don't forget that any plan worth making is inaccurate; the longer a plan takes to write, the worse it is - just because of its consumption of time. And the more they change plans to suit events, the better they will manage - if you've made a mistake, you had better admit it." (Robert Heller, "The Naked Manager: Games Executives Play", 1972)

"What goes wrong [in long-range planning] is that sensible anticipation gets converted into foolish numbers: and their validity always hinges on large loose assumptions." (Robert Heller, "The Naked Manager: Games Executives Play", 1972)

"Strategic planning is not the 'application of scientific methods to business decision' […] . It is the application of thought, analysis, imagination, and judgment. It is responsibility, rather than technique. […] Strategy planning is not forecasting. […] Strategic planning is necessary precisely because we cannot forecast. […] Strategic planning does nor deal with future decisions. It deals with the futurity of present decisions. […] Strategic planning is not an attempt to eliminate risk. It is not even an attempt to minimize risk." (Peter F Drucker, "Management: Tasks, Responsibilities, Practices", 1973)

"A competent manager can usually explain necessary planning changes in terms of specific facts which have contributed to the change. The existing fear, or attitude of failure, which results from missed completion dates should be replaced by a more constructive fear of failing to keep a plan updated." (Philip F Gehring Jr. & Udo W Pooch, "Advances in Computer Programming Management", 1980)

"An essential feature of all strategic planning is a forecast of the world ahead - or, at best, a forecast of those parts of the environment that will have significant impact on the company's successes and failures. Of course, there will be a variety of uncertainties, and our strategic planning will have to deal with them. Nevertheless, forecast we must if we are to grasp full advantage of the changes that lie ahead." (Boris Yavitz & William H Newman, "Strategy in Action", 1982)

"Because the art and science of forecasting is so complex, you might be tempted to give all forecasting responsibility to a single manager who can be made accountable for it. But this usually does not work very well. What works better is to ask both the manufacturing and the sales departments to prepare a forecast, so that people are responsible for performing against their own predictions." (Andrew S Grove, "High Output Management", 1983)

"Managerial accounting calls attention to problems and the need for action. It also aids in planning and decision making. It is aimed more at control and less at valuation than financial accounting." (John A Reinecke & William F Schoell, "Introduction to Business", 1983)

"Managing in accordance with a strategic plan is a learned art. The longer you use the tool, the better you are able to manage with it." (R Henry Miglione, "An MBO Approach to Long-Range Planning", 1983)

"[...] strategic planning and crisis management are complimentary. They coexist comfortably because both deal with the management of change. Crisis management concentrates on those brief moments of instability that must be dealt with first in order to get on with the larger and less time-sensitive job of reaching strategic objectives." (Gerald C Meyers, "When It Hits the Fan", 1986)

"Good people can fix a lot of flaws in poor planning, but it's never the other way around." (Roland Shmitt, "Government Executive", 1987)

"In complex situations, we may rely too heavily on planning and forecasting and underestimate the importance of random factors in the environment. That reliance can also lead to delusions of control." (Hillel J Einhorn & Robin M. Hogarth, Harvard Business Review, 1987)

"Problems can be reduced by allowing employees to help plan changes rather than directing them to execute a plan made by others." (Eugene Raudsepp, MTS Digest, 1987)

"[Successful organizations] comprehend uncertainty. They set direction, not detailed strategy. They are the best strategists precisely because they are suspicious of forecasts and open to surprise. They think strategic planning is great as long as no one takes the plans too seriously." (Robert H Waterman, "The Renewal Factor", 1987)

"Unpredictability cannot be removed, or perhaps even substantially reduced, by excessive planning." (Tom Peters, "Thriving on Chaos", 1987)

"Financial planning models do not always ask the right questions [...] We think that financial planning models are necessary, but we also think they should carry the label: Let the user beware!" (Stephen A Ross & Randolph W. Westerfield, "Corporate Finance", 1988)

"The thinking that underpins strategic planning is a legacy of more stable times when the environment was changing sufficiently slowly for an effective corporate response to emerge from methodical organisational routines." (Max Boisot, "Information Space", 1995)

"Strategic planning can generally be thought of as a three stage process: (i) carrying out analyses of the organisation’s external context and of its internal conditions and the resources at its disposal (ii) identifying and developing different strategic choices (scenarios) and evaluating their attractiveness to the organisation (iii) implementing the preferred strategy." (Roger Jones & Neil Murra, "Change, Strategy and Projects at Work", 2008)

"The planning fallacy is the systematic tendency for project plans and budgets to undershoot. […] The reasons for the planning fallacy are partly psychological, partly cultural, and partly to do with our limited ability to think probabilistically." (Paul Gibbons, "The Science of Successful Organizational Change",  2015)

23 November 2016

♟️Strategic Management: Governance (Just the Quotes)

"Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society." (Dominic Cadbury, "UK, Commission Report: Corporate Governance", 1992) 

"When everything is connected to everything in a distributed network, everything happens at once. When everything happens at once, wide and fast moving problems simply route around any central authority. Therefore overall governance must arise from the most humble interdependent acts done locally in parallel, and not from a central command. " (Kevin Kelly, "Out of Control: The New Biology of Machines, Social Systems and the Economic World", 1995)

"Without some element of governance from the top, bottom-up control will freeze when options are many. Without some element of leadership, the many at the bottom will be paralysed with choices." (Kevin Kelly, "Out of Control: The New Biology of Machines, Social Systems and the Economic World", 1995)

"Wisdom and good governance require more than the consistent application of abstract principles." (Anthony Daniels, "Romancing Opiates: Pharmacological Lies and the Addiction Bureaucracy", 2006)

"Enterprise architecture is the process of translating business vision and strategy into effective enterprise change by creating, communicating and improving the key requirements, principles and models that describe the enterprise's future state and enable its evolution. The scope of the enterprise architecture includes the people, processes, information and technology of the enterprise, and their relationships to one another and to the external environment. Enterprise architects compose holistic solutions that address the business challenges of the enterprise and support the governance needed to implement them." (Anne Lapkin et al, "Gartner Clarifies the Definition of the Term 'Enterprise Architecture", 2008)

"Enterprise engineering is rooted in both the organizational sciences and the information system sciences. In our current understanding, three concepts are paramount to the theoretical and practical pursuit of enterprise engineering: enterprise ontology, enterprise architecture, and enterprise governance." (Erik Proper, "Advances in Enterprise Engineering II", 2009)

"Although essential, governance is an activity, not an outcome. This makes it risky to grant autonomy to a pure governance team. Instead, it is better to constitute each area of governance as a community of practice consisting of practitioners from various capability teams." (Sriram Narayan, "Agile IT Organization Design: For Digital Transformation and Continuous Delivery", 2015)

"Governance and leadership are the yin and the yang of successful organisations. If you have leadership without governance you risk tyranny, fraud and personal fiefdoms. If you have governance without leadership you risk atrophy, bureaucracy and indifference." (Mark Goyder, "What Matters in Corporate Governance?", 2015)

"Good governance is less about structure and rules than being focused, effective and accountable." (Pearl Zhu,  "Digitizing Boardroom: The Multifaceted Aspects of Digital Ready Boards", 2016)

"Governance is not about maximization, but about optimization." (Pearl Zhu, "Digitizing Boardroom: The Multifaceted Aspects of Digital Ready Boards", 2016)

♟️Strategic Management: Action (Just the Quotes)

"All human actions have one or more of these seven causes: chance, nature, compulsions, habit, reason, passion, desire." (Aristotle, 4th century BC)

"The important thing in strategy is to suppress the enemy's useful actions but allow his useless actions." (Miyamoto Musashi, "Go Rin No Sho" ["The Book of Five Rings"], 1645)

"The most absolute authority is that which penetrates into a man's innermost being and concerns itself no less with his will than with his actions." (Jean-Jacques Rousseau, "On the origin of inequality", 1755)

"But when one comes to the effect of the engagement, where material successes turn into motives for further action, the intellect alone is decisive. In brief, tactics will present far fewer difficulties to the theorist than will strategy." (Carl von Clausewitz, "On War", 1832)

"Strategy, or the art of properly directing masses upon the theater of war, either for defense or for invasion. […] Strategy is the art of making war upon the map, and comprehends the whole theater of operations. Grand Tactics is the art of posting troops upon the battle-field according to the accidents of the ground, of bringing them into action, and the art of fighting upon the ground, in contradistinction to planning upon a map. Its operations may extend over a field of ten or twelve miles in extent. Logistics comprises the means and arrangements which work out the plans of strategy and tactics. Strategy decides where to act; logistics brings the troops to this point; grand tactics decides the manner of execution and the employment of the troops." (Antoine-Henri Jomini, "The Art of War", 1838)

