Executive Coaching - What's in it For a Project Manager?

I've been in various IT leadership roles since I started my career over 20 years ago and there is nothing quite as challenging, or as rewarding, as being a Project Manager. As well as all the very important technical skills a Project Manager needs such as the ability to build a schedule and budget and track to them, understand the delivery lifecycle, and report status, a Project Manager needs to be a negotiator, a team builder, a collaborator, an influencer, and an innovator. These roles require leadership skills of the highest caliber. It is this combination of technical management and leadership ability that makes the role so challenging.

So why is this? The problem is that it's rarely the case that the Project Manager has a clear scope, a team that he manages directly, no issues, and no-one external to the project with whom he needs to influence or negotiate. Project Managers are typically required to operate in a matrix environment, where they have little or no control over resources, timelines, or deliverables. They are likely to spend a considerable amount of time negotiating for more resources, trying to influence stakeholders to nail down the scope and deliverables, and trying to find innovative ways to deliver according to a tight, often time-boxed, schedule. In the midst of all this, they need to be role models to keep the team members engaged and leaders who can effectively navigate different types of people from the variety of organizations with which they must interact. This is no small feat for a Project Manager of a small project, let alone a larger multi-million dollar IT project that is typical of today.

How, then, can Project Managers find help and support on their career journeys, ones that often turns into journeys of self discovery and self growth? There are many courses to teach specific techniques for managing a project, and there is the Project Management Institute's Project Management Professional (PMP) credential. There are also many Project Management leadership courses with topics such as team building, collaboration, and negotiation. Though these courses are invaluable to developing technical and leadership skills, Executive Coaching is also invaluable to Project Managers as they find themselves in increasingly complex and stressful environments, and as they strive to institutionalize new learnings.

So how can Executive Coaching help? The Executive Coach (who may be either hired directly by the individual or by the Project Manager's employer) will start by understanding the client's goals. This will form the basis of the Coaching Agenda - the key goals that will be worked on over a period of time, including guiding the Project Manager to define what 'success' will look like. For the purposes of this article I am going to assume that the Coaching Agenda is based on the goal of improving a Project Manager's leadership skills, in the following four areas:

* Increased level of self awareness
* Improved ability to negotiate and collaborate with stakeholders
* Increased courage and confidence to challenge and innovate
* Improved ability to manage conflict

The Executive Coach will take the Project Manager through a journey of self discovery and development, in order to improve their overall leadership skills, and enhance their effectiveness.

Self Awareness

One of the first things an Executive Coach can do is help their clients identify and increase their level of self awareness. Daniel Goleman popularized the concept of Emotional Intelligence (EI) in the 1980s and 1990s, one critical component of which is self awareness. There are many assessment tools that can be used to help Project Managers understand their level of emotional intelligence and self awareness. Such an assessment provides opportunities for one to achieve a greater level of self understanding, an enhanced ability to self regulate, an understanding of motivation, and an increased level of empathy and social skills. This can help Project Managers obtain an accurate picture of the phase of leadership development they are in, as well as identify areas that need to be addressed. Executive Coaches will help facilitate and interpret Emotional Intelligence assessments so that the information can be assimilated and action plans put into place to support the overall goal.

Negotiation and Collaboration

Having established a starting point of self understanding, another critical skill for a Project Manager to strive for is the ability to obtain positive results from different people, in a variety of teams, with potentially very different styles. I had a boss that called this 'style width', meaning the ability to understand the style and motivation of the person you are dealing with, and to modify your own style in accordance with that, to get a more positive outcome for everyone. Using the foundation from the EI assessment, an Executive Coach can take the Project Manager further in understanding his or her own ability to stretch their style in negotiating with others.

Another way to improve the Project Manager's ability to negotiate is through tools such as the Myers Briggs Type Indicator (MBTI). Not only does this deepen our understanding of our own styles, but also about enhances our ability to recognize different styles in others. I once attended a Project Management class on negotiation with a team of Project Managers that I led, during which an MBTI assessment for each person was performed. It was enlightening for us to see the various types in the group and effective in helping us use the results of the assessment to find different methods and language in working with others in the organization. The net result was that all of us improved our ability to negotiate and collaborate with other people and groups.

The data gathered in such tools can form the basis of a personal development plan to enhance negotiation and collaboration skills. Executive Coaches operate as Thought Partners to talk through ideas and approaches, help identify obstacles and blind spots and provide support and feedback while the client tests and refines techniques over an extended period. In some circumstances an Executive Coach may have the opportunity to observe the client in action as the client puts the new techniques into practice in the work place. The Coach will then provide constructive feedback in a non-threatening, non-judgmental, safe environment. This process will allow the client to move from the starting point of self understanding, through increased self development and improvement in his or her leadership skills.

Courage and Confidence

Two important characteristics of being a successful leader are courage and confidence. This can be illustrated in numerous forms... risking an innovative approach in order to meet a tight deadline, pushing back assertively and appropriately when a Business Sponsor attempts to increase project scope, negotiating with another possibly difficult part of the organization in order to obtain resources and tools that the project needs. An Executive Coach will assume the role of Trusted Advisor and Thought Partner as the Project Manager continues to develop these characteristics, and guide the Project Manager as he or she tries various new techniques.

One technique that can be particularly helpful is Appreciative Inquiry (AI). AI can be used at either the organizational or individual level and is the process of carrying strengths and positive experiences from the past into the present and future in order to bring about positive transformational change. This reminds me of the 'Lessons Learned' process that Project Managers implement with the very crucial exception that the sole focus of AI is on what worked well, how we can do more of that in the future, and how we can implement a more positive culture moving forward.

An Executive Coach helps Project Managers apply this process to themselves, using a series of visualization exercises to identify peak experiences from the past. As part of this, the Project Manager will identify the strengths that were used in those peak experiences, and how they might be used in the present and future. This focus on strengths results in a significant increase in a client's confidence. It can also be combined with another assessment tool, 'Strengthsfinder', based on the book by Tom Rath. The premise is that it is much easier to do more of our strengths than it is to 'fix' our weaknesses, and so a person's top 5 strengths are identified out of a possible 34. Combined with AI, this is a very powerful technique in building a Project Manager's courage and confidence. An Executive Coach will guide the Project Manager through the process, helping define action plans for designing and sustaining change for the future. An Executive Coach will work with the Project Manager to tie these techniques into the established coaching agenda and support them as they use them to meet their development and project goals.

Managing Conflict

Managing conflict is another challenge for Project Managers. Matrix projects can result in conflict just by the very nature of the organization structure. Add to that the natural tendency of any team to experience conflict at some point, and skill in conflict management becomes critical to a Project Manager's success. Strengths Deployment Inventory (SDI) is a particularly helpful assessment tool in that one aspect of it looks at how people operate under conflict. This can be invaluable in identifying not only our own style under conflict, but also the styles of others. An Executive Coach can then help a client understand the effective use of different language or behavior in order to navigate through conflict to obtain a more positive outcome. In another project management class that my Project Managers and I attended, this tool was used to help us identify our three stage 'conflict sequence', i.e., the stages in which we react to conflict. It is much easier to resolve conflict when a) we can resolve it in the initial stage before the conflict becomes too deep and b) when we understand the conflict sequence of the people we are dealing with. Some of us predicted our conflict sequences; others were surprised. All of us learned a new way to communicate under conflict, and all of us achieved better resolutions as a result.

So in summary, what is in it for a Project Manager who works with an Executive Coach? The relationship between Executive Coach and Project Manager is lasting, and so the Coach can help a Project Manager use the training that they have been through, and the data gathered by using assessment tools, to bring about sustainable changes to meet their goals. The Coach can empower a Project Manager to grow from someone who has the technical skills to manage a schedule and budget, to a strong leader who delivers successful projects not only using technical skills, but also their newly honed collaboration, negotiation, influencing skills, with a confidence that allows others to recognize him or her as a true leader. The Executive Coach will keep the client aligned with the overall coaching agenda, as well as support the client in institutionalizing the changes over time. As the learning becomes sustained, the challenges of project management lessen and the rewards increase.

