14 December 2016

♟️Strategic Management: Efficiency (Just the Quotes)

"Motion study is the science of eliminating wastefulness resulting from using unnecessary, ill-directed, and inefficient motions. The aim of motion study is to find and perpetuate the scheme of least waste methods of labor." (Frank B Gilbreth, "Primer of scientific management", 1912) 

"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)

"But waste is often hard to find. The costs of not-doing tend to be hidden in the figures. […] Waste runs high in any business. Man, after all, is not very efficient. Special efforts to find waste are therefore always necessary." (Peter F Drucker, "Managing for Results: Economic Tasks and Risk-taking Decisions", 1964)

"The myth of efficiency lies in the assumption that the most efficient manager is ipso facto the most effective; actually the most efficient manager working on the wrong task will not be effective." (R Alec Mackenzie, "The Time Trap", 1972)

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

"It is more important for the manager to get his information quickly and efficiently than to get it formally." (Henry Mintzberg, "The Nature of Managerial Work", 1973)

"When thinking about the absolute elimination of waste, keep the following two points in mind:" (1) Improving efficiency makes sense only when it is tied to cost reduction. To achieve this, we have to start producing only the things we need using minimum manpower." (2) Look at the efficiency of each operator and of each line. Then look at the operators as a group, and then at the efficiency of the entire plant" (all the lines). Efficiency must be improved at each step and, at the same time, for the plant as a whole." (Taiichi Ohno, "Toyota Production System: Beyond Large-Scale Production", 1978)

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

"There is an especially efficient way to get information, much neglected by most managers. That is to visit a particular place in the company and observe what's going on there." (Andrew S Grove, "High Output Management", 1983)

"Most managers are rewarded if their unit operates efficiently and effectively. A highly creative unit, in contrast, might appear ineffective and uneven, and rather crazy to an outside or inside observer." (William G Dyer, "Strategies for Managing Change", 1984)

"Organizations are complex and paradoxical phenomena that can be understood in many different ways. Many of our taken-for-granted ideas about organizations are metaphorical, even though we may not recognize them as such. For example, we frequently talk about organizations as if they were machines designed to achieve predetermined goals and objectives, and which should operate smoothly and efficiently. And as a result of this kind of thinking, we often attempt to organize and manage them in a mechanistic way, forcing their human qualities into a background role. By using different metaphors to understand the complex and paradoxical character of organizational life, we are able to manage and design organizations in ways that we may not have thought possible before." (Gareth Morgan, "Images of Organization", 1986)

"The chain of command is an inefficient communication system. Although my staff and I had our goals, tasks, and priorities well defined, large parts of the organization didn't know what was going on. Frequent, thorough, open communication to every employee is essential to get the word out and keep walls from building within the company. And while face-to-face communication is more effective than impersonal messages, it's a good idea to vary the medium and the message so that no one" (including top management) relies too much on ''traditional channels of communication."" (William H Peace, Harvard Business Review, 1986)

"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) 

"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)

"The premise here is that the hierarchy lines on the chart are also the only communication conduit. Information can flow only along the lines. [...] The hierarchy lines are paths of authority. When communication happens only over the hierarchy lines, that's a priori evidence that the managers are trying to hold on to all control. This is not only inefficient but an insult to the people underneath." (Tom DeMarco, "Slack: Getting Past Burnout, Busywork, and the Myth of Total Efficiency", 2001)

"Today’s big companies do very little to enhance the productivity of their professionals. In fact, their vertically oriented organization structures, retrofitted with ad hoc and matrix overlays, nearly always make professional work more complex and inefficient." (Lowell L Bryan & Claudia Joyce, "The 21st century organization", 2005)

"Traditional organizational charts tend to institutionalize inefficiency, and misalignment of natural talents to job descriptions." (John Hoover, "Unleashing Leadership", 2005)

"Most dashboards fail to communicate efficiently and effectively, not because of inadequate technology" (at least not primarily), but because of poorly designed implementations. No matter how great the technology, a dashboard's success as a medium of communication is a product of design, a result of a display that speaks clearly and immediately. Dashboards can tap into the tremendous power of visual perception to communicate, but only if those who implement them understand visual perception and apply that understanding through design principles and practices that are aligned with the way people see and think." (Stephen Few, "Information Dashboard Design", 2006)

"Management can be defined as the attainment of organizational goals in an effective and efficient manner through planning, organizing, staffing, directing, and controlling organizational resources." (Richard L Daft, "The Leadership Experience" 4th Ed., 2008)

"An organization’s culture is the underlying set of key values, beliefs, understandings, and norms shared by employees. These underlying values and norms may pertain to ethical behavior, commitment to employees, efficiency, or customer service, and they provide the glue to hold organization members together. An organization’s culture is unwritten but can be observed in its stories, slogans, ceremonies, dress, and office layout." (Richard L Daft, "Organization Theory and Design", 3rd Ed., 2010)

"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)

"Knowledge is in some ways the most important" (though intangible) capital of a software engineering organization, and sharing of that knowledge is crucial for making an organization resilient and redundant in the face of change. A culture that promotes open and honest knowledge sharing distributes that knowledge efficiently across the organization and allows that organization to scale over time. In most cases, investments into easier knowledge sharing reap manyfold dividends over the life of a company." (Titus Winters, "Software Engineering at Google: Lessons Learned from Programming Over Time", 2020)

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

♟️Strategic Management: Policy (Just the Quotes)

"To be guided in one's decisions by the present, and to prefer what is sure to what is uncertain (though more attractive), is an expedient, a narrow rule of policy. Not thus do states nor even individual men make their way to greatness." (Marquis de Vauvenargues, "Reflections and Maxims", cca. 1746)

"An adjustive effort of any kind is preceded by a decision to act or not act along a given line, and the decision is itself preceded by a definition of the situation, that is to say, an interpretation, or point of view, and eventually a policy and a behavior pattern. In this way quick judgments and decisions are made at every point in everyday life. Thus when approached by a man or beast in a lonely spot we first define the situation, make a judgment, as to whether the object is dangerous or harmless, and then decide ('make up our mind') what we are going to do about it." (William I Thomas, "Primitive Behavior", 1937)

"A policy therefore might be likened to strategy, the broad, overall, long term conception which gives direction and purpose to the tactics of immediately daily operations and decisions." (Lawrence K. Frank, "National Policy for the Family", 1948)

"The concern of OR with finding an optimum decision, policy, or design is one of its essential characteristics. It does not seek merely to define a better solution to a problem than the one in use; it seeks the best solution... [It] can be characterized as the application of scientific methods, techniques, and tools to problems involving the operations of systems so as to provide those in control of the operations with optimum solutions to the problems." (C West Churchman et al, "Introduction to Operations Research", 1957)

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

"Organization is not neutral in its effect upon policy, and those who hold power do not lightly relinquish is." (Stephan K. Bailey, "Agenda For the Nation", 1968)

"Policy-making, decision-taking, and control: These are the three functions of management that have intellectual content." (Anthony S Beer, "Management Science" , 1968)

"In complex systems cause and effect are often not closely related in either time or space. The structure of a complex system is not a simple feedback loop where one system state dominates the behavior. The complex system has a multiplicity of interacting feedback loops. Its internal rates of flow are controlled by nonlinear relationships. The complex system is of high order, meaning that there are many system states (or levels). It usually contains positive-feedback loops describing growth processes as well as negative, goal-seeking loops. In the complex system the cause of a difficulty may lie far back in time from the symptoms, or in a completely different and remote part of the system. In fact, causes are usually found, not in prior events, but in the structure and policies of the system." (Jay W Forrester, "Urban dynamics", 1969)