"The function of theory is to put all this in systematic order, clearly and comprehensively, and to trace each action to an adequate, compelling cause. […] Theory should cast a steady light on all phenomena so that we can more easily recognize and eliminate the weeds that always spring from ignorance; it should show how one thing is related to another, and keep the important and the unimportant separate. If concepts combine of their own accord to form that nucleus of truth we call a principle, if they spontaneously compose a pattern that becomes a rule, it is the task of the theorist to make this clear." (Carl von Clausewitz, "On War", 1832)

"The insights gained and garnered by the mind in its wanderings among basic concepts are benefits that theory can provide. Theory cannot equip the mind with formulas for solving problems, nor can it mark the narrow path on which the sole solution is supposed to lie by planting a hedge of principles on either side. But it can give the mind insight into the great mass of phenomena and of their relationships, then leave it free to rise into the higher realms of action." (Carl von Clausewitz, "On War", 1832)

"To manage is to forecast and plan, to organize, to command, to coordinate and to control. To foresee and plan means examining the future and drawing up the plan of action. To organize means building up the dual structure, material and human, of the undertaking. To command means binding together, unifying and harmonizing all activity and effort. To control means seeing that everything occurs in conformity with established rule and expressed demand." (Henri Fayol, 1916)

"Leadership is the form that authority assumes when it enters into process. As such it constitutes the determining principle of the entire scalar process, existing not only at the source, but projecting itself through its own action throughout the entire chain, until, through functional definition, it effectuates the formal coordination of the entire structure." (James D Mooney, "Onward Industry!", 1931)

"We make a difference between general and special principles of strategy. The general principles originate directly from the aim and the nature of Chess, and therefore they are constantly in force. It is, for instance, a general principle which goes without saying, that one has to procure the greatest possible freedom of action for one's men. The special principles apply only if the position shows certain peculiarities on account of which a special line of strategy has to be followed." (Dr. Max Euwe, "Strategy & Tactices in chess", 1937)

"The fine art of executive decision consists in not deciding questions that are not now pertinent, in not deciding prematurely, in not making decision that cannot be made effective, and in not making decisions that others should make. Not to decide questions that are not pertinent at the time is uncommon good sense, though to raise them may be uncommon perspicacity. Not to decide questions prematurely is to refuse commitment of attitude or the development of prejudice. Not to make decisions that cannot be made effective is to refrain from destroying authority. Not to make decisions that others should make is to preserve morale, to develop competence, to fix responsibility, and to preserve authority.
From this it may be seen that decisions fall into two major classes, positive decisions - to do something, to direct action, to cease action, to prevent action; and negative decisions, which are decisions not to decide. Both are inescapable; but the negative decisions are often largely unconscious, relatively nonlogical, "instinctive," "good sense." It is because of the rejections that the selection is good." (Chester I Barnard, "The Functions of the Executive", 1938)

"Planning starts usually with something like a general idea. For one reason or another it seems desirable to reach a certain objective, and how to reach it is frequently not too clear. The first step then is to examine the idea carefully in the light of the means available. Frequently more fact-finding about the situation is required. If this first period of planning is successful, two items emerge: namely, an 'over-all plan' of how to reach the objective and secondly, a decision in regard to the first step of action. Usually this planning has also somewhat modified the original idea. The next period is devoted to executing the first step of the original plan." (Kurt Lewin, "Action research and minority problems", 1946)

"All behavior involves conscious or unconscious selection of particular actions out of all those which are physically possible to the actor and to those persons over whom he exercises influence and authority." (Herbert A Simon, "Administrative Behavior: A Study of Decision-making Processes in Administrative Organization", 1947)

"Coordination, therefore, is the orderly arrangement of group efforts, to provide unity of action in the pursuit of a common purpose. As coordination is the all inclusive principle of organization it must have its own principle and foundation in authority, or the supreme coordination power. Always, in every form of organization, this supreme authority must rest somewhere, else there would be no directive for any coordinated effort." (James D Mooney, "The Principles of Organization", 1947)

"Behind every managerial decision or action are assumptions about human nature and human behavior." (Douglas McGregor, "The Human Side of Enterprise", 1960)

"Another approach to management theory, undertaken by a growing and scholarly group, might be referred to as the decision theory school. This group concentrates on rational approach to decision-the selection from among possible alternatives of a course of action or of an idea. The approach of this school may be to deal with the decision itself, or to the persons or organizational group making the decision, or to an analysis of the decision process. Some limit themselves fairly much to the economic rationale of the decision, while others regard anything which happens in an enterprise the subject of their analysis, and still others expand decision theory to cover the psychological and sociological aspect and environment of decisions and decision-makers." (Harold Koontz, "The Management Theory Jungle," 1961)

"A decision tree of any size will always combine (a) action choices with (b) different possible events or results of action which are partially affected by chance or other uncontrollable circumstances." (John F Magee, "Decision Trees for Decision Making", Harvard Business Review, 1964)

"The task of a comprehensive theory of action is to describe or prescribe the occasions for action, the alternative courses of action (or the means of discovering them), and the choice among action alternatives. The task of a comprehensive logic of action is to describe or prescribe the rules that govern reasoning about the occasions." (Herbert A Simon, "The Logic of Heuristic Decision Making", [in "The Logic of Decision and Action"] 1966)

"Keep the pressure on, with different tactics and actions, and utilize all events of the period for your purpose." (Saul Alinsky, "Thirteen Tactics for Realistic Radicals: from Rules for Radicals", 1971)

"The definition of a problem and the action taken to solve it largely depend on the view which the individuals or groups that discovered the problem have of the system to which it refers. A problem may thus find itself defined as a badly interpreted output, or as a faulty output of a faulty output device, or as a faulty output due to a malfunction in an otherwise faultless system, or as a correct but undesired output from a faultless and thus undesirable system. All definitions but the last suggest corrective action; only the last definition suggests change, and so presents an unsolvable problem to anyone opposed to change." (Herbert Brün, "Technology and the Composer", 1971)

"Management theory is obsessed with risks. Top executives bemoan the lack of risk-taking initiative among their young. Politicians and stockholders are advised (by directors) to make directors rich, so that they can afford to take risks. Theorists teach how to construct decision trees, heraldic devices of scientific management; and how to marry the trees with probability theory, so that the degree of risk along each branch (each branch and twig representing alternative results of alternative courses of action) can be metered. But the measuring is spurious, and, anyway, the best management doesn't take risks. It avoids them. It goes for the sure thing.(Robert Heller, "The Naked Manager: Games Executives Play", 1972)

"Taking no action to solve these problems is equivalent of taking strong action. Every day of continued exponential growth brings the world system closer to the ultimate limits of that growth. A decision to do nothing is a decision to increase the risk of collapse." (Donella Meadows et al, "The Limits to Growth", 1972)

"The boss must first distinguish between action information and status information. He must discipline himself not to act on problems his managers can solve, and never to act on problems when he is explicitly reviewing status." (Fred P Brooks, "The Mythical Man-Month: Essays", 1975)

"[...] when a variety of tasks have all to be performed in cooperation, synchronization, and communication, a business needs managers and a management. Otherwise, things go out of control; plans fail to turn into action; or, worse, different parts of the plans get going at different speeds, different times, and with different objectives and goals, and the favor of the 'boss' becomes more important than performance." (Peter F Drucker, "People and Performance", 1977)

"In a production plant operation, data are highly regarded - but I consider facts to be even more important. When a problem arises, if our search for the cause is not thorough, the actions taken can be out of focus. This is why we repeatedly ask why. This is the scientific basis of the Toyota system." (Taiichi Ohno, "Toyota Production System: Beyond Large-Scale Production", 1978)

"Overly optimistic goals nearly always result in one of two extremes. If the goal is seen as a must, then the division manager must 'go for broke. This can result in reckless risk taking. More commonly [...] ultraconservative action. The reasoning is: "Why take any chances to achieve an unattainable goal."(Bruce Henderson, "Henderson on Corporate Strategy", 1979)

"In other words, the output of the planning process is the decisions made and the actions taken as a result of the process." (Andrew S Grove, "High Output Management", 1983)

"Managerial accounting calls attention to problems and the need for action. It also aids in planning and decision making. It is aimed more at control and less at valuation than financial accounting." (John A Reinecke & William F Schoell, "Introduction to Business", 1983)

"Organizational values are best transmitted when they are acted out, and not merely announced, by the people responsible for training, or by the people who become role-models for recruits. The manager of an organization is a role-model ex officio and may have an astonishing ability to communicate organizational values to recruits in fleeting contacts with them. That is the age-old secret of successful generalship, and it is applied every day by charismatic leaders in other fields, whose commitments to their roles is so dramatic that they strike awe into the recruits who observe them in action." (Theodore Caplow, "Managing an Organization", 1983)

Law of Economic Unipolarity: "The only thing more costly than stretching the schedule of an established development program Is accelerating it, which is itself the most costly action known to man." (Norman R Augustine, "Augustine's Laws", 1983)

