17 December 2016

♟️Strategic Management: Managing Change (Just the Quotes)

"Inconsistencies of opinion, arising from changes of circumstances, are often justifiable." (Daniel Webster, [speech] 1846)

"Progress, far from consisting in change, depends on retentiveness. [...] Those who cannot remember the past are condemned to fulfil it." (George Santayana, "The Life of Reason", 1905-1906)

"To improve is to change; to be perfect is to change often." (Winston Churchill, [Speech, House of Commons] 1925)

"When an active individual of sound common sense perceives the sordid state of the world, desire to change it becomes the guiding principle by which he organizes given facts and shapes them into a theory. The methods and categories as well as the transformation of the theory can be understood only in connection with his taking of sides. This, in turn, discloses both his sound common sense and the character of the world. Right thinking depends as much on right willing as right willing on right thinking." (Max Horkheimer, "The Latest Attack on Metaphysics", 1937)

"Many of the obstacles for change which have been attributed to human nature are in fact due to the inertia of institutions and to the voluntary desire of powerful classes to maintain the existing status." (John Dewey, 1938)

"Doing engineering is practicing the art of the organized forcing of technological change." (George Spencer-Brown, Electronics, Vol. 32 (47),  1959)

"People fear change because it undermines their security." (Thomas R Bennett III, Planning For Change, 1961)

"Every part of the system is so related to every other part that a change in a particular part causes a changes in all other parts and in the total system." (Arthur D Hall, "A methodology for systems engineering", 1962)

"To say a system is 'self-organizing' leaves open two quite different meanings. There is a first meaning that is simple and unobjectionable. This refers to the system that starts with its parts separate (so that the behavior of each is independent of the others' states) and whose parts then act so that they change towards forming connections of some type. Such a system is 'self-organizing' in the sense that it changes from 'parts separated' to 'parts joined'. […] In general such systems can be more simply characterized as 'self-connecting', for the change from independence between the parts to conditionality can always be seen as some form of 'connection', even if it is as purely functional […]  'Organizing' […] may also mean 'changing from a bad organization to a good one' […] The system would be 'self-organizing' if a change were automatically made to the feedback, changing it from positive to negative; then the whole would have changed from a bad organization to a good." (W Ross Ashby, "Principles of the self-organizing system", 1962)

"So much has been written about employees' resistance to change that we are sometimes tempted to forget that they can also react favorably." (Nathaniel Stewart, "Leadership in the Office", 1963)

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

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

"Any understanding of social and cultural change is impossible without a knowledge of the way media works as environments." (Marshall McLuhan, "The Medium is the Massage: An inventory of effects", 1967)

"Technological invention and innovation are the business of engineering. They are embodied in engineering change." (Daniel V DeSimone & Hardy Cross, "Education for Innovation", 1968)

"The systems approach to problems focuses on systems taken as a whole, not on their parts taken separately. Such an approach is concerned with total - system performance even when a change in only one or a few of its parts is contemplated because there are some properties of systems that can only be treated adequately from a holistic point of view. These properties derive from the relationship between parts of systems: how the parts interact and fit together." (Russell L Ackoff, "Towards a System of Systems Concepts", 1971) 

"Every goal and every change from the status quo has a price tag on it." (Lyle E Schaller, "The Change Agent", 1972)

"To be productive the individual has to have control, to a substantial extent, over the speed, rhythm, and attention spans with which he is working […] While work is, therefore, best laid out as uniform, working is best organized with a considerable degree of diversity. Working requires latitude to change speed, rhythm, and attention span fairly often. It requires fairly frequent changes in operating routines as well. What is good industrial engineering for work is exceedingly poor human engineering for the worker." (Peter F Drucker, "Management: Tasks, Responsibilities, Practices", 1973)

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

"It is change, continuing change, inevitable change, that is the dominant factor in society today. No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be. [...] This, in turn, means that our statesmen, our businessmen, our everyman must take on a science fictional way of thinking." (Isaac Asimov, "My Own View", Encyclopedia of Science Fiction, 1978)

"All organizations do change when put under sufficient pressure. This pressure must be either external to the organization or the result of very strong leadership." (Bruce Henderson, Henderson on Corporate Strategy, 1979)