"In his search for elegance the management scientist has hindered his ability to participate in solving policy problems. [...] The management scientist must be prepared to forego elegance, to adjust his technique to the problem rather than searching for problems that fit the technique." (Henry Mintzberg, "The Nature of Managerial Work", 1973)

"Given that the structure of an econometric model consists of optimal decision rules of economic agents, and that optimal decision rules vary systematically with changes in the structure of series relevant to the decision maker, it follows that any change in policy will systematically alter the structure of econometric models." (Robert Lucas, 1976)

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

"Executive stress is difficult to overstate when there is a conflict among policy restrictions, near-term performance, long-term good of the company, and personal survival." (Bruce Henderson, "Henderson on Corporate Strategy", 1979)

"It is a paradox that the greater the decentralization, the greater the need for both leadership and explicit policies from the top management." (Bruce Henderson, "Henderson on Corporate Strategy", 1979)

"It makes little sense to subject all employees to training programs, to personnel policies, and to supervision designed for one group of employees, and in particular designed, as so many of the policies are, for yesterday's typical entrant into the labor forcethe fifteen or sixteen year old without any experience. More and more we will have to have personnel policies that fit the person rather than bureaucratic convenience or tradition." (Peter F Drucker, "Management in Turbulent Times", 1980)

"One critical source of knowledge is an understanding of how your organization formulates policies." (Dale E Zand, "Information, Organization, and Power", 1981)

"Linear programming is viewed as a revolutionary development giving man the ability to state general objectives and to find, by means of the simplex method, optimal policy decisions for a broad class of practical decision problems of great complexity. In the real world, planning tends to be ad hoc because of the many special-interest groups with their multiple objectives." (George B Dantzig, "Mathematical Programming: The state of the art", 1983)

"The formal structure of a decision problem in any area can be put into four parts: (1) the choice of an objective function denning the relative desirability of different outcomes; (2) specification of the policy alternatives which are available to the agent, or decisionmaker, (3) specification of the model, that is, empirical relations that link the objective function, or the variables that enter into it, with the policy alternatives and possibly other variables; and (4) computational methods for choosing among the policy alternatives that one which performs best as measured by the objective function." (Kenneth Arrow, "The Economics of Information", 1984)

"Every organizational policy solves certain problems and generates others." (Judith M Bardwick, "The Plateauing Trap", 1986)

"A strong corporate culture is the invisible hand that guides how things are done in an organization. The phrase, 'You just can't do that here', is extremely powerful, more so than any written rules or policy manuals." (Andrew S Grove, "One-On-One With Andy Grove", 1987)

"A model for simulating dynamic system behavior requires formal policy descriptions to specify how individual decisions are to be made. Flows of information are continuously converted into decisions and actions. No plea about the inadequacy of our understanding of the decision-making processes can excuse us from estimating decision-making criteria. To omit a decision point is to deny its presence - a mistake of far greater magnitude than any errors in our best estimate of the process." (Jay W Forrester, "Policies, decisions and information sources for modeling", 1994)

"Management is not founded on observation and experiment, but on a drive towards a set of outcomes. These aims are not altogether explicit; at one extreme they may amount to no more than an intention to preserve the status quo, at the other extreme they may embody an obsessional demand for power, profit or prestige. But the scientist's quest for insight, for understanding, for wanting to know what makes the system tick, rarely figures in the manager's motivation. Secondly, and therefore, management is not, even in intention, separable from its own intentions and desires: its policies express them. Thirdly, management is not normally aware of the conventional nature of its intellectual processes and control procedures. It is accustomed to confuse its conventions for recording information with truths-about-the-business, its subjective institutional languages for discussing the business with an objective language of fact and its models of reality with reality itself." (Stanford Beer, "Decision and Control", 1994)

"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)

"[...] information feedback about the real world not only alters our decisions within the context of existing frames and decision rules but also feeds back to alter our mental models. As our mental models change we change the structure of our systems, creating different decision rules and new strategies. The same information, processed and interpreted by a different decision rule, now yields a different decision. Altering the structure of our systems then alters their patterns of behavior. The development of systems thinking is a double-loop learning process in which we replace a reductionist, narrow, short-run, static view of the world with a holistic, broad, long-term, dynamic view and then redesign our policies and institutions accordingly." (John D Sterman, "Business dynamics: Systems thinking and modeling for a complex world", 2000)

"To avoid policy resistance and find high leverage policies requires us to expand the boundaries of our mental models so that we become aware of and understand the implications of the feedbacks created by the decisions we make. That is, we must learn about the structure and dynamics of the increasingly complex systems in which we are embedded." (John D Sterman, "Business dynamics: Systems thinking and modeling for a complex world", 2000) 

"The key element of an organization is not a building or a set of policies and procedures; organizations are made up of people and their relationships with one another. An organization exists when people interact with one another to perform essential functions that help attain goals." (Richard Daft, "The Leadership Experience" , 2002)

"Deep change in mental models, or double-loop learning, arises when evidence not only alters our decisions within the context of existing frames, but also feeds back to alter our mental models. As our mental models change, we change the structure of our systems, creating different decision rules and new strategies. The same information, interpreted by a different model, now yields a different decision. Systems thinking is an iterative learning process in which we replace a reductionist, narrow, short-run, static view of the world with a holistic, broad, long-term, dynamic view, reinventing our policies and institutions accordingly." (John D Sterman, "Learning in and about complex systems", Systems Thinking Vol. 3, 2003)

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

"Complex systems defy intuitive solutions. Even a third-order, linear differential equation is unsolvable by inspection. Yet, important situations in management, economics, medicine, and social behavior usually lose reality if simplified to less than fifth-order nonlinear dynamic systems. Attempts to deal with nonlinear dynamic systems using ordinary processes of description and debate lead to internal inconsistencies. Underlying assumptions may have been left unclear and contradictory, and mental models are often logically incomplete. Resulting behavior is likely to be contrary to that implied by the assumptions being made about' underlying system structure and governing policies." (Jay W. Forrester, "Modeling for What Purpose?", The Systems Thinker Vol. 24 (2), 2013)

"The work around the complex systems map supported a concentration on causal mechanisms. This enabled poor system responses to be diagnosed as the unanticipated effects of previous policies as well as identification of the drivers of the sector. Understanding the feedback mechanisms in play then allowed experimentation with possible future policies and the creation of a coherent and mutually supporting package of recommendations for change."  (David C Lane et al, "Blending systems thinking approaches for organisational analysis: reviewing child protection", 2015)

13 December 2016

♟️Strategic Management: Problems (Just the Quotes)

"The correct solution to any problem depends principally on a true understanding of what the problem is." (Arthur M Wellington, "The Economic Theory of Railway Location", 1887)

"Success in solving the problem depends on choosing the right aspect, on attacking the fortress from its accessible side." (George Polya, "How to Solve It", 1945)

"A problem that is located and identified is already half solved!" (Bror R Carlson, "Managing for Profit", 1961)

"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)

"In most management problems there are too many possibilities to expect experience, judgement, or intuition to provide good guesses, even with perfect information." (Russell L Ackoff, Management Science, 1967)

"The purpose of a meeting is to bring depth and breadth of discussion to a problem that merits the attention and effort of every member present." (Alfred J Marrow, "Leadership in the Office, 1963)

