02 December 2016

♟️Strategic Management: Vision (Just the Quotes)

"Leadership is the capacity to translate vision into reality." (Warren G Bennis, 1988)

"Vision is the art of seeing things invisible." (Jonathan Swift, "Thoughts on Various Subjects", 1703)

"Every man takes the limits of his own field of vision for the limits of the world." (Arthur Schopenhauer, "Parerga and Paralipomena", 1851)

"Management techniques are obviously essential, but what matters is leadership. [...] Leading the whole organization needs wisdom and flair and vision and they are another matter; they cannot be reduced to a system and incorporated into a training manual." (Anthony Jay, "Management and Machiavelli", 1967)

"The engineering is secondary to the vision." (Cynthia Ozick, "The Hole/Birth Catalog", 1972)

"Leadership is lifting a person's vision to higher sights, the raising of a person's performance to a higher standard, the building of a personality beyond its normal limitations." (Peter Drucker, "Management: Tasks, Responsibilities, Challenges", 1973)

"The source of good management is found in the imagination of leaders, persons who form new visions and manifest them with a high degree of craft. The blending of vision and craft communicates the purpose. In the arts, people who do that well are masters. In business, they are leaders." (Henry M. Boettinger, Harvard Business Review on Human Relations, 1986)

"Management skills are only part of what it takes. [...] Managers must also be corporate warriors or leaders. These unique individuals are the problem identifiers. They possess a strong sense of vision; view firefighting as an opportunity to do things differently and smarter; and are business strategists who help identify key corporate growth issues." (John W Aldridge, Management Review, December 1987)

"Few, if any, forces in human affairs are as powerful as shared vision." (Peter M Senge, "The Fifth Discipline: The Art and Practice of the Learning Organization", 1990)

"Many leaders have personal visions that never get translated into shared visions that galvanize an organization. What has been lacking is a discipline for translating individual vision into shared vision." (Peter M Senge, "The Fifth Discipline: The Art and Practice of the Learning Organization", 1990)

"Personal mastery is the discipline of continually clarifying and deepening our personal vision, of focusing our energies, of developing patience, and of seeing reality objectively." (Peter M Senge, "The Fifth Discipline: The Art and Practice of the Learning Organization", 1990)

"[…] 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) 

"Sometimes strategies must be left as broad visions, not precisely articulated, to adapt to a changing environment." (Henry Mintzberg, "The Fall and Rise of Strategic Planning", Harvard Business Review, 1994)

"Enterprise Engineering is not a single methodology, but a sophisticated synthesis of the most important and successful of today's change methods. 'Enterprise Engineering' first explains in detail all the critical disciplines (including continuous improvement, radical reinvention of business processes, enterprise redesign, and strategic visioning). It then illustrates how to custom-design the right combination of these change methods for your organization's specific needs." (James Martin, "The Great Transition, 1995)

"Management is a set of processes that can keep a complicated system of people and technology running smoothly. The most important aspects of management include planning, budgeting, organizing, staffing, controlling, and problem solving. Leadership is a set of processes that creates organizations in the first place or adapts them to significantly changing circumstances. Leadership defines what the future should look like, aligns people with that vision, and inspires them to make it happen despite the obstacles." (John P Kotter, "Leading Change", 1996) 

"To attain quality, it is well to begin by establishing the 'vision' for the organization, along with policies and goals. Conversion of goals into results (making quality happen) is then done through managerial processes - sequences of activities that produce the intended results." (Joseph M Juran, "How to think about quality", 1999)

"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)

"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)

"Vision is a capacity to understand a position and to generate solid strategic plans." (Diego Rasskin-Gutman, "Chess Metaphors: Artificial Intelligence and the Human Mind", 2009)

"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)