Karen Davey-Winter is an Executive Coach with over 20 years of experience in Director and Manager roles in large IT organizations. She has managed teams of over 150 people, and has considerable skill in navigating matrix organizational structures, developing leaders, influencing through collaboration and building effective teams.

Her focus as an Executive Coach is working with IT Leaders who want to move themselves to the next level in an organization, make a career transition, improve relationships and outcomes within their current project or environment, are looking for ways to build teams, or need new ways to address staff performance issues. She uses her experience and background combined with her coaching skills to help people reach their personal and professional potential.

The Impact of Performance Management on Key Organizational Functions

Performance management is the foundation of any organization that has a vision and knows where they want to be in the near and long term future. As today's rapidly evolving business environment challenges organizations to adapt to constant change, the need for organizations to be sure that their projects and activities are aligned with overall strategic goals and business objectives is critical. Performance management is the gauge that lets you know whether or not you are reaching strategic goals and which areas within your service delivery could use improvement. It used to be that performance was isolated to one department. Today, every division within an organization can benefit from it. Performance management spans across various management functions and helps ensure that your people, processes and technology are working together to achieve your organization's missions and goals. This article illustrates how performance management relates to various major management support functions within your organization.

Strategic Planning

Strategic planning is the process of determining a company's long-term goals and then identifying the best approach for achieving them. Strategic planning plays a vital role in the performance of your organization. In order for strategic goals to be achieved, strategic planning must be aligned to performance measurements. These performance measurements allow executive management to gauge the effectiveness of the organizational strategic plan and determine how the budget and projects will be setup in the future. The strategic planning process is discussed in more detail in the planning phase.

Organizational Development

Often used interchangeably with organizational effectiveness, organizational development is the process through which an organization develops the internal capacity to be the most efficient towards its mission work and to sustain itself over the long term. This definition highlights the explicit connection between organizational development work and the achievement of organizational mission. Performance management directly relates to organizational development, since OD is primarily focused on improving the performance of organizations and the people within them. Whatever your organizational challenges, the starting point is to get a clear, objective view of your organization's performance abilities, such as strengths and limitations. Identifying proper performance attributes is essential, because sound management decisions can only be made when performance attributes are identified and measured accurately. In order to reach anticipated organizational targets, you must be able to tie the performance and motivation of individuals to the overall strategic objectives. The Lifecycle Performance Framework processes illustrate how performance management, organizational development and strategic planning share interrelated processes to accomplish organizational goals. Organizational development processes are discussed in more detail in the planning and execution phases.

Change Management

Change management is a systematic approach to dealing with change within every perspective of an organization, from systems to personnel to projects to functions. Change management is a comprehensive, often difficult management function to properly implement. There's the saying "Organizations don't adapt to change; their people do." With that outlook, it is easy to understand how performance management plays a critical part in managing change. Implementing change within an organization often requires a change in how employees execute things. You can implement the most advanced change management tools money can buy, but if your people don't buy into or fully support the initiatives, their performance will suffer and ultimately the organization will be ineffective, or less efficient than before.

Every system, personnel, and procedural change within an organization should be implemented with the goal of achieving an improvement in performance some form. The actual improvement should be compared to the predicted improvement to assess the effectiveness of the change. This guide discusses managing your organization during its many changes throughout the performance lifecycle.

Project Management

Project management is the discipline of organizing and managing resources (e.g. people) in such a way that the project is completed within defined scope, quality, time and cost constraints. A project is a temporary and one-time endeavor undertaken to create a unique product or service, which brings about beneficial change or added value. Performance measurement is an area within the Project Management Institute's Project Management Body of Knowledge (PMBOK). It is the link between performance management and project management, where cost, schedule and scope performance are measured and monitored throughout each phase of the Project Lifecycle. Project performance reporting is the process of collecting project baseline data and distributing performance information to stakeholders throughout the project. Implementing project performance measurement ensures that your reporting clarifies how resources are being used to obtain the objectives of the project. Measuring project performance is discussed in detail in the monitoring phase.

Customer Satisfaction

Customer satisfaction is the measurement or determination that a product or service meets a customer's expectations, based on predetermined quality and service requirements. It is said that customer satisfaction equals perception of performance divided by expectation of performance. There is a direct relationship between performance and customer satisfaction, where the better you perform to customer expectations, the more satisfied customers will be. Customer satisfaction is your organization's level of performance through your customers, employees, and/or stakeholders perspective. In fact, many times customer satisfaction feedback, if requested properly, can provide information and insight for achieving breakthrough increases in organizational performance and effectiveness. When measuring customer satisfaction, organizations should review their objectives and ensure that the customer service strategy is linked to those objectives. How to ensure that your organizational objectives are linked to your customer service strategy are discussed in the reporting phase.

Workforce Performance Management

Workforce performance management is the strategic alignment of an organization's human capital with its business activities. It is a methodical process of analyzing the current workforce, determining future workforce needs, identifying the gap between the present and future, and implementing solutions so the organization can accomplish its mission, goals, and objectives.

People are the most important aspect to any organization. Therefore, the performance of the people within an organization will greatly impact the overall performance of the organization. While most employees understand what they need to do, workforce performance management tells them how well they must do it. The greatest benefit to workforce performance management is the process of aligning employee performance to organizational objectives and goals. This guide explains how to evaluate individuals on their alignment with corporate goals and their contributions to business results in the planning section. Functions within workforce performance management are Recruit and Hire Management, Compensation Management, Incentive Management, Goals Management, Learning Management, Competency Management, and Performance Measurement. These functions are described in the executing phase.

IT Performance Management

IT performance management assists organizations with the increasing demands of maximizing value creation from technology investments, reducing risk from IT, decreasing architectural complexity, and optimizing overall technology expenditures. Behind people, technology is the next critical factor in maximizing efficiency and organizational performance. Many organizations from small to large are using IT strategically to support profitable growth. IT performance management includes maximizing technology to improve service delivery in every area of the organization. IT performance management utilizes such technology as unified management reporting and dashboard tools to enhance performance and drives business processes. How to find the right technologies to enhance your business intelligence, and choosing the right business intelligence tools are discussed in detail in the reporting phase.

Knowledge Management

Knowledge management refers to the guidelines, policies, and practices that an organization uses to create and transfer information to support the performance of the people in the organization. These can include various documents and copyrights, and intangible processes, models and methods that their people use to get work done. The impact of knowledge management on key business results is seen through its potential for improving the performance of business processes. Take call centers for example. They may handle hundreds, even thousands of calls a day. It would be too much too ask for call center representatives to be able to resolve the majority of these calls without a knowledge management system in place. With a knowledge management system, the call center representatives have more information and resources to access and can thus resolve more customer requests. Performance benefits can be seen in such areas as first call resolution, time to resolve, and customer satisfaction. Knowledge management drives performance by linking knowledge to critical functions which impact business and putting the supports in place to ensure knowledge is leveraged across people and circumstances.

Quality Management

Quality management is a method for ensuring that all the activities necessary to design, develop and implement a product or service are effective and efficient with respect to the system and its performance. Quality management includes several processes that enable organizations to ensure quality. Among them are quality planning, quality assurance, quality control, quality audits and quality surveillance. Quality planning is defined as a set of activities whose purpose is to define quality system policies, objectives, and requirements, and to explain how these policies will be applied, how these objectives will be achieved, and how these requirements will be met. It is always future oriented. Quality assurance (QA) is defined as a set of activities whose purpose is to demonstrate that an entity meets all quality requirements. QA activities are carried out in order to inspire the confidence of both customers and managers, confidence that all quality requirements are being met.

Quality control is defined as a set of activities or techniques whose purpose is to ensure that all quality requirements are being met. In order to achieve this purpose, processes are monitored and performance problems are solved. Quality audits examine the elements of a quality management system in order to evaluate how well these elements comply with quality system requirements. Quality surveillance is a set of activities whose purpose is to monitor an entity and review its records to prove that quality requirements are being met. Performance measurement is a necessary instrument for quality management because in order to measure quality, you must first apply performance expectations and standards. In the PMBOK, the performance measurement process group falls under the quality management knowledge area. Quality management is discussed in greater detail in the monitoring phase.