"It is rare for any organization to generate sufficient pressure internally to produce significant change in direction. Indeed, internal pressure is likely to be regarded as a form of dissatisfaction with the organization's leadership." (Bruce Henderson, Henderson on Corporate Strategy, 1979)

"The acceptance of project management has not been easy, however. Many executives are not willing to accept change and are inflexible when it comes to adapting to a different environment." (Harold Kerzner, "Project Management", 1979)

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

"[Organizational] change is intervention, and intervention even with good intentions can lead to negative results in both the short and long run. For example, a change in structure in going from application of one theory to another might cause the unwanted resignation of a key executive, or the loss of an important customer. [...] the factor of change, acts as an overriding check against continual organizational alterations. It means that regardless of how well meant a change is, or how much logic dictates this change, its possible negative effects must be carefully weighed against the hoped-for benefits." (William A Cohen, "Principles of Technical Management", 1980)

"[...] strategic change is likely to call for different management techniques than continuous running of well-established business-units.... If effectively done, strategic management can have even greater payoffs in rough seas than in clear sailing." (Boris Yavitz & William H Newman, "Strategy in Action", 1982)

"Every system of whatever size must maintain its own structure and must deal with a dynamic environment, i.e., the system must strike a proper balance between stability and change. The cybernetic mechanisms for stability (i.e., homeostasis, negative feedback, autopoiesis, equifinality) and change (i.e., positive feedback, algedonodes, self-organization) are found in all viable systems." (Barry Clemson, "Cybernetics: A New Management Tool", 1984)

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

"With the changes in technological complexity, especially in information technology, the leadership task has changed. Leadership in a networked organization is a fundamentally different thing from leadership in a traditional hierarchy." (Edgar Schein, "Organizational Culture and Leadership", 1985)

"An ability to tolerate ambiguity helps to avoid overdetermining one's goals. [...] As they proceed, peak performers can adjust goals. [...] What they are doing is balancing between change and stasis, between innovation and consolidation." (Charles Garfield, "Peak Performers", 1986)

"Most organizations, left to their own devices, are going to atrophy, to get so institutional, so bureaucratic, that they get to the point where their original reason for existence has been lost, and they stagnate. So you have to have change, and by that I mean dramatic change." (William G McGowan, Inc. Magazine, August 1986)

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

"The only [management] practice that's now constant is the practice of constantly accommodating to change." (William G. McGowan, Inc. Magazine, 1986)

"Training frequently fails to pay off in behavioral changes on the job: Trainees go back to work and do it the way they've always done it instead of the way you taught them to do it." (Ruth C Clark, "Manager, Training and Information Services", Training, 1986)

"You can change behavior in an entire organization, provided you treat training as a process rather than an event." (Edward W Jones, "Training", 1986)

"Constant change by everyone requires a dramatic increase in the capacity to accept disruption." (Tom Peters, "Thriving on Chaos", 1987)

"People are asking more cogent questions, and they're observing behavior that begins to be amenable to the ideas of chaotic dynamics." (James Ramsey, The New York Times, 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)

"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)

"[...] a strategic inflection point is a time in the life of business when its fundamentals are about to change. That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end." (Andrew S Grove, "Only the Paranoid Survive: How to Exploit the Crisis Points that Challenge Every Company and Career", 1988)

"[...] technology always fosters radical social change." (Neil Postman, "Conscientious Objections", 1988)

"Model is used as a theory. It becomes theory when the purpose of building a model is to understand the mechanisms involved in the developmental process. Hence as theory, model does not carve up or change the world, but it explains how change takes place and in what way or manner. This leads to build change in the structures." (Laxmi K Patnaik, "Model Building in Political Science", The Indian Journal of Political Science Vol. 50 (2), 1989)

"Systems thinking is a discipline for seeing the 'structures' that underlie complex situations, and for discerning high from low leverage change. That is, by seeing wholes we learn how to foster health. To do so, systems thinking offers a language that begins by restructuring how we think." (Peter Senge, "The Fifth Discipline", 1990)

"Systems thinking is a discipline for seeing wholes. It is a framework for seeing interrelationships rather than things, for seeing patterns of change rather than static 'snapshots'. It is a set of general principles- distilled over the course of the twentieth century, spanning fields as diverse as the physical and social sciences, engineering, and management. [...] During the last thirty years, these tools have been applied to understand a wide range of corporate, urban, regional, economic, political, ecological, and even psychological systems. And systems thinking is a sensibility for the subtle interconnectedness that gives living systems their unique character." (Peter Senge, "The Fifth Discipline", 1990)

