Huwebes, Pebrero 14, 2013
The Management Gurus by Jolito Ortizo Padilla
The most unlikely people can become management gurus,such as academics ,are already in position.Others, because of their job,say as head of a big business,are respected for their achievements,for what they preach in public about managing, or what they may written in articles or books. Our selection of gurus includes all categories,but more important is,what can we learn from them? Alfred Sloan was probably the founding father of modern industrial management systems. He became a very rich person; sufficiently so to endow a school of management named after him at M.I.T. Philip Kotler my mentor in marketing is again an originator; he didn't invent marketing , but he has codified it into a serious discipline which we can study and profit from it. Michael Porter is a kind of management deity , making pronouncements, often dense and difficult to understand , but acute and relevant. W. Edward Deming was an unassuming census clerk with a fascination for statistics. He transformed the industry of an entire country with his ideas on quality, so that Japan became a pre-eminent industrial power. Gary Hamel stirs up controversy, and thus makes people think. Finally Laurence Peter (and colleague Raymond Hull) wrote a book which took a sly at management , and came up with an uncomfortable truth. Although not really fitting into any of our guru categories. Peter has made us look at the way our organization (or is not) working. That is a great guru.
ALFRED SLOAN
The business of business is business
Alfred Sloan was the most original CEO and organizational thinker of the 20th century. He was also clever enough to set his record down in a book that has become a management classic: My Years with General Motors. Sloan became President of GM; it was there that his reputation was made. He recognised the company in a way that became a template for virtually every corporate entity for the rest of the century. He divided the company into separate autonomous divisions that were subject only to financial and policy controls from a small central staff.
The result of this "federal decentralization" were enduring and dramatic. Sloan also introduced systematic strategic planning procedures for the company divisions, the first CEO over to do such a thin. He was President of the company from 1923 to 1956, over 30 years with his hand effectively on the helm of one of the largest companies in the world. However he was known as "Silent Sloan" to the company's worker because he preferred to run the business from behind the scenes. His management style is well illustrated by his famous summing up the end of GM Senior executive meeting: "Gentlemen, I take it we are in complete agreement on the decision here", he stated , and everyone nodded their heads in agreement. "Then ," he went on, "I propose we postpone further discussion of this matter until the next meeting to give ourselves time to develop disagreement, and perhaps gain some understanding of what the decision is all about."
PHILIP KOTLER
Marketing is an art of finding clever ways to dispose of what you make. Marketing is the art of creating genuine customer value. It is the art of helping your customers become better off.
His book , Marketing Management, is a classic textbook;it applies rigorous analysis and mathematical methodology to the practiced of marketing. Its influence has been monumental.Kotler was primarily responsible for lifting marketing out of disrepute in which it had once been held. He changed it from being part of sales to being a recognized strategic function in its own right. Kotler sees marketing as being about the exchange of values between two parties; a social activity , not just a business one. He coined the term " social marketing ", defined as " the systematic application of marketing to achieve specific behavioral goals for a social good".
Kotler sees marketing as something that evolves over time; at first focused on transactional marketing , but now with much more attention to relationship marketing. This is the idea of customer loyalty as the means to build a whole series of sales out of a single transaction.
MICHAEL PORTER
The Essence of Strategy is choosing what not to do.
Michael Porter has been criticised for his willingness to boil his thoughts down into a series of bullet points, each of them with a plodding unmemorable title. Nevertheless, Porter effectively redefined the way that businessmen think about competition. This was largely by introducing the language and concepts of economics into corporate strategy. He began by simplifying the notion of competitive advantage and then created a new framework for companies to think about how to achieve it. This has led him to another field of interest; clustering the extent to which industries of old and new stay geographically close to each other.Porter maintains that businesses do well economically because of this clustering of specialized skills and industries. This , through dynamic competition between them, produces superior products and processes.
Recently, Porter has started to write about corporate social responsibility , applying his thinking about competition to social issues.
W. EDWARDS DEMING
I think I was the only man in Japan in 1950 who believed my prediction -that within five years , manufacturers the world over would be screaming for protection (from Japanese imports).It took four years.