"Image theory is an attempt to describe decision making as it actually occurs. […] The concept of images is central to the theory. They represent visions held by individuals and organisations that constitute how they believe the world should exist. When considering individuals, the theory refers to these images as the value image, trajectory image and strategic image. The value image is based on an individual’s ethics, morals and beliefs. The trajectory images encompass the decision maker’s goals and aspirations. Finally, for each trajectory image, a decision maker may have one or more strategic images that contain their plans, tactics and forecasts for their goal. […] In an organisational decision-making setting, these images are referred to as culture, vision and strategy." (Christopher B Stephenson, "What causes top management teams to make poor strategic decisions?", 2012) 

"Strategic planning is not strategic thinking. Indeed, strategic planning often spoils strategic thinking, causing managers to confuse real vision with the manipulation of numbers." (Henry Mintzberg)

01 December 2016

♟️Strategic Management: Mission (Just the Quotes)

"Good mission statements focus on a limited number of goals, stress the company's major policies and values, and define the company's major competitive scopes." (Philip Kotler, "Marketing Management", 1967)

"'Structure follows strategy' is one of the fundamental insights we have acquired in the last twenty years. Without understanding the mission, the objectives, and the strategy of the enterprise, managers cannot be managed, organizations cannot be designed, managerial jobs cannot be made productive. [...] Strategy determines what the key activities are in a given business. And strategy requires knowing 'what our business is and what it should be'." (Peter F Drucker, "Management: Tasks, Responsibilities, Practices", 1973)

"In general, growth is an intrinsic source of change with potentially unintended effects and some subunits are better positioned than others to protect themselves against such effects. Oligarchical tendencies are present in almost all membership-based organizations, such as unions and voluntary associations, and if unchecked, can lead to transformations. Organizations with diffuse goals or innovative leadership are sometimes able to survive the crisis of complementing their original mission by moving onto other goals." (Howard E Aldrich, "Organizations and Environments", 1979)

"The key mission of contemporary management is to transcend the old models which limited the manager's role to that of controller, expert or morale booster. These roles do not produce the desired result of aligning the goals of the employees and the corporation. [...] These older models, vestiges of a bygone era, have served their function and must be replaced with a model of the manager as a developer of human resources." (Michael Durst, "Small Systems World", 1985)

"We manage with a mission. We don't strive for superior or excellent management. We strive to manage for the mission. We never lose sight of the fact that we are in this business to help girls grow." (Frances Hesselbein, Management Review, 1987)

"A mission statement should define the business that the organization wants to be in, not necessarily what it is in." (Russell L Ackoff, "Re-Creating the Corporation", 1999)

"An organization's mission statement: (1) should contain its reasons for existence and its most general aspirations, its ideals. (2) It should identify in very general terms the way(s) by which the organization will pursue its ideals, that is, the business it wants to be in. (3) It should formulate the ways by which it will attempt to serve each of its stakeholder groups. (4) It should meet the preceding requirements in a way that is exciting and challenging to all its stakeholders. Finally, (5) it should establish the uniqueness of the organization." (Russell L Ackoff, "Re-Creating the Corporation", 1999)

"You basically get what you reward. If you want to achieve the goals and reflect the values in your mission statement, then you need to align the reward system with these goals and values." (Stephen Covey, "The 7 Habits of Highly Effective People Personal Workbook", 2000)

"Leadership is much less about what you do, and much more about who you are. If you view leadership as a bag of manipulative tricks or charismatic behaviors to advance your own personal interest, then people have every right to be cynical. But if your leadership flows first and foremost from inner character and integrity of ambition, then you can justly ask people to lend themselves to your organization and its mission." (Frances Hesselbein, "Hesselbein on Leadership", 2002)

"In virtually every organization, regardless of mission and function, people are frustrated by problems that seem unsolvable." (Meg Wheatley, "Finding Our Way: Leadership for an Uncertain Time", 2005)

"Mission is at the heart of what you do as a team. Goals are merely steps to its achievement." (Patrick Dixon, "Building a Better Business", 2005)

"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 organizations of the future are filled with smart, fast, flexible people on a mission." (Seth Godin, "Tribes: We need you to lead us", 2008)