Process Improvement

Process improvement is a series of actions taken to identify, analyze and improve existing processes within an organization to meet new goals and objectives. There are many process improvement methodologies that differ in approach, but the one thing they all have in common is the outcome of better performance. In fact, by definition performance improvement is the concept of measuring the output of processes or procedures, then modifying the processes or procedures in order to increase the output, increase efficiency, or increase the effectiveness of the processes or procedures. Often times, the most critical processes that impact business success are those that require support from multiple functional groups. Identifying and managing cross-functional processes and removing the functional silos that inhibit business culture are discussed in great detail in the planning and executing phases.

About Victor Holman

Victor Holman is a performance management expert who helps organizations reach performance goals through best practice analysis and implementation and custom enterprise performance management products and services.

Check out his FREE performance management kit [http://www.lifecycle-performance-pros.com/index.php/free-kit.html], which includes several templates, plans, and guides to help you get started with your next initiative.

Victor's complete Lifecycle Performance Management Kit is a turnkey organizational performance management solution consisting of a web based organizational performance analysis, 7 guides, 39 templates, 600+ metrics, 35 best practices, 48 key processes, a performance roadmap and more.

His Organizational Performance and Best Practice Analysis measures how well organization's utilize the key performance activities that drive organizational success, and identifies cost savings opportunities and the critical path to reaching organizational goals.

10 Ways to Keep Executives Focused on Performance Management

Have you ever tried to launch a performance improvement plan, but didn't have enough support from executive management? Chances are the initiative lacked focus, direction, and ultimately was unsuccessful. This is because executive management plays the biggest role in keeping leaders within the organization focused on what's important...and that's improving performance, increasing productivity, and sustaining growth. Truth is, all executives want these things, but often performance improvement is lost among the myriad of organizational objectives. This is why it's important for performance management teams to learn effective techniques for keeping organizational performance on the forefront. This article focuses on techniques for getting support from senior executives and keeping leaders focused on organizational performance management.

Keeping senior management and executives focused on performance management can prove to be extremely challenging, especially with their busy schedules.

This can be accomplished by keeping the topic of performance management in front of executives, keeping them involved with the initiative and informing them of performance management successes.

Keep the Topic of Performance Management In Front of Executives

This may seem simple, but if executives are not constantly reminded of the value that your performance management initiative will bring to the organization, performance management will get lost among all the challenges and obstacles that are put in front of them. Remember, these are the people who have the authority and influence to get things done. You are competing with the other important initiatives that are taking place within your organization.

Keep Executives Involved With the Performance Initiative

Once the leaders within the organization are focused on performance management, you have to keep them involved with the initiative. This is done by getting them to clearly state what their objectives are and what exactly they are trying to accomplish. This is especially important in organizations where executive management changes or where there are changes in the organizational structure. Don't assume that you know what senior management objectives are. Often times, when there is new management and changes within the organizational structure, there are also changes in what is perceived as most important. Remember, every executive would like to leave a legacy. Find out what that is and identify how you can measure their successes.

Keep Executives Informed of the Performance Improvements and Successes

Senior management and executives love to hear about successful performance results, for these results are direct reflections of their impact to the organization. Find a way to quantify their efforts and they will be on board for other ideas you bring in front of them. Do this by highlighting successes in executive management initiatives, strategies and other influences. By the way, executives are not the only ones who benefit from positive performance information. When employees are made aware of their impact on the successes of the organization, they become more open to the idea of performance managers coming in and providing input as to how they can perform better. Hopefully, they are rewarded for their contributions and strong performance. But it all starts from the top. If executive management is not on board in the first place, neither will the employees who execute their plan.

Now that we've discussed the importance of getting executives focused on a performance management initiative, let's discuss four techniques for successfully maintaining this focus.

Setup Meetings With Executive Managers

This seems like such an obvious step, but you'd be amazed at how many organizations have performance management programs that do not get the exposure and support it needs from senior management. With the busy schedule of executives, it's easy to get put on the backburner. This is where you have to be persistent. You've already shown them the value of performance management and how it can support their objectives. Now you just need to maintain focus. Setup weekly or monthly meetings with executives. By getting on their schedule with regular meetings you'll keep performance fresh on their minds.

Deliver Presentations to Executives That Highlight Your Organization's Greatest Performance Challenges
This is where you sell executives on the value of the performance initiative. Create powerful presentations that not only illustrate how well the organization is performing, but also illustrate what the specific obstacles that confront the organization. Remember, anybody can gather performance data. Your responsibility as a performance manager is to present the data in a way that clarifies what the challenges are and how to overcome those challenges. Gathering the data is a science, but displaying that information so that executives can better understand what makes the organization go and what's holding the organization back is an art.

Communicate Which Divisions / Service Areas Are Not Aligned to Executive Goals and Objectives

Performance alignment is the single, most important aspect to successfully executing a performance strategy. Unless performance is in alignment to organizational goals and objectives, the organization will be limited in executing the overall strategy. Executives know this very well, which is one reason the Balanced Scorecard has amassed so much popularity and become a common word in the business world. If you can communicate to executive management how well the organization is or is not aligned to the organizational goals and objectives, you will definitely get their attention and their time. But be careful as to how to display this information.

As I have written in other articles, how you present performance data, especially poor performance, plays a major role in gaining employee acceptance. While executive management wants to know about these shortcomings, it is only fair and good practice to make sure that the groups that you are reporting on have been involved in the process and have access to your findings. Remember, performance management is only successful if everybody is on board. It is our job as performance managers to balance the negative perceptions, and sometimes egos that come with the performance initiative.

Deliver Supplemental Training and or Workshops on Specific Topics

While executive management makes the key decisions, it's the employees that drive performance. Therefore, it's critical that they understand, at a minimum, the basics of performance management, such as understanding organizational objectives, baselining performance, setting goals, and applying performance measures. The biggest mistakes many performance management teams make is that they carry the performance challenges on their shoulders, often defining all of the metrics, and developing the performance plans, which minimizes employee and management input. They understand what drives the business. Increase employee input and feedback by facilitating informational performance management workshops. Teach them about key performance indicators and how to develop winning performance metrics, how they will benefit, and how their contribution impacts the organization. Explain the objectives of executive management. Reassure employees that this is not an exercise to judge their performance and tell them how to do their job. The focus should be on improving performance and empowering everybody to grow. Have problem-solving sessions that address the challenges, bottlenecks and obstacles that limit performance. Remember, a high performing organization is a collective state of mind; a culture.

We've discussed what you, as a manager, must do to keep executive management and organizational leaders focused on performance management. We've discussed how you can get employees on board and in a high performance mindset. Now, let's take a look at three things that executives can do to support your initiative and ensure organizational performance success.

Have Executives Reiterate Their Support of the Performance Initiative to the Organization

As mentioned earlier, this is the key to getting employees on board for the performance initiative. When executives make performance a priority, employees follow. Have executives send emails, hold town hall meetings, distribute flyers and anything else that sends the message that performance will be on their radar.

Have Leaders Provide Feedback on What Performance Areas They Feel Are Most Important

We should always be measuring how well the organization is reaching organizational goals. This will always be valuable to executive management. But, just as the organization is constantly changing, so is what's important to executives on any given day. For example, if your organization is implementing an enterprise-wide application or other initiative, the success of that migration will be very important to senior and executive management. During that time, they will want to know how well the migration is going and how customers (employees in this case) perceive it.

Have Executives Re-evaluate Organizational Objectives Regularly

Have you ever implemented a performance strategy, and got great initial results, only to hit a wall and see performance gains come to a halt? This often happens when we measure the same things for an extended period of time, because what we're measuring may no longer support the direction the organization is trying to go. It's important that executive management frequently (at least once a year) readdresses organizational goals and objectives. Remember, your goal as a performance manager is to make sure that your organization reaches its organizational goals. By constantly measuring what's important to executives, you will no doubt become a key asset for executives.

