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A Management Revolution

A revolution in management or a revolutionary management?

Each new coil of technology development involves changes in all human activity spheres. Let's talk about the changes we should expect in society when the technology development era comes and how it affects the management style.

Technological era doesn't just influence tech and software development companies. We see and feel this digital transformation all around us - think of the Internet of Things items and self-driving cars and how people have to adapt to the new jobs because their old ones are now done by robots.

We call ourselves the representatives of the postindustrial age, but are we? Industrial Age began in the middle of the XIX century and smoothly flows into so-called post-industrial, which is a transitional link between the past era and the new era, where we are rushing headlong.

What's the difference between intelligent production and science approach in business? Let's compare Apple, which is a true post-industrialism company, and Gazprom - a Russian industrial giant. 

  • 459,000 "Gazprom" company employees have brought a net profit of $3.5 billion in 2014.
  • 80,000 designers, programmers, and clerks at Apple made its owners $39.5 billion net profit in the same year.

Following simple calculations, net profit per employee at the Apple was $493,750. What about the Russian gas monopolist? Net profit per employee was $7,625. Those who worked with their heads brought 65 times higher profitability than those who were swinging the remains of the dead dinosaurs from the Earth's belly. 

We are entering an age where the most cost-effective product is a product of intelligence. However, how to “extract” the product, learning to use mathematical modeling in the business - this is the new challenge to all levels of managers.

If you want your employees to produce intelligent products, forget about the authoritarian management style and give your employees an opportunity for self-realization. Managers need to get more used to the idea of employees working not just for money, but for the higher stages of the Maslow's pyramid. 

Nevertheless, if the employee is to motivate not only the money, then things like discipline, self-sacrifice, loyalty, loyalty to one company simply do not make sense. He has the deeper motivation, and for the intelligent products producing, he just needs freedom of choice, a flexible schedule and a new approach to workflow. Corporate hierarchy ended, the rigid planning and autocracy leave only to implement, but any decision must take place exclusively in a democratic atmosphere.

As well, the concept of the Team also in focus. A Team, where each member is interchangeable and not just a responsible team member, but blurring the boundaries and deeply motivate at any time to teach or to replace a colleague. Star team, not a team of stars.

All this transformation is quite simple to implement with the help of consultants. Do not those who come to you for a month, and leave behind a scribble with the recommendations, but those recommendations not only wrote but also be willing to work with you to go through all the changes.

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