After the Second World War , Deming went to Japan to advise on a census that was taking place there. He stayed on to advise Japanese businessmen how to inject quality into manufacturing industry. At the time, Japan was notorious for the poor quality goods that it produced. By the late 1970s Japan was producing quality stuff.
Behind the Japanese quality miracle was W. Edwards Deming who had begun to teach middle managers about quality. Deming's approach involved demonstrating that all business processes are vulnerable to a loss of quality through statistical variation. Management, he argued , was responsible for 85 percent of that variation . Reduce the variation; increase the quality , was the foundation of his advice.
Deming's method for bringing this about was built on what became known as quality circle. These circles consisted of groups of workers who sought to improve the processes that they were responsible for, in four stages. First, the planning of how to do it, then the implementation of that plan. Then, workers would check variances from anticipated outcomes and take any corrective action that was necessary.
Over a number of years he came to distill his advice for managers into "14 points", which ranged from quality related items such as "cease dependence on mass inspection. Build quality into the product from the start", to more human issues such as remove barriers to pride workmanship".
GARY HAMEL
Strategy didn't start with Igor Ansoff neither did it star with Machiavelli. It did not even start with Sun Tzu. Strategy is as old as human conflict.
Gary Hamel brought a new focus to the subject of corporate strategy, building his reputation with the idea of core competencies. "Core competencies are the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies", they are the things that an organization does exceptionally well.
Hamel took corporate strategy away from the precision of traditional planning. Strategic innovation, he said , will be the main source of competitive advantage in the future. Traditional strategic planning , he argued , is not strategic ; rather it is a calendar driven ritual about plans and planning. Great strategies come from challenging the status -quo.In his recent book he argues: "Like the combustion engine , it's a technology that has largely stopped evolving and that's not good." What then does the future management hold? Hamel doesn't say "My goal in writing this book was not to predict the future of management , but help invent it, he wrote. Useful things to bear in mind , he suggested , are the need for companies to have purpose to seek out ideas from the fringes, and to embrace the democratising power of the Internet.
LAURENCE PETER
In a hierarchy, every employee tends to rise to his level of incompetence.
Not many management gurus have their name adopted for a principle, especially when they are not really a guru at all . The Peter Principle first appeared on the cover of the book of the same name;it has since become part of the English Language.
The book was an instant hit. Peter's corollary stated:"In time , every post tends to be occupied by an employee who is incompetent to carry out its duties". One reviewer wrote at the time. "There is a chilling touch of truth behind the whole thing." Industrial organizations realized that it applied to many of them. Most hierarchies know the outstanding finance director who is promoted to be an outstandingly disastrous CEO. Taken to extremes , the Peter Principle is a deeply depressing idea. It means that all employees who are not already hopeless at their job are merely in transit to a desk where they will be. Peter's solution to this "philosophy of despair" was to recommend "creative incompetence" . Anyone can avoid disastrous promotion by creating " the impression that you have already reached your level of incompetence. Creative incompetence will achieve the best results if you choose an area of incompetence which does not directly hinder you in carrying out the main duties of your present position."While looking round your office , you may find yourself wondering who is practicing creative incompetence.
Sabado, Enero 26, 2013
Leadership Development by Jolito Ortizo Padilla
Education and training in management needs to emphasise not only interpersonal skills but also a flexibility of approach, diagnostic ability and the realisation that the most effective form of leadership behavior is a product of the total leadership situation.
According to Investors in People,leadership development is not just a corporate issue: "The ability to create and communicate a clear vision ,and motivate people to deliver it, is as important to the small entrepreneur as to the leader of 1000 people. All organizations should be identifying the managers they will need in a few years' time and developing them. All top managers should be planning their succession and supporting the people who will step into their shoes when it's time to move on.
