Tag Archives: society

Managers as Myriad Actors

One of the fundamental questions raised during the Global Peter Drucker Forum in Vienna two years’ ago was what our actions will be, as managers, when facing the Great Transformation; in other words, when facing transformational changes that lie in the future for companies, governments and communities alike, what actions will we take today? Will we be one of what Richard Straub, President of the Drucker Society Europe, calls the “myriad actors” who shape the future and impact others or will we abstain from courageous and decisive action?

Peter Drucker talked about the role of managers as “the central resource, the generic distinctive, the constitutive organ of society…” and that managers’ actions are essentially a “public concern” because our survival as a society is “dependent on the performance, the competence, the earnestness and the values of their managers.” (Drucker: The Ecological Vision)

The conversation in Vienna re-examined management’s responsibility to society and humanity. One of the things that drew me to the work of Drucker over 15 years’ ago was his focus on human-centric organizations. And yet, today, we still see organizations more focused on short term profits for shareholders rather than a balance of long and short term value creation for all stakeholders including employees, community and society in general.

Are we doing enough to keep that balance? Many of the speakers did not think seem to think so. They cited studies showing that only 13% of employees around the world are engaged in their jobs (Gallup’s “State of The Global Workplace” report) and that 63% of 1000 corporate board members and C-suite executives surveyed by Mckinsey claim that pressure to generate strong short –term results has increased over the past five years. Clearly, we have a lot of work to do – to shape the future towards value creation for all stakeholders and unleashing the incredible creative and human potential of the people who work with us.

How might we do this? By being “myriad actors”; by looking for ways to shape the future, “see around corners” (as Forum speaker Nilofer Merchant said) and impact others in positive ways. Some organizations, for example, choose to connect leading edge technology and a commitment to improving the human condition (see HopeLab recipient of the Drucker Award for Non Profit Innovation). Others focus on improving employee engagement levels (see Telus, and Dan Pontefract’s work).

I don’t think management can be taught only in a management program; I think it’s a combination of art and edifice – and perhaps this is what Drucker was referring to when he defined management in The New Realities, as a liberal art: “’liberal’ because it deals with the fundamentals of knowledge, self-knowledge, wisdom, and leadership; ‘art’ because it is practice and application.”

We might not know exactly how the future will turn out or how it will shape our industry or impact our livelihoods but we can certainly act – in a myriad of ways – to ensure that we keep humans at the center of decision making within our organizations.

As Richard Straub states in “The Great Transformation” (EFMD Global Focus 2014), “Management is a real world practice of dealing with people and organizations. Managers can make all the difference in the world with their knowledge, their creativity, their emotions and their values.” Managers are myriad actors.

Esther M Clark

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A version of this blog post was published in 2014; two weeks following the Drucker Forum in Vienna.

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Savvy Saturday November 26, 2016

During this time of thanks and giving, I thought we would share this quote from Oprah Winfrey.

 

To move forward, you have to give back.

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Growth Mindset: Moving Towards Drucker’s Entrepreneurial Society

Entrepreneurship in the Spanish language is most commonly translated as “emprendimiento” coming from the verb “emprender” which means to ignite or start something. For many generations, entrepreneurs in Latin America have started their own businesses for d4e051b46efa7280a957f01bfb5aeecf1.jpgiverse reasons including, as the management thinker Peter Drucker pointed out, a response to a social problem disguised as a business opportunity. A glimpse at the “Rey del Banano” (King of the Banana) rags-to-riches story in Ecuador supports Drucker’s claim; born into poverty, Luis Noboa Naranjo launched the successful Bonita Banana Company after piecing together profits made from sales of newspapers and household items. Noboa later established the Noboa business group; at one time, his business venture was credited for generating 5% of the Ecuador´s Gross Domestic Product.

Nevertheless, an entrepreneurial venture or entrepreneurial economy does not an entrepreneurial society make. It requires something more: not just “igniting” entrepreneurial fires but having the mindset to ensure that the entrepreneurial flame will not die. An entrepreneurial society requires a “growth mindset” – an idea developed over a decade ago by Stanford University psychologist Carol Dweck to explain achievement and success. Dweck compares and contrasts “fixed mindsets” and “growth mindsets”; she concludes that if we focus on learning and improvement as a consistent goal, environment, and the country we are born in, economic realities, as well as adversity or failure, can become powerful impetuses to ensure we grow and overcome pre-conceived limitations to achieving success.

Harkening to the 2016 Olympics currently underway in Rio de Janeiro, an athlete with a “growth mindset” pushes through in order to grow as an individual, an athlete and a citizen representing a nation. They see their failures as a call to further action and continuous training; in other words as a “not yet” rather than a “not ever.” There are clear parallels in athletic training to Drucker’s own words describing an entrepreneurial society where “innovation and entrepreneurship are normal, steady, and continuous.”

For an entrepreneurial society to prosper, members need growth mindsets to consistently keep the entrepreneurial flame alive and support those willing to push the limits of an “employee” society in order to find solutions to the world’s problems. Peter Drucker saw entrepreneurship and entrepreneurial culture as the lifeblood of society (Innovation and Entrepreneurship: 1985). He heralded a new era that would see a shift from an employee society towards an entrepreneurial society. In Latin America, where I live and work, “emprendedores” are igniting entrepreneurial fires with creativity, innovation and problem solving skills; yet the region – like many other major trading areas in the world – continues to call for a growth mindset from members of society that would lead us through economic and political instability and clear past the “same-old” power dynamics.

Global discussions around “entrepreneurial society” must be inclusive with ideas from developing as well as developed countries, public and private counterparts, local and international companies, thinkers and managers, students and teachers, entrepreneurs and intrapreneurs, CEOs and investors. If an entrepreneurial society is to flourish, we need a “mindset” of constant learning and growth supported by connections across real and psychological boundaries. In every corner of the globe, adopting a growth mindset together with learnings from larger discussions of entrepreneurship and transformation, will help us move to a society of creators, co-creators and organizations that respond ethically, empathetically and effectively to the societies we serve.

-EMC

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Savvy Saturday February 13, 2016

Integrity is doing the right thing, even when no one is watching.’

C.S. Lewis.

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Ethical Systems Thinking – Connection and Purpose

If we look at the world around us, we see systems and processes intertwining in service of humans, organizations and society. But what happens when those systems and processes break down? What happens when they no longer serve organizations, society or humans? What happens when particular interests overtake those systems, twist them, corrupt them or make them serve purposes far removed from the purpose for which they were created?

People reading this blog will know that I love innovation. I love finding connections between things and I think that systems and processes should be dynamic, flexible and transform with society and organizations. One of my favorite courses during my Masters was called “Persona y sociedad” and was an ethics courses for leaders of organizations. It was pure Peter Drucker. We explored the purpose of organizations and their role in society.

My post today is simply a reminder for current and future leaders of organizations to seek out opportunities for innovation through improvement or creation of processes and systems that serve a purpose; mediocrity or self-interests break those systems and end up serving only one person or at most a handful of particular interests. Without connection we are nothing. Even two strangers in an elevator are a temporary society – sharing a common purpose. Connection and purpose is what makes an organization relevant to stakeholders. Breaking this does nothing in the long run than break apart the organization.

EMC

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