Victor Holman is a performance management expert who helps organizations reach performance goals through best practice analysis and implementation and custom enterprise performance management products and services. Check out his FREE Performance Management Kit [http://www.lifecycle-performance-pros.com/index.php/free-kit.html], which includes several templates, plans, and guides to help you get started with your next initiative.

Victor's complete Lifecycle Performance Management Kit [http://www.lifecycle-performance-pros.com/index.php/Products/lifecycle-performance-management-kit.html] is a turnkey organizational performance management solution consisting of a web based organizational performance analysis, 7 guides, 39 templates, 600+ metrics, 35 best practices, 48 key processes, a performance roadmap and more.

His Organizational Performance and Best Practice Analysis measures how well organization's utilize the key performance activities that drive organizational success, and identifies cost savings opportunities and the critical path to reaching organizational goals.

Management Theory - A Brief History

The work of management theorists over the last hundred and fifty years can be used to argue the case for an in depth theoretical, as well as practical knowledge of many management styles, including the positive and negative attributes of each. It is also important to examine the 'structure' of different organisations to consider how it affects, and is affected by the management style of that organisation. Organisational Structure is essentially concerned with the allocation of authority and power. Managers need to make decisions and need to have the authority to do so. A 'hierarchical organisation' will have the greatest power at the top of the organisation, and the command structure will be in a downward direction. In a 'flat organisation' power is distributed more evenly, but there will still be major differences in the level of power and authority between different members of the company. Some organisations such as the armed forces or police have many tiers (or levels) and are tall in their hierarchy. Universities, however would have few levels between those at the bottom and those at the top and would be considered a 'flat hierarchy.' The 'span of control' (number of people an individual manages or supervises directly) is closely linked to the type of organisational hierarchy that exists. Many of the new 'buzzwords' and 'flavour of the month theories' that Mr. Whitehead mentions are no more than a current evaluation of the theories of yesteryear. The re-visiting of these theories will provide conclusive evidence that management theory is central to the modern manager's education.

The Work of Frederick Winslow Taylor (1856-1915)

Frederick Taylor, whilst working as a gang boss in a lathe department in Midvale, USA became determined to eradicate 'systematic soldiering'; an attempt by workers to do no more than was necessary. Taylor developed a strategy where particular jobs were studied, then broken down into individual tasks, which had to be completed exactly as stated. Each task was allocated a time, based on the timed work of the quickest worker. Workers were then allocated specific tasks, and were not allowed to deviate from that task at all. As Taylor believed that money was the main motivator, a payment was made for each completed unit of output (piece rate)

Many organisations and work methods are still influenced by Taylor's concept of 'Scientific Management Methods' This can be seen on factory assembly lines, and even in the commercial kitchen, where each member of staff is allocated a small but specific task in making up a completed gourmet meal. Piece rates may not be prevalent, but the allocation of boring, repetitive tasks is common. An article in The Sunday Times, 3rd April 1983 tells of one worker's plight, assembling the Maestro car at the Cowley Plant. He had just one hundred seconds to screw on two rubber buffers and fit three small plates to the rear wheel arch. He had been given one night's training, completed his task on exactly 246 vehicles per day, and had 46 minutes per shift of 'relaxation time'.

Some of Taylor's early followers achieved spectacular results in increasing output. However, the stringent and oppressive tactics that were employed often led to industrial unrest. After 'Scientific Management Methods' were employed at the Watertown Arsenal, immediate strikes ensued. The American Congress eventually banned Taylor's time and motion studies in its defense industry.

The use of such methods in the modern workplace can produce useful results in the short term, but for longer-term rewards they must be balanced against the effects on workforce morale. To assume that everybody can work at the same rate as the fastest worker, and that money is the only real motivator may not be borne out. Today's workers want to be empowered, and to take an active role in their organisations, not be treated like machines where only the end product is important.

Henry Laurence Gantt

Henry Gantt worked for Taylor at the Bethlehem Steel Works. His ideas were broadly supportive of Taylor's ideas, but he added a more humanizing approach. He believed that scientific management was used in an oppressive way by the unscrupulous. Gantt moved away from the strict piece rate system of pay, instead offering a set wage plus 20% - 50% bonuses. If workers achieved the set objectives within the day a bonus would be paid. Supervisors were introduced who also received bonuses if targets were met by his team.

Gantt's less oppressive regime can be seen today in many organisations. In factories around the globe workers receive bonuses for achieving daily, weekly or monthly targets.

The Work of Henri Fayol (1841-1925)

Henri Fayol, the 'Father of Modern Management Theory' was interested in how management worked, and could be applied on a universal basis. His theories focused on Rules, Roles and Procedures.

Fayol's 'Five Elements of Management' are:

* Planning Setting objectives, and strategies, policies and procedures to achieve them.

* Organising Setting tasks to achieve the objectives. Allocating the tasks to groups or individuals, and empowering those responsible for that task.

* Commanding Instructing those carrying out the given task.

* Coordinating Ensuring a common approach by groups to meet the objectives of the organisation.

* Controlling Ensuring the performance of individuals and groups fits with the plans, and correcting as necessary.

Fayol's theories are as relevant today as they ever were, and most, if not all managers use his 'elements of management'.

The Work of Peter Drucker

Drucker's work in the 1950's followed on from that of Fayol. He had five categories of 'Management Operations'

* Setting Objectives Senior Managers organise objectives into targets. This is cascaded down to more Junior Managers.

* Organising The workload is divided into manageable activities and jobs.

* Motivating This involves communicating and creating the right conditions for targets to be achieved.

* Measurement Comparing performance against targets.

* Development Enabling people to use their talents.

Fayol and Drucker had very different views on the role of workers within their theories. Fayol's work has a distinct leaning towards worker's having to be told what to do, their work checked and corrected, with managers delegating tasks and overseeing from a high level (a Tall Hierarchy?). Conversely, Drucker's ethos is about the empowerment of workers, giving them the opportunity to utilise their talents, with managers occupying a role that is more about assisting and coaching workers.

Fayol's ideas fail to take into account the people within the workplace, whereas Drucker takes a somewhat more humanist approach.

Elton Mayo - The Human Relations Approach

By the 1930's there was evidence emerging that production could be raised by applying motivational methods within a workforce. These ideas were very different to the techniques of F.W Taylor and, although concerned with profit, the 'human relations approach' to management was also concerned with social relations in the organisation. The approach assumed that workers were genuinely committed to their companies and that they had a desire to work towards achieving its goals.

Elton Mayo had carried out experiments at the Hawthorne Plant, and these sought to find ways to improve production by changing workers conditions and pay structures. Mayo worsened conditions for workers, then returning them to how they were. The rise in output was due to workers communicating more and working as a tighter team unit. It was also found that the effect of taking an interest in workers made them feel important and that their opinions were valued.

Volvo and Honda have seen the development of work team in recent years, with the differences between workers and managers being far from obvious. People wear the same uniforms, and the emphasis on communication is high. Developing cohesive teams who work well together and share the same goals ensures a high level of motivation for the tasks required. The structure of this type of organisation could be considered a 'flat hierarchy' with a wide span of control for managers working over a skilled and competent workforce. Subordinates are well trained and a good level of trust between managers and workers exists.

The 'Human Relations Approach' is definitely a positive way of management for the 21st Century, where personal empowerment and self-esteem should not be in question.

Mr Whitehead's view that "Haven't generations of managers done perfectly well by learning on the job and applying a bit of common sense" cannot accurately be quantified. Within the Fire Service, promotion to managerial roles is based on internal qualifications and interview alone. Virtually all managers have based their management style on exactly what Mr. Whitehead advises in his letter. Some are very good and are respected as such; however there are a large number who cannot manage people or their responsibilities within the organisation. Respect for leadership within the fire service is essential, but often rare in modern times. Managers who had an in depth knowledge of management strategy may well motivate the workforce to new heights. This type of 'tall hierarchical' organisation has many tiers of command with spans of control for senior managers being relatively small, with the widest spans of control being at junior management level.

"An endless supply of new gurus spin off new batches of buzzwords which help successive generations of whiz kids to get promoted on the basis of slogans" is not an accurate depiction of the modern manager. It's certainly true that there are managers who, even with the background of a management related education are ineffectual in their roles. This is not a reflection on management theory. Studies of management styles allow one to make informed decisions, and to have an array of options at your disposal, and to adapt to the ever-changing pressures on the organisation, both internal and external.

