Tag Archives: management

Leadership / Management

drjohn11aDr. John Psarouthakis, Executive Editor, www.BusinessThinker.com, Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial Corporation. Received MIT’s Corporate Leader Award.

 

This is the first of short articles of my thoughts about Leading and Managing winning companies.

Why some companies constantly win in today’s globalized and intensely competitive world, while others struggle from one crisis to the next? It is simply leadership and management expertise that can take advantage of the rapidity with which ideas arise, are developed and applied, and the immediacy and degree of their impact in our lives. Let me illustrate.

When I were a student at MIT in the ‘50’s, it used to take five to ten years for an idea, or research result from a University, to become reality in the market and in our lives. Today it is almost simultaneous! This drastic change has fundamentally altered how we manage business.

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What hath technology wrought?

JP Bio PhotoDr. John Psarouthakis, Executive Editor of www.BusinessThinker.com

On May 24, 1844, the painter and inventor Samuel F.B. Morse took center stage among a group gathered in the U.S. Supreme Court chambers, housed at that time in the Capitol basement. Morse was demonstrating his electromagnetic telegraph to mark the official launch of a pathfinding service that reached 30 miles, from Washington to Baltimore. He clicked out dots and dashes to spell a Bible quote chosen by the daughter of the U.S. patent commissioner: “What hath God wrought.”

Sending and receiving a telegram required a code-skilled operator, who could transmit 30 characters per minute. Another operator on the other end was needed to translate the code, and unless the recipient came to the Baltimore train station a courier would be needed to hand deliver the message.

Thirty-two years later Alexander Graham Bell shouted into a mouthpiece: “Mr. Watson, come here—I want to see you.” It was an iconic moment that yielded another of history’s most famous quotes. The world press corps, on the other hand, paid no attention to whatever was said by the first shopper who prowled grocery aisles while conversing, by cell phone, with someone on the other side of the earth. Such is technological progress. Such are ever-higher expectations for the next gizmo.

Such is the easy danger of not paying enough attention to how new technology impacts society.

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“MANAGING THE GROWING FIRM” : LINKAGES FOR DIVISION OF WORK

JP-pic 2Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Distinguished Visiting Fellow at the Institute of Advanced Studies in the Humanities, University of Edinburgh, Scotland, publisher of www.GavdosPress.com. Founder and former CEO, Industries, Inc., a Fortune 500 industrial corporation

The linkages listed in this segment and following segments on this topic to be posted in separate categories are based on my experience as senior executive as well as an entrepreneur on managing growth businesses. Because statistical techniques test for probabilities but not certainties, the wordings are stated in terms of likelihoods. Discussions of these linkages are to be presented in future articles. Other executives and entrepreneurs could come to different conclusions compared to those listed in the segments posted. Therefore, those that read my views should take them as the experience of one person and use their judgment as to whether these linkages are to be taken as stated in their case.

Linkage 7-1:  The more adequate the information that a CEO obtains from inside the firm, the more adequately authority is distributed, and the more effectively roles are assigned, then the more profitable the firm is likely to be.

Linkage 7-2:  The more widely information is shared among employees, and the more effectively roles are assigned, the more rapid sales growth is likely to be.

Linkage 7-3:  The more adequate is the information obtained by the CEO inside the firm and the more effectively roles are assigned, then the more effective direction-setting strategy is likely to be.

Linkage 7-4:  The more widely information is shared inside the firm, the more able the firm is likely to be to obtain needed outside information, recruits, suppliers, subcontractors and capital and the more effective the CEO’s recruitment strategy is likely to be.

Linkage 7-5:  The more adequate is the information obtained by the CEO and the more effectively roles are assigned, the more effective the management recruitment strategy and the more adequate outside information are likely to be.

Linkage 7-6:  The more widely information is shared and the more effectively roles are assigned, the better the morale and commitment is likely to be and the more integrated individual and organizational goals are likely to be.

Linkage 7-7:  The more widely information is shared, the more likely the CEO and managers are to share the same sense of mission.

Linkage 7-8:  The more the CEO delegates responsibility to managers, the less consistent the CEO’s values are likely to be with managers.

Linkage 7-9:  The more managers perceive they are given authority, the better integrated are employee and organizational goals.

Linkage 7-10:  The more widely information is shared, the better people and supplies are allocated across departments.

Linkage 7-11:  CEOs getting adequate inside information and whose work roles are effectively assigned are likely to have (a) more effective resource allocation and (b) better people and supply allocations across departments.

Linkage 7-12:  The more effectively roles are assigned, the better technical performance, technical skill, quality, and productivity are likely to be.

Linkage 7-13:  The more widely information is shared, the higher technical performance is likely to be.

Linkage 7-14:  The more authority managers have to do their work, then the higher the firm’s productivity level is likely to be.

Linkage 7-15:  The more able the CEO is to get adequate information from within the firm, the higher the levels of technical skills and performance of employees are likely to be.