"Managers jeopardize product quality by setting unreachable deadlines. They don’​​​​​​t think about their action in such terms; they think rather that what they’​​​​​​re doing is throwing down an interesting challenge to their workers, something to help them strive for excellence." (Tom DeMarco & Timothy Lister, "Peopleware: Productive Projects and Teams", 1987)

"Visible management attention, rather than management exhortation, gets things done. Action may start with the words, but it has to be backed by symbolic behavior that makes those words come alive." (Robert H Waterman, "The Renewal Factor", 1987)

"The major fault in this process - and thus, in the way we were making decisions - is that it lacks an organizing framework. In pursuing a variety of goals and objectives, in whatever situation we manage, we often fail to see that some of them are in conflict and that the achievement of one might come at the expense of achieving another. In weighing up the actions we might take to reach our goals and objectives, we have no way to account for nature's complexity and only rarely factor it in." (Allan Savory & Jody Butterfield, "Holistic Management: A new framework for decision making", 1988)

"Knowledge is theory. We should be thankful if action of management is based on theory. Knowledge has temporal spread. Information is not knowledge. The world is drowning in information but is slow in acquisition of knowledge. There is no substitute for knowledge." (William E Deming, "The New Economics for Industry, Government, Education", 1993)

"Without a standard there is no logical basis for making a decision or taking action." (Joseph M Juran, "Managerial Breakthrough: The Classic Book on Improving Management Performance", 1995)

"Decision trees make decision-making easier by identifying a series of conditions and actions. They are used to determine actions in response to given situations. [...] One benefit of a decision tree is that it gives a visual depiction of all the conditions and actions of a decision. They are also easy to construct and follow, and they may be compressed into a decision table." (Ralph L Kliem & Irwin S Ludin, Tools and Tips for Today's Project Manager, 1999)

"The manager [...] is understood as one who observes the causal structure of an organization in order to be able to control it [...] This is taken to mean that the manager can choose the goals of the organization and design the systems or actions to realize those goals [...]. The possibility of so choosing goals and strategies relies on the predictability provided by the efficient and formative causal structure of the organization, as does the possibility of managers staying 'in control' of their organization's development. According to this perspective, organizations become what they are because of the choices made by their managers." (Ralph D Stacey et al, "Complexity and Management: Fad or Radical Challenge to Systems Thinking?", 2000)

"When we plan to win we take direct steps to ensure that we are building the right system at the best possible cost. Every action we take goes towards that end. Instead of trying to plan everything up front, we plan just the next few steps; and then allow customer feedback to correct our trajectory. In this way, we get off the mark quickly, and then continuously correct our direction. Errors are unimportant because they will be corrected quickly." (Kent Beck & Martin Fowler, "Planning Extreme Programming", 2000)

"Risk mitigation is the set of actions you will take to reduce the impact of a risk should it materialize. There are two not-immediately-obvious aspects to risk mitigation: The plan has to precede materialization. Some of the mitigation activities must also precede materialization." (Tom DeMarco, "Slack: Getting Past Burnout, Busywork, and the Myth of Total Efficiency", 2001)

"Blissful data consist of information that is accurate, meaningful, useful, and easily accessible to many people in an organization. These data are used by the organization’s employees to analyze information and support their decision-making processes to strategic action. It is easy to see that organizations that have reached their goal of maximum productivity with blissful data can triumph over their competition. Thus, blissful data provide a competitive advantage.". (Margaret Y Chu, "Blissful Data", 2004)

"Organizations must know and understand the current organizational culture to be successful at implementing change. We know that it is the organization’s culture that drives its people to action; therefore, management must understand what motivates their people to attain goals and objectives. Only by understanding the current organizational culture will it be possible to begin to try and change it." (Margaret Y Chu, "Blissful Data", 2004)

"No individual can achieve worthy goals without accepting accountability for his or her own actions." (Dan Miller, "No More Dreaded Mondays", 2008)

"Strategy is the serious work of figuring out how to translate vision and mission into action. Strategy is a general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization reach its goals. Like vision, strategy changes, but successful companies develop strategies that focus on core competence, develop synergy, and create value for customers. Strategy is implemented through the systems and structures that are the basic architecture for how things get done in the organization." (Richard L Daft, "The Leadership Experience" 4th Ed., 2008)

"The butterfly effect demonstrates that complex dynamical systems are highly responsive and interconnected webs of feedback loops. It reminds us that we live in a highly interconnected world. Thus our actions within an organization can lead to a range of unpredicted responses and unexpected outcomes. This seriously calls into doubt the wisdom of believing that a major organizational change intervention will necessarily achieve its pre-planned and highly desired outcomes. Small changes in the social, technological, political, ecological or economic conditions can have major implications over time for organizations, communities, societies and even nations." (Elizabeth McMillan, "Complexity, Management and the Dynamics of Change: Challenges for practice", 2008)

"And even if we make good plans based on the best information available at the time and people do exactly what we plan, the effects of our actions may not be the ones we wanted because the environment is nonlinear and hence is fundamentally unpredictable. As time passes the situation will change, chance events will occur, other agents such as customers or competitors will take actions of their own, and we will find that what we do is only one factor among several which create a new situation." (Stephen Bungay, "The Art of Action: How Leaders Close the Gaps between Plans, Actions, and Results", 2010)

"A strategy coordinates action to address a specific challenge. It is not defined by the pay grade of the person authorizing the action." (Richard Rumelt, "Good Strategy/Bad Strategy", 2011)

"Almost by definition, one is rarely privileged to 'control' a disaster. Yet the activity somewhat loosely referred to by this term is a substantial portion of Management, perhaps the most important part. […] It is the business of a good Manager to ensure, by taking timely action in the real world, that scenarios of disaster remain securely in the realm of Fantasy." (John Gall, "The Systems Bible: The Beginner's Guide to Systems Large and Small"[Systematics 3rd Ed.], 2011)

"Despite the roar of voices wanting to equate strategy with ambition, leadership, 'vision', planning, or the economic logic of competition, strategy is none of these. The core of strategy work is always the same: discovering the critical factors in a situation and designing a way of coordinating and focusing actions to deal with those factors." (Richard Rumelt, "Good Strategy Bad Strategy", 2011)

"The kernel of a strategy contains three elements: a diagnosis, a guiding policy, and coherent action." (Richard Rumelt, "Good Strategy/Bad Strategy", 2011)

"Clearly, total feedback is Not a Good Thing. Too much feedback can overwhelm the response channels, leading to paralysis and inaction. Even in a system designed to accept massive feedback (such as the human brain), if the system is required to accommodate to all incoming data, equilibrium will never be reached. The point of decision will be delayed indefinitely, and no action will be taken." (John Gall, "The Systems Bible: The Beginner's Guide to Systems Large and Small"[Systematics 3rd Ed.], 2011)

"Companies leverage two basic pulleys of human behavior to increase the likelihood of an action occuring: the ease of performing an action and the psychological motivation to do it." (Nir Eyal, "Hooked: How to Build Habit-Forming Products", 2014)

"A software team can get severely constrained when a velocity target is imposed on it. Velocity works well as a measurement, not as a target. Targets limit choice of actions. A team may find itself unable to address technical debt if it is constrained by velocity targets. At a certain threshold of constraints, team members lose the sense of empowerment (autonomy)." (Sriram Narayan, "Agile IT Organization Design: For Digital Transformation and Continuous Delivery", 2015)

"Language influences thought, tools influence action. Therefore, it matters a lot how we choose our tools. We shape our tooling and access landscape, and thereafter they shape the contours of our collaboration. When we choose a lot of different specialty tools, they in turn nudge us into different specialty groups." (Sriram Narayan, "Agile IT Organization Design: For Digital Transformation and Continuous Delivery", 2015)

"Thinking strategically is the fun part of business. Great strategists think big thoughts about the purpose of their enterprises, the long-run visions for their firms, the big bets they plan to make, and the products, platforms, and ecosystems they hope to build. But it is not enough to think big thoughts. To become a great strategist, you must turn your vision and high-level ideas into tactics, actions, and organizations that reach the customer and fend off the competition." (David B Yoffie & Michael A Cusumano, "Strategy Rules", 2015)

"OKRs should never be created in a vacuum, but must be a reflection of the company’s purpose, its desired long-term goals, and its plan to successfully defend market space. In other words, they should translate your mission, vision, and strategy into action." (Paul R Niven & Ben Lamorte, "Objectives and Key Results: Driving Focus, Alignment, and Engagement with OKRs", 2016)

"Trust is fundamental to leading others into the dark, since trust enables fear to be 'actionable' as courage rather than actionable as anger. Since the bedrock of trust is faith that all will be OK within uncertainty, leaders’ fundamental role is to ultimately lead themselves. Research has found that successful leaders share three behavioral traits: they lead by example, admit their mistakes, and see positive qualities in others. All three are linked to spaces of play. Leading by example creates a space that is trusted - and without trust, there is no play. Admitting mistakes is to celebrate uncertainty. Seeing qualities in others is to encourage diversity." (Beau Lotto, "Deviate: The Science of Seeing Differently", 2017)

