Professional Documents
Culture Documents
• Managers
• set strategy
• plan, define and allocate work tasks
• establish formal organizational structures
• monitor employees’ performance.
• Employees
• execute according to the strategy and the plan
• their actions governed by the organization’s rules, procedures, and incentives.
• This model worked well in relatively stable environments.
• It also had the advantage of being easy to scale for mass production.
• It led to the specialization of functions and hierarchical management.
• But ineffective in today’s business environment: the exponential increase in
business complexity.
Developing the new managerial model
• Most managers are putting in more effort and more hours than ever
before.
• But fewer and fewer are actually creating value.
• Requires a shift in how managers conceive of their role.
• They need to adapt to a flexible and dynamic behavioral system
• Promote employees’ autonomy and initiative
• Managers must pay attention to the behavioral dynamics that shape
organizational performance
• They must intervene in order to foster more effective cooperation
Framing through action
• Design and execution is replaced by the combination of framing and acting.
• Managers “frame” objectives and goals.
• Employees act within this framework
• initiative guided by strategic goals, not rigid processes and rules
• operate more autonomously, making decisions in the moment in response to changing
circumstances/ obstacles/ opportunities
• work together to make the tradeoffs that will create the most value over time.
Managers too must act.
• Framing that managers do must take place through action :
through ongoing intervention.
• Framing doesn’t happen once
• Continuous
• in close interaction with employees
• in response to the constantly changing circumstances
• Framing through action is also necessary because the more complex the
business, the more difficult it is to make rules that will apply in any and every
situation.
• Managers need to engage with the work of teams to have a basic understanding
of the on-the-ground obstacles, to recognize potential missteps, and to help
teams course-correct.
Integrating around the task