"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) 

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

"Even though these complex systems differ in detail, the question of coherence under change is the central enigma for each." (John H Holland," Hidden Order: How Adaptation Builds Complexity", 1995)

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

"Architecture is that set of design artifacts, or descriptive representations, that are relevant for describing an object, such that it can be produced to requirements (quality) as well as maintained over the period of its useful life (change)." (John A Zachman, "Enterprise architecture: The issue of the century", Database Programming and Design Vol. 10 (3), 1997)

"Issues of quality, timeliness and change are the conditions that are forcing us to face up to the issues of enterprise architecture. The precedent of all the older disciplines known today establishes the concept of architecture as central to the ability to produce quality and timely results and to manage change in complex products. Architecture is the cornerstone for containing enterprise frustration and leveraging technology innovations to fulfill the expectations of a viable and dynamic Information Age enterprise." (John Zachman, "Enterprise Architecture: The Issue of The Century", 1997)

"The basis of leadership is the capacity of the leader to change the mindset, the framework of the other person." (Warren Bennis, "Managing People is Like Herding Cats", 1997)

"Projects sometimes fail long before they deliver anything. At some point they may be determined to be too expensive to continue. Or perhaps they took too long to develop and the business need evaporated. Or perhaps the requirements change so often that the developers can never finish one thing without having to stop and start all over on something new. Certainly these are planning failures." (Kent Beck & Martin Fowler, "Planning Extreme Programming", 2000)

"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)

"The business changes. The technology changes. The team changes. The team members change. The problem isn't change, per se, because change is going to happen; the problem, rather, is the inability to cope with change when it comes." (Kent Beck, Extreme Programming Explained, 2000)

"Systems thinking means the ability to see the synergy of the whole rather than just the separate elements of a system and to learn to reinforce or change whole system patterns. Many people have been trained to solve problems by breaking a complex system, such as an organization, into discrete parts and working to make each part perform as well as possible. However, the success of each piece does not add up to the success of the whole. to the success of the whole. In fact, sometimes changing one part to make it better actually makes the whole system function less effectively." (Richard L Daft, "The Leadership Experience", 2002)

"An Enterprise Architecture is a dynamic and powerful tool that helps organisations understand their own structure and the way they work. It provides a ‘map’ of the enterprise and a ‘route planner’ for business and technology change. A well-constructed Enterprise Architecture provides a foundation for the ‘Agile’ business." (Bob Jarvis, "Enterprise Architecture: Understanding the Bigger Picture - A Best Practice Guide for Decision Makers in IT", 2003)

"An enterprise architecture is a blueprint for organizational change defined in models [using words, graphics, and other depictions] that describe (in both business and technology terms) how the entity operates today and how it intends to operate in the future; it also includes a plan for transitioning to this future state." (US Government Accountability Office, "Enterprise Architecture: Leadership Remains Key to Establishing and Leveraging Architectures for Organizational Transformation", GAO-06-831, 2006)

"Change pressures arise from different sectors of a system. At times it is mandated from the top of a hierarchy, other times it forms from participants at a grass-roots level. Some changes are absorbed by the organization without significant impact on, or alterations of, existing methods. In other cases, change takes root. It causes the formation of new methods (how things are done and what is possible) within the organization." (George Siemens, "Knowing Knowledge", 2006)

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

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

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

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

"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)

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

"With each theory or model, our concepts of reality and of the fundamental constituents of the universe have changed." (Stephen Hawking & Leonard Mlodinow, "The Grand Design", 2010)

"Without precise predictability, control is impotent and almost meaningless. In other words, the lesser the predictability, the harder the entity or system is to control, and vice versa. If our universe actually operated on linear causality, with no surprises, uncertainty, or abrupt changes, all future events would be absolutely predictable in a sort of waveless orderliness." (Lawrence K Samuels, "Defense of Chaos", 2013)

"Cybernetics studies the concepts of control and communication in living organisms, machines and organizations including self-organization. It focuses on how a (digital, mechanical or biological) system processes information, responds to it and changes or being changed for better functioning (including control and communication)." (Dmitry A Novikov, "Cybernetics 2.0", 2016)