"A system is a framework that orders and sequences activity within the organisation to achieve a purpose within a band of variance that is acceptable to the owner of the system.  Systems are the organisational equivalent of behaviour in human interaction. Systems are the means by which organisations put policies into action.  It is the owner of a system who has the authority to change it, hence his or her clear acceptance of the degree of variation generated by the existing system." (Catherine Burke et al, "Systems Leadership" 2nd Ed., 2018)

"An OBJECTIVE […] is simply WHAT is to be achieved, no more and no less. By definition, objectives are significant, concrete, action oriented, and (ideally) inspirational. When properly designed and deployed, they’re a vaccine against fuzzy thinking - and fuzzy execution." (John Doerr, "Measure what Matters", 2018)

"[...] strategy is about determining the problems and opportunities in front of you, defining them properly, and shaping a course of action that will give your business the greatest advantage. Balancing problem solving with creating and exploiting new opportunities through imagination and analysis is the cornerstone of a great strategy." (Eben Hewitt, "Technology Strategy Patterns: Architecture as strategy" 2nd Ed., 2019)

"An organization’​​​​​​s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage."​​​​ (​​​​​​Jack Welch)

21 November 2016

🔭Data Science: Dispersion (Just the Quotes)

"The term dispersion is used to indicate the facts that within a given group, the items differ from one another in size or in other words, there is lack of uniformity in their sizes." (Willford I King, "The Elements of Statistical Method", 1912)

"[…] statistical literacy. That is, the ability to read diagrams and maps; a 'consumer' understanding of common statistical terms, as average, percent, dispersion, correlation, and index number."  (Douglas Scates, "Statistics: The Mathematics for Social Problems", 1943)

"The fact that index numbers attempt to measure changes of items gives rise to some knotty problems. The dispersion of a group of products increases with the passage of time, principally because some items have a long-run tendency to fall while others tend to rise. Basic changes in the demand is fundamentally responsible. The averages become less and less representative as the distance from the period increases." (Anna C Rogers, "Graphic Charts Handbook", 1961)

"Dispersion or spread is the degree of the scatter or variation of the variables about a central value." (Bertram C Brookes & W F L Dick, "Introduction to Statistical Method", 1969)

"Linear regression assumes that in the population a normal distribution of error values around the predicted Y is associated with each X value, and that the dispersion of the error values for each X value is the same. The assumptions imply normal and similarly dispersed error distributions." (Fred C Pampel, "Linear Regression: A primer", 2000)

"The flaw in the classical thinking is the assumption that variance equals dispersion. Variance tends to exaggerate outlying data because it squares the distance between the data and their mean. This mathematical artifact gives too much weight to rotten apples. It can also result in an infinite value in the face of impulsive data or noise. [...] Yet dispersion remains an elusive concept. It refers to the width of a probability bell curve in the special but important case of a bell curve. But most probability curves don't have a bell shape. And its relation to a bell curve's width is not exact in general. We know in general only that the dispersion increases as the bell gets wider. A single number controls the dispersion for stable bell curves and indeed for all stable probability curves - but not all bell curves are stable curves."  (Bart Kosko, "Noise", 2006)

"Two clouds of uncertainty may have the same center, but one may be much more dispersed than the other. We need a way of looking at the scatter about the center. We need a measure of the scatter. One such measure is the variance. We take each of the possible values of error and calculate the squared difference between that value and the center of the distribution. The mean of those squared differences is the variance." (David S Salsburg, "Errors, Blunders, and Lies: How to Tell the Difference", 2017)

"Dispersion is the measure of the variation of the items." (Arthur L Bowley)

"Dispersion is a measure of the extent to which the individual items vary." (Lewis R Connor)

20 November 2016

♟️Strategic Management: Analysis (Just the Quotes)

"Business executives cannot afford to ignore the merits of graphical representation which have for so long been accepted by the engineer and man of science. They must look behind the graphical method and study the conditions leading to the picture along with the picture itself. No business is too small to profit by an examination which shall analyze and scrutinize nor too large to ignore its possibilities. Each business must adjust the graphical methods to its own peculiarities and each diagram must be adjusted to the individual for whom it is prepared or the individual must be educated up to the use and importance of these methods of analysis." (William C Marshall, "Graphical methods for schools, colleges, statisticians, engineers and executives", 1921)

"The pattern of personal characteristics of the leader must bear some relevant relationship to the characteristics, activities, and goals of the followers. [...] It becomes clear that an adequate analysis of leadership involves not only a study of leadership but also of situations." (R M Stodgill, "Journal of Psychology", 1948)

"Planning is essentially the analysis and measurement of materials and processes in advance of the event and the perfection of records so that we may know exactly where we are at any given moment. In short it is attempting to steer each operation and department by chart and compass and chronometer - not by guess and by God." (Lyndall Urwick, "The Pattern of Management", 1956)

"Another approach to management theory, undertaken by a growing and scholarly group, might be referred to as the decision theory school. This group concentrates on rational approach to decision-the selection from among possible alternatives of a course of action or of an idea. The approach of this school may be to deal with the decision itself, or to the persons or organizational group making the decision, or to an analysis of the decision process. Some limit themselves fairly much to the economic rationale of the decision, while others regard anything which happens in an enterprise the subject of their analysis, and still others expand decision theory to cover the psychological and sociological aspect and environment of decisions and decision-makers." (Harold Koontz, "The Management Theory Jungle," 1961)

"We have overwhelming evidence that available information plus analysis does not lead to knowledge. The management science team can properly analyse a situation and present recommendations to the manager, but no change occurs. The situation is so familiar to those of us who try to practice management science that I hardly need to describe the cases." (C West Churchman, "Managerial acceptance of scientific recommendations", California Management Review Vol 7, 1964)

"Analysis is not a scientific procedure for reaching decisions which avoid intuitive elements, but rather a mechanism for sharpening the intuition of the decision maker." (James R Schlesinger, "Memorandum to Senate Committee on Government Operations", 1968)

"The concept of organizational goals, like the concepts of power, authority, or leadership, has been unusually resistant to precise, unambiguous definition. Yet a definition of goals is necessary and unavoidable in organizational analysis. Organizations are established to do something; they perform work directed toward some end." (Charles Perrow, "Organizational Analysis: A Sociological View", 1970)

"Strategic planning is not the 'application of scientific methods to business decision' […] . It is the application of thought, analysis, imagination, and judgment. It is responsibility, rather than technique. […] Strategy planning is not forecasting. […] Strategic planning is necessary precisely because we cannot forecast. […] Strategic planning does nor deal with future decisions. It deals with the futurity of present decisions. […] Strategic planning is not an attempt to eliminate risk. It is not even an attempt to minimize risk." (Peter F Drucker, "Management: Tasks, Responsibilities, Practices", 1973)

"Perhaps the fault [for the poor implementation record for models] lies in the origins of managerial model-making - the translation of methods and principles of the physical sciences into wartime operations research. [...] If hypothesis, data, and analysis lead to proof and new knowledge in science, shouldn’t similar processes lead to change in organizations? The answer is obvious-NO! Organizational changes (or decisions or policies) do not instantly pow from evidence, deductive logic, and mathematical optimization." (Edward B Roberts, "Interface", 1977)

"Managers are not confronted with problems that are independent of each other, but with dynamic situations that consist of complex systems of changing problems that interact with each other. I call such situations messes. Problems are extracted from messes by analysis. Managers do not solve problems, they manage messes." (Russell L Ackoff, "The future of operational research is past", 1979)

"Analysis is the critical starting point of strategic thinking. Faced with problems, trends, events, or situations that appear to constitute a harmonious whole or come packaged as a whole by common sense of the day, the strategic thinker dissects them into their constituent parts. Then, having discovered the significance of these constituents, he reassembles them in a way calculated to maximize his advantage." (Kenichi Ohmae, "The Mind Of The Strategist", 1982) 

"In business as on the battlefield, the object of strategy is to bring about the conditions most favorable to one's own side, judging precisely the right moment to attack or withdraw and always assessing the limits of compromise correctly. Besides the habit of analysis, what marks the mind of the strategist is an intellectual elasticity or flexibility that enables him to come up with realistic responses to changing situations, not simply to discriminate with great precision among different shades of gray." (Kenichi Ohmae, "The Mind Of The Strategist", 1982)

"No matter how difficult or unprecedented the problem, a breakthrough to the best possible solution can come only from a combination of rational analysis, based on the real nature of things, and imaginative reintegration of all the different items into a new pattern, using nonlinear brainpower. This is always the most effective approach to devising strategies for dealing successfully with challenges and opportunities, in the market arena as on the battlefield." (Kenichi Ohmae, "The Mind Of The Strategist", 1982)

"View thinking as a strategy. Thinking is the best way to resolve difficulties. Maintain faith in your ability to think your way out of problems. Recognize the difference between worrying and thinking. The former is repeated, needless problem analysis while the latter is solution generation." (Timothy W Firnstahl, Harvard Business Review, 1986)

