Listen to the Gurus: Six
Business Thinkers Who Get It
While the list of companies
that embrace Type I thinking is distressingly short, the blueprints
for building such organizations are readily available. The
following six business thinkers offer some wise guidance for
designing organizations that promote autonomy, mastery, and
purpose.
DOUGLAS MCGREGOR
Who: A social
psychologist and one of the first professors at MIT’s Sloan School
of Management. His landmark 1960 book, The
Human Side of Enterprise, gave the practice of management a
badly needed shot of humanism.
Big Idea: Theory X vs. Theory
Y. McGregor described two very different approaches to
management, each based on a different assumption about human
behavior. The first approach, which he called Theory X, assumed that people avoid effort, work only for
money and security, and therefore need to be controlled. The second, which he called Theory Y, assumed that
work is as natural for human beings as play or rest, that
initiative and creativity are widespread, and that if people are
committed to a goal, they will actually seek responsibility. Theory
Y, he argued, was the more accurate—and ultimately more
effective—approach.
Type I Insight: “Managers
frequently complain to me about the fact that subordinates
‘nowadays’ won’t take responsibility. I have been interested to
note how often these same managers keep a constant surveillance
over the day-to-day performance of subordinates, sometimes two or
three levels below themselves.”
More Info: As I explained
in Chapter 3, The Human Side of Enterprise
is a key ancestor of Motivation 3.0. Although McGregor wrote the
book a full fifty years ago, his observations about the limits of
control remain smart, fresh, and relevant.
PETER F. DRUCKER
Who: The most influential
management thinker of the twentieth century. He wrote an
astonishing forty-one books, influenced the thinking of two
generations of CEOs, received a U.S. Presidential Medal of Freedom,
and taught for three decades at the Claremont Graduate University
Business School that now bears his name.
Big Idea:
Self-management. “Drucker’s primary contribution is not a
single idea,” Jim Collins once wrote, “but rather an entire body of
work that has one gigantic advantage: nearly all of it is
essentially right.” Drucker coined the term “knowledge worker,”
foresaw the rise of the nonprofit sector, and was among the first
to stress the primacy of the customer in business strategy. But
although he’s best known for his thoughts on managing businesses,
toward the end of his career Drucker signaled the next frontier:
self-management. With the rise of
individual longevity and the decline of job security, he argued,
individuals have to think hard about where their strengths lie,
what they can contribute, and how they can improve their own
performance. “The need to manage oneself,” he wrote shortly before
he died in 2005, is “creating a revolution in human affairs.”
Type I Insight:
“Demanding of knowledge workers that they define their own task and
its results is necessary because knowledge workers must be
autonomous . . . workers should be asked to think through their own
work plans and then to submit them. What am I
going to focus on? What results can be expected for which I should
be held accountable? By what deadline?”
More Info: Drucker wrote
many books, and many have been written about him, but a great
starting place is The Daily Drucker, a
small gem that provides 366 insights and “action points” for
putting his ideas into practice. On the topic of self-management,
read Drucker’s 2005 Harvard Business Review
article, “Managing Oneself.” For more information and access to
digital archives of his writing, check out www.druckerinstitute.com.
JIM COLLINS
Who: One of the most
authoritative voices in business today and the author of Built to Last (with Jerry Porras), Good to Great, and, most recently, How the Mighty Fall. A former professor at the
Stanford Graduate School of Business, he now operates his own
management lab in Boulder, Colorado.
Big Idea: Self-motivation and
greatness. “Expending energy trying to
motivate people is largely a waste of time,” Collins wrote in
Good to Great. “If you have the right
people on the bus, they will be self-motivated. The real question
then becomes: How do you manage in such a way
as not to de-motivate people?”
Type I Insight: Collins
suggests four basic practices for creating a culture where
self-motivation can flourish:
1. “Lead with questions, not answers.”
2. “Engage in dialogue and debate, not
coercion.”
3. “Conduct autopsies, without blame.”
4. “Build ‘red flag’ mechanisms.” In other words,
make it easy for employees and customers to speak up when they
identify a problem.
More Info: Collins’s
website, www.jimcollins.com, contains more
information about his work, as well as excellent diagnostic tools,
guides, and videos.
CALI RESSLER AND JODY THOMPSON
Who: These two former
human resources professionals at Best Buy persuaded their CEO to
experiment with a radical new approach to organizing work. They
wrote a book about their experiences, Why Work
Sucks and How to Fix It, and now run their own
consultancy.
Big Idea: The results-only
work environment. ROWE, described in Chapter 4, affords
employees complete autonomy over when, where, and how they do their
work. The only thing that matters is results.
Type I Insight: Among the
basic tenets of ROWE:
“People at all levels stop doing any activity
that is a waste of their time, the customer’s time, or their
company’s time.”
“Employees have the freedom to work any way they
want.”
“Every meeting is optional.”
“There are no work schedules.”
More Info: You can learn
more about ROWE at their website: www.culturerx.com.
GARY HAMEL
Who: “The world’s leading expert on business strategy,”
according to BusinessWeek. He’s the
coauthor of the influential book Competing for
the Future, a professor of the London Business School, and the
director of the California-based MLab, where he’s spearheading the
pursuit of “moon shots for management”—a set of huge challenges to
reform the theory and practice of running organizations.
Big Idea: Management is an
outdated technology. Hamel likens management to the internal
combustion engine—a technology that has largely stopped evolving.
Put a 1960s-era CEO in a time machine and transport him to 2010,
Hamel says, and that CEO “would find a great many of today’s
management rituals little changed from those that governed
corporate life a generation or two ago.” Small wonder, Hamel
explains. “Most of the essential tools and techniques of modern
management were invented by individuals born in the 19th century,
not long after the end of the American Civil War.” The solution? A
radical overhaul of this aging technology.
Type I Insight: “The next
time you’re in a meeting and folks are discussing how to wring
another increment of performance out of your workforce, you might
ask: ‘To what end, and to whose benefit, are our employees being
asked to give of themselves? Have we committed ourselves to a
purpose that is truly deserving of their initiative, imagination,
and passion?’ ”
More Info: Hamel’s
The Future of Management (written with Bill
Breen) is an important read. For more on Hamel’s ideas and
research, see www.garyhamel.com and www.managementlab.org.