"The problem-solving approach allows for mental double-clutching. It does not require a direct switch from one point of view to another. It provides a period 'in neutural' where there is an openness to facts and, therefore, a willingness to consider alternative views." (William Reddin, "Managerial Effectiveness", 1970)

"Advanced technology required the collaboration of diverse professions and organizations, often with ambiguous or highly interdependent jurisdictions. In such situations, many of our highly touted rational management techniques break down; and new non-engineering approaches are necessary for the solution of these 'systems' problems." (Leonard R Sayles &Margaret K Chandler, "Managing Large Systems: The Large-Scale Approach", 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)

"In his search for elegance the management scientist has hindered his ability to participate in solving policy problems. [...] The management scientist must be prepared to forego elegance, to adjust his technique to the problem rather than searching for problems that fit the technique." (Henry Mintzberg, "The Nature of Managerial Work", 1973)

"Most people first search for ready-made solutions, a solution designed by others, or, perhaps, by oneself in the past." (Henry L Tosi & Stephan J Carroll, "Management", 1976)

"If a problem causes many meetings, the meetings eventually become more important than the problem." (Arthur Bloch, "Murphy's Law (Price/Stern/Sloan", 1977)

"It is better to solve problems than crises." (John Guinther, "The Malpractitioners", 1978)

"Systems represent someone's attempt at solution to problems, but they do not solve problems; they produce complicated responses." (Melvin J Sykes, Maryland Law Review, 1978)

"Knowledge-based organizations require managers to be problem-centered rather than territory-centered." (Dale E Zand, "Information, Organization, and Power", 1981)

"Managers often try to give others the feeling that they are participating in the decision process. When a manager involves people in a problem for which he has adequate information and clear criteria for making an acceptable decision, he is engaging in pseudo-consultation. When he involves others in lengthy discussions of trivial problems, he is engaging in pseudo-participation. Most people recognize these ceremonies as a waste of time." (Dale E Zand, "Information, Organization, and Power", 1981)

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

"Detect and fix any problem in a production process at the lowest-value stage possible." (Andrew S Grove, "High Output Management", 1983)

"The first rule is that a measurement - any measurement - is better than none. But a genuinely effective indicator will cover the output of the work unit and not simply the activity involved. […] If you do not systematically collect and maintain an archive of indicators, you will have to do an awful lot of quick research to get the information you need, and by the time you have it, the problem is likely to have gotten worse." (Andrew S Grove, "High Output Management", 1983)

"We try to make management decisions that, if everything goes right, will preclude future problems. But everything does not always go right, and managers therefore must be problem solvers as well as decision makers." (James L Hayes, "Memos for Management: Leadership", 1983)

"Every organizational policy solves certain problems and generates others." (Judith M Bardwick, "The Plateauing Trap", 1986)

"Looking for differences between the more productive and less productive organizations, we found that the most striking difference is the number of people who are involved and feel responsibility for solving problems." (Michael McTague, 'Personnel Journal", 1986)

"Management science [operations research] also involves the philosophy of approaching a problem in a logical manner (i.e., a scientific approach). The logical, consistent, and systematic approach to problem solving can be as useful (and valuable) as the knowledge of the mechanics of the mathematical techniques themselves." (Bernard W. Taylor III, "Introduction to Management Science, 1986)

"[Management science techniques] have had little impact on areas of decision-making where the management problems do not lend themselves to explicit formulation, where there are ambiguous or overlapping criteria for action, and where the manager operates through intuition." (James L McKenney & Peter G W Keen, Harvard Business Review on Human Relations, 1986)

"Managers who are skilled communicators may also be good at covering up real problems." (Chris Argyris, Harvard Business Review, 1986)

"Peak performers concentrate on solving problems rather than placing blame for them." (Charles Garfield, Peak Performers, 1986)

"People in general tend to assume that there is some 'right' way of solving problems. Formal logic, for example, is regarded as a correct approach to thinking, but thinking is always a compromise between the demands of comprehensiveness, speed, and accuracy. There is no best way of thinking." (James L McKenney & Peter G W Keen, Harvard Business Review on Human Relations, 1986)

"Some management groups are not good at problem solving and decision making precisely because the participants have weak egos and are uncomfortable with competition." (Chris Argyris, Harvard Business Review, 1986)

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

"Define the problem before you pursue a solution." (John Williams, Inc. Magazine's Guide to Small Business Success, 1987)

"Effective training programs are essential to identify needs for improvement wherever they might occur, and develop solutions to the concerns that we discover [...] before they become problems." (T Allen McArtor, [speech] 1987)

"Employees are most apt to deal with their problems when they believe that they will be helped in good faith." (Paul V Lyons, "Management", 1987)

"No matter how complicated a problem is, it usually can be reduced to a simple, comprehensible form which is often the best solution." (Dr. An Wang, Nation's Business, 1987)

"Problems are solved on the spot, as soon as they arise. No frontline employee has to wait for a supervisor's permission." (Jan Carlzon, "Moments of Truth", 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)

"Problems can become opportunities when the right people come together." (Robert Redford, Harvard Business Review, 1987)

"Teams are less likely [than individuals] to overlook key issues and problems or take the wrong actions." (Eugene Raudsepp, MTS Digest, 1987)

"There's a tendency to think of conflicts of interest as an administrative problem: identifying potential or actual conflicts and then resolving them. [...] But often, resolving them requires a leadership decision, not an administrative one." (Ira Millstein, 1987)

"What has always frustrated me about staff is that the people you want solving problems end up administering." (Charles Knight, "Downsizing", 1987)

"Anecdotes may be more useful than equations in understanding the problem." (Robert Kuttner, "The New Republic", The New York Times, 1988)

"Most people would rush ahead and implement a solution before they know what the problem is." (Q. T. Wiles, Inc. Magazine, 1988)

"The more you want people to have creative ideas and solve difficult problems, the less you can afford to manage them with terror." (Daniel Greenberg, Newsweek, 1988)

"Teams motivated by targets tend not to take ownership of problems. They attend only to those aspects that affect targets and leave the rest to be picked up by someone else. To some extent, the problem isn’t the target itself but rather the incentive behind the target." (Sriram Narayan, "Agile IT Organization Design: For Digital Transformation and Continuous Delivery", 2015)

♟️Strategic Management: Simplicity (Just the Quotes)

"Everything in strategy is very simple, but that does not mean everything is very easy." (Carl von Clausewitz, "On War", 1832)

"Scientists whose work has no clear, practical implications would want to make their decisions considering such things as: the relative worth of (1) more observations, (2) greater scope of his conceptual model, (3) simplicity, (4) precision of language, (5) accuracy of the probability assignment." (C West Churchman, "Costs, Utilities, and Values", 1956)

"Simplicity does not precede complexity, but follows it." (Alan Perlis, "Epigrams on Programming", 1982)

"No matter how complicated a problem is, it usually can be reduced to a simple, comprehensible form which is often the best solution." (Dr. An Wang, Nation's Business, 1987)

"Organized simplicity occurs where a small number of significant factors and a large number of insignificant factors appear initially to be complex, but on investigation display hidden simplicity." (Robert L Flood & Ewart R Carson, "Dealing with Complexity: An introduction to the theory and application of systems", 1988)

"Industrial managers faced with a problem in production control invariably expect a solution to be devised that is simple and unidimensional. They seek the variable in the situation whose control will achieve control of the whole system: tons of throughput, for example. Business managers seek to do the same thing in controlling a company; they hope they have found the measure of the entire system when they say 'everything can be reduced to monetary terms'." (Stanford Beer, "Decision and Control", 1994)