"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)

"Good mission statements have five major characteristics. (1) They focus on a limited number of goals. (2) They stress the company’s major policies and values. (3) They define the major competitive spheres within which the company will operate. (4) They take a long-term view. (5) They are as short, memorable, and meaningful as possible." (Philip Kotler & Kevin L Keller, "Marketing Management" 15th Ed., 2016)

29 November 2016

♟️Strategic Management: Failure (Just the Quotes)

"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)

"Failure to delegate causes managers to be crushed and fail under the weight of accumulated duties that they do not know and have not learned to delegate." (James D Mooney, "Onward Industry!", 1931)

"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)

"You can teach the rudiments of cooking, as of management, but you cannot make a great cook or a great manager. In both activities, you ignore fundamentals at grave risk  - but sometimes succeed. In both, science can be extremely useful but is no substitute for the art itself. In both, inspired amateurs can outdo professionals. In both, perfection is rarely achieved, and failure is more common than the customers realize. In both, practitioners don't need recipes that detail timing down to the last second, ingredients to the last fraction of an ounce, and procedures down to the Just flick of the wrist; they need reliable maxims, instructive anecdotes, and no dogmatism." (Robert Heller, "The Naked Manager: Games Executives Play", 1972)

"We never like to admit to ourselves that we have made a mistake. Organizational structures tend to accentuate this source of failure of information." (Kenneth E Boulding, "Toward a General Social Science", 1974)

"[...] 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)

"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)

"All problems present themselves to the mind as threats of failure." (J. J. Gordon, "Creative Computing", 1983)

"One of the most important tasks of a manager is to eliminate his people's excuses for failure." (Robert Townsend, "Further Up the Organization", 1984)

"It seems to me that we too often focus on the inside aspects of the job of management, failing to give proper attention to the requirement for a good manager to maintain those relationships between his organization and the environment in which it must operate which permits it to move ahead and get the job done." (Breene Kerr, Giants in Management, 1985) 

"Most of us managers are prone to one failing: A tendency to manage people as though they were modular components." (Tom DeMarco & Timothy Lister, "Peopleware: Productive Projects and Teams", 1987)

"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)

"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 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)

"Failing organizations are usually overmanaged and under-led." (Warren G Bennis, 1988)

"Commonly, the threats to strategy are seen to emanate from outside a company because of changes in technology or the behavior of competitors. Although external changes can be the problem, the greater threat to strategy often comes from within. A sound strategy is undermined by a misguided view of competition, by organizational failures, and, especially, by the desire to grow." (Michael E Porter, "What is Strategy?", Harvard Business Review, 1996)

"Managers must clearly distinguish operational effectiveness from strategy. Both are essential, but the two agendas are different. The operational agenda involves continual improvement everywhere there are no trade-offs. Failure to do this creates vulnerability even for companies with a good strategy. The operational agenda is the proper place for constant change, flexibility, and relentless efforts to achieve best practice. In contrast, the strategic agenda is the right place for defining a unique position, making clear trade-offs, and tightening fit. It involves the continual search for ways to reinforce and extend the company’s position. The strategic agenda demands discipline and continuity; its enemies are distraction and compromise." (Michael E Porter, "What is Strategy?", Harvard Business Review, 1996)

"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)

"The aim of leadership should be to improve the performance of man and machine, to improve quality, to increase output, and simultaneously to bring pride of workmanship to people. Put in a negative way, the aim of leadership is not merely to find and record failures of men, but to remove the causes of failure: to help people to do a better job with less effort." (W Edwards Deming, "Out of the Crisis", 2000)

"Process standardization from on high is disempowerment. It is a direct result of fearful management, allergic to failure. It tries to avoid all chance of failure by having key decisions made by a guru class (those who set the standards) and carried out mechanically by the regular folk. As defense against failure, standard process is a kind of armor. The more worried you are about failure, the heavier the armor you put on. But armor always has a side effect of reduced mobility. The overarmored organization has lost the ability to move and move quickly. When this happens, standard process is the cause of lost mobility. It is, however, not the root cause. The root cause is fear." (Tom DeMarco, "Slack: Getting Past Burnout, Busywork, and the Myth of Total Efficiency", 2001)

