Management system (open source)
Management System is a socio-technical system that leverages the cumulative knowledge of management practitioners and evidenced based research from the past 130 years. The system was developed by DoD components in partnership with industry experts and academic researchers and builds off of the US Department of Wars version 1.0 open source management system - Training Within Industry.
The system integrates the four organizational components of Product, Structure, Process and People. In addition, the system is based on the 4 capabilities of rapid problem solving underlying the Toyota Production System:
- Design and Operate Work to See Problems.
- Solve Problems Close in Person, Place & Time.
- Capture and Share Knowledge from solving those problems.
- Managers Coach their Team in capabilities 1-3.
Fundamentally, the system sets the standards of management by outlining a doctrine of rules, tactics, techniques, procedures & terms. The standards are intended to motivate change by creating a tension between the organization's "current condition" and the "ideal condition".
The objective of the system is to deliver more value, in less time, at less cost relative to the competition. For the DoD, competition is defined by the threats posed by current and potential adversaries.
Management Matters
"When we take stock of the productivity gains that drive our prosperity, technology gets all the credit. In fact, management is doing a lot of the heavy lifting". A growing body of evidence based research is showing the correlation and causation of management's impact on organizational performance.The Management System is based on this body of research and managerial practice. The research findings is best captured by Clayton Christensen, former Kim B. Clark Professor of Business Administration at the Harvard Business School : "Management is the most noble of professions if it's practiced well. No other occupation offers as many ways to help others learn and grow, take responsibility and be recognized for achievement, and contribute to the success of a team."
As a result, the system establishes the "practice routines" for the management profession. Evidenced based research in the field of practice shows that "practice makes permanent, so practice perfect". This is echoed in Vince Lombardi's admonishment - "Practice does not make perfect. Only perfect practice makes perfect". Therefore, the Management System outlines the practice routines that enable the profession to engage in daily and "deliberate practice" To be successful in the profession of management, the daily and deliberate practice routines require a manager to commit to three fundamental values: Respect for People, Continuous Improvement, and Customer First.
Doctrine of Management
The Management System is a doctrine that outlines the fundamental rules, with supporting tactics, techniques, procedures and terms used for the conduct of managerial work in support of the DoD component's objectives. It is authoritative but requires judgment in application. Each organizational element of Product, Structure, Process and People outline the standards of management using the following construct:- Rule: An explicit and validated instruction governing the thinking and actions of managerial work. Validated means proven true in a given circumstance.
- Tactic: The employment and ordered arrangement of elements in relation to each other in order to achieve an objective. Employing a tactic may require integrating several techniques and procedures.
- Techniques: Effective and/or efficient methods used to perform tasks. Managers choose specific techniques based on the circumstance and objectives established.
- Procedures: Standard and detailed steps that prescribe how to perform specific tasks. They consist of a series of steps in a set order that are completed in the same way, regardless of circumstance.
- Terms: The words and definitions used in the conduct of managerial work.
Underlying Research
- Product: The doctrine of product is heavily shaped by the research of Clayton Christensen, Michael Porter and Donald G. Reinertsen.
- Structure: The doctrine of structure is heavily shaped by the research of Elliot Jaques and Alfred D Chandler Jr..
- Process: The doctrine of process is heavily shaped by the research of Steven J. Spear.
- People: The doctrine of people is heavily shaped by the research of Chris Argyris and Elliot Jaques.
Underlying Management Practitioners
- Product: The advancement and application of product doctrine is best represented by Thomas Edison and Steve Jobs.
- Structure: The advancement and application of structure doctrine is best represented by Andy Grove and Hyman G. Rickover.
- Process: The advancement and application of process doctrine is best represented by Taiichi Ohno and Henry Ford.
- People: The advancement and application of people doctrine is best represented by all of the above management practitioners: Taiichi Ohno, Thomas Edison, Steve Jobs, Henry Ford, Andy Grove, Hyman G. Rickover.
Organizational Components (Rules - TTPs)
Product (Rule Statement, TTPs, Ideal Condition)
Rule Statement: Prioritize and develop products that solve the customer's “job to be done” with no “cost of delay”.- Job to Be Done: TTP's to understand the motivation for why customers hire or fire products to help them get their job done.