"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)

"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)

"Strategic planning and strategic change management are really 'strategic thinking'. It’s about clarity and simplicity, meaning and purpose, and focus and direction." (Stephen G Haines, "The Systems Thinking Approach to Strategic Planning and Management", 2000)

"Simplicity isn’t just about reduction. It can also be about augmentation. It consists of removing what isn’t relevant from our models but also of bringing in those elements that are essential to making those models truer." (John Maeda, "The Laws of Simplicity", 2006)

"Simplicity: The New Competitive Advantage in a World of More, Better, Faster." (Bill Jensen, "The Simplicity Survival Handbook: 32 Ways to Do Less and Accomplish More", 2007)

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

12 December 2016

♟️Strategic Management: Perspectives (Just the Quotes)

"We find that the manager, particularly at senior levels, is overburdened with work. With the increasing complexity of modern organizations and their problems, he is destined to become more so. He is driven to brevity, fragmentation, and superficiality in his tasks, yet he cannot easily delegate them because of the nature of his information. And he can do little to increase his available time or significantly enhance his power to manage. Furthermore, he is driven to focus on that which is current and tangible in his work, even though the complex problems facing many organizations call for reflection and a far-sighted perspective." (Henry Mintzberg, "The Structuring of Organizations", 1979)

"Operating managers should in no way ignore short-term performance imperatives [when implementing productivity improvement programs.] The pressures arise from many sources and must be dealt with. Moreover, unless managers know that the day-to-day job is under control and improvements are being made, they will not have the time, the perspective, the self-confidence, or the good working relationships that are essential for creative, realistic strategic thinking and decision making." (Robert H Schaefer, Harvard Business Review, 1986)

"A holistic perspective is essential in management. If we base management decisions on any other perspective, we are likely to experience results different from those intended because only the whole is reality." (Allan Savory & Jody Butterfield, "Holistic Management: A new framework for decision making", 1988)

"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)

"It is within the purview of each context to define its own rules and techniques for deciding how the object-oriented mechanisms and principles are to be managed. And while the manager of a large information system might wish to impose some rules based on philosophical grounds, from the perspective of enterprise architecture, there is no reason to make decisions at this level. Each context should define its own objectivity." (Rob Mattison & Michael J Sipolt, "The object-oriented enterprise: making corporate information systems work", 1994)

"Pure rationality and limited rationality share a common perspective, seeing decisions as based on evaluation of alternatives in terms of their consequences for preferences. This logic of consequences can be contrasted with a logic of appropriateness by which actions are matched to situations by means of rules organized into identities." (James G March,"A Primer on Decision Making: How Decisions Happen", 1994)

"Strategy making needs to function beyond the boxes to encourage the informal learning that produces new perspectives and new combinations. […] Once managers understand this, they can avoid other costly misadventures caused by applying formal techniques, without judgement and intuition, to problem solving." (Henry Mintzberg, 1994)

"Various perspectives exist in an enterprise, such as efficiency, quality, and cost. Any system for enterprise engineering must be capable of representing and managing these different perspectives in a well-defined way." (Michael Grüninger & Mark S Fox, "Benchmarking - Theory and Practice", 1995)

"A strategy is a set of hypotheses about cause and effect. The measurement system should make the relationships" (hypotheses) among objectives" (and measures) in the various perspectives explicit so that they can be managed and validated. The chain of cause and effect should pervade all four perspectives of a Balanced Scorecard." (Robert S Kaplan & David P Norton, "The Balanced Scorecard", Harvard Business Review, 1996)

"The Balanced Scorecard has its greatest impact when it is deployed to drive organizational change. [...] The Balanced Scorecard is primarily a mechanism for strategy implementation, not for strategy formulation. It can accommodate either approach for formulating business unit strategy-starting from the customer perspective, or starting from excellent internal-business-process capabilities. For whatever approach that SBU senior executives use to formulate their strategy, the Balanced Scorecard will provide an invaluable mechanism for translating that strategy into specific objectives, measures, and targets, and monitoring the implementation of that strategy during subsequent periods." (Robert S Kaplan & David P Norton, "The Balanced Scorecard", Harvard Business Review, 1996)

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

"Senior management needed to step in and make some very tough moves. [...] we also realized then that there must be a better way to formulate strategy. What we needed was a balanced interaction between the middle managers, with their deep knowledge but narrow focus, and senior management, whose larger perspective could set a context." (Andrew Grove, Only the Paranoid Survive, 1998)

"Strategy maps show the cause-and effect links by which specific improvements create desired outcomes [...] From a larger perspective, strategy maps show how an organization will convert its initiatives and resources - including intangible assets such as corporate culture and employee knowledge - into tangible outcomes." (Robert S Kaplan & David P Norton, "Having Trouble with Your Strategy? Then Map It", Harvard Business Review, 2000)

"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)

"Organizations are not systems but the ongoing patterning of interactions between people. Patterns of human interaction produce further patterns of interaction, not some thing outside of the interaction. We call this perspective complex responsive processes of relating." (Ralph Stacey, 2005)

"Enterprise engineering is an emerging discipline that studies enterprises from an engineering perspective. The first paradigm of this discipline is that enterprises are purposefully designed and implemented systems. Consequently, they can be re-designed and re-implemented if there is a need for change. The second paradigm of enterprise engineering is that enterprises are social systems. This means that the system elements are social individuals, and that the essence of an enterprise's operation lies in the entering into and complying with commitments between these social individuals." (Erik Proper, "Advances in Enterprise Engineering II", 2009)

"Effective project and program management involves more than strict adherence to a prescriptive methodology. Leadership skills, judgement, common sense, initiative, effective communication, negotiation skills and a broad perspective on the surrounding environment are all essential. Project and program management is a creative and collaborative process." (Peter Shergold, "Learning from Failure", 2015)

11 December 2016

♟️Strategic Management: Competitive Advantage (Just the Quotes)

"A natural companion to the competitive advantage is the synergy component of strategy. This requires that opportunities within the scope possess characteristics which will enhance synergy." (Igor Ansoff, "Corporate Strategy", 1965)

"The triplet of specifications - the product-market scope, the growth vector and the competitive advantage - describes the firm's product-market path in the external environment." (Igor Ansoff, "Corporate Strategy", 1965)

"Try as far as possible to pass on information rather than your conclusions. Your conclusions, if they are right, are part of your competitive advantage. If they are wrong and you pass them on they may come back to haunt you." (Mary A Allison & Eric Allison, "Managing Up, Managing Down", 1984)

"If our people develop faster than a competitor's people, then they're worth more." (James M Biggar, USA Today, 1988)

"In a world where routine production is footloose [...] competitive advantage lies not in one-time breakthroughs but in continual improvements. Stable technologies get away." (Robert Reich, "Tales of a New America: The Anxious Liberal's Guide to the Future", 1988)

"The ability to learn faster than your competitors may be the only sustainable competitive advantage." (Arie P de Geus, Harvard Business Review, 1988)

"In an economy where the only certainty is uncertainty, the one sure source of lasting competitive advantage is knowledge." (Ikujiro Nonaka "The Knowledge-Creating Company", Harvard Business Review 69, 1991)

"Not finance. Not strategy. Not technology. It is teamwork that remains the ultimate competitive advantage, both because it is so powerful and so rare." (Patrick Lencioni, "The Five Dysfunctions of a Team: A Leadership Fable", 2002)