"When unmeetable expectations are formed, failure is virtually assured, since we have defined failure as unmet expectations. This is called a planning failure and is the difference between what was planned to be accomplished and what was, in fact, achievable. The second component of failure is poor performance or actual failure. This is the difference between what was achievable and what was actually accomplished." (Harold Kerzner, "Strategic Planning for Project Management using a Project Management Maturity Model", 2001)

"When we fail to grasp the systemic source of problems, we are left to treat symptoms rather than eliminate underlying causes. Without systemic thinking, the best we can ever do is adapt or react. Systems thinking, powered by visual models, stimulates creative - rather than adaptive - behavior. [...] To benefit from systems thinking, the project team needs to extend that viewpoint upward to the bigger picture of the project’s overall environment."(Kevin Forsberg et al, "Visualizing Project Management: Models and frameworks for mastering complex systems" 3rd Ed., 2005)

"It’s tempting to view the multitude of monster projects gone bad as anomalies, excrescences of corporate and government bureaucracies run amok. But you will find similar tales of woe emerging from software projects big and small, public and private, old and new. Though details differ, the pattern is depressingly repetitive: Moving targets. Fluctuating goals. Unrealistic schedules. Missed deadlines. Ballooning costs. Despair. Chaos." (Scott Rosenberg, "Dreaming in Code", 2007)

"A bad strategy will fail no matter how good your information is and lame execution will stymie a good strategy. If you do enough things poorly, you will go out of business." (Bill Gates, "Business @ the Speed of Thought: Succeeding in the Digital Economy", 2009)

"Any strategy that involves crossing a valley - accepting short-term losses to reach a higher hill in the distance - will soon be brought to a halt by the demands of a system that celebrates short-term gains and tolerates stagnation, but condemns anything else as failure. In short, a world where big stuff can never get done." (Neal Stephenson, "Innovation Starvation," World Policy Journal, 2011)

"Experts in the 'Problem' area proceed to elaborate its complexity. They design complex Systems to attack it. This approach guarantees failure, at least for all but the most pedestrian tasks. The problem is a Problem precisely because it is incorrectly conceptualized in the first place, and a large System for studying and attacking the Problem merely locks in the erroneous conceptualization into the minds of everyone concerned. What is required is not a large System, but a different approach. Trying to design a System in the hope that the System will somehow solve the Problem, rather than simply solving the Problem in the first place, is to present oneself with two problems in place of one." (John Gall, "The Systems Bible: The Beginner's Guide to Systems Large and Small"[Systematics 3rd Ed.], 2011)

"Pragmatically, it is generally easier to aim at changing one or a few things at a time and then work out the unexpected effects, than to go to the opposite extreme. Attempting to correct everything in one grand design is appropriately designated as Grandiosity. […] A little Grandiosity goes a long way. […] The diagnosis of Grandiosity is quite elegantly and strictly made on a purely quantitative basis: How many features of the present System, and at what level, are to be corrected at once? If more than three, the plan is grandiose and will fail." (John Gall, "The Systems Bible: The Beginner's Guide to Systems Large and Small"[Systematics 3rd Ed.], 2011)

"Restructuring is a favorite tactic of antisocials who have reached a senior position in an organization. The chaos that results is an ideal smokescreen for dysfunctional leadership. Failure at the top goes unnoticed, while the process of restructuring creates the illusion of a strong, creative hand on the helm." (Manfred F R Kets de Vries, "The Leader on the Couch", 2011)

"Most leadership strategies are doomed to failure from the outset. As people have been noting for years, the majority of strategic initiatives that are driven from the top are marginally effective - at best." (Peter Senge, "The Dance of Change: The challenges to sustaining momentum in a learning organization", 2014)