"Meanwhile real managers just do what they have always done, maintaining discipline and telling people what to do" The idea of a 'one style fits all' manager is unrealistic, and one that has a proven track record of leading to unrest. Even within one organisation the manager or managers need to be flexible within their roles. Leadership is vital, but a leader who is flexible, approachable, and has the interest and aspirations of both workers and organisation at the forefront of their strategy will flourish. Conversely, the manager who's only interest is the level of output and profit will not be supported by those producing that output. Respect is most certainly a two-way avenue.

My review of the theories of 'management gurus' of the past is designed to show that these ideas are not new. One can look at any organisation and see many of these ideas working in parallel. As far as organisational structure is concerned, one cannot make stereotypical assumptions based purely on the size of the organisation or the number of employees. The style of management and the systems of work employed all help to define the structure. Most organisations employ many of the characteristics discussed above, in different ways, and at different times dependent on the dynamics of the situation. Most businesses are constantly evolving and redefining themselves to meet the requirements of the modern marketplace. There is no correct answer, or one style which is superior to others. Each has its positive and negative points, but without fundamental knowledge of them all, how can one possibly manage effectively?

Management Styles - A History and Case Study

Introduction Lewis Jeans has been operating as a manufacturer of jeans for ten years, and is currently one of the UK's leading manufacturers. 300 employees are divided over 3 geographic areas, with the head office in Croydon.

Due to an array of contributory factors, there has been a downturn in sales and profits over the previous 12 month period.

Sales - 20% reduction
Profit - 40% reduction
Returns due to quality issues - 15%

These figures, coupled with a worrying turnover of staff, and high manufacturing costs have ensured that a fundamental review of the whole structure of the company is necessary to halt further degeneration, and to allow the company to re-establish itself as a market leader.

This report will investigate the following areas:
Organisational and Managerial Structure
Organisational Culture
Staff Motivation

Each of these areas will be considered within the Lewis Jeans framework and formal advice will be given covering: Inherent strengths and weaknesses within Lewis Jeans. Recommendations for improvement.

Organisational and Managerial Structures

"An organisation is a system, having an established structure and conscious planning, in which people work and deal with one another in a coordinated and cooperative manner for the accomplishment of recognised tasks"

The above paragraph is a typical definition of what makes an organisation. The type of structure will influence everything about the organisation, including the relationships between individuals, who is empowered within the authority to make decisions, and how information is communicated throughout the organisation. Getting the correct structure in place to suit the objectives of the organisation, and the aspirations of its staff is imperative if the business is to flourish.

Lewis Jeans currently operates with a geographical structure. Three manufacturing facilities are located in the Northern, Central, and Southern areas of the United Kingdom. This geographic grouping of functions can be a viable option for some organisations, Tesco PLC being a prime example. Tesco needs retail outlets in most towns to allow it's customers to purchase the goods it offers.

The geographical structure can have a number of distinct advantages: Responding quickly to local needs and issues, allowing the organisation to become more sensitive to customer and employee needs. Bureaucratic 'red tape' can be reduced if each division is empowered with more decision making authority. There is a greater ability to tailor operations to local differences, such as language, law etc.

However, there can also be significant disadvantages: The duplication of facilities and roles. Additional management positions are required. Lack of unity in objectives and direction of semi-autonomous units.

Lewis Jeans has little necessity for a geographic structure to the organisation and many of the disadvantages discussed manifest themselves within the company. The argument for three plants could reasonably be made if Lewis Jeans were manufacturing multiple products which required different processes, staff specialisations, tooling and machinery, and supplying these products to differing markets with unique needs. A company which essentially manufactures one product range may benefit from one central production plant. It could be argued that additional storage and distribution depots may be advantageous, and could result in a more economical production process, with efficient distribution throughout the UK.

The simplified organisational chart below demonstrates how the organisation could be streamlined. The links flowing from top to bottom demonstrate the hierarchical structure (the direction of authority from top to bottom). The horizontal lines demonstrate the lines of communications which should exist between functional areas. Each 'area' forms a specialized team which will encourage team-working.

A Central Management Team consisting of specialists in each field make strategic decisions on company objectives and policy. Daily meetings will allow current and future issues to be decided quickly and efficiently. Lower level managers, who must be developed through training, appraisals etc, will make decisions on the day to day running of their departments. This allows the management team to look at 'the bigger picture' and not be consumed by the day to day production, sales and distribution issues.

Functional Structure

The simplified organisational chart above demonstrates how a functional structure may work for Lewis Jeans. The business is divided according to the business function performed by each department. Each functional area plays its own specialist role in working towards the objectives of the organisation. Groups of specialists are delegated control over specific work areas, thus avoiding duplication within the company. Potential problems regarding inter-departmental transfers and rivalry can occur but it is for the management team to resolve such issues before they occur.

Product Based Structure

An organisation is divided by the products it sells. Each product division performs all of its business functions, whilst working towards the organisations aims and objectives. With only one main product, or a variation on the theme, this structural framework would not benefit Lewis Jeans.

Matrix Structure

In a large organisation it may be useful to allow members of the company to be within more than one functional group. The introduction of 'Product Development Teams' which may produce more than one product (jeans, denim jackets) may be useful. Marketing and Sales could be linked, with specialists working in both areas.

Matrix structures do have a number of advantages: The organisation can focus on a number of aims at the same time. Flexibility to adapt and respond to changing demands and resources. Exchange of ideas between multi-role staff, instead of the insular approach of isolated departments.

The 'matrix approach' can result in an overcomplicated structure, with employees losing sight of the major aims of the organisation, a due to more than one chain of command, power struggles can occur.

The geographical structure of Lewis Jeans cannot be justified at the present time. One central production unit would make good business sense, providing premises could be adapted, or new premises located. Alternatively, North and South production facilities with an additional central distribution depot may allow suitable financial savings, coupled with an increased efficiency. A new single production unit may allow for a reduction in staff by as much as 30 - 40%, dependant on improvement in processes, technology etc. Relocation of staff may be possible if local distribution depots are introduced. Final consideration to locations would need to take into account customer locations, export markets and the need for storage. If products are transferred very quickly then a single distribution unit may suffice.

A further advantage of a single production unit would be the ability to implement a robust quality control system to ensure satisfactory standards. There may be additional factors involved in the quality issue, which will be discussed later.

Managerial Structure

At present, authority and decision making is firmly centralised at head office, with Mr. Bart Lewis making all decisions, and cascading those decisions down to his managers at the production units. The flow of communications is very much in a downward direction, with managers purely responsible for carrying out the directions of the Managing Director. The hierarchical principle stemmed from the theories of Bruno Lussato. The 'Scalar Concept' viewed an organisation as a group of grades, arranged in a sequence. Superior grades carried authority which could be delegated to the grade immediately below. Lower grades carried no authority at all. Authority descended from the top to the bottom along a well defined scale of posts. In the current system within Lewis Jeans, little authority is delegated at all, with managers little more than supervisors, passing down the orders from above.

Management Styles

Lippitt & White are among many researchers who have identified a range of leadership styles. Tightly controlled (autocratic) The leader alone makes decisions, with staff being informed of these decisions and then carrying out the task. Democratic (Persuasive or Consultative) The leader makes the decisions, and then persuades workers that his decision is the correct one. The leader consults staff before a decision is made. The leader has the final say, but takes staff views into consideration. Laissez-faire (loose) Opinions are not forced on staff, with no formal structure for decision making.

None of the above is the correct approach, but they do have differing effects on those within the organisation. The style adopted at Lewis Jeans is autocratic in nature. This type of management style may have a negative effect on middle managers and workers alike. Managers may feel that they are not trusted or empowered to manage their departments. The organisation is output orientated, and this will certainly affect motivation of all staff. A supportive management style, as argued by Charles Handy is said to foster: Worker satisfaction. Lower staff turnover and grievance rates. Fewer inter-group conflicts.