"Information or data is only valuable if it can be used to provide insights which then actually drive change. Sadly the most effort and expertise and applause is given to those who design and deliver incredibly complex statistical reviews of data over time - the beauty is in the complexity and the presentation not in the usability." (Alan Pennington, "The Customer Experience Book", 2016)

"It is not about deep data analysis to predict behaviour, it is about actively designing experiences and then applying data to enable the delivery. Cumulatively making lots of little changes using very specific pieces of data will aggregate to a bigger impact." (Alan Pennington, "The Customer Experience Book", 2016)

"Remember that for change to happen it has to be relevant at a local and individual level" (Alan Pennington, "The Customer Experience Book", 2016)

"Given enough time and enough users, even the most innocuous change will break something; your analysis of the value of that change must incorporate the difficulty in investigating, identifying, and resolving those breakages." (Titus Winters, "Software Engineering at Google: Lessons Learned from Programming Over Time", 2020)

"Because management deals mostly with the status quo and leadership deals mostly with change, in the next century we are going to have to try to become much more skilled at creating leaders." (John P Kotter)

"Enterprise architecture (EA) is a discipline for proactively and holistically leading enterprise responses to disruptive forces by identifying and analyzing the execution of change toward desired business vision and outcomes. EA delivers value by presenting business and IT leaders with signature-ready recommendations for adjusting policies and projects to achieve target business outcomes that capitalize on relevant business disruptions. EA is used to steer decision making toward the evolution of the future state architecture." (Gartner)

"The normal 'cascade' strategy for implementing change is usually ineffective, because memories remain embedded in the way the organization works after the change. This applies particularly if the change relates to the culture rather than to work practices or systems." (Dick Beckhard)

"There is a remarkable agreement upon the definition of learning as being reflected in a change of behavior as the result of experience." (Ernest A Haggard)

16 December 2016

♟️Strategic Management: Structure (Just the Quotes)

"The constructive process inheres in all forms of synergy, and the cooperation of antithetical forces in nature always results in making, that is, in creating something that did not exist before. But in the organic world this character of structure becomes the leading feature, and we have synthetic products consisting of tissues and organs serving definite purposes, which we call functions." (Lester F Ward, "Pure Sociology", 1903)

"Social structures are the products of social synergy, i.e., of the interaction of different social forces, all of which, in and of themselves, are destructive, but whose combined effect, mutually checking, constraining, and equilibrating one another, is to produce structures. The entire drift is toward economy, conservatism, and the prevention of waste. Social structures are mechanisms for the production of results, and the results cannot be secured without them. They are reservoirs of power." (James Q Dealey & Lester F Ward, "A Text-book of Sociology", 1905)

"The true nature of the universal principle of synergy pervading all nature and creating all the different kinds of structure that we observe to exist, must now be made clearer. Primarily and essentially it is a process of equilibration, i.e., the several forces are first brought into a state of partial equilibrium. It begins in collision, conflict, antagonism, and opposition, and then we have the milder phases of antithesis, competition, and interaction, passing next into a modus vivendi, or compromise, and ending in collaboration and cooperation. […] The entire drift is toward economy, conservatism, and the prevention of waste." (James Q Dealey & Lester F Ward, "A Text-book of Sociology", 1905)

"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)

"The classical vertical arrangement for project management is characterized by an inherent self-sufficiency of operation. It has within its structure all the necessary specialized skills to provide complete engineering capabilities and it also has the ability to carry on its own laboratory investigations, preparation of drawings, and model or prototype manufacture. (Penton Publishing Company, Automation Vol 2, 1955)

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

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

"Every company has two organizational structures: the formal one is written on the charts; the other is the everyday living relationship of the men and women in the organization." (Harold Geneen & Alvin Moscow, Managing, 1984)

"Inertial pressures prevent most organizations from radically changing strategies and structures." (Michael T Hannan, "Organizational Ecology", 1989) 

"Model is used as a theory. It becomes theory when the purpose of building a model is to understand the mechanisms involved in the developmental process. Hence as theory, model does not carve up or change the world, but it explains how change takes place and in what way or manner. This leads to build change in the structures." (Laxmi K Patnaik, "Model Building in Political Science", The Indian Journal of Political Science Vol. 50 (2), 1989)