"[…] the most successful strategies are visions, not plans. Strategic planning isn’t strategic thinking. One is analysis, and the other is synthesis." (Henry Mintzberg, "The Fall and Rise of Strategic Planning", Harvard Business Review, 1994)

"Enterprise Engineering is defined as that body of knowledge, principles, and practices having to do with the analysis, design, implementation and operation of an enterprise. In a continually changing and unpredictable competitive environment, the Enterprise Engineer addresses a fundamental question: 'how to design and improve all elements associated with the total enterprise through the use of engineering and analysis methods and tools to more effectively achieve its goals and objectives' [...]" (Donald H Liles, "The Enterprise Engineering Discipline", 1996)

"Without meaningful data there can be no meaningful analysis. The interpretation of any data set must be based upon the context of those data. Unfortunately, much of the data reported to executives today are aggregated and summed over so many different operating units and processes that they cannot be said to have any context except a historical one - they were all collected during the same time period. While this may be rational with monetary figures, it can be devastating to other types of data." (Donald J Wheeler, "Understanding Variation: The Key to Managing Chaos" 2nd Ed., 2000)

"[...] strategy is about determining the problems and opportunities in front of you, defining them properly, and shaping a course of action that will give your business the greatest advantage. Balancing problem solving with creating and exploiting new opportunities through imagination and analysis is the cornerstone of a great strategy." (Eben Hewitt, "Technology Strategy Patterns: Architecture as strategy" 2nd Ed., 2019)

"If you do not conduct sufficient analysis and if you do not have firm technical knowledge, you cannot carry out improvement or standardization, nor can you perform good control or prepare control charts useful for effective control." (Kaoru Ishikawa)

19 November 2016

♟️Strategic Management: Key Results (Just the Quotes)

"KRAs and KPIs KRA and KPI are two confusing acronyms for an approach commonly recommended for identifying a person’s major job responsibilities. KRA stands for key result areas; KPI stands for key performance indicators. As academics and consultants explain this jargon, key result areas are the primary components or parts of the job in which a person is expected to deliver results. Key performance indicators represent the measures that will be used to determine how well the individual has performed. In other words, KRAs tell where the individual is supposed to concentrate her attention; KPIs tell how her performance in the specified areas should be measured. Probably few parts of the performance appraisal process create more misunderstanding and bewilderment than do the notion of KRAs and KPIs. The reason is that so much of the material written about KPIs and KRAs is both." (Dick Grote, "How to Be Good at Performance Appraisals: Simple, Effective, Done Right", 2011)

"We need indicators of overall performance that need only be reviewed on a monthly or bimonthly basis. These measures need to tell the story about whether the organization is being steered in the right direction at the right speed, whether the customers and staff are happy, and whether we are acting in a responsible way by being environmentally friendly. These measures are called key result indicators (KRIs)." (David Parmenter, "Key Performance Indicators: Developing, implementing, and using winning KPIs" 3rd Ed., 2015)

"An objective is a concise statement outlining a broad qualitative goal designed to propel the organization forward in a desired direction. […] A key result is a quantitative statement that measures the achievement of a given objective. If the objective asks, 'What do we want to do?' the key result asks, 'How will we know if we’ve met our objective?'" (Paul R Niven & Ben Lamorte, "Objectives and Key Results: Driving Focus, Alignment, and Engagement with OKRs", 2016)

"OKRs are not, and should never be, considered a master checklist of tasks that need to be completed. The aim of the model is identifying the most critical business objectives and gauging accountability through quantitative key results. Strategy pundits are fond of noting that strategy is as much about what not to do as it is about what to do. So it is with OKRs. You must be disciplined in determining what makes the final cut." (Paul R Niven & Ben Lamorte, "Objectives and Key Results: Driving Focus, Alignment, and Engagement with OKRs", 2016)

"OKRs is a critical thinking framework and ongoing discipline that seeks to ensure employees work together, focusing their efforts to make measurable contributions that drive the company forward." (Paul R Niven & Ben Lamorte, "Objectives and Key Results: Driving Focus, Alignment, and Engagement with OKRs", 2016)

"OKRs should never be created in a vacuum, but must be a reflection of the company’s purpose, its desired long-term goals, and its plan to successfully defend market space. In other words, they should translate your mission, vision, and strategy into action." (Paul R Niven & Ben Lamorte, "Objectives and Key Results: Driving Focus, Alignment, and Engagement with OKRs", 2016)

"An effective goal management system - an OKR system - links goals to a team’s broader mission. It respects targets and deadlines while adapting to circumstances. It promotes feedback and celebrates wins, large and small. Most important, it expands our limits. It moves us to strive for what might seem beyond our reach." (John Doerr, "Measure what Matters", 2018)

"Key results are the levers you pull, the marks you hit to achieve the goal. If an objective is well framed, three to five KRs will usually be adequate to reach it. Too many can dilute focus and obscure progress. Besides, each key result should be a challenge in its own right. If you’re certain you’re going to nail it, you’re probably not pushing hard enough. [...] Key results should be succinct, specific, and measurable. A mix of outputs and inputs is helpful. Finally, completion of all key results must result in attainment of the objective. If not, it’s not an OKR." (John Doerr, "Measure what Matters", 2018)

"KEY RESULTS benchmark and monitor HOW we get to the objective. Effective KRs are specific and time-bound, aggressive yet realistic. Most of all, they are measurable and verifiable. […] You either meet a key result’s requirements or you don’t; there is no gray area, no room for doubt." (John Doerr, "Measure what Matters", 2018)

"[OKRs (Objectives and Key Results): are a] management methodology that helps to ensure that the company focuses efforts on the same important issues throughout the organization." (John Doerr, "Measure what Matters", 2018)

"OKRs have such enormous potential because they are so adaptable. There is no dogma, no one right way to use them. Different organizations have fluctuating needs at various phases of their life cycle. For some, the simple act of making goals open and transparent is a big leap forward. For others, a quarterly planning cadence will change the game." (John Doerr, "Measure what Matters", 2018)

"The challenge with using OKRs is to focus on just three to five objectives - sounds simple enough, but so many organisations follow the ‘if it moves, track it’ philosophy such that they can’t see the wood for the trees." (Ian Wallis, "Data Strategy: From definition to execution", 2021)

"The premise of OKRs is to keep objectives and results simple and flexible, ensuring they align with business goals and enterprise initiatives guided by regular reviews to assess progress during the quarter. The intent is to keep OKRs clear and accountable, as well as measurable, with between three and five objectives recommended at a high level that can each be tracked by three to five key measures. They should be ambitious goals, even uncomfortable, in challenging aspirations, making them stretch targets." (Ian Wallis, "Data Strategy: From definition to execution", 2021)

"I can’t imagine where we would be without OKRs. The discipline forces us to look back every quarter and hold ourselves accountable, and to look ahead every quarter to imagine how we can better live our values." (Rick Levin)

"If a feature idea doesn’t speak directly to one the OKRs, it’s generally off the list." (Marty Cagan) 

"The one thing an [OKR] system should provide par excellence is focus. This can only happen if we keep the number of objectives small. [...] Each time you make a commitment, you forfeit your chance to commit to something else. This, of course, is an inevitable, inescapable consequence of allocating any finite resource. People who plan have to have the guts, honesty, and discipline to drop projects as well as to initiate them, to shake their heads 'no' as well as to smile 'yes'. [...] We must realize - and act on the realization - that if we try to focus on everything, we focus on nothing." (Andrew S Grove) 

16 November 2016

♟️Strategic Management: Trust (Just the Quotes)

"Organizations are social beings and their success depends on trust, subtlety and intimacy." (William Ouchi, "Theory Z", 1981)

"Someone adhering to the values of a corporate culture - an intelligent corporate citizen - will behave in consistent fashion under similar conditions, which means that managers don’t have to suffer the inefficiencies engendered by formal rules, procedures, and regulations. […] management has to develop and nurture the common set of values, objectives, and methods essential to the existence of trust. How do we do that? One way is by articulation, by spelling [them] out. […] The other even more important way is by example." (Andrew S Grove, "High Output Management", 1983)

"You cannot prevent a major catastrophe, but you can build an organization that is battle-ready, where people trust one another. In military training, the first rule is to instill soldiers with trust in their officers - because without trust, they won't fight." (Peter Drucker, "Managing the Non-Profit Organization", 1990)

"Trust is the glue of life. It's the most essential ingredient in effective communication. It's the foundational principle that holds all relationships - marriages, families, and organizations of every kind - together." (Stephen Covey, "First Things First", 1994)

"An ecology provides the special formations needed by organizations. Ecologies are: loose, free, dynamic, adaptable, messy, and chaotic. Innovation does not arise through hierarchies. As a function of creativity, innovation requires trust, openness, and a spirit of experimentation - where random ideas and thoughts can collide for re-creation." (George Siemens, "Knowing Knowledge", 2006)

