Roger Martin at Implement Thought Leaders 2015

REAL MANAGEMENT REAL PEOPLE, REAL CAPABILITIES & REAL MOTIVATIONS

Thought Leader 2015 Copenhagen, Denmark

September 25, 2015

@RogerLMartin

Martin Prosperity Institute Rotman School of Management

Copyright © 2015 Roger L. Martin

THEORETICAL MANAGEMENT

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• Conceptual People • Imaginary Capabilities • Notional Motivations



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What are examples?



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What are examples? - Bond Raters - Audit Partners - Stock Brokers - Independent Board Members - Pension Fund Managers


REAL MANAGEMENT

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• Real People • with Real Capabilities • & Real Motivations


REAL MANAGEMENT

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What does this mean?


REAL MANAGEMENT

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What does this mean? - A real person, with the capabilities to

really do the job required, could really be attracted to the job in the first place, and, once in the job, could be reasonably motivated to do what the job requires


THEORETICAL INNOVATION

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Shareholders

The Assumed Actors/System



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Shareholders Board of Directors




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Shareholders Board of Directors

Encourage Optimal

Level




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Shareholders Board of Directors CEO

Encourage Optimal

Level




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Encourage Optimal

Level

Enforce Optimal

Level




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Shareholders Organization Board of Directors CEO

Encourage Optimal

Level

Enforce Optimal

Level




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Encourage Optimal

Level

Enforce Optimal

Level

Mandate Optimal

Level



REAL INNOVATION

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- Pension Funds - Mutual Funds - Hedge Funds

The Real Actors


REAL SHAREHOLDERS

16 Adapted from: Federal Reserve Board and Goldman Sachs Global Investment Research.


REAL INNOVATION

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The Real Actors

- Misaligned - Capability-

Challenged


REAL BOARDS OF DIRECTORS

18 Source: McKinsey Global, 2013.


REAL INNOVATION

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The Real Actors


Challenged

- Short-term incentivized

- Reliability- focused


REAL INNOVATION

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The Real Actors


Challenged

- Short-term incentivized



- Incrementally- incentivized


REAL INNOVATION

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CEO


REAL INNOVATION

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Board of Directors CEO

Seek Protective Assistance


REAL INNOVATION

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Attempt to Ameliorate

Damage



REAL INNOVATION

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Attempt to Ameliorate

Damage


Support & Nurture

Innovation


THEORETICAL ‘EXECUTION’

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The brain makes the choices

The arms and legs execute the choices of the brain

THE VIEW OF THE HUMAN BODY


THEORETICAL ‘EXECUTION’

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Senior Leaders • The brains of the organization • Formulate the decisions • Create control procedures • Sell to get “buy-in” The Rank and File • The arms and legs of the organization • Implement the decisions • Controlled by procedures • Get “bought-in”

THE IMPLICIT METAPHOR OF THE CORPORATION


THE EXECUTION TRAP

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What is the Biggest Enemy of Execution?


THE EXECUTION TRAP

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What is the Biggest Enemy of Execution?

The Word Execution


REAL MANAGEMENT: STRATEGY IS CHOICE

What is our winning aspiration?

Where will we play?

How will we win?

What capabilities must we have?

What management systems are required?

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REAL MANAGEMENT: NESTED CHOICE CASCADES

How to Win

Management Systems

Winning Aspiration

Capabilities

Where to Play

How to Win

Management Systems

Winning Aspiration

Capabilities

Where to Play

How to Win

Management Systems

Winning Aspiration

Capabilities

Where to Play

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How to Win

Management Systems

Winning Aspiration

Capabilities

Where to Play

How to Win

Winning Aspiration

Where to Play

Capabilities


MAKING CHOICES ACROSS MULTIPLE CASCADES

1. Make only the set of choices you are more capable of making than anyone else

2. Explain the choice that has been made and the

reasoning behind it 3. Explicitly identify the next downstream choice 4. Assist in making the downstream choice, as

needed 5. Commit to revisit and modify the choice based on

downstream feedback

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TAK!

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Twitter: @RogerLMartin Email: [email protected] Website: www.RogerLMartin.com

Strategy Toolkit: www.hbr.org/tools/PTW

mailto:[email protected]

http://www.RogerLMartin.com

http://www.hbr.org/tools/PTW

Roger Martin at Implement Thought Leaders 2015

Leadership & Management

Transcript of Roger Martin at Implement Thought Leaders 2015