With extremely high levels of staff turnover, the style of management may have an important role to play in this area. Motivation is also significant and this will be discussed further on in this report.

Spans of Control

The span of control within an organisation is important. General Sir Iain Hamilton once said that, "No one brain can effectively control more than 6 or 7 other brains". It has been proven through research that the span of control (the number of subordinates that a person is directly responsible for) should be 3-6.

At present Mr. Lewis controls sixteen managers at present, five in each of the factories and a centralised sales manager. Each factory has eleven managers and three supervisors. This is not an efficient allocation of power and authority. One person having day to day responsibility for all areas of an organisation, some of which may not be his area of expertise can create failings in certain functions. As the organisational chart on page 4 demonstrates, with a higher level of trust and authority vested in professional, skilled managers, the 'span of control' could be significantly reduced for Mr. Lewis, but widened for lower level management staff. This would allow Mr. Lewis to concentrate on the 'strategic' decision-making of the organisation within a central management team, whilst allowing lower level managers to concentrate on the day to day issues of production, distribution, sales, and marketing. Regular managerial meetings would allow for updates on production, sales targets and organisational objectives which may change due to the dynamic nature of the clothing industry. A suitable structure would include weekly or monthly targets communicated to the responsible managers. Daily communication as happens at present will only reinforce managers opinions that they are not allowed to 'manage'. The flow of communication will be up as well as down the chain of command, giving local managers and subordinates a role in decision making. Those in the local facilities will be able to supply quality feedback on problems of stock, quality, retention issues etc. This will allow the management team to adjust their aims and objectives according to the latest information available. In addition to this, a well-organised system of recording and monitoring will ensure that all communication, orders, sales, returns and forecasts can be used as historic data to support future decisions.

Organisational Culture

The structure of an organisation is strongly influenced by the culture within it. A definition of culture is "the way we see and do things around here". History, traditions and structure are influencing factors on a company's culture. Behaviour of new workers within an organisation is often influenced by the 'norms' of behaviour already prevalent. The need to 'fit in' and be 'accepted' can often put pressure on individuals to conform. Culture can change over time as new people join the organisation, and as external factor change.

Charles Handy observed behaviour in a large number of organisations and described four main types of culture.

Power Culture

The centralisation of power is the main factor of this type of organisation. One person makes all the decisions. Individuals may feel suppressed by those with power. A 'Power Culture' is evident within Lewis Jeans.

Role Culture

Typically found in large organisations divided into layers of offices and officials. Power is hierarchical and determined by a person's position within the company. Strict job descriptions and communications prevail. Very little scope for individual growth or development.

Task Culture

A job or project orientated organisation. The task dictates how a team works, not strict, set down rules and regulations. The freedom and flexibility can make for a rewarding work environment. Due to the lack of formality, the management and control of a task culture can be difficult.

Person Culture

An organisation with a cluster of people, all working at the same level. Hierarchies cannot be formed without mutual consent.

Changing a culture to fit the objectives of the organisation is not straightforward. Some writers believe that the culture is created by the people, and a manager cannot change it on a whim. It is widely agreed that the actions of managers can have a profound influence on the culture within an organisation, far more so than written statements about what should happen.

A move away from the 'power culture' within Lewis Jeans could have profound effects on the attitude of workers. Empowering managers to make decisions, to run their departments, and to build confidence and desire within the workforce, to succeed for both themselves and for the organisation. A narrower span of control for the management team will force them to concentrate on the direction of the business and not be directly involved in the intricacies of production, distribution, and marketing. Providing suitable structures, quality managers, systems of work, and staff motivation needs are met, the Managing Director and his team need to be figureheads for the organisation, inspiring confidence, fairness and trust in all.

Staff Motivation

Lewis Jeans has developed a trend for a rapid turnover of staff. Less than 50% have been within the company for more than a year. This creates problems for the organisation: A lack of specialised and skilled staff. Low Morale amongst current staff. Poor image in the wider community, from where new employees may come. A lack of team vision. Little motivation to excel, and to rise to the challenges facing the company.

Managers can only perform well, and achieve the objectives required if they have an equally motivated team working with them.

To make a realistic analysis of the workers at Lewis Jeans, it is necessary to relate to some research into motivation, and lack of it.

Abraham Maslow

Maslow popularised the theory that people have needs. Maslow developed a 'Hierarchy of Needs' and concluded that when the needs of an individual were met at one level a higher level of motivation would develop. The levels from lowest to highest are: Physiological Needs Shelter & Safety Love & Belonging Esteem Self Actualisation

When applied to the workplace it can be seen that work can provide a means of helping people satisfy their needs. Not everyone has the same needs, so this must be taken into account.

Frederick Hertzberg

Hertzberg carried out research based on interviews to find out what satisfied and dissatisfied workers. He found a number off areas which were a potential cause for dissatisfaction. He called these 'Hygiene Factors'. Only when the hygiene factors have been adequately met can other factors improve performance. These are called 'Motivators'.

By considering the structure, management style, leadership and culture at Lewis Jeans, and then considering the factors mentioned above, it becomes clearer as to why the retention of staff is at a low ebb. The giving of financial bonuses and such incentives can provide short term solutions. It is necessary to consider that these production bonuses, coupled with low levels of motivation within the company are the major factor affecting the poor quality of goods. Staff have little loyalty to the organisation, and can see that turning out large quantities of goods, regardless of quality can result in useful additions to wage packets. There is a wider range of needs and motivators for most staff. If they feel used, undervalued, and have little chance of self improvement then motivation to perform will suffer. Whether it involves leaving the company, or working at levels that reduce quality purely to realise financial bonuses. These symptoms are all clearly visible within the company.

However, it is also a basis to design strategies which will alleviate such problems. Motivating the workforce through empowerment, delegation, recognition and a chance to improve themselves will promote a real change in the workforce.

Staff Appraisals

Regular staff appraisals are an essential part of developing a company's human resources. A yearly meeting with each member of staff allows both sides to highlight areas where performance has been good, and to look at areas of difficulty which may need some attention. It allows the appraisee to highlight development needs they may have; this could include training courses or aspirations for promotion. The appraiser needs to ensure that a fair and non-confrontational approach is adopted, and to make it clear that the meeting is for the benefit of both parties. Ideally, the appraiser and appraisee should have suitable paperwork to record their views at least 2-3 weeks before the appraisal meeting. When the discussion takes place, a 'meeting of minds' should occur, with both sides agreed on a way forward for the next year. An appropriate system of referral to another manager should be in place in case agreement cannot be reached. The process needs to be transparent and honest. Staff can become resentful of appraisal systems if they are not treated to all the facts surrounding the system.

Recommendations for Change

Lewis Jeans as been running under the same organisational and managerial structure for some ten years. In recent times performance has dropped and most of the problems have been created by the organisation itself. This can be changed. Changes in structure can be made fairly quickly. Cultural change can take considerably longer. Strong leadership will play a vital role in changing this culture. The recommendations below should be implemented as soon as practicable to ensure that change takes place. With a change such as this there will have to be a transitional period, but the impetus for change must be immediate.

Initiate changes to a functional structure for the company. Considerable planning will be required to implement changes in property use and re-deployment of staff. This may not be possible in certain cases and decisions will have to be made. Redundancies may be unavoidable, but should be a last resort. There is no reason why the organisation cannot introduce multiple structures to afford the best options to functional departments. Within the Finance Department there is a need for formal structures due to the procedural systems which need to be adopted. This would almost certainly set down fairly prescriptive definitions of what staff should do. Within a production or distribution department there will be considerably more scope for staff to demonstrate individual flair and team-working qualities. There is more option for an informal structure to these departments. This does not imply that an autocratic management style is suitable for any department, but demonstrates that different organisational and management structures can co-exist within one organisation.

Management and Leadership style must change. A Central Management Team will decide on aims and objectives. This should consider input from all levels of the organisation. A Staff Council allowing workers to contribute to the success of Lewis Jeans will undoubtedly motivate workers. Meetings with all levels of management will ensure that managers feel trusted and empowered to deal with their own departments, the areas in which their expertise lies.