"A strategy that doesn't take into account resources is doomed to failure." (John C Maxwell, "JumpStart Your Thinking: A 90-Day Improvement Plan", 2015)

"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)

"[…] the practice of continuous integration helps a development team fail-fast in integrating code under development. A corollary of failing fast is to aim for fast feedback. The practice of regularly showcasing (demoing) features under development to product owners and business stakeholders helps them verify whether it is what they asked for and decide whether it is what they really want." (Sriram Narayan, "Agile IT Organization Design: For Digital Transformation and Continuous Delivery", 2015)

"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)

"Organizations that rely too heavily on org charts and matrixes to split and control work often fail to create the necessary conditions to embrace innovation while still delivering at a fast pace. In order to succeed at that, organizations need stable teams and effective team patterns and interactions. They need to invest in empowered, skilled teams as the foundation for agility and adaptability. To stay alive in ever more competitive markets, organizations need teams and people who are able to sense when context changes and evolve accordingly." (Matthew Skelton & Manuel Pais, "Team Topologies: Organizing Business and Technology Teams for Fast Flow", 2019)

28 November 2016

♟️Strategic Management: Limits (Just the Quotes)

"Weak character coupled with honored place, meager knowledge with large plans, limited powers with heavy responsibility, will seldom escape disaster." ("I Ching" ["Book of Changes"], cca. 600 BC)

"[...] authority for given tasks is limited to that for which an individual may properly held responsible." (Harold Koontz & Cyril O Donnell, "Principles of Management", 1955)

"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)

"The concept of leadership has an ambiguous status in organizational practice, as it does in organizational theory. In practice, management appears to be of two minds about the exercise of leadership. Many jobs are so specified in content and method that within very broad limits differences among individuals become irrelevant, and acts of leadership are regarded as gratuitous at best, and at worst insubordinate." (Daniel Katz & Robert L Kahn, "The Social Psychology of Organizations", 1966)

"Good mission statements focus on a limited number of goals, stress the company's major policies and values, and define the company's major competitive scopes." (Philip Kotler, "Marketing Management", 1967)

"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) 

"Leadership is lifting a person's vision to higher sights, the raising of a person's performance to a higher standard, the building of a personality beyond its normal limitations." (Peter Drucker, "Management: Tasks, Responsibilities, Challenges", 1973)

"The greater the uncertainty, the greater the amount of decision making and information processing. It is hypothesized that organizations have limited capacities to process information and adopt different organizing modes to deal with task uncertainty. Therefore, variations in organizing modes are actually variations in the capacity of organizations to process information and make decisions about events which cannot be anticipated in advance." (John K Galbraith, "Organization Design", 1977)

"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)

"The key mission of contemporary management is to transcend the old models which limited the manager's role to that of controller, expert or morale booster. These roles do not produce the desired result of aligning the goals of the employees and the corporation. [...] These older models, vestiges of a bygone era, have served their function and must be replaced with a model of the manager as a developer of human resources." (Michael Durst, "Small Systems World", 1985)

"[…] new insights fail to get put into practice because they conflict with deeply held internal images of how the world works [...] images that limit us to familiar ways of thinking and acting. That is why the discipline of managing mental models - surfacing, testing, and improving our internal pictures of how the world works - promises to be a major breakthrough for learning organizations." (Peter Senge, "The Fifth Discipline: The Art and Practice of the Learning Organization", 1990)

"A process perspective sees not individual tasks in isolation, but the entire collection of tasks that contribute to a desired outcome. Narrow points of view are useless in a process context. It just won't do for each person to be concerned exclusively with his or her own limited responsibility, no matter how well these responsibilities are met. When that occurs, the inevitable result is working at cross–purpose, misunderstanding, and the optimization of the part at the expense of the whole. Process work requires that everyone involved be directed toward a common goal; otherwise, conflicting objectives and parochial agendas impair the effort."  (James A Champy & Michael M Hammer, "Reengineering the Corporation", 1993)