"Systems thinking is based on the theory that a system is, in essence, circular. Using a systems approach in your strategic management, therefore, provides a circular implementing structure that can evolve, with continuously improving, self-checking, and learning capabilities [...]" (Stephen G Haines, "The Systems Thinking Approach to Strategic Planning and Management", 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) 

"Organizations are (1) social entities that (2) are goal-directed, (3) are designed as deliberately structured and coordinated activity systems, and (4) are linked to the external environment." (Richard Daft, "The Leadership Experience" , 2002)

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

"Systems thinking is a mental discipline and framework for seeing patterns and interrelationships. It is important to see organizational systems as a whole because of their complexity. Complexity can overwhelm managers, undermining confidence. When leaders can see the structures that underlie complex situations, they can facilitate improvement. But doing that requires a focus on the big picture." (Richard L Daft, "The Leadership Experience", 2008)

"The central issue is never strategy, structure, culture, or systems. The core of the matter is always about changing the behavior of people." (John Kotter, "The Heart of Change: Real-Life Stories of How People Change Their Organizations", 2012)

🕸Systems Engineering: Resilience (Just the Quotes)

"The notion that the 'balance of nature' is delicately poised and easily upset is nonsense. Nature is extraordinarily tough and resilient, interlaced with checks and balances, with an astonishing capacity for recovering from disturbances in equilibrium. The formula for survival is not power; it is symbiosis." (Sir Eric Ashby, [Encounter] 1976)

"The more complex the network is, the more complex its pattern of interconnections, the more resilient it will be." (Fritjof Capra, "The Web of Life: A New Scientific Understanding of Living Systems", 1996)

"This is a general characteristic of self-organizing systems: they are robust or resilient. This means that they are relatively insensitive to perturbations or errors, and have a strong capacity to restore themselves, unlike most human designed systems." (Francis Heylighen, "The Science of Self-Organization and Adaptivity", 2001)

"Most systems displaying a high degree of tolerance against failures are a common feature: Their functionality is guaranteed by a highly interconnected complex network. A cell's robustness is hidden in its intricate regulatory and metabolic network; society's resilience is rooted in the interwoven social web; the economy's stability is maintained by a delicate network of financial and regulator organizations; an ecosystem's survivability is encoded in a carefully crafted web of species interactions. It seems that nature strives to achieve robustness through interconnectivity. Such universal choice of a network architecture is perhaps more than mere coincidences." (Albert-László Barabási, "Linked: How Everything Is Connected to Everything Else and What It Means for Business, Science, and Everyday Life", 2002)

"How is it that an ant colony can organize itself to carry out the complex tasks of food gathering and nest building and at the same time exhibit an enormous degree of resilience if disrupted and forced to adapt to changing situations? Natural systems are able not only to survive, but also to adapt and become better suited to their environment, in effect optimizing their behavior over time. They seemingly exhibit collective intelligence, or swarm intelligence as it is called, even without the existence of or the direction provided by a central authority." (Michael J North & Charles M Macal, "Managing Business Complexity: Discovering Strategic Solutions with Agent-Based Modeling and Simulation", 2007)

"Like resilience, self-organizazion is often sacrificed for purposes of short-term productivity and stability." (Donella H Meadows, "Thinking in Systems: A Primer", 2008)

"Antifragility is beyond resilience or robustness. The resilient resists shocks and stays the same; the antifragile gets better." (Nassim N Taleb, "Antifragile: Things that gain from disorder", 2012)

"Complexity demands resilience, and that's what panarchy offers. Resilience in the face of complexity is a challenge even when you apply rigorous intelligence and integrity to develop a coherent and flexible strategy." (Robert D Steele, "The Open-Source Everything Manifesto: Transparency, Truth, and Trust", 2012)

"Stability is often defined as a resilient system that keeps processing transactions, even if transient impulses (rapid shocks to the system), persistent stresses (force applied to the system over an extended period), or component failures disrupt normal processing." (Michael Hüttermann et al, "DevOps for Developers", 2013)

14 December 2016

♟️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)

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)

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)

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)

Related Posts Plugin for WordPress, Blogger...

About Me

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