Extensive research undertaken by the GA Consultancy reveals that consistently poor ratings accorded to public sector leaders is a key cause for concern during a period of major reform.The survey of 1900 public sector managers, mostly at middle and junior level, reveals that only 33 percent of managers rate the leadership demonstrated by their most senior management team as high quality. Although a wide and varied range of training activities is taking place, the majority of managers perceive a low priority placed on leadership development. Only a quarter of respondents claimed their organizational budget for developing leaders is adequate and organizations are still tending to rely on traditional and formalized methods of developing leaders.
Referring to action centered leadership model, Padilla identifies seven key principles of leadership development that can be applied successfully in different kinds of organizations in both public and private sectors:
- Development of strategy for leadership for each of the three level of leadership -operational, strategic and team.
- Selection of those with high potential for becoming effective leaders.
- Training for leadership that implies instruction with specific end in view. Identify your business training needs in the leadership context and assign priorities.
- Career development through giving person the right job at the right time. People grow as leaders through the actual practice of leading.
- Line managers as leadership developers by developing the individuals potential and sharing their knowledge of leadership.
- Corporate culture that is valued at all levels and should encourage a climate of self development in leadership.
- The chief who should be leading from the front and who owns the problem of growing leaders.
GA Consultancy report found that around a third of employees surveyed had never worked for, or been motivated by an exceptional leader.
The leadership jigsaw has six interlinking pieces: vision , example , relationship, motivation, empowerment and communications as a guide to the measurement and development of leadership skills.
Vision -Do you:
- Work hard at communicating your vision for the organization to all staff at all levels?
- Understand that your vision must appeal to your staff at both an emotional and practical level if they are to join you on your journey?
- Understand the culture and value of your organization and their impact on its future development?
- Recognized blind alleys?
- Understand that every member has a different set of motivational stimuli?
- Explain your decisions in terms of their benefit to the organization and its members?
- Celebrate and reward individual and team achievements?
- Prefer offer carrot, rather than weird sticks?
- Match your words with your actions?
- Take full responsibility for organizational problems even if you were not directly responsible?
- Occasionally muck in when your staff are under pressure at work?
- Regularly consider what you see in the bathroom mirror?
- Believe that people generally respond well when given greater responsibility for their own performance?
- Allocate sufficient resources to training and development?
- Get a buzz when staff set and achieve their own goal?
- Realize that the organization would still function if you were not there?
- Work hard at countering a them and u s' culture within your organization?
- Set clear codes of acceptable conduct and take action against breaches of them?
- Stress that everyone contributes to the success of the team(s) they belong to?
- Admit when you make a mistake?
- Use your influence to encourage two-way communications at all levels in your organization?
- Encourage personal contact rather than written, mechanical or technological alternatives?
- Encourage diversity of opinion and constructive criticism?
- Walk the talk!
Miyerkules, Enero 2, 2013
Guidelines for Effective Strategic Management by Jolito Ortizo Padilla

Failing to follow certain guidelines in conducting strategic management can foster criticisms of the process and create problems for the organization. Issues such as as "Is strategic management in our firm a people process or a a paper process?' should he addressed.
An important guideline for effective strategic management is open-mindedness. A willingness and eagerness to consider new information, new viewpoints, new ideas, and new possibilities is essential; all organizational members must be share a spirit of inquiry and learning. Strategists such as chief executive officers, presidents, owners of small businesses,and heads of government agencies must commit themselves to listen to and understand managers' satisfaction. In addition, managers and employees throughout the firm should be able to describe the strategists' positions to the satisfaction of the strategists. This degree of discipline will promote understanding and learning.
No organization has unlimited resources. No firm can take on an unlimited amount of debt of issue an unlimited amount of stock to raise capital. Therefore, no organization can pursue all the the strategies that potentially could benefit the firm. Strategies decision thus always have to be made to eliminate some courses of action and to allocate organizational resources among others. Most organizations can afford to pursue only a few corporate level strategies at any given time. It is critical mistake for managers to pursue too many strategies at the same time, thereby spreading the firms resources so thin that all strategies are jeopardized.