Changes in management style will certainly affect the 'culture' within Lewis Jeans. The 'power culture' which currently exists is detrimental to the future success of the business. People will determine the success or failure of this organisation. A move towards a 'task culture' where staff work in teams, where there is little need for authoritarian management, where people feel that they can succeed and develop, should be the aspiration of the company. There can still be a discipline within the culture, but it should be more orientated towards 'self discipline' rather that autocracy.

Motivation of staff needs to be a focal point. All the recommendations above will contribute to this. Financial incentive, if delivered correctly can to a certain extent motivate workers. There are many other factors involved. A share of profits rather than production bonuses will focus staff on company success rather than short term individual gain. The need to ensure quality of goods thus increasing the good reputation of Lewis Jeans will lead to success and higher profits. These successes, which the workforce will have played a direct role in, will lead to financial reward and personal pride.

Communication between all sections must improve. Within this report we have discussed various strategies to enhance inter-personnel communication. There is also a need to communicate organisational plans to the correct areas. The Central Management Team meetings will agree strategy. This should be a consultative process. It is essential to draw on all areas of expertise within the organisation. Consultations with key staff and trades union officials / staff council members will assist co-operation. Weekly team meetings will allow concerns to be passed up the chain of command if necessary. Senior managers need to communicate directly with team leaders where possible. The telephone should be in place as a backup system. The use of electronic communication / video conferencing can be utilised for remote locations.

For growth to occur for Lewis Jeans, a wholesale evaluation of the marketing strategy needs to take place. The previous ten years have allowed Lewis Jeans to fall behind the current market leaders, with regard to diversification of the product base. The days where one style of jeans suited all are gone. There needs to be a thorough evaluation of current and future trends, and a marketing strategy adopted to reflect this. There may be a need for project team to be developed (this could draw on expertise from throughout the company) to create a radical marketing plan. This will need to consider product development, publicity, distribution methods (mail order catalogues, internet based sales, retail outlets). New products need to satisfy the needs of the existing clientele, but to drive the products into the 21st Century.

The image of the product is important. Potential users need to feel that these products can make a fashion statement. A large scale public relations exercise should be used to change opinions among the targeted public. This can consist of press releases, product publicity, advertising to show this exciting brand. If packaging is necessary it can be used to make the product noticeable, to convey the brand image, and to make it appeal to customers. Marketing therefore, needs to be at the forefront of the strategy.

Conclusion

This report places some exacting demands on Lewis Jeans. There are no simple solutions to its current problems. However, the organisation can turn its fortunes around if it accepts this report as the first building block towards future success. There will be no room for egos in the revitalised Lewis Jeans. Everyone MUST pull together to make this happen. People are the strength within this organisation, and with a unified, dynamic, progressive team, success is certain.

Top 10 Management Problems in the 20th Century

The 20th century enterprise does not manage business reality! Business reality is defined by two entities:

- Results: The specific economic outputs from the totality of the business

- Performance Solutions: The invested capital specifically utilized to produce specific results

The enterprise must organize and manage results and performance solutions in order to organize and manage business reality.

The failure of the 20th century enterprise to organize and manage business reality creates unsolvable management, business, and performance problems. The 20th century enterprise defines both the performance solutions utilized and the results produced as performance. This flawed definition prevents management of business reality. So, instead, we contrive various other methods as overlays on the business and manage entities like departments, jobs, positions, functions, and processes.

We continue to overlay new methods and write thousands of books, but we have never solved the top 10 management problems in the 20th century enterprise.

1. Reorganizations: We have never organized the business. Instead, we organize people, positions, power, and politics and overlay rigid contrived organization structures on the business. The business must adjust to the organization. Business change makes it more difficult to adjust, until there is a major upheaval called the reorganization. We then contrive another arbitrary organization and repeat the cycle.

2. Accounting and Financial Management: Historically, the enterprise needed to protect cash and so set up cash and accrual accounting and financial management. Accounting and financial management retain this legacy and, consequently, prevent modern records management and comprehensive capital management. Accounting prevents financial records on costs, value created, and comprehensive capital worth. Financial management concentrates on easy-to-manage cash and financial investments and prevents management of high-worth capital that is "administered" or is labeled as "intangible assets".

3. Investment Analysis and Capital Development: The enterprise is unable to itemize and plan the benefits of capital development investments, and is unable to manage development of benefits and return on investments. Investment benefits are contrived estimates that cannot be managed. There is no management responsibility for the utilization of developed performance solutions, to ensure the return.

4. Administration: Administration performs functions, rather than producing results, and prevents proper capital management. The enterprise invests in capital that ends up being administered, rather than managed for beneficial utilization, continuing improvement, and a high return on the investment.

5. Performance Management: Performance is defined to include not only the actions of performing, but also the results produced. This means that performance and the results produced are mixed together as key performance indicators and in the various performance management methods employed. This definition of performance prevents the 20th century enterprise from managing business reality.

6. Business Complexity: Every new method, re-engineered process, implemented system, chart of accounts, etc. is an overlay on the business and adds to business complexity. Contrived entities are managed preventing understanding of business reality. New results and performance are added but are not managed as an enterprise whole, for improvement or removal when not needed.

7. Information Technology: Information systems and solutions are managed as technology. IT covers strategy, planning, business application, technology, and architecture management. This prevents one integrated enterprise strategy and integrated business capital and support. The diverse capital requires many capabilities to manage, creating the CIO problem. Applications are managed as technology rather than as business solutions, and business change ends up in the technical backlog.

8. Change Management: We need change management because we mismanage change. We do not manage the business, human, and management capital to be changed and utilized for benefit. Change is through disruptive projects, rather than as part of the routine. Change management services address symptoms and do not solve fundamental problems.

9. Corporate Governance: We try to solve corporate governance problems from the governance side by strengthening the problems in accounting, auditing, and compliance reporting. This is futile. The problem can only be eliminated from the corporate side, by organizing and managing business reality.

10. Alignment: Many methods have been developed and many books have been written on aligning strategy with the business, information systems with the business process, outsourced processes and internal processes, tangible assets and intangible assets, etc. This also is futile. We cannot align solutions with solutions. We can only align solutions with their input and output results.

These and other unsolvable management problems are discussed in detail at www.businesschangeforum.com These problems can never be solved by overlaying more contrived 20th century methods, or by reading books on improving the 20th century enterprise. All 20th century methods are now obsolete.

The enterprise must be redefined as a 21st century enterprise that is organized to utilize capital in performance to produce value in results. Result-performance Management (R-pM) provides the means to build the 21st century enterprise, and leave all 20th century management problems behind.

Revenue Management Is A Sign Of Success

Nitty-gritty of Revenue Management

Revenue management first noticed and accepted by the airline industry. Many travel and hospitality companies have been focused to the "adapt or perish" hymn while moving towards revenue management. Today, revenue management processes and systems are implemented in number of industries, including manufacturing, advertising, energy, hi-tech, telecommunications, car rental, cruise line, railroad and retail. In the future, companies that ignore revenue management will be at a serious disadvantage.

Actually, revenue management is the concept of adopting the number of implementation of emerging and changing business strategy to revenue management, where you can generate additional revenue from 3% to 8 % and it resulting in possible profit increment of 50% to 100%.

Revenue Management is the application of exercised strategy that estimates consumer behavior at the micromarket level and make the most of product availability and price to maximize revenue growth. Revenue Management is about optimizes revenue from offered business.

Revenue Management is a solid management science that utilizes statistical and mathematical concepts, based on operations research and management science methodology and tools in changing marketing environment to provide information to:

. Precisely review prospecting consumer behavior under dynamically changing market environment
. Establish the most effective way to price and assign inventory to reach and every prospecting consumer, each and every day, formulate real-time modification as market conditions change, with the consumer in real-time
. Convey this information immediately to distribution and sale outlets which deal with the consumer in real-time
. Work as a decision-support reserve for marketing and operational purpose, containing but not restricted to: pricing, product development, advertising, sales, scheduling, distribution, human resource utilization and capacity planning.

Businesses worldwide are going under remarkable pressure by having giant capital investments occupied to their capacity/resources up to bottom line and to optimizing and recovered revenues from their fragile capacity, products and/or services. So, what can be done to execute RM effectively is very important.