"In leadership, there are no words more important than trust. In any organization, trust must be developed among every member of the team if success is going to be achieved." (Mike Krzyzewski, "Leading with the Heart: Coach K's Successful Strategies for Basketball, Business, and Life", 2010)

"Truly human leadership protects an organization from the internal rivalries that can shatter a culture. When we have to protect ourselves from each other, the whole organization suffers. But when trust and cooperation thrive internally, we pull together and the organization grows stronger as a result." (Simon Sinek, "Leaders Eat Last: Why Some Teams Pull Together and Others Don't", 2014)

"Leadership means that a group, large or small, is willing to entrust authority to a person who has shown judgement, wisdom, personal appeal, and proven competence." (Walt Disney)

♟️Strategic Management: Success (Just the Quotes)

"And it ought to be remembered that there is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. Because the innovator has for enemies all those who have done well under the old conditions, and lukewarm defenders in those who may do well under the new." (Nicolo Machiavelli, cca. 1505)

"But when one comes to the effect of the engagement, where material successes turn into motives for further action, the intellect alone is decisive. In brief, tactics will present far fewer difficulties to the theorist than will strategy." (Carl von Clausewitz, "On War", 1832)

"We learn wisdom from failure much more than from success. We often discover what will do, by finding out what will not do; and probably he who never made a mistake never made a discovery." (Samuel Smiles, "Facilities and Difficulties", 1859)

"We live in a system of approximations. Every end is prospective of some other end, which is also temporary; a round and final success nowhere. We are encamped in nature, not domesticated." (Ralph W Emerson, "Essays", 1865)

"The manager must never be lacking in knowledge of the special profession which is characteristic of the undertaking: the technical profession in industry, commercial in commerce, political in the State, military in the Army, religious in the Church, medical in the hospital, teaching in the school, etc. The technical function has long been given the degree of importance which is its due, and of which we must not deprive it, but the technical function by itself cannot endure the successful running of a business; it needs the help of the other essential functions and particularly of that of administration. This fact is so important from the point of view of the organization and management of a business that I do not mind how often I repeat it in order that it may be fully realized." (Henri Fayol, "Industrial and General Administration", 1916)

"Failure to succeed greatly in management usually occurs not so much from lack of knowledge of the important principles of the science of management as from failure to apply them. Most of the principles of successful management are old, and many of them have received sufficient publicity to be well known, but managers are curiously prone to look upon managerial success as a personal attribute that is slightly dependent on principles or laws." (Allan C Haskell, "How to Make and Use Graphic Charts", 1919)

"The making of decisions, as everyone knows from personal experience, is a burdensome task. Offsetting the exhilaration that may result from correct and successful decision and the relief that follows the termination of a struggle to determine issues is the depression that comes from failure, or error of decision, and the frustration which ensues from uncertainty." (Chester I Barnard, "The Functions of the Executive", 1938)

"Success in solving the problem depends on choosing the right aspect, on attacking the fortress from its accessible side." (George Polya, "How to Solve It", 1944)

"[System dynamics] is an approach that should help in important top-management problems [...] The solutions to small problems yield small rewards. Very often the most important problems are but little more difficult to handle than the unimportant. Many [people] predetermine mediocre results by setting initial goals too low. The attitude must be one of enterprise design. The expectation should be for major improvement [...] The attitude that the goal is to explain behavior; which is fairly common in academic circles, is not sufficient. The goal should be to find management policies and organizational structures that lead to greater success." (Jay W Forrester, "Industrial Dynamics", 1961)

"Business is a process which converts a resource, distinct knowledge, into a contribution of economic value in the market place. The purpose of a business is to create a customer. The purpose is to provide something for which an independent outsider, who can choose not to buy, is willing to exchange his purchasing power. And knowledge alone (excepting only the case of the complete monopoly) gives the products of any business that leadership position on which success and survival ultimately depend." (Peter F Drucker, "Managing for Results: Economic Tasks and Risk-taking Decisions", 1964)

"The successful manager must be a good diagnostician and must value a spirit of inquiry." (Edgar H Schein, "Organizational Psychology", 1965)

"As in war, strategic success depends on tactical effectiveness, and no degree of planning can lessen management's tactical imperatives. The first responsibility of the executive, anyway, is to the here and now. If he makes a shambles of the present, there may be no future; and the real purpose of planning - the one whose neglect is common, but poisonous - is to safeguard and sustain the company in subsequent short-run periods." (Robert Heller, "The Naked Manager: Games Executives Play", 1972)

"The dogma of delegation is simple - the Sixth Truth of Management again: either the delegatee is capable of running the operation successfully by himself or he isn't. This handy formula relieves the top executive of any responsibility except that of finding, supervising, and (at the appropriate time) moving the men who are doing all the work. He Can then truly manage by exception: he does not get worked up over operations that are going well, but concentrates on the plague spots, where everything, including the management, is going badly." (Robert Heller, "The Naked Manager: Games Executives Play", 1972)

"Effectiveness is the foundation of success - efficiency is a minimum condition for survival after success has been achieved. Efficiency is concerned with doing things right. Effectiveness is doing the right things." (Peter Drucker, "Management: Tasks, Responsibilities, Challenges", 1973)

"The task of building an ethical environment where leaders and all personnel are instructed, encouraged, and rewarded for ethical behavior is a matter of first importance. All decisions, practices, goals, and values of the entire institutional structure which make ethical behavior difficult should be examined, beginning with the following: First, blatant or subtle forms of ethical relativism which blur the issue of what is right or wrong or which bury it as a subject of little or no importance. Second, the exaggerated loyalty syndrome, where people are afraid to tell the truth and are discouraged from it. Third, the obsession with image, where people are not even interested in the truth. And last, the drive for success, in which ethical sensitivity is bought off or sold because of the personal need to achieve." (Kermit D Johnson, "Ethical Issues of Military Leadership", 1974)

"Organizations are social beings and their success depends on trust, subtlety and intimacy." (William Ouchi, "Theory Z", 1981)

"No matter how difficult or unprecedented the problem, a breakthrough to the best possible solution can come only from a combination of rational analysis, based on the real nature of things, and imaginative reintegration of all the different items into a new pattern, using nonlinear brainpower. This is always the most effective approach to devising strategies for dealing successfully with challenges and opportunities, in the market arena as on the battlefield." (Kenichi Ohmae, "The Mind Of The Strategist", 1982)

"Organizational values are best transmitted when they are acted out, and not merely announced, by the people responsible for training, or by the people who become role-models for recruits. The manager of an organization is a role-model ex officio and may have an astonishing ability to communicate organizational values to recruits in fleeting contacts with them. That is the age-old secret of successful generalship, and it is applied every day by charismatic leaders in other fields, whose commitments to their roles is so dramatic that they strike awe into the recruits who observe them in action." (Theodore Caplow, "Managing an Organization", 1983)

"Most managers are reluctant to comment on ineffective or inappropriate interpersonal behavior. But these areas are often crucial for professional task success. This hesitancy is doubly felt when there is a poor relationship between the two. [...] Too few managers have any experience in how to confront others effectively; generally they can more easily give feedback on inadequate task performance than on issues dealing with another's personal style." (David L Bradford & Allan R Cohen, "Managing for Excellence", 1984)

"No other area offers richer opportunities for successful innovation than the unexpected success." (Peter Drucker, "Innovation and Entrepreneurship", 1985)

"The key to successful leadership today is influence, not authority." (Kenneth H Blanchard, "Managing By Influence", 1986)

"The opportunities and threats existing in any situation always exceed the resources needed to exploit the opportunities or avoid the threats. Thus, strategy is essentially a problem of allocating resources. If strategy is to be successful, it must allocate superior resources against a decisive opportunity." (William Cohen, "Winning on the Marketing Front: The corporate manager's game plan", 1986)

"Setting goals can be the difference between success and failure. [...] Goals must not be defined so broadly that they cannot be quantified. Having quantifiable goals is an essential starting point if managers are to measure the results of their organization's activities. [...] Too often people mistake being busy for achieving goals." (Philip D Harvey & James D Snyder, Harvard Business Review, 1987)

"[Successful organizations] comprehend uncertainty. They set direction, not detailed strategy. They are the best strategists precisely because they are suspicious of forecasts and open to surprise. They think strategic planning is greatas long as no one takes the plans too seriously." (Robert H Waterman, "The Renewal Factor", 1987)

"The most important reason for our success is we set our objectives and make sure we follow through on them." (Annette B Roux, The New York Times, 1987)

"The tendency to hide unfavorable information often occurs in companies that are quick to reward success and equally quick to punish failure." (Robert M Tomasko, "Downsizing", 1987)

"[…] the most successful strategies are visions, not plans. Strategic planning isn’t strategic thinking. One is analysis, and the other is synthesis." (Henry Mintzberg, "The Fall and Rise of Strategic Planning", Harvard Business Review, 1994) [source]