Strategic decisions require trade-off such as long range versus short range considerations or maximizing profits versus increasing shareholders' wealth. There are ethics issues too. Strategy trade-offs require subjective judgments and preferences. In many cases, a lack of objectivity in formulating strategy results in a loss of competitive posture and profitability. Most organizations today recognize that strategic management concepts and techniques can enhance the effectiveness of decisions.Subjective factors such as attitudes toward risk, concern for social organizations need to be objective as possible in considering qualitative factors.
Jolito Ortizo Padilla on his book Strategic Management - Proper Perspectives-2nd Edition summarizes the important guidelines for the strategic planning to be effective;
- It should be people process more than a paper process.
- It should be a learning process for all managers and employees.
- It should be words supported by numbers rather than number supported by words.
- It should be simple and non routine.
- It should vary assignments, team memberships, meeting formats, and even the planning calendar.
- It should challenge the assumptions underlying the currently corporate strategy.
- It should welcome bad news.
- It should welcome open-mindedness and a spirit of inquiry and learning.
- It should not be a bureaucratic mechanism.
- It should not become ritualistic, stilted, or orchestrated.
- It should not be too formal, predictable , or rigid.
- It should not contain jargon or arcane planning language.
- It should not be formal system for control.
- It should not disregard qualitative information.
- It should be controlled by "technicians".
- Do not pursue too many strategy at once.
- Continually strengthen the "good ethics is good business" policy.
Strategic management must not become a self perpetuating bureaucratic mechanism. Rather, it must be a self-reflective learning process that familiarizes managers and employees in the organization with key strategic issues and feasible alternatives for resolving those issues. Strategic management must not become ritualistic, stilted , orchestrated , of too formal, predictable, and rigid. Words supported by numbers, rather than numbers supported by words , should represent the medium for explaining strategic issues and organizational responses. A key role of strategists is to facilitate continuous organizational learning and change.
Sabado, Disyembre 29, 2012
The Leadership Relationship by Jolito Ortizo Padilla
Whatever the perceived approach to leadership, the most important point is the nature of the leadership and the manner in which the leader influences the behavior and actions of other people.
Leadership is a dynamic form of behavior and there are a number of variables that affect the leadership relationship. Four major variables are identified by McGregor as:
- the characteristics of the leader
- the attitude, needs and other personal characteristics of the followers
- the nature of the organization, such as its purpose, its structure, the tasks to be performed;and
- the social, economic and political environment
According to Kouzes and Postner, credibility is the foundation of leadership. From extensive research in over 30 countries and response to the question of what people " look for and admire in a leader, in a person whose direction they would willingly follow", people have consistently replied that they want;
" leaders who exemplify four qualities: they want them to be honest , forward -looking, inspiring and competent. In our research our respondents strongly agree that they want leaders with integrity and trustworthiness, with vision and a sense of direction , with enthusiasm and passion, and with expertise and a track record for getting things done".
Fullen refers to the importance of relationship building as a basic component of the change process and effective leadership: "Leaders must consummate relationship builders with diverse people and group-especially with people different from themselves.Effective leaders constantly foster purposeful interaction and problem solving, and are wary of easy consensus".
Within an organization, leadership influence will be dependent upon their type of power that the leader can exercise over the followers. The exercise of power is a social process which helps to explain how different people can influence the behavior/actions of others. Five main sources of power upon which the influence of the leaders is based have been identified by French and Raven as reward power, coercive, legitimate power and expert power. We shall consider these in terms of the manger and subordinate relationship.
- Reward Power is based on the subordinates perception that the leader has the ability and resources to obtain rewards for those who comply with directives, for example, pay promotion , praise, recognition , increased responsibilities , allocation and arrangement of work, granting of privilege.
- Coercive power is based on fear and the subordinates perception that the leader has the ability to punish or to bring about undesirable duties or outcomes for those who do not comply with directives; for example, withholding pay rises, promotion or privileges; allocation of undesirable duties and responsibilities; withdrawal of friendship or support; formal reprimand or possibly dismissal. This is in effect the opposite of reward power.
