In the 21st century's smaller, faster, more efficient business climate, organizations have been able to increase revenue share by paring down their operations, thanks to advancing technologies. McKinsey's David Jacquemot argues that smart companies can also reap rewards by paring down management. In the McKinsey Quarterly , Jacquemot shares four "integrated disciplines" for leaner management: •Delivering value efficiently to the customer. The organization must start by understanding what customers truly value—and where, when, how, and why as well. It must then configure how it works so that it can deliver exactly that value, no more and no less, with the fewest resources possible, improving coordination, eliminating redundancy, and building quality into every process. The cycle of listening and responding never ends, as the customer’s evolving needs reveal new opportunities to attack waste, create new worth, and build competitive advantage. •Enabling people to lead and contribute to their fullest potential. The organizations that get the most from their people provide them with support mechanisms so that they can truly master their work, whether at the front line or in the boardroom. Revamped physical space fosters collaboration, visual-management techniques let everyone see what needs to be done, targeted coaching builds capabilities, and simple “job aids” reinforce standards. These and other changes enable employees to own their own development, without leaving them to figure it out by themselves. •Discovering better ways of working. As customers, competitors, and the broader economic and social context change, the whole enterprise must continually think about how today’s ways of working and managing could improve. To guide the inquiry, people will need a clear sense of what “better” means—the ideal that the organization is reaching toward—as well as an unvarnished view of current conditions and the ability to work with others to close gaps without fear of reprisal. Problem identification and resolution must become a part of everyone’s job description, supported by structures to ensure that problems flow to the people best able to solve them. •Connecting strategy, goals, and meaningful purpose. Organizations that endure operate from a clear direction—a vision of what the organization is for, which in turn shapes their strategy and objectives in ways that give meaning to daily work. At every level, starting with the CEO, leaders articulate the strategy and objectives in ways that their people can understand and support. The final step aligns individual goals to the strategy and vision, with the result that people fully understand their role in the organization and why it matters. Read the full article here.
Filed under: mckinsey quarterly, global business, management, organization, efficiency, work environment, strategic management, McKinsey & Company, efficient management, discipline, connecting strategy and goals, david jacquemot, integrated disciplines