"Strategy renders choices about what not to do as important as choices about what to do. Indeed, setting limits is another function of leadership. Deciding which target group of customers, varieties, and needs the company should serve is fundamental to developing a strategy. But so is deciding not to serve other customers or needs and not to offer certain features or services. Thus strategy requires constant discipline and clear communication. Indeed, one of the most important functions of an explicit, communicated strategy is to guide employees in making choices that arise because of trade-offs in their individual activities and in day-to-day decisions." (Michael E Porter, "What is Strategy?", Harvard Business Review, 1996)

"Ideas about organization are always based on implicit images or metaphors that persuade us to see, understand, and manage situations in a particular way. Metaphors create insight. But they also distort. They have strengths. But they also have limitations. In creating ways of seeing, they create ways of not seeing. There can be no single theory or metaphor that gives an all-purpose point of view, and there can be no simple 'correct theory' for structuring everything we do." (Gareth Morgan, "Imaginization", 1997)

"Faced with the overwhelming complexity of the real world, time pressure, and limited cognitive capabilities, we are forced to fall back on rote procedures, habits, rules of thumb, and simple mental models to make decisions. Though we sometimes strive to make the best decisions we can, bounded rationality means we often systematically fall short, limiting our ability to learn from experience." (John D Sterman, "Business Dynamics: Systems thinking and modeling for a complex world", 2000)

"Strategy is about stretching limited resources to fit ambitious aspirations." (Coimbatore K Prahalad, "Don Soderquist", 2005)

"Leadership is seeing the possibilities in a situation while others are seeing the limitations." (John C Maxwell, "The 21 Irrefutable Laws of Leadership", 2007)

"The other element of systems thinking is learning to influence the system with reinforcing feedback as an engine for growth or decline. [...] Without this kind of understanding, managers will hit blockages in the form of seeming limits to growth and resistance to change because the large complex system will appear impossible to manage. Systems thinking is a significant solution." (Richard L Daft, "The Leadership Experience" 4th Ed., 2008)

"Good mission statements have five major characteristics. (1) They focus on a limited number of goals. (2) They stress the company’s major policies and values. (3) They define the major competitive spheres within which the company will operate. (4) They take a long-term view. (5) They are as short, memorable, and meaningful as possible." (Philip Kotler & Kevin L Keller, "Marketing Management" 15th Ed., 2016)

27 November 2016

♟️Strategic Management: Risk (Just the Quotes)

"The decision which achieves organization objectives must be both (1) technologically sound and (2) carried out by people. If we lose sight of the second requirement or if we assume naively that people can be made to carry out whatever decisions are technically sound - we run the risk of decreasing rather than increasing the effectiveness of the organization." (Douglas McGregor, "The Human Side of Enterprise", 1960)

"But the greater the primary risk, the safer and more careful your secondary assumptions must be. A project is only as sound as its weakest assumption, or its largest uncertainty." (Robert Heller, "The Naked Manager: Games Executives Play", 1972)

"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) 

"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)

"Risk is a function of how poorly a strategy will perform if the 'wrong' scenario occurs." (Michael Porter, "Competitive Advantage: Creating and Sustaining Superior Performance", 1985)

"The risk of making a decision that's wrong is so enormous that sometimes it just crushes people so that they can't make any decision at all because they're afraid of making the wrong decision." (James M McPherson, "An Exchange With a Civil War Historian", 1995)

"Until we can distinguish between an event that is truly random and an event that is the result of cause and effect, we will never know whether what we see is what we'll get, nor how we got what we got. When we take a risk, we are betting on an outcome that will result from a decision we have made, though we do not know for certain what the outcome will be. The essence of risk management lies in maximizing the areas where we have some control over the outcome while minimizing the areas where we have absolutely no control over the outcome and the linkage between effect and cause is hidden from us." (Peter L Bernstein, "Against the Gods: The Remarkable Story of Risk", 1996)