"Organizations need the capacity for double-loop learning. Double-loop learning occurs when managers question their underlying assumptions and reflect on whether the theory under which they were operating remains consistent with current evidence, observations, and experience. Of course, managers need feedback about whether their planned strategy is being executed according to plan-the single-loop learning process. But even more important, they need feedback about whether the planned strategy remains a viable and successful strategy - the double-loop learning process. Managers need information so that they can question whether the fundamental assumptions made when they launched the strategy are valid." (Robert S Kaplan & David P Norton, "The Balanced Scorecard", Harvard Business Review, 1996)

"Strategy is creating fit among a company’s activities. The success of a strategy depends on doing many things well - not just a few - and integrating among them. If there is no fit among activities, there is no distinctive strategy and little sustainability. Management reverts to the simpler task of overseeing independent functions, and operational effectiveness determines an organization’s relative performance."  (Michael E Porter, "What is Strategy?", Harvard Business Review, 1996)

"The Balanced Scorecard translates mission and strategy into objectives and measures, organized into four different perspectives: financial, customer, internal business process, and learning and growth. The scorecard provides a framework, a language, to communicate mission and strategy; it uses measurement to inform employees about the drivers of current and future success." (Robert S Kaplan & David P Norton, "The Balanced Scorecard", Harvard Business Review, 1996)

"Business success contains the seeds of its own destruction. The more Successful you are, the more people want a chunk of your business and then another chunk and then another until there is nothing." (Andrew S Grove, "Only the Paranoid Survive", 1998)

"Managers are incurably susceptible to panacea peddlers. They are rooted in the belief that there are simple, if not simple-minded, solutions to even the most complex of problems. And they do not learn from bad experiences. Managers fail to diagnose the failures of the fads they adopt; they do not understand them. […] Those at the top feel obliged to pretend to omniscience, and therefore refuse to learn anything new even if the cost of doing so is success." (Russell L Ackoff, "A Lifetime Of Systems Thinking", Systems Thinker, 1999)

"Business success is less a function of grandiose predictions than it is a result of being able to respond rapidly to real changes as they occur." (Jack Welch, "Jack: Straight from the Gut", 2001)

"I've learned that mistakes can often be as good a teacher as success." (Jack Welch, "Jack: Straight from the Gut", 2001)

"Organizations must know and understand the current organizational culture to be successful at implementing change. We know that it is the organization’s culture that drives its people to action; therefore, management must understand what motivates their people to attain goals and objectives. Only by understanding the current organizational culture will it be possible to begin to try and change it." (Margaret Y Chu, "Blissful Data", 2004)

"The most basic issue for organizational success is correctly matching a system’s complexity to its environment. When we want to accomplish a task, the complexity of the system performing that task must match the complexity of the task. In order to perform the matching correctly, one must recognize that each person has a limited level of complexity. Therefore, tasks become difficult because the complexity of a person is not large enough to handle the complexity of the task. The trick then is to distribute the complexity of the task among many individuals." (Yaneer Bar-Yam, "Making Things Work: Solving Complex Problems in a Complex World", 2004)

"Whereas strategy is abstract and based on long-term goals, tactics are concrete and based on finding the best move right now. Tactics are conditional and opportunistic, all about threat and defense. No matter what pursuit you’re engaged in - chess, business, the military, managing a sports team - it takes both good tactics and wise strategy to be successful." (Garry Kasparov, "How Life Imitates Chess", 2007)

"Strategy is the serious work of figuring out how to translate vision and mission into action. Strategy is a general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization reach its goals. Like vision, strategy changes, but successful companies develop strategies that focus on core competence, develop synergy, and create value for customers. Strategy is implemented through the systems and structures that are the basic architecture for how things get done in the organization." (Richard L Daft, "The Leadership Experience" 4th Ed., 2008)

"Truly successful decision-making relies on a balance between deliberate and instinctive thinking." (Malcolm Gladwell, "Blink: The Power of Thinking Without Thinking", 2008)

"A blame culture is corrosive, eroding the team ethos that is vital for success. If they fear that they will be pilloried or punished for their mistakes, your colleagues will start worrying more about how to protect their back than doing what’s best for the team and wider organization. In the worst cases, this can even lead to lying, setting up fall guys, and other dysfunctional behavior." (Paul Butcher, "Debug It! Find, Repair, and Prevent Bugs in Your Code", 2009)

"A culture that believes that it is better to ask forgiveness afterward rather than permission before, that rewards people for success but gives them permission to fail, has removed one of the main obstacles to the formation of new ideas." (Tim Brown, "Change by Design: How Design Thinking Transforms Organizations and Inspires Innovation", 2009) 

"In leadership, there are no words more important than trust. In any organization, trust must be developed among every member of the team if success is going to be achieved." (Mike Krzyzewski, "Leading with the Heart: Coach K's Successful Strategies for Basketball, Business, and Life", 2010)

"[Executives] make decisions based on delusional optimism rather than on a rational weighting of gains, losses, and probabilities. They overestimate benefits and underestimate costs. They spin scenarios of success while overlooking the potential for mistakes and miscalculations. As a result, they pursue initiatives that are unlikely to come in on budget or on time or to deliver the expected returns - ​​​​​​or even to be completed." (Daniel Kahneman, "Thinking, Fast and Slow", 2011)

"Key performance indicators (KPIs) are the vital navigation instruments used by managers to understand whether their business is on a successful voyage or whether it is veering off the prosperous path. The right set of indicators will shine light on performance and highlight areas that need attention. ‘What gets measured gets done’ and ‘if you can’t measure it, you can’t manage it’ are just two of the popular sayings used to highlight the critical importance of metrics. Without the right KPIs managers are sailing blind." (Bernard Marr, "Key Performance Indicators (KPI): The 75 measures every manager needs to know", 2011)

"An organization's strategy is simply its plan for success. It's nothing more than the collection of intentional decisions a company makes to give itself the best chance to thrive and differentiate from competitors." (Patrick Lencioni, "The Advamtage: Why Organizational Health Trumps Everything Else In Business", 2012)

"Ultimately, leadership is not about glorious crowning acts. It's about keeping your team focused on a goal and motivated to do their best to achieve it, especially when the stakes are high and the consequences really matter. It is about laying the groundwork for others' success, and then standing back and letting them shine." (Chris Hadfield, "An Astronaut's Guide to Life on Earth", 2013)

"Culture is an emergent phenomenon produced by structures, practices, leadership behavior, incentives, symbols, rituals, and processes. All those levers have to be pulled to have any chance of success. However, one driver of culture change is more important than the others. Culture change fails when the most visible symbols of it fail to change. Those key symbols are almost always the top leader’​​​​​​s behavior, which speaks much louder than anything they might say." (Paul Gibbons, "The Science of Successful Organizational Change", 2015)

"Key performance indicators (KPIs) are those indicators that focus on the aspects of organizational performance that are the most critical for the current and future success of the organization." (David Parmenter, "Key Performance Indicators: Developing, implementing, and using winning KPIs" 3rd Ed., 2015)

"Key Performance Indicators (KPIs) in many organizations are a broken tool. The KPIs are often a random collection prepared with little expertise, signifying nothing. [...] KPIs should be measures that link daily activities to the organization’s critical success factors (CSFs), thus supporting an alignment of effort within the organization in the intended direction." (David Parmenter, "Key Performance Indicators: Developing, implementing, and using winning KPIs" 3rd Ed., 2015)

"Governance and leadership are the yin and the yang of successful organisations. If you have leadership without governance you risk tyranny, fraud and personal fiefdoms. If you have governance without leadership you risk atrophy, bureaucracy and indifference." (Mark Goyder, "What Matters in Corporate Governance?", 2015)

"No methodology can guarantee success. But a good methodology can provide a feedback loop for continual improvement and learning." (Ash Maurya, "Scaling Lean: Mastering the Key Metrics for Startup Growth", 2016)

"The field of big-data analytics is still littered with a few myths and evidence-free lore. The reasons for these myths are simple: the emerging nature of technologies, the lack of common definitions, and the non-availability of validated best practices. Whatever the reasons, these myths must be debunked, as allowing them to persist usually has a negative impact on success factors and Return on Investment (RoI). On a positive note, debunking the myths allows us to set the right expectations, allocate appropriate resources, redefine business processes, and achieve individual/organizational buy-in." (Prashant Natarajan et al, "Demystifying Big Data and Machine Learning for Healthcare", 2017) 

"Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall." (Stephen R Covey)

"Strategy is a style of thinking, a conscious and deliberate process, an intensive implementation system, the science of insuring future success." (Pete Johnson)

09 November 2016

♟️Strategic Management: Customers (Just the Quotes)

"A business process is a collection of activities that takes one or more kinds of input and creates an output that is of value to the customer. A business process has a goal and is affected by events occurring in the external world or in other processes." (James A Champy & Michael M Hammer, "Reengineering the Corporation", 1993)