- Legitimate power is based on the subordinates perception that the leader has the right to exercise influence because of the leader's role or position in the organization. Legitimate power is based on authority , for example that of the managers and supervisors within the hierarchical structure of an organization. Legitimate power is therefore power because it is based on the role of the leader organization and not in the nature of the personal relationships with others.
- Referent power is based on subordinates identification with the leader. The leader exercises influence because of the perceived attractiveness, personal characteristics, reputation or what is called "charisma" . For example , a particular manager may not be in a position to reward or punish certain subordinates because the manager commands their respect or esteem.
- Expert power is based on the subordinates perception of the leader as someone who is competent and who has some special knowledge or expertise in a given area. Expert power is based on credibility and clear evidence of knowledge or expertise; for example, the expert knowledge of "functional" specialists such as the personnel manager, management accountant or systems analyst. The expert power is usually limited to narrow , well defined areas or specialisms.
- personal power, supported and trusted by their colleagues and subordinates; and
- connection power,which results from personal and professional access to key people and information.
French and Raven point out that the five sources of power are interrelated and the use of one type of power, for example, coercive may affect the ability to use another type of power for example. referent.Furthermore ,the same person may exercise different types of power, in particular circumstances and at different times.
" You have to look at leadership through the eyes of the followers and you have to live the message.What I have learned is that people become motivated when you guide them to the source of their own power and when you make out of employees who personify what you want to see in the organization".
Jolito Ortizo Padilla
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Huwebes, Disyembre 13, 2012
Organization and Judgement by Jolito Ortizo Padilla
The way in which we organize and make judgements about what we have perceived is to a large extent based on our previous experience and learning. It is also important at this point to be aware of the inferences and assumptions we make which go beyond the information given. We may not always be aware of our pre-set assumption but they will guide the way in which we interpret the behavior of others. There has been much research into the impact of implicit personality theory. In the same way that we make assumptions about the world of objects and go beyond the information provided, we also make critical inferences about people's characteristics and possible likely behaviors.
A manager might well know more the "type of person" A- a member of staff who has become or was already a good friend, who is seen in a variety of social situations and with whom there is a close relationship - than about B-another member of staff , in the same section as A and undertaking similar duties, but with whom there is only a formal work relationship and a limited social acquaintance. These differences in relationship, information and interaction might well influence the manager's perception if asked, fro example, to evaluate the work performance of A and B.
Judgement of other people can also be influenced by perceptions of such stimuli as:
- role or status
- occupation
- physical factors and appearance: and
- non-verbal communication and body language
In my personal research people have admitted , under pressure that certain physical characteristics tend to convey a positive or negative message. For example, some people find red hair, earrings for men, certain scents and odors, someone too tall or too short; a disability; a member of a particular ethnic group and countless other items as negative .... Similarly there will be positive factors such as appropriate or dress for the occasion.... which may influence in a positive way.
A person may tend to organise perception of another person in terms of the whole mental picture of that person. Perceptual judgement is influenced by reference to related characteristics associated with the person and the attempt to place that person in a complete environment. In one example, an unknown visitor was introduced by the course director to 110 Singaporean students, divided into five equal groups. The visitor was described differently to each group as:
- Ms. Alicando, a student from Harvard;
- Ms. Alicando, demonstrator in psychology from Harvard;
- Ms. Alicando, lecturer in psychology from Harvard;
- Dr. Alicando, senior lecturer from Harvard;
- Professor Alicando from Harvard.
Non-verbal communications and body language includes inferences drawn from posture, gestures, touch, invasions of personal space, extent of eye contact , tone, voice or facial expression. People are the only animals that speak, laugh and weep. Actions are more cogent than speech and human rely heavily on body language to convey their true feeling and meanings. It is interesting to note how emotions are woven creatively into email messages. Using keyboard signs in new combinations has led to a new e-language- to signal pleasure:), or unhappiness :-c, or send a rose @>---> encapsulate feelings as well as words. The growth of this practice has led to an upsurge of web replete with examples.
According to Mehrabian, in our face to face communication with other people the messages about our feelings and attitudes come only 7 percent from the words we use, 38 percent from our voice and 55 percent from body language, including facial expressions, Significantly, when body language such as gestures and tone of voice conflicts with the words, greater emphasis is likely to be placed on the non-verbal messages.