"Risk management is the explicit quantitative declaration of uncertainty. But in some corporate cultures, people aren’t allowed to be uncertain. They’re allowed to be wrong, but they can’t be uncertain. They are obliged to look their bosses and clients in the face and lie rather than show uncertainty about outcomes. Uncertainty is for wimps." (Tom DeMarco, "Slack: Getting Past Burnout, Busywork, and the Myth of Total Efficiency", 2001)

"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)

"According to the traditional distinction from economics, risk is measurable, whereas uncertainty is indefinite or incalculable. In truth, risk can never be measured precisely except in dice rolls and games of chance, called a priori probability. Risk can only be estimated from observations in the real world, but to do that, we need to take a sample, and estimate the underlying distribution. In a sense, our estimates of real-world volatility are themselves volatile. Failure to realize this fundamental untidiness of the real world is called the ludic fallacy from the Latin for games. […] However, when the term risk measurement is used as opposed to risk estimation, a degree of precision is suggested that is unrealistic, and the choice of language suggests that we know more than we do. Even the language '​​​​​​risk management'​​​​​​ implies we can do more than we can." (Paul Gibbons, "The Science of Successful Organizational Change",  2015)

"Change strategy is, by this definition, the way a business (1) manages the portfolio of change to make sure that the parts deliver the whole business strategy, (2) creates the context for change, and (3) monitors change risk and change performance across the entire business." (Paul Gibbons, "The Science of Successful Organizational Change", 2015)

"After you think, you act. After you act, you learn. Make decisions, but decisions will have risks of mistakes. But make sure you avoid disastrous mistakes and avoid making the same mistake twice." (Sukanto Tanoto, [Keynote speech] 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)

"Our minds, especially our intuitions, are not equipped to deal with a probabilistic world. Risk and prediction are widely misunderstood, […] All decision making in a probabilistic world involves estimating the likelihood of an event and how much we will value it (affective forecasting). Humans are bad at both - ​​​​​ particularly at the former. […] In business, understanding the psychology of risk is more important than understanding the mathematics of risk." (Paul Gibbons, "The Science of Successful Organizational Change",  2015)

"Often greater risk is involved in postponement than in making a wrong decision." (Harry A Hopf)

♟️Strategic Management: Output (Just the Quotes)

"If we view organizations as adaptive, problem-solving structures, then inferences about effectiveness have to be made, not from static measures of output, but on the basis of the processes through which the organization approaches problems. In other words, no single measurement of organizational efficiency or satisfaction - no single time-slice of organizational performance can provide valid indicators of organizational health." (Warren G Bennis, "General Systems Yearbook", 1962)

"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)

"Automation is certainly one way to improve the leverage of all types of work. Having machines to help them, human beings can create more output. But in both widget manufacturing and administrative work, something else can also increase the productivity of the black box. This is called work simplification. To get leverage this way, you first need to create a flow chart of the production process as it exists. Every single step must be shown on it; no step should be omitted in order to pretty things up on paper. Second, count the number of steps in the flow chart so that you know how many you started with. Third, set a rough target for reduction of the number of steps." (Andrew S Grove, "High Output Management", 1983)

"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)

"Five coordinating mechanisms seem to explain the fundamental ways in which organizations coordinate their work: mutual adjustment, direct supervision, standardization of work processes, standardization of work outputs, and standardization of worker skills." (Henry Mintzberg, "The Structuring of Organizations", 1979)

"[...] in the work of the soft professions, it becomes very difficult to distinguish between output and activity. And as noted, stressing output is the key to improving productivity, while looking to increase activity can result in just the opposite." (Andrew S Grove, "High Output Management", 1983)

"[...] leverage, which is the output generated by a specific type of work activity. An activity with high leverage will generate a high level of output; an activity with low leverage, a low level of output." (Andrew S Grove, "High Output Management", 1983)