"Reengineering posits a radical new principle: that the design of work must be based not on hierarchical management and the specialization of labor but on end-to-end processes and the creation of value for the customer." (James A Champy & Michael M Hammer, "Reengineering the Corporation", 1993)

"This is what systems thinking is all about: the idea of building an organization in which each piece, and partial solution of the organization has the fit, alignment, and integrity with your overall organization as a system, and its outcome of serving the customer." (Stephen G Haines, "The Systems Thinking Approach to Strategic Planning and Management", 2000)

"In business, as in game theory and chess, all great strategies start with a vision of the future. In one sense, the recipe is simple: it should include a sense of where the organization should go, what customers are likely to pay for, and how the organization can offer a unique product or service that customers will buy. The devil, of course, lies in the details." (David B Yoffie & Michael A Cusumano, "Strategy Rules", 2015)

"Thinking strategically is the fun part of business. Great strategists think big thoughts about the purpose of their enterprises, the long-run visions for their firms, the big bets they plan to make, and the products, platforms, and ecosystems they hope to build. But it is not enough to think big thoughts. To become a great strategist, you must turn your vision and high-level ideas into tactics, actions, and organizations that reach the customer and fend off the competition." (David B Yoffie & Michael A Cusumano, "Strategy Rules", 2015)

"We need indicators of overall performance that need only be reviewed on a monthly or bimonthly basis. These measures need to tell the story about whether the organization is being steered in the right direction at the right speed, whether the customers and staff are happy, and whether we are acting in a responsible way by being environmentally friendly. These measures are called key result indicators (KRIs)." (David Parmenter, "Key Performance Indicators: Developing, implementing, and using winning KPIs" 3rd Ed., 2015)

"A clear, thoughtful mission statement, developed collaboratively with and shared with managers, employees, and often customers, provides a shared sense of purpose, direction, and opportunity." (Philip Kotler & Kevin L Keller, "Marketing Management" 15th Ed., 2016) 

"Evidence is freely available which demonstrates a gap between what the company thinks is important to customers and what customers actually deem to be the most important when it comes to making their choices. The failure to understand what is really important leads to customers receiving a sub-optimal experience and the company sub-optimising its commercial position." (Alan Pennington, "The Customer Experience Book", 2016)

"Data from the customer interactions is the lifeblood for any organisation to view, understand and optimise the customer experience both remotely and on the front line! In the same way that customer experience experts understand that it’s the little things that count, it’s the small data that can make all the difference." (Alan Pennington, "The Customer Experience Book", 2016)

"[…] deliver a customer experience where the customer sees real value from how you use the data that they share with you and they will keep interacting/sharing that data and their consent for you to use it!" (Alan Pennington, "The Customer Experience Book", 2016)

"Somebody once told me, 'Manage the top line, and the bottom line will follow.' What's the top line? It's things like, why are we doing this in the first place? What's our strategy? What are customers saying? How responsive are we? Do we have the best products and the best people? Those are the kind of questions you have to focus on." (Steve Jobs, "Motivating Thoughts of Steve Jobs", 2016)

"The bad news is that companies tend to focus on three out of the four elements of the balanced scorecard and emphasis is skewed away from the customer component, which is the least understood and believed by many to be the least quantifiable." (Alan Pennington, "The Customer Experience Book", 2016)

06 November 2016

💠🛠️SQL Server: Administration (System.OutOfMemoryException in SQL Server Management Studio and other 32-bit Drawbacks)

    I was playing this week with a few datasets downloaded from the web on various topics, trying to torture the data until they’ll confess something. A few of the datasets were prepared for load into a MySQL database as individual INSERT INTO statements. They were containing between 100000 and a few millions of records. While looking at the big but slim datasets in SSMS (SQL Server Management Studio) and reconciling the differences between MySQL and SQL Server I got several times the System.OutOfMemoryException exception, SSMS crashing one or two times. That should be ok, given the number of records, though I was surprised that I got the same error message while executing the INSERT INTO statements for one of the smallest datasets which had about 300000 records:

    „An error occurred while executing batch. Error message is: Exception of type 'System.OutOfMemoryException' was thrown”

    Kb 2874903 brings some light into the topic – SSMS is still a 32-bit process and thus limited to 2GB of memory. The Kb offers three methods to avoid this issue. The first two, outputting the query results to text or file didn’t worked. The third method based on using sqlcmd utility worked smoothly with a syntax like the one below:
sqlcmd -i “<file_name.sql>” -d “<database name>”

    So it doesn’t matter that you’re having a supercomputer and that working with big datasets becomes a necessity nowadays, this limitation can make data loading just a little bit more complicated. On one side, it’s true that when dealing with such datasets is probably recommended to use directly sqlcmd to execute the scripts. On the other side, independently from this type of problem, even if understandable from the need of keeping backwards compatibility with 32-bit platforms/solutions, it’s hard to digest the fact that Microsoft keeps some of its products 32-bit based when SQL Server is targeting 64-bit platforms. One has same problem when using BIDS (Business Intelligence Development Studio), developing SSRS, SSIS or SSAS solutions under 32-bit and having maybe to deploy the code as 64-bit (e.g. SQL Server Agent). From my point of view most of the issues I had were when dealing with proprietary drivers like the ones for Oracle or even for MS Office. In addition in SSIS there could be features that are only available in 32-bit versions, or have limitations on 64-bit computers (see [5]). As it seems also the SQL Server Data Tools (SSDT) will have similar drawbacks…

   Anyway, sqlcmd utility saved the day with a minimum of overhead. Unfortunately it’s not always that easy to solvethe compatibility issues between 32-bit and 64-bit software and platforms.

Update 20.06.2017:
   One can synchronize the runtime version between BIDS and SQL Server Agent pretty easy. In BIDS under "Configuration Properties/Debug Option" at Project level, there is the “Run64BitRuntime” Property. Set to false it will run your package on 32-bit version. In a SQL Server Agent Package, there is the “Use 32 bit runtime” Checkbox under “Execution options” at step level. Checking this checkbox will run your package on 32-bit version.

   A hint that the two values might be out of synch is the following error message raised when running the package:
"Attempt to load Oracle client libraries threw BadImageFormatException. This problem will occur when running in 64 bit mode with the 32 bit Oracle client components installed."
Resources:
[1] Microsoft Support (2013) Kb 2874903: "System.OutOfMemoryException" exception when you execute a query in SQL Server Management Studio https://support.microsoft.com/en-us/kb/2874903
[2] MSDN (2016) SQL Server 2016: sqlcmd Utility https://msdn.microsoft.com/en-us/library/ms162773.aspx
[3] MSDN (2016) SQL Server 2016: Use the sqlcmd Utility https://msdn.microsoft.com/en-us/library/ms180944.aspx
[4] MSDN (2012) Introducing Business Intelligence Development Studio  https://msdn.microsoft.com/en-us/library/ms173767.aspx
[5] SQL Server 2008 R2: 64 bit Considerations for Integration Services https://technet.microsoft.com/en-us/library/ms141766(v=sql.105).aspx





02 November 2016

♟️Strategic Management: Integration (Just the Quotes)

"By integration we mean the process of achieving unity of effort among the various subsystems in the accomplishment of the organization's tasks." (Paul R Lawrence, "Organization and environment: Managing differentiation and integration", 1967)

"No matter how difficult or unprecedented the problem, a breakthrough to the best possible solution can come only from a combination of rational analysis, based on the real nature of things, and imaginative reintegration of all the different items into a new pattern, using nonlinear brainpower. This is always the most effective approach to devising strategies for dealing successfully with challenges and opportunities, in the market arena as on the battlefield." (Kenichi Ohmae, "The Mind Of The Strategist", 1982)

"Culture [is] a pattern of basic assumptions invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems." (Edgar H Schein, "Organizational Culture and Leadership", 1985)

"To keep the business from disintegrating, the concept of information systems architecture is becoming less of an option and more of a necessity." (John Zachman, "A Framework for Information Systems Architecture", 1987)

"Conventional process structures are fragmented and piecemeal, and they lack the integration necessary to maintain quality and service. They are breeding grounds for tunnel vision, as people tend to substitute the narrow goals of their particular department for the larger goals of the process as a whole. When work is handed off from person to person and unit to unit, delays and errors are inevitable. Accountability blurs, and critical issues fall between the cracks." (Michael M Hammer, "Reengineering Work: Don't Automate, Obliterate", Magazine, 1990) [source]

"But the net effect of increasing scale, centralization of capital, vertical integration and diversification within the corporate form of enterprise has been to replace the 'invisible hand' of the market by the 'visible hand' of the managers." (David Harvey, "The Limits To Capital", 2006)

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Koeln, NRW, Germany
IT Professional with more than 24 years experience in IT in the area of full life-cycle of Web/Desktop/Database Applications Development, Software Engineering, Consultancy, Data Management, Data Quality, Data Migrations, Reporting, ERP implementations & support, Team/Project/IT Management, etc.