"Simplicity: The New Competitive Advantage in a World of More, Better, Faster." (Bill Jensen, "The Simplicity Survival Handbook: 32 Ways to Do Less and Accomplish More", 2007)

"The most meaningful way to differentiate your company from your competitors, the best way to put distance between you and the crowd is to do an outstanding job with information. How you gather, manage and use information will determine whether you win or lose." (Bill Gates, "Business @ the Speed of Thought: Succeeding in the Digital Economy", 2009)

"Emotional labor is available to all of us, but it is rarely exploited as a competitive advantage." (Seth Godin, "Linchpin: Are You Indispensable?", 2010)

"For the most part, the best opportunities now lie where your competitors have yet to establish themselves, not where they're already entrenched." (Paul Allen, "Idea Man: A Memoir by the Cofounder of Microsoft", 2011)

"An enterprise that is constantly exploring new horizons is likely to have a competitive advantage in attracting and retaining talent." (Gary Hamel, "What Matters Now" 2012)

"The company that consistently makes and implements decisions rapidly gains a tremendous, often decisive, competitive advantage." (Steve Blank, "The Startup Owner's Manual: The Step-by-Step Guide for Building a Great Company", 2012)

"User habits are a competitive advantage. Products that change customer routines are less susceptible to attacks from other companies." (Nir Eyal, "Hooked: How to Build Habit-Forming Products", 2014)

♟️Strategic Management: Intuition (Just the Quotes)

"General propositions do not decide concrete cases. The decision will depend on a judgment or intuition more subtle than any articulate major premise." (Oliver W Holmes, [Lochner v. New York, 198 US 76] 1905)

"Instinct, intuition, or insight is what first leads to the beliefs which subsequent reason confirms or confutes; [...]" (Bertrand Russell, Our Knowledge of the External World", 1914)

"In most management problems there are too many possibilities to expect experience, judgement, or intuition to provide good guesses, even with perfect information." (Russell L Ackoff, "Management Science", 1967)

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

"In strategic thinking, one first seeks a clear understanding of the particular character of each element of a situation and then makes the fullest possible use of human brainpower to restructure the elements in the most advantageous way. Phenomena and events in the real word do not always fit a linear model. Hence the most reliable means of dissecting a situation into its constituent parts and reassembling then in the desired pattern is not a step-by-step methodology such as systems analysis. Rather, it is that ultimate nonlinear thinking tool, the human brain. True strategic thinking thus contrasts sharply with the conventional mechanical systems approach based on linear thinking. But it also contrasts with the approach that stakes everything on intuition, reaching conclusions without any real breakdown or analysis." (Kenichi Ohmae, "The Mind Of The Strategist", 1982) 

"[Management science techniques] have had little impact on areas of decision-making where the management problems do not lend themselves to explicit formulation, where there are ambiguous or overlapping criteria for action, and where the manager operates through intuition. (James L McKenney & Peter G W Keen, Harvard Business Review on  Human Relations, 1986)

"You need to understand that informed intuition, rather than analytical reason, is the most trustworthy decision-making tool to use." (Geoffrey Moore, "Crossing the Chasm", 1991)

"Strategy making needs to function beyond the boxes to encourage the informal learning that produces new perspectives and new combinations. […] Once managers understand this, they can avoid other costly misadventures caused by applying formal techniques, without judgement and intuition, to problem solving." (Henry Mintzberg, 1994)

"Acquired patterns and the logic to employ them combine with our inherent qualities to create a unique decision-maker. As time goes by, experience and knowledge are focused through the prism of talent, which can itself be sharpened, focused, and polished. This mix is the source of intuition, an absolutely unique tool that each of us possesses and that we can continuously hone into an ever-finer instrument." (Garry Kasparov, "How Life Imitates Chess", 2007)

"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)

"To make the best decisions in business and in life, we need to be adept at many different forms of thinking, including intuition, and we need to know how to incorporate many different types of inputs, including numerical data and statistics (analytics). Intuition and analytics don't have to be seen as mutually exclusive at all. In fact, they can be viewed as complementary." (Ben Jones, "Avoiding Data Pitfalls: How to Steer Clear of Common Blunders When Working with Data and Presenting Analysis and Visualizations", 2020)

10 December 2016

♟️Strategic Management: Communication (Just the Quotes)

"An Organization Chart is a cross section picture covering every relationship in the bank. It is a schematic survey showing department functions and interrelations, lines of authority, responsibility, communication and counsel. Its purpose is 'to bring the various human parts of the organization into effective correlation and co-operation'." (John W Schulze, "Office Administration", 1919)

"A person can and will accept a communication as authoritative only when four conditions simultaneously obtain: (a) he can and does understand the communication; (b) at the time of his decision he believes that it is not inconsistent with the purpose of the organization; (c) at the time of his decision, he believes it to be compatible with his personal interest as a whole; and (d) he is able mentally and physically to comply with it." (Chester I Barnard, "The Functions of the Executive", 1938)

"A man's judgment cannot be better than the information on which he has based it. Give him no news, or present him only with distorted and incomplete data, with ignorant, sloppy, or biased reporting, with propaganda and deliberate falsehoods, and you destroy his whole reasoning process and make him somewhat less than a man." (Arthur H Sulzberger, [speech] 1948)

"The fundamental problem of communication is that of reproducing at one point either exactly or approximately a message selected at another point. Frequently the messages have meaning; that is they refer to or are correlated according to some system with certain physical or conceptual entities. These semantic aspects of communication are irrelevant to the engineering problem. The significant aspect is that the actual message is one selected from a set of possible messages." (Claude E Shannon, "A mathematical theory of communication", Bell Systems Technical Journal 27, 1948)

"Managers today come up against a few more communication barriers. One is the pressure of time. Listening carefully takes time, and managers have little of that to spare. In today’s business culture especially, with its emphasis on speed, already pressed managers may give short shrift to the slower art of one-on-one communication." (Carl Rogers & Fritz Roethlisberger, "Barriers and gateways to communication", Harvard Business Review, 1952)

"Every person seems to have a limited capacity to assimilate information, and if it is presented to him too rapidly and without adequate repetition, this capacity will be exceeded and communication will break down." (R Duncan Luce, "Developments in Mathematical Psychology", 1960)

"Linking the basic parts are communication, balance or system parts maintained in harmonious relationship with each other and decision making. The system theory include both man-machine and interpersonal relationships. Goals, man, machine, method, and process are woven together into a dynamic unity which reacts." (George R Terry, "Principles of Management", 1960)

"Leadership is interpersonal influence, exercised in a situation, and directed, through the communication process, toward the attainment of a specified goal or goals." (Robert K Tanenbaum, "Leadership and Organization", 1961)

"The general notion in communication theory is that of information. In many cases, the flow of information corresponds to a flow of energy, e. g. if light waves emitted by some objects reach the eye or a photoelectric cell, elicit some reaction of the organism or some machinery, and thus convey information." (Ludwig von Bertalanffy, "General System Theory", 1968) 

"The 'flow of information' through human communication channels is enormous. So far no theory exists, to our knowledge, which attributes any sort of unambiguous measure to this 'flow'." (Anatol Rapoport, "Modern Systems Research for the Behavioral Scientist", 1969)

"The manager faces the real danger of becoming a major obstruction in the flow of decisions and information." (Henry Mintzberg, "The Nature of Managerial Work, 1973)

"[...] 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)