Padilla suggests that in the a sense, we are all experts on body language already and this part of the survival instinct:
Even in a "safe" environment like an office or meeting room you will feel a pull on your gaze each time someone new enters the room. And whether you want to or not, you will start to from opinions about a person in as little as three seconds. You can try to be fair and objective in your evaluation, but you will have little choice. This is an area where the subconscious mind bullies the conscious into submission. Like dislike, trust, love or lust can all be promoted in as long as it takes to clear your throat. In fact most of these responses will be based on your perception of how the person looks.
In our perceptions and judgment of others it is important therefore to watch and take careful note of their non-verbal communication. However, although body language may be a guide to personally, errors can easily arise if too much is inferred from a single message rather than related cluster of actions.According to Fletcher ,"You won't learn to interpret people's body language accurately , and use your own to maximum effect, without working at it. If you consciously spend half an hour a day analysing people's subconscious movements , you'll soon learn how to do it-almost unconsciously. However, as Mann points out, with a little knowledge about the subject is all too easy to become body conscious. Posture and gesture can unmask deceivers, but it would be dangerous to assume that everyone who avoids eye contact or rubs their nose is a fibber. Nevertheless an understanding of non-verbal communication is essential for managers and other professions where good communications skills are essential.
Huwebes, Nobyembre 29, 2012
Transactional Analysis by Jolito Ortizo Padilla
Transactional Analysis is one of the most popular ways of explaining the dynamics of interpersonal communications. Originally developed by Eric Berne, it is a model of people and relationships that encompasses personality, perception and communication.Although Berne used it initially as a method of psychotherapy, it has been convincingly used by organizations as a training and development programme.
TA has two basic underlying assumptions:
- All the events and feelings that we have ever experienced are stored within us and can be replayed, so we can re-experience the events and the feelings of all past years.
- Personality is made up of three ego states that are revealed in distinct ways of behaving. The ego states manifest themselves in gesture, tone of voice and action, almost as if they are different people within us and they converse with each other in transactions either overtly and covertly.
- Adult ego states- behavior that concern out thought processes and the processing of information. In this state we may be objective, rational, reasonable-seeking information and receiving facts.
- Parent ego state-behavior that concerns the attitudes, feelings and behavior incorporated from external sources, primarily our parents. This state refers to feelings about right and wrong and how to care for other people.
- Child ego state- behavior that demonstrates the feelings we remember as a child. This state may be associated with having fun, playing, impulsiveness, rebelliousness, spontaneous behavior and emotional response.
We all have a preferred ego state which may revert to: some individuals may continually advise and criticise others(the constant Parents); some may analyze , live only with facts and distrust feelings( the constant Adult); some operate with strong feelings all the time, consumed with anger or constantly clowning (the constant Child). Berne emphasized that the states should be judged as superior or inferior but as different. Analysis of ego states may reveal why communication breaks down or why individual may feel manipulated or used.
Berne insists that it is possible to identify the ego state from the word, voice, gestures, and attitude of the person communicating. For example, it would be possible to discuss to discern the ego state of the manager, if they said the following:
" Pass me the file on the latest sales figure"
" How do you think we could improve our safety record?
(Adult ego state)
" Let me help you with that-I can see you are struggling"
" Look , this is the way it should be done; how many more times do I have to tell you?
(Parent ego state)
" Great, it's Friday. Who's coming to the pub for a quick half?
" That's a terrific idea-let's go for it"
(Child ego state)
A dialogue can be analyzed in terms not only of the ego state but also whether the transaction produced a complementary reaction or a crossed reaction. Complementary means that the ego state was expected and preferred response. So for instance, if we look at the first statement, "Pass me the file on the latest figures, the subordinates could respond: "Certainly- I have it here' Adult ego state) or " Can't you look for it yourself? I only gave it to you an hour ago' (Parent ego state).