"Managerial productivity - that is, the output of a manager per unit of time worked - can be increased in three ways: 1.  Increasing the rate with which a manager performs his activities, speeding up his work. 2.  Increasing the leverage associated with the various managerial activities. 3.  Shifting the mix of a manager’s activities from those with lower to those with higher leverage." (Andrew S Grove, "High Output Management", 1983)

"Stressing output is the key to improving productivity, while looking to increase activity can result in just the opposite." (Andrew S Grove, "High Output Management", 1983)

"[...] the output of a manager is a result achieved by a group either under her supervision or under her influence. While the manager’s own work is clearly very important, that in itself does not create output. Her organization does." (Andrew S Grove, "High Output Management", 1983)

"The single most important task of a manager is to elicit peak performance from his subordinates. So if two things limit high output, a manager has two ways to tackle the issue: through training and motivation." (Andrew S Grove, "High Output Management", 1983)

"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)

"The aim of leadership should be to improve the performance of man and machine, to improve quality, to increase output, and simultaneously to bring pride of workmanship to people. Put in a negative way, the aim of leadership is not merely to find and record failures of men, but to remove the causes of failure: to help people to do a better job with less effort." (W Edwards Deming, "Out of the Crisis", 2000)

"Efficiency refers to the amount of resources used to achieve the organization’s goals. It is based on the quantity of raw materials, money, and employees necessary to produce a given level of output. Effectiveness is a broader term, meaning the degree to which an organization achieves its goals." (Richard L Daft, "Organization Theory and Design", 3rd Ed., 2010)

"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)

24 November 2016

♟️Strategic Management: Principles (Just the Quotes)

"It is superfluous to suppose that what can be accounted for by a few principles has been produced by many." (Thomas Aquinas, "Summa Theologica", cca. 1266-1273)

"Men are often led into errors by the love of simplicity, which disposes us to reduce things to few principles, and to conceive a greater simplicity in nature than there really is." (Thomas Reid, "Essays on the Intellectual Powers of Man", 1785)

"Amid the pressure of great events, a general principle gives no help [in decision making]." (Georg W Hegel, "Lectures on the Philosophy of History", 1837)

"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)

"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)

"It is always more easy to discover and proclaim general principles than it is to apply them." (Winston Churchill, "The Second World War: The gathering storm", 1948)

"The essence of managership is the achievement of coordination among people. Coordination is a complex concept, including principles by which harmonious enterprise activity can be accomplished and the many techniques for achieving the greatest synchronized effort." (Harold Koontz & Cyril O Donnell, "Principles of Management", 1955)

"Principles are the territory. Values are maps. When we value correct principles, we have truth - a knowledge of things as they are." (Stephen R Covey, "The 7 Habits of Highly Effective People", 1989)

"It is possible to learn strategic flexibility [...] however, that it is difficult to teach it. It is not a matter of learning a few readily grasped general principles, but of learning a lot of small, 'local' rules, each of which is applicable in a limited area. The point is not to learn how to drive a steamroller with which one can flatten all problems in the same way, but to learn the adroitness of a puppeteer, who at one time holds many strings in his hands and who is able to adapt his movements to the given circumstances in the most sophisticated ways." (Dietrich Dörner, "The Logic of Failure", Philosophical Transactions of the Royal Society of London (B), 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)

"Values are social norms - they're personal, emotional, subjective, and arguable. All of us have values. [...] The question you must ask yourself is, Are your values based upon principles? In the last analysis, principles are natural laws - they're impersonal, factual, objective and self-evident. Consequences are governed by principles and behavior is governed by values; therefore, value principles." (Stephen R Covey, "The 8th Habit: From Effectiveness to Greatness", 2004)

"For values or guiding principles to be truly effective they have to be verbs. It's not 'integrity'," it's 'always do the right thing'. It's not 'innovation', it's 'look at the problem from a different angle'. Articulating our values as verbs gives us a clear idea - we have a clear idea of how to act in any situation." (Simon Sinek, "Start With Why: How Great Leaders Inspire Everyone to Take Action", 2009)

♟️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)

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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.