"The amount of information conveyed by the message increases as the amount of uncertainty as to what message actually will be produced becomes greater. A message which is one out of ten possible messages conveys a smaller amount of information than a message which is one out of a million possible messages. The entropy of communication theory is a measure of this uncertainty and the uncertainty, or entropy, is taken as the measure of the amount of information conveyed by a message from a source. The more we know about what message the source will produce, the less uncertainty, the less the entropy, and the less the information." (John R Pierce, "An Introduction to Information Theory: Symbols, Signals and Noise", 1979) 

"There are always 'class or prestige' gaps between various levels of management. There are also functional gaps between working units of the organization. If we superimpose the management gaps on top of the functional gaps, we find that companies are made up of small operational islands that refuse to communicate with one another for fear that giving up information may strengthen their opponents. The project manager’s responsibility is to get these islands to communicate cross-functionally toward common goals and objectives." (Harold Kerzner, "Project Management: A systems approach to planning, scheduling, and controlling", 1979)

"Managers often try to give others the feeling that they are participating in the decision process. When a manager involves people in a problem for which he has adequate information and clear criteria for making an acceptable decision, he is engaging in pseudoconsultation. When he involves others in lengthy discussions of trivial problems, he is engaging in pseudoparticipation. Most people recognize these ceremonies as a waste of time." (Dale E Zand, "Information, Organization, and Power", 1981)

"Managing upward relies on informal relationships, timing, exploiting ambiguity, and implicit communication. And the irony of it all is that these most subtle skills must be learned and mastered by younger managers who not only lack education and directed experience in benign guerilla warfare but are further misguided by management myths which contribute to false expectations and a misleading perception of reality." (Richard T Pascale & Anthony G Athos, "The Art of Japanese Management", 1981)

"Endless meetings, sloppy communications, and red tape steal the entrepreneur's time." (James L Hayes, "Memos for Management: Leadership", 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)

"Everyone knows that listening is important to communication. [...] But few organizations listen carefully to their employees and their customers." (William Nickels, "Marketing Communication and Promotion", 1984)

"Try as far as possible to pass on information rather than your conclusions. Your conclusions, if they are right, are part of your competitive advantage. If they are wrong and you pass them on they may come back to haunt you." (Mary A Allison & Eric Allison, "Managing Up, Managing Down", 1984)

"Whenever possible, information should go directly from sender to receiver." (Donald L Kirkpatrick, How to Manage Change Effectively, 1985)

"The chain of command is an inefficient communication system. Although my staff and I had our goals, tasks, and priorities well defined, large parts of the organization didn't know what was going on. Frequent, thorough, open communication to every employee is essential to get the word out and keep walls from building within the company. And while face-to-face communication is more effective than impersonal messages, it's a good idea to vary the medium and the message so that no one (including top management) relies too much on ''traditional" channels of communication." (William H Peace, Harvard Business Review, 1986)

"Setting and communicating the right expectations is the most important tool a manager has for imparting that elusive drive to the people he supervises." (Andrew S. Grove, "One-On-One With Andy Grove", 1987)

"The ability to predict market changes doesn't come about by careful communication with customers and sales organizations. It comes about from an ability to look at the fundamentals of the economy." (Jim Swiggett, Inc. Magazine, 1987)

"There are only two ways to get people to support corporate change. You should give employees the information they need to understand the reasons for change, and put enough influence behind the information to [gain their] support." (Carla O'Dell, 1987)

"Despite the prevailing use of graphs as metaphors for communicating and reasoning about dependencies, the task of capturing informational dependencies by graphs is not at all trivial." (Judea Pearl, "Probabilistic Reasoning in Intelligent Systems: Network of Plausible Inference", 1988)

"Without an understanding of causality there can be no theory of communication. What passes as information theory today is not communication at all, but merely transportation." (Marshall McLuhan & Eric McLuhan, "Laws of Media: The New Science", 1988)

"The value of metaphors should not be underestimated. Metaphors have the virtue of an expected behavior that is understood by all. Unnecessary communication and misunderstandings are reduced. Learning and education are quicker. In effect metaphors are a way of internalizing and abstracting concepts allowing one's thinking to be on a higher plane and low-level mistakes to be avoided." (Fernando J Corbató, "On Building Systems That Will Fail", 1991)

"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)

"The meaning of the communication is not simply what you intend, but also the response you get." (Joseph O’Connor, "Leading With NLP: Essential Leadership Skills for Influencing and Managing People", 1998)

"The premise here is that the hierarchy lines on the chart are also the only communication conduit. Information can flow only along the lines. [...] The hierarchy lines are paths of authority. When communication happens only over the hierarchy lines, that's a priori evidence that the managers are trying to hold on to all control. This is not only inefficient but an insult to the people underneath." (Tom DeMarco, "Slack: Getting Past Burnout, Busywork, and the Myth of Total Efficiency", 2001)

"The use of computers shouldn't ignore the objectives of graphics, that are: 
 1) Treating data to get information. 
 2) Communicating, when necessary, the information obtained." (Jacques Bertin, [interview] 2003)

"Graphical design notations have been with us for a while [...] their primary value is in communication and understanding. A good diagram can often help communicate ideas about a design, particularly when you want to avoid a lot of details. Diagrams can also help you understand either a software system or a business process. As part of a team trying to figure out something, diagrams both help understanding and communicate that understanding throughout a team. Although they aren't, at least yet, a replacement for textual programming languages, they are a helpful assistant." (Martin Fowler, "UML Distilled: A Brief Guide to the Standard Object Modeling", 2004)

"An effective dashboard is the product not of cute gauges, meters, and traffic lights, but rather of informed design: more science than art, more simplicity than dazzle. It is, above all else, about communication." (Stephen Few, "Information Dashboard Design", 2006)

"Most dashboards fail to communicate efficiently and effectively, not because of inadequate technology (at least not primarily), but because of poorly designed implementations. No matter how great the technology, a dashboard's success as a medium of communication is a product of design, a result of a display that speaks clearly and immediately. Dashboards can tap into the tremendous power of visual perception to communicate, but only if those who implement them understand visual perception and apply that understanding through design principles and practices that are aligned with the way people see and think." (Stephen Few, "Information Dashboard Design", 2006)

"Effective project and program management involves more than strict adherence to a prescriptive methodology. Leadership skills, judgement, common sense, initiative, effective communication, negotiation skills and a broad perspective on the surrounding environment are all essential. Project and program management is a creative and collaborative process." (Peter Shergold, "Learning from Failure", 2015)

"The first rule of communication is to shut up and listen, so that you can get to know about the audience for your communication, whether it might be politicians, professionals or the general public. We have to understand their inevitable limitations and any misunderstandings, and fight the temptation to be too sophisticated and clever, or put in too much detail." (David Spiegelhalter, "The Art of Statistics: Learning from Data", 2019)

"The second rule of communication is to know what you want to achieve. Hopefully the aim is to encourage open debate, and informed decision-making. But there seems no harm in repeating yet again that numbers do not speak for themselves; the context, language and graphic design all contribute to the way the communication is received. We have to acknowledge we are telling a story, and it is inevitable that people will make comparisons and judgements, no matter how much we only want to inform and not persuade. All we can do is try to pre-empt inappropriate gut reactions by design or warning." (David Spiegelhalter, "The Art of Statistics: Learning from Data", 2019)

♟️Strategic Management: Challenges (Just the Quotes)

