Managing Change Is Managing People
Guido Stein

Publisher:

Year: 2007
Language: Spanish

It is often said that the secret of being an effective manager is to stick to the facts, which will guarantee the success of the company's strategy. Facts are objective and basic. "This is true, but it's not the whole truth, nor even the most important part, since facts by themselves are meaningless. Without subjective perception followed by equally subjective interpretation, the facts don?t mean anything to anyone. Only people with no character value facts in themselves."

This is how IESE lecturer Guido Stein in his book "Cambiar o no cambiar: esa es la gestión" ("To Change or Not to Change: That Is the Management Question") sums up what for him is the essence of the managerial role: directing people and their work, facing change on a daily basis and setting the right balance between constant renewal and necessary stability.

Management is not a question of developing a sophisticated theoretical focus, warns the author, but rather of managers needing to be clear about where they are guiding the steps taken by their company. The task of management has always been a synthesis of intelligence and will. Flexibility and the ability to adjust quickly have become indispensable.

Management Incompetencies
The author begins his book by describing some management incompetencies, defined as observable and habitual behaviors that lead to, or at least contribute to, the failure of managers in their role. According to Stein, there may be a dangerous divergence between what a manager thinks and what his actions reveal, and therein lies one of the main sources of the frustration experienced daily in companies. Stupidity, selfishness, cynicism, double dealing, hypocrisy, whim, cruelty and arrogance define an inept manager.

The paradox of good managers is that they are good in spite of their weaknesses, while the dreadful ones move upwards because of their weaknesses. Breaking this impoverishing dynamic is one of the most demanding challenges for a renewed management attitude, which present circumstances demand.

Just for Managers
Guido Stein approaches the decisions made by top management in a challenging way. Strangely, a manager's time off can pose certain threats to the effectiveness of his work and, consequently, to the company's. Using time off to make personal and professional plans increases distractions and reduces concentration, which damages the task of management. According to Stein, the paradox of "less is more" should prevail.

The author also maintains that if some managers were paid less they would be much more effective. Is money really the incentive to make us do our work better? It is clear that the word "austerity" has disappeared from the vocabulary of management. It is only used to apply to others; for example, during company reorganizations intended to control salary costs. Meanwhile, top managers' bonuses keep going up.

Managing People Is Managing Change
For some time now, companies have talked about "intangible assets" to describe such concepts as culture, values, knowledge and accumulated experience within the company, the distribution network and customers. According to the author, "Now we know how difficult it is to improve things which can't be measured." Therefore, both human resources directors and general managers must possess a good measure of talent, imagination and willingness to work out the best way to motivate their colleagues.

For Stein, trust and commitment on the part of the company will lead to workers to identifying themselves with the company and to creating the sort of value which places it above the crowd. Among other good practices that will promote this trust and commitment, the book mentions job security, selective recruitment, high salaries, employee ownership schemes, training, renewed job design, interdisciplinary approaches, fair treatment, etc.

In today's knowledge society, "human capital" has become the comparative advantage par excellence, and this requires immediate adoption by corporate governance. All managers know that daily life is full of routines, customs and habits when it comes to doing what needs doing, established in rarely questioned, time-honored practices. Even so, according to Stein, "The leader is the person who is capable of making an adventure out of the routine." With stubborn determination and renewed motivation, it is possible to get the extraordinary out of the ordinary, and excellence out of the ordinary. Leaders are much more than mere dreamers; they make dreams come true.

Time and Change: Effective Management
Change is inevitable, but it can be approached in two different ways: by letting it catch us unaware, or by absorbing innovation into the vision that feeds management. Innovation demands foresight, which in turn requires us to choose the right moment and to have the courage to face new challenges. The author reminds us that the most difficult, and perhaps the most powerful innovation, is loyalty to one's own project, which in turn requires continuous reevaluation.

Managing change while running a company has become an extraordinarily tough experience. Mergers, takeovers, disinvestments, reorganizations, joint ventures, internationalization, and the speed with which all these things happen, have made change management a top component of business strategy. According to Stein, companies "must manage from the obvious," which is usually the most difficult thing to do. The most obvious definition of the goal of a company is to create a customer.

Good and bad news affect the public image of a company and usually reflect the way it is managed and, especially, the way it is governed. The distinction between managing and governing from the point of view of the owners is not just an academic question; rather, it derives from the experience accumulated in managing companies. Efficiency is closely linked to the flow of information and knowledge, which is synonymous with being well informed in order to anticipate changes.

Leadership is very much a question of craftsmanship and has nothing to do with inaccessible wisdom. As the author says, "Change isn't solving an anarchic jigsaw puzzle, but rather the energy of a Lego set on which we build our life and our happiness." A good leader also needs to be a good person. Behind all change and its proper management, you will always find people.



http://insight.iese.edu/doc.asp?id=664&ar=11