- Market Time : TTP's to measure the time it takes to respond to market opportunities; and to prioritize development decisions by calculating the impact of time on value creation & capture.
- Create Value: TTP's to enable strategic choice by 1) classifying the type of product you are developing and 2) how to position it for competitive advantage.
- Capture Value: TTP's to capture a portion of the value you create in order to have a sustainable business model that continues to create value.
Products designed and delivered that generate:
100% Value Creation
- Perfect Customer Satisfaction
- 0 “Cost of Delay”
- Revenue, Resources, Profits, Units
- 0 “Cost of Delay”
Structure (Rule Statement, TTPs, Ideal Condition)
- Takt Time : TTP's to determine the demand on the structure to meet the “expected scope & frequency of problems” to manage the cross-functional flow of product.
- Role Alignment: TTP's to establish the vertical and functional groupings of work to meet the demand of problem solving.
- Role Relationship: TTP's to define authorities and accountabilities required for effective vertical and cross-functional role relationships.
- Role Responsibilities: TTP's to define the specific role responsibilities.
Roles aligned and structured for:
- Clear Communication
- Perfect Information
- Effective Decision Making
- Disciplined Problem Solving
- Clear Accountabilities & Authorities
Process (Rule Statement, TTPs, Ideal Condition)
- Takt Time : TTP's to set the pace of production to match pace of customer demand.
- One Piece Flow: TTP's to produce and move one product at a time continuously across processing steps.
- Level Pull: TTP's to level the type & quantity of production over a fixed period of time; and a pull method of production control where downstream activities signal their needs to upstream activities.
- Standard Work: TTP's to define current best method for performing an activity.
Process that produce and deliver the product:
- On-demand
- No waiting
- Zero Defect
- Perfect Safety
- No Waste
People (Rule Statement, TTPs, Ideal Condition)
- Takt Time : TTP's to set the pace of developing capable people to match the pace of demand.
- Assess the People: TTP's to assess the applied capability of people in their current role and potential capability for their future role.
- Develop the People: TTP's to develop the capability of people for their current role and for future roles.
- Source the People: TTP's to source people capable of being developed to fill current and future roles.
Process that develops and delivers people capable for the role:
- Commitment to the role
- Problem solving capacity
- Knowledge and Abilities
- Positive Temperament
Limitations
- The Halo Effect: the cognitive bias in which the perception of one quality is contaminated by a more readily available quality.In the context of business, observers think they are making judgements of a company's customer-focus, quality of leadership or other virtues, but their judgement is contaminated by indicators of company performance such as share price or profitability. Correlations of, for example, customer-focus with business success then become meaningless, because success was the basis for the measure of customer focus.
- The Delusion of Correlation and Causality: mistakenly thinking that correlation is causation.
- The Delusion of Single Explanations: arguments that factor X improves performance by 40% and factor Y improves by another 40%, so both at once will result in an 80% improvement. The fallacy is that X and Y might be very strongly correlated. E.g. X might improve performance by causing Y.
- The Delusion of Connecting the Winning Dots: looking only at successful companies and finding their common features, without comparing them against unsuccessful companies.
- The Delusion of Rigorous Research: Some authors boast of the amount of data that they have collected, as though that in itself made the conclusions of the research valid.
- The Delusion of Lasting Success: the "secrets of success" books imply that lasting success is achievable, if only managers will follow their recommended approach. Rosenzweig argues that truly lasting success never happens in business.
- The Delusion of Absolute Performance: market performance is down to what competitors do as well as what the company itself does. A company can do everything right and yet still fall behind.
- The Delusion of the Wrong End of the Stick: getting cause the wrong way round. E.g. successful companies have a Corporate Social Responsibility policy. Should we infer that CSR contributes to success, or that profitable companies have money to spend on CSR?
- The Delusion of Organisational Physics: the idea that business performance is non-chaotically determined by discoverable factors, so that there are rules for success out there if only we can find them.