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

"A real challenge for some organizations is to build more qualitative information into their formal systems. One method used in some companies is to request a written narrative with each submission of statistics from the field. Another method is to hold periodic, indepth discussions involving several managers from different levels so that each can contribute whatever qualitative data are available to him." (Larry E Greiner et al, "Human Relations", 1986)

"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)

"The manager accepts the status quo; the leader challenges it." (Warren Bennis, 1989)

"The real challenge in crafting strategy lies in detecting subtle discontinuities that may undermine a business in the future. And for that there is no technique, no program, just a sharp mind in touch with the situation." (Henry Mintzberg, "Tracking Strategies: Toward a General Theory", 2007) 

"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)

"Organizations face challenges of all kinds after activating their new systems. To be sure, these challenges are typically not as significant as those associated with going live. Still, executives and end users should never assume that system activation means that everyone is home free. Systems are hardly self-sufficient, and issues always appear." (Phil Simon, "Why New Systems Fail: An Insider’s Guide to Successful IT Projects", 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)

"First develop a strategy that utilizes everything around you. The best way to prepare for a challenge is to cultivate the ability to call on an infinite variety of responses." (Paulo Coelho, "Aleph", 2011)

"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)

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

09 December 2016

♟️Strategic Management: Assumptions (Just the Quotes)

"We can invent as many theories we like, and any one of them can be made to fit the facts. But that theory is always preferred which makes the fewest number of assumptions." (Albert Einstein [interview] 1929)

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

"Every managerial act rests on assumptions, generalizations, and hypotheses - that is to say, on theory. Our assumptions are frequently implicit, sometimes quite unconscious, often conflicting; nevertheless, they determine our predictions that if we do a, b will occur. Theory and practice are inseparable." (Douglas McGregor, "The Human Side of Enterprise", 1960)

"Formal theories of organization have been taught in management courses for many years, and there is an extensive literature on the subject. The textbook principles of organization - hierarchical structure, authority, unity of command, task specialization, division of staff and line, span of control, equality of responsibility and authority, etc. - comprise a logically persuasive set of assumptions which have had a profound influence upon managerial behavior." (Douglas McGregor, 'The Human Side of Enterprise", 1960)

"The key question for top management is what are your assumptions (implicit as well as explicit) about the most effective way to manage people?" (Douglas McGregor, "The Human Side of Enterprise", 1960)

"The most valuable use of such [mathematical] models usually lies less in turning out the answer in an uncertain world than in shedding light on how much difference an alteration in the assumptions and/or variables used would make in the answer yielded by the models." (Edward G. Bennion, "New Decision-Making Tools for Managers", 1963)

"For the scientist a model is also a way in which the human though processes can be amplified. This method often takes the form of models that can be programmed into computers. At no point, however, the scientist intend to loose control of the situation because off the computer does some of his thinking for him. The scientist controls the basic assumptions and the computer only derives some of the more complicated implications." (C West Churchman, "The Systems Approach", 1968)

"Now we are looking for another basic outlook on the world - the world as organization. Such a conception - if it can be substantiated - would indeed change the basic categories upon which scientific thought rests, and profoundly influence practical attitudes. This trend is marked by the emergence of a bundle of new disciplines such as cybernetics, information theory, general system theory, theories of games, of decisions, of queuing and others; in practical applications, systems analysis, systems engineering, operations research, etc. They are different in basic assumptions, mathematical techniques and aims, and they are often unsatisfactory and sometimes contradictory. They agree, however, in being concerned, in one way or another, with ‘systems’, ‘wholes’ or ‘organizations’; and in their totality, they herald a new approach." (Ludwig von Bertalanffy, "General System Theory", 1968)

"When one is considering systems it's always wise to raise questions about the most obvious and simple assumptions." (C West Churchman, "The Systems Approach", 1968)

"However, and conversely, our models fall far short of representing the world fully. That is why we make mistakes and why we are regularly surprised. In our heads, we can keep track of only a few variables at one time. We often draw illogical conclusions from accurate assumptions, or logical conclusions from inaccurate assumptions. Most of us, for instance, are surprised by the amount of growth an exponential process can generate. Few of us can intuit how to damp oscillations in a complex system." (Donella H Meadows, "Limits to Growth", 1972) 

"Organizations tend to grow through stages, face and surmount crises, and along the way learn lessons and draw morals that shape values and future actions. Usually these developments influence assumptions and the way people behave. Often key episodes are recounted in 'war stories' that convey lessons about the firm's origins and transformations in dramatic form. Eventually, this lore provides a consistent background for action. New members are exposed to the common history and acquire insight into some of the subtle aspects of their company." (Richard T Pascale & Anthony G Athos, "The Art of Japanese Management", 1981)

"Any approach to the study of organizations is built on specific assumptions about the nature of organizations and how they are designed and function." (Richard L Daft & Karl E Weick, "Toward a model of organizations as interpretation systems", Academy of Management Review Vol 9 (2), 1984)

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

"Models are often used to decide issues in situations marked by uncertainty. However statistical differences from data depend on assumptions about the process which generated these data. If the assumptions do not hold, the inferences may not be reliable either. This limitation is often ignored by applied workers who fail to identify crucial assumptions or subject them to any kind of empirical testing. In such circumstances, using statistical procedures may only compound the uncertainty." (David A Greedman & William C Navidi, "Regression Models for Adjusting the 1980 Census", Statistical Science Vol. 1 (1), 1986)

"An important part of project management is keeping track of thoughts, assumptions, suggestions, limitations, and the myriad related details of the project." (InfoWorld Vol. 12 (17), 1990)

"At the heart of reengineering is the notion of discontinuous thinking - of recognizing and breaking away from the outdated rules and fundamental assumptions that underlie operations. Unless we change these rules, we are merely rearranging the deck chairs on the Titanic. We cannot achieve breakthroughs in performance by cutting fat or automating existing processes. Rather, we must challenge old assumptions and shed the old rules that made the business underperform in the first place." (Michael M Hammer, "Reengineering Work: Don't Automate, Obliterate", Magazine, 1990)

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

"There are several world view assumptions present in enterprise engineering. The first assumption is that the enterprise can be viewed as a complex system. This is necessary because systems in organizations are systems of organized complexity. Complexity is the result of the multiplicity and intricacy of man’s interaction with other components of the system. Secondly, the enterprise is to be viewed as a system of processes. These processes are engineered both individually and holistically. The final assumption is the use of engineering rigor in transforming the enterprise. The enterprise engineering paradigm views the enterprise as a complex system of processes that can be engineered to accomplish specific organizational objectives. In the Enterprise Engineering paradigm, the enterprise is viewed as a complex system of processes that can be engineered to accomplish specific organizational objectives." (Donald H Liles, "Enterprise modeling within an enterprise engineering framework", 1996)

"[Schemata are] knowledge structures that represent objects or events and provide default assumptions about their characteristics, relationships, and entailments under conditions of incomplete information." (Paul J DiMaggio, "Culture and Cognition", Annual Review of Sociology No. 23, 1997)

"Formulation of a mathematical model is the first step in the process of analyzing the behaviour of any real system. However, to produce a useful model, one must first adopt a set of simplifying assumptions which have to be relevant in relation to the physical features of the system to be modelled and to the specific information one is interested in. Thus, the aim of modelling is to produce an idealized description of reality, which is both expressible in a tractable mathematical form and sufficiently close to reality as far as the physical mechanisms of interest are concerned." (Francois Axisa, "Discrete Systems" Vol. I, 2001)

