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social responsibility

An Agenda for Management Innovation: 25 Challenges

by cv harquail on January 27, 2009

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1. Ensure that management’s work serves a higher purpose.
Management, both in theory and practice, must orient itself to the achievement of noble, socially significant goals.

2. Fully embed the ideas of community and citizenship in management systems.
There’s a need for processes and practices that reflect the interdependence of all stakeholder groups.

3. Reconstruct management’s philosophical foundations.
To build organizations that are more than merely efficient, we will need to draw lessons from such fields as biology, markets, democracies, and theology.

4. Eliminate the pathologies of formal hierarchy.
There are advantages to natural hierarchies, where power flows up from the bottom and leaders emerge instead of being appointed.

5. Reduce fear and increase trust.
Mistrust and fear are toxic to innovation and engagement and must be wrung out of tomorrow’s management systems.

6. Reinvent the means of control.
To transcend the discipline-versus-freedom trade-off, control systems will have to encourage control from within, rather than constraints from without.

7. Redefine the work of leadership.
The notion of “the” leader as a heroic decision maker is untenable. Leaders must be recast as social-systems architects who work to enable innovation and collaboration.

8. Expand and exploit diversity.
We must create a management system that values diversity, disagreement, and divergence as much as conformance, consensus, and cohesion.

9. Reinvent strategy making as an emergent process.
In a turbulent world, strategy making must reflect the biological principles of variety, selection, and retention.

10. De-structure and disaggregate the organization.
To become more adaptable and innovative, large entities must be disaggregated into smaller, more malleable units.

11. Dramatically reduce the pull of the past.
Existing management systems often mindlessly reinforce the status quo. In the future, they must facilitate innovation and change.

12. Share the work of setting direction.
To engender commitment, the responsibility for goal setting must be distributed in a process where share of voice is a function of insight, not power.

13. Develop holistic performance measures.
Existing performance metrics must be recast because they give inadequate attention to the critical human capabilities that drive success in the creative economy.

14. Stretch executives’ timeframes and perspectives.
Discover alternatives to compensation and reward systems that encourage managers to sacrifice long-term goals for short-term gains.

15. Create a democracy of information.
Companies need holographic information systems that equip every employee to act in the interests of the entire enterprise.

16. Empower renegades and disarm reactionaries.
Management systems must give more power to employees who have their emotional equity invested in the future rather than in the past.

17. Expand the scope of employee autonomy.
Management systems must be redesigned to facilitate grassroots initiatives and local experimentation.

18. Create internal markets for ideas, talent, and resources.
Markets are better than hierarchies are at allocating resources, and companies’ resource allocation processes need to reflect this fact.

19. Depoliticize decision making.
Decision-processes must be free of positional biases and exploit the collective wisdom of the entire organization.

20. Better optimize trade-offs.
Management systems tend to force either-or choices. What’s needed are hybrid systems that subtly optimize key trade-offs.

21. Further unleash human imagination.
Much is known about what engenders human creativity. This knowledge must be better applied in the design of management systems.

22. Enable communities of passion.
To maximize employee engagement, management systems must facilitate the formation of communities of passion.

23. Retool management for an open world.
Value-creating networks often transcend the firm’s boundaries and can render traditional power-based management tools ineffective. New management tools are needed to build complex ecosystems.

24. Humanize the language and practice of business.
Tomorrow’s management systems must give as much credence to timeless human ideals such as beauty, justice and community as they do to the traditional goals of efficiency, advantage, and profit.

25. Retrain managerial minds.
Managers’ traditional deductive and analytical skills must be complemented by conceptual and systems-thinking skills.

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Can for-profit, for-purpose organizations make a difference, if we patronize them?

Thinking about an organization’s authenticity invites us to examine simultaneously what the organization does and how it does it. When we think about organizations being authentic, we assume that organizations have their business purpose — the thing that they’re out there to "do", and their identity — the values displayed by the ways in which the organization goes about doing its thing.

Consumers can benefit from an Organization’s Authenticity

When an organization is authentic, it can contribute to the world not only by what it does but by the ways that it does what it does . Through the activities of production, an authentic organization can put its values into practice. By practicing its values the authentic organization makes not only a product but also a difference.

Related to this belief is the idea that we, as consumers and members, can choose to support organizations that demonstrate values we approve of, while withholding our support from organizations of whose values we disapprove.

One way to withhold support is, obviously, the boycott. The opposite of a boycott is "values shopping", the practice of intentionally giving our custom to organizations of whose values we approve.

We are surrounded by ratings systems, trust labels, and corporate social responsibility campaigns designed to tap into our desire to put out money/patronage where our values are.

Alonovo , GoodGuide (about whom I’ve posted before) , The Human Rights Campaign (and their Buying for Equality Guide) and other organizations that try to establish and evaluate the values demonstrated by various organizations exist to help us decide which organizations to support. Some organizations even legally define and construct themselves to align their values and their modes of production (such as B Corporations) .

They all take for a given the idea that we can change the world by shopping wisely — but can we?

Does any of this ‘values shopping’ really make a difference?
And, if values shopping does make a difference, is values shopping really doing what we want?

I was delighted to discover that two of my favorite feminist bloggers, Professor, What if and Womanist Musings , are pooling their readership for a series of posts by Professor, What if that will address these very questions from another perspective. Here’s a little clip:

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(read the rest at Womanist Musings… .).

The next 9 parts in this series, which will be posted approximately every other day, will include:

Part 2: The One True Religion: Consumerism (already up!)

Part 3: The Temple of Wal-Mart

Part 4: The Church of Disney

Part 5: The Mall as a Place of Worship

Part 6: Wearing Justice: T-shirts, Bracelets, and Ribbons, Oh my!

Part 7: Driving Your Way to Eco-Freedom: The ‘Go Green’ Message on Auto-drive

Part 8: Saving the world Oprah style: I’ll give you a million dollars to save the world…

Part 9: Think Pink: Cancer Profiteering

Part 10: Avoiding the ATM: Breaking the Consumerist Mindset

Looks pretty interesting, don’t you think?

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I’m delighted when there is an explicit overlap between conversations in the feminist blogosphere and conversations in the ‘organizations and markets’  blogosphere .

Most of the time the link between these domains is apparent (at least to me) but is two or three layers below the surface, and needs to be called out to the average organizations scholar (not you all…) or business person. I’m pleased to have the chance to make the connections salient.

Plus, I read these two blogs religiously. The quality and content of what they address strengthens both the mind and the heart. And, for bonus learning, the comments on both blogs rock.

No doubt, this series of posts will be provocative and worth reading.

Of course, it would be easier to shop our values — if organizations were authentic, and were transparent about what values they prioritized and acted upon. We’ll think more about that, too.

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Can a for-profit business organization that also pursues a social purpose be authentic?

April 24, 2008

There are so many examples of for-profit organizations whose for-purpose actions are suspect that it’s a little scary to bring up the subject. Where do we even begin?
We should probably start by acknowledging that the questionable relationship between a ‘for-profit’ organizational identity and ‘for-purpose’ actions (aka: non-profit, socially responsible, charitable, philanthropic, [...]

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