How to reduce the execution pains and optimize the benefits?

In fast changing supply and demand circumstances, how do you handle your resources and price your products and services? The challenges are find out the following:

. How do you predict requirement for distinct products and services?

. How do you assign and set aside the capacity/resources for high revenue/profit customers and products?

. How do you optimize capacity employing as well as revenue realization?

. How do you rework capacity/resource allocations set up on demand on a customary basis to optimize revenues?

. How do you maximize overbooking to lessen service failures costs?

. How do you distinguish product arrangement to maximize revenues?

. How do you chase surplus capacity and propose discounts at the right time to speed up demand without mitigate revenues.

. At what time you change capacity/resources to compete long-term supply and demand?

Adopting the right method of revenue management

From a CEO's point of view, revenue management is serious as it allows companies to successfully direct the challenges of supply, demand and other issues. Revenue management is a course of action and method brings in to order a company, provides it a strategic benefit over the competition by allows the company to sell the "right product to the right customer, at the right price, at the right time." Revenue management strategies stable the tradeoffs amid revenues, capacity utilization and service failures. Revenue management has been shown in many purposes to offer strategic, competitive and financial rewards.

Revenue management systems and processes can provide marvelous strategic return. By implementing revenue management systems and processes, American Airlines observed more than a billion dollars in incremental annual revenues after airline deregulation.

Though RM concept is very simple but execution of revenue management systems has kept very difficult. The availability of current RM system are either in-house or vendor-related and are very costly and time intensive to put into practice and very complex to use in which they upset the processes and people during and after execution.

Unluckily, revenue management execution and applicability have not been focused appropriately and stay behind with two of the biggest obstruction for companies to entirely assign to and profit from such systems. Many users of current systems have objection about the "black box" method used in applying compound revenue management prediction and maximization models. There are many revenue management models available like hybrid class of revenue management, advanced pros revenue management system, Navitaire's Revenue Management System, Portal's Revenue Management System etc to achieve the additional revenue and are vary depending upon the industry in which it is applied. Before implementing a revenue management system any organization must study whether the methods can be useful in their business and the necessity in which, it can push further to develop.

Reducing the Execution Pain

So how do you reduce the pain related with revenue management execution and applicability? Here are some implications:

Open Systems (Internet, Intranet or LAN client/server platform): Companies should force collectively made to order Internet / Wireless application standards, protocols and platforms. By applying software and using open standards investment in IT infrastructure, it can be maintained and comprehended for long periods of time. Revenue management software should harmonize a company's accessible investment in the infrastructure. By leveraging accessible software/hardware/networking infrastructure, companies can reducing the cost of execution and prevent training or failure costs.

Framework flexibility: Components-based and completely integrated revenue management software solutions should be chosen and it should available with existing database and Web/application servers of software built on a flexible framework and can be easily integrated. To apply revenue management systems it should avoid monolithic proprietary systems that propose very little flexibility for ad-hoc decision support or future improvement and software that does not combine with the bequest systems well.

Execution of Phase: Revenue management includes composite estimation and maximization models. When executing such systems today, benefits cannot be completely grasped until all models are entirely incorporated. This could get cost of millions of dollars and more time. Companies should evade ideas that need two to three years and multi-million dollars. A phased approach that gives entry to essential revenue management metrics should be adopted. Although optimization models will be required to maximize supply and demand or maximize resource allotment, the real emphasis in first phase should be to make out and collect the precise data, obtain users comfortable with RM metrics, and apply and make small adjustment of forecasting models until adequate historical data is pull together. This will reducing predicting fault and set up self-assurance in predicting models to lead better RM applicability. Maximizing models should be executing in second phase or soon after. Revenue management systems and processes should address business problems and give activity that generates a path for maximization twelve months after implementing first phase.

Front-End Platform (as opposed to back-end transaction processing platform): In general extremely automated and closely integrated with reservation or transaction systems of companies executes revenue management system at a large. The systems are operating in the back-end and compel extremely practiced analysts to control and manage this method. An easy to use front-end to the compound revenue
management system can develop analyst productivity and get better results. Revenue management systems should agree to users to make what-if analysis to study the influence of parameter or input changes on the prediction and maximization model yield. It should be in such a manner it create any type of ad hoc report as users reflect and analyze.

Time & Cost: Cost of revenue management systems is generally $1 million to $3 million and takes more than two years to put into practice. Companies should look at low-cost, high-value substitute and choose solutions with lessen inadequacies in designing, developing and executing revenue management software. By offering resources to high-priority matter and functionality and by claiming on reducing avoidable functionality and consulting actions, costs and execution time can be considerably lessen.

Demand forecasting and pricing: Demand forecasting is the key tool from which all other revenue management subject goes around. While implementing revenue management systems some times an Achilles heel appears so CEOs should look to demand forecasting and consider that point too. Without precise demand forecasting there will be no optimization of resource provision to products/customers completed. It also include the question, what prices should be specified to which customers through which channels for all products? (Including group, corporate, incentive, Internet.). For example, various demand forecasting methods are used in revenue management in cargo industry are, booking profiles, moving average models, exponential smoothing models (with seasonality and/or trend effects), causal (regression) models, auto-regressive time series models, kalman filters, neural nets, adaptive forecasting models etc.

Automation of Revenue Management:

Automating the method to take out, transform and load data into revenue management data warehouse, run statistical and mathematical models on a periodic basis, and provide easy interfaces to execute the operation are necessary for considerably improve analyst productivity and business performance.

Inventory Control and Sales Management:

The sales strength is also a user of information from a revenue management system. Whether it is computerize inventory control or relationship-based sales, companies recognize noteworthy progress in revenues if appropriate RM ideology is incorporated at all sales levels. The buy-in from sales management and cooperation in set up procedure to pursue RM techniques and in generating corresponding incentives plan is serious for long-term success.

Apart from the above the following points and analytical procedures are also to be considered.

The Revenue Management Lifecycle

Revenue management is a lifecycle of course of action to create, confine, and accumulate revenue for each customer. It has become a significant element of the enterprise. The Revenue management lifecycle also covers a continuing process of examines, appraise, and maximize each phase of the lifecycle.

Revenue Capture

Revenue capture optimizes market share by means of rival pricing models and flexible balance and credit control to allow any service for any subscriber.

Revenue Analysis

On the total revenue management lifecycle revenue analysis is considered and to recognize the revenue relationships with customers and partners it builds up satisfaction. Revenue analysis guarantees all transactions are carrying out with the fullest viable control, integrity, and completeness. It gives real-time verification, reporting, analysis, and control of all procedures and actions which assist optimize revenue and minimize loss linked with fraud and revenue leakage.

Profits of implementing Revenue Management and its future

Companies that want to accomplish something, not just to survive, must put into practice strategic technologies that permit them to constantly alter to vibrant and real-time supply and demand circumstances. Although airlines initiate and exhibit revenue management, it is showing to be a very efficient cutthroat tool in many industries. Unlike other technology vogue, revenue management is extremely rooted in management science and information technology and above all, brings discipline to an organization.

Today, many manufacturers and service providers are facing the problems of revenue generation due to intense competition, margins are shrinking more and more, customer loyalty is spoiling gradually and segregation is critical. More than ever before, industry toppers require reacting rapidly to varying market conditions and shifting customer necessities. To meet these threats, global leaders are heavily shifting

towards revenue management solutions that facilitate them to increase an in depth understanding of the services that customer's value and how they can be brought for maximum profit.

Because creating revenue and optimizing profit are greatest in mind for service providers, they should depend on revenue management solutions to allow them to react to new market opportunities and squeeze the competition by attracting the customer, introducing new services, and in the end driving value to the bottom line. End-to-end management of customer revenue across offerings, channels and geographies are achieved only through revenue management.

The future of revenue management was aptly explained in The Wall Street Journal as follows: "Re-engineering has run its course. You manage your quality totally. Where do you turn for future gains? Perhaps to the marketplace, with 'revenue management.'... Now with computing costs plunging, revenue management is poised to explode."