"What is a mathematical model? One basic answer is that it is the formulation in mathematical terms of the assumptions and their consequences believed to underlie a particular ‘real world’ problem. The aim of mathematical modeling is the practical application of mathematics to help unravel the underlying mechanisms involved in, for example, economic, physical, biological, or other systems and processes." (John A Adam, "Mathematics in Nature", 2003)

"A theory is a speculative explanation of a particular phenomenon which derives it legitimacy from conforming to the primary assumptions of the worldview of the culture in which it appears. There can be more than one theory for a particular phenomenon that conforms to a given worldview. […]  A new theory may seem to trigger a change in worldview, as in this case, but logically a change in worldview must precede a change in theory, otherwise the theory will not be viable. A change in worldview will necessitate a change in all theories in all branches of study." (M G Jackson, "Transformative Learning for a New Worldview: Learning to Think Differently", 2008)

"Leaders should be aware of how their mental models affect their thinking and may cause 'blind spots' that limit understanding. Becoming aware of assumptions is a first step toward shifting one’s mental model and being able to see the world in new and different ways. Four key issues important to expanding and developing a leader’s mind are independent thinking, open-mindedness, systems thinking, and personal mastery." (Richard L Daft, "The Leadership Experience" 4th Ed., 2008)

"Mental models are representations of reality built in people’s minds. These models are based on arrangements of assumptions, judgments, and values. A main weakness of mental models is that people’s assumptions and judgments change over time and are applied in inconsistent ways when building explanations of the world." (Luis F Luna-Reyes, "System Dynamics to Understand Public Information Technology", 2008)

"Complex systems defy intuitive solutions. Even a third-order, linear differential equation is unsolvable by inspection. Yet, important situations in management, economics, medicine, and social behavior usually lose reality if simplified to less than fifth-order nonlinear dynamic systems. Attempts to deal with nonlinear dynamic systems using ordinary processes of description and debate lead to internal inconsistencies. Underlying assumptions may have been left unclear and contradictory, and mental models are often logically incomplete. Resulting behavior is likely to be contrary to that implied by the assumptions being made about' underlying system structure and governing policies." (Jay W. Forrester, "Modeling for What Purpose?", The Systems Thinker Vol. 24 (2), 2013)

♟️Strategic Management - Coordination (Just the Quotes)

"One could define the administrative department by saying that it includes everything that is not part of the other departments, but one can define it in a more positive manner by saying that it is specifically responsible for; ensuring that unity of action, discipline, anticipation, activity, order, etc., exist in all parts of the enterprise; recruiting, organizing and directing the workforce; ensuring good relations between the various departments and with the outside world; coordination of all efforts towards the overall goal; satisfying shareholders and employees; labor and management." (Henri Fayol, "L'exposee des principles generaux d'administration", 1908)

"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)

"As coordination contains all the principles of organization, it likewise expresses all the purposes of organization, in so far as these purposes relate to its internal structure. To avoid confusion we must keep in mind that there are always two objectives of organization, the internal and the external. The latter may be anything, according to the purpose or interest that calls the group together, but the internal objective is coordinative always." (James D Mooney, "Onward Industry! The Principles of Organization and Their Significance to Modern Industry", 1931)

"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! The Principles of Organization and Their Significance to Modern Industry", 1931)

"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)

"Management is the activity which plans, organizes, and controls the operations of the basic elements of men, materials, machines, methods, money, and markets, providing direction and coordination, and giving leadership to human efforts, so as to achieve the sought objectives of the enterprise." (George R. Terry, "Principles of Management", 1953)

"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)

"The principle of direct contact! states that coordination must be achieved through interpersonal, horizontal relationships of people in an enterprise. People exchange ideas, ideals, prejudices, and purposes through direct personal communication much more efficiently than by any other method, and, with the understanding gained in this way, they find ways to achieve both common and personal goals." (Harold Koontz & Cyril O Donnell, "Principles of Management", 1955)

"Organization design is conceived to be a decision process to bring about a coherence between the goals or purposes for which the organization exists, the patterns of division of labor and interunit coordination and the people who will do the work." (Jay R Galbraith, "Organization Design", 1972)

"Strategy maps put into focus the often-blurry line of sight between your corporate strategy and what your employees do every day -  significantly enhancing collaboration and coordination." (Robert S Kaplan & David P Norton, "Having Trouble with Your Strategy? Then Map It", Harvard Business Review, 2000)

08 December 2016

♟️Strategic Management: Values (Just the Quotes)

"The published objectives of a company will never reflect all the goals and values of the corporation as an institution or its management as human beings."(Richard Eells, California Management Review, 1959)

"The leadership and other processes of the organization must be such as to ensure a maximum probability that in all interactions and all interactions and all relationships with the organization each member will, in the light of his background, values, and expectations, view the experience as supportive and one which builds and maintains his sense of personal worth and importance." (Rensis Likert, "New patterns of management", 1961)

"Modern organization makes demands on the individual to learn something he has never been able to do before: to use organization intelligently, purposefully, deliberately, responsibly [...] to manage organization [...] to make [...] his job in it serve his ends, his values, his desire to achieve." (Peter F Drucker, The Age of Discontinuity, 1968)

"The advantages of having decisions made by groups are often lost because of powerful psychological pressures that arise when the members work closely together, share the same set of values and, above all, face a crisis situation that puts everyone under intense stress." (Irving Janis, "Victims of Groupthink", 1972) 

"Organizations tend to grow through stages, face and surmount crises, and along the way learn lessons and draw morals that shape values and future actions. Usually these developments influence assumptions and the way people behave. Often key episodes are recounted in 'war stories' that convey lessons about the firm's origins and transformations in dramatic form. Eventually, this lore provides a consistent background for action. New members are exposed to the common history and acquire insight into some of the subtle aspects of their company." (Richard T Pascale & Anthony G Athos, "The Art of Japanese Management", 1981)

"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)

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

"Change occurs only when there is a confluence of changing values and economic necessity." (John Naisbett & Patricia Aburdene, "Re-inventing the Corporation", 1985)

"A network is not a team. Nor is it a support system, which many women mistake it for. A man's network is the sum total of all those people with whom he barters. It is ever expanding among those of mutual interest and goals, not necessarily of mutual values and likes. They are the people with whom he does business, people who may join his team for some purpose, and others who may not." (Jinx Milea & Pauline Lyttle, "Why Jenny Can't Lead", 1986)

"Ethical pressures and decisions are viewed through the prism of one's own personal values. The distinction between personal and organizational values, however, often becomes blurred, especially the longer one stays with a particular organization and/or advances up the hierarchial ladder." (Warren H Schmidt & Barry Z Posner, Public Administration Review, 1986)

"The importance of top management commitment to organizational change is so well accepted that it is almost cliché to repeat the fact. We would therefore expect managerial values to be just as important in this area as in others that require strategic direction and leadership" (Thomas A Kochan,"The Mutual Gains Enterprise", 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)

"Clean code is not written by following a set of rules. You don’t become a software craftsman by learning a list of heuristics. Professionalism and craftsmanship come from values that drive disciplines." (Robert C Martin, "Clean Code: A Handbook of Agile Software Craftsmanship", 2008)

"Mental models are representations of reality built in people’s minds. These models are based on arrangements of assumptions, judgments, and values. A main weakness of mental models is that people’s assumptions and judgments change over time and are applied in inconsistent ways when building explanations of the world." (Luis F Luna-Reyes, "System Dynamics to Understand Public Information Technology", 2008)

"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)

"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) 

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