The first response was complementary whereas the second was a crossed transaction. Sometimes it ma be important to cross a transaction. Take the example "Let me help you with that- I can see you struggling' (Parent ego state) The manager may have a habit of always helping in a condescending way, making the subordinate resentful. If the subordinate meekly accepts the help with a thankful reply, this will reinforce the manager's perception and attitude, whereas if the subordinate were to respond with "I can manage perfectly well. Why did you think I was struggling ?, it might encourage the manager to respond from the Adult ego state and thus move their ego position.
Knowledge of TA can be of benefit to employees who are dealing with potentially difficult situations. In the majority of work situations the Adult-Adult transactions are likely to be norm. Where work colleagues perceive and respond by adopting the Adult ego state , such a transaction is more likely to encourage a rational, problem -solving approach and reduce the possibility of emotional conflict.
If only the world of work was always of the rational logical kind. Communications at work as elsewhere are sometimes unclear and confused, and can leave the individual with bad feelings and uncertainty. Berne describes a further dysfunctional transaction, which can occur when a message is sent to two ego states at the same time. For instance, an individual may say " I passed that article to you last week, have you read it? This appears to be an adult to adult transaction and yet the tone of voice or the facial expressions might imply a second ego state. is involved. The underlying message says, Haven't you even read that yet... you know how busy I am and yet I had time to read it! The critical Parent is addressing the Child ego state. In such " ulterior transactions" the social message is typically adult to adult and the ulterior , psychological message is directed either Parent-Child or Child- Parent.
Biyernes, Nobyembre 23, 2012
Collaboration by Jolito Ortizo Padilla

Collaboration is one of those words that immediately makes us feel good because it implies friendship and giving. We all enjoy collaborative events: a warm fire or barbecue, family and friends all together for a birthday or an anniversary. Yet a failure rate of collaboration in business is incredibly high.
Collaboration works when we know and trust each other, but the moment someone takes something without asking that trust is eroded.
GA Consultancy survey of nearly 800 country in 2011 showed a major consensus that collaboration was the most fundamental activity for successful innovation. This is because no company in these times can own all the knowledge it needs for new products or services. Our world is moving too fast. Knowledge is growing too rapidly.
In the later stages of innovation , product development and new product introduction, we tend to operate in close or "cluster" networks. Trust is higher ,communication better and collaboration is more successful. It is in the early stage of the innovation process where collaboration is more difficult. This is where diverse and dispersed networks are needed and because of this trust levels are lower. The raw material of innovation is less tangible in these early stages and so accusations of intellectual property theft become prevalent.
As an antidote to IP theft, company engage in legal and financial negotiations and yet this is not the answer.
When we meet new collaborators we engage in the early discovery process and this is exciting. We tend to ignore the aspects of the other person that are different. Instead constantly look for common grounds. When we initiate collaboration we need to fully understand the behavior of our new best friend. It is vital to invest time in understanding diversity and why other people do things differently.
My book, Strategic Management: Putting Things In Proper Perspectives , 2nd edition, 2012, has been adopted as the course book for an innovation course in Asia. Before engaging in innovation projects students use a self assessment tool on the book to better understand the different modes of behavior in their diverse project teams
My work with ISO engages me in collaborative work with people around the world and I form friendships with some far more easily than others. To quote an old saying, "my roots are showing" and I gravitate easily towards people who have a Filipino and a Duensanon-Ilongo heritage like myself..
It's those Duenasanon-Ilongo roots which makes us feel safe, share the same jokes and trust each other. We naturally gravitate to people who mirror our own values and behaviors. As result we form closed or " cluster" networks very easily. These networks are great for getting things done, but are not good for generating new ideas.
For successful innovation, comfortable collaboration doesn't give the essential jolt that releases new ideas. In the ISO technical committee to which I belong , we get that jolt from other cultures whether it is China, Germany, Japan or Mexico. We learn to work with different cultures and I have made many great friends over the years from across the globe. If you want to develop new ideas you have mix with people who may be outside your comfort zone , take time to understand them and freely give your ideas to them in order to get ideas back from them.
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