20. March 2008 by Aidan.

In an online Open Forum, HBS professor Jim Heskett says that management could change a lot in the coming years, primarily driven by developments on the Internet, the communities that it has spawned, and new attitudes to work. He also asks whether innovation in management will be confined to entrepreneurs. Professor Heskett refers to a new book by Gary Hamel (The Future of Management) in which Hamel defines management innovation as “anything that substantially alters the way in which the work of management is carried out”.

Hamel envisions a future where the goal of management is to build a “nimble” organisation where innovation is everyone’s job, where there is less hierarchy and a more common or team based approach to working. In fact this environment exists today in some of the most successful companies such as Whole Foods Markets and Google. But is this future based on a clear direction from existing management or simply based on the non-standard approach of a few entrepreneurs?

The question posed by Professor Heskett is “what does the future of management look like?”

The question this raised with me is whether this innovative future for management will really be management led (pull) or whether it will be something that is driven by developments lower down in the organisation (push).

While there are many examples of leading edge companies adopting innovative practises, in fact most companies are managed by insiders who have worked their way up the organisation. These “home-grown” leaders work hard to develop the necessary skills to adapt to their new found positions, however their focus is on effectively performing in their management roles rather than driving innovation at the management level.  

The future vision of Hamel’s implies that it will be management who lead (pull) the innovation.

In my opinion, the drive for innovation will come from lower down within the organisation, as the newer generation of workers join the ranks of companies. The latest entrants into the workplace as used to “information at lightening speed”, instant decision making and getting their own way. They will invest more time in redesigning their jobs to be what they want it to be than in fitting in with the norms. This will lead to a “push” of innovation within all companies rather than a “pull” of innovation that is management led.

The real challenge will be how to manage the innovation.

Mar. 31st Update : Many thanks to Professor Heskett for referencing my comments in his wrap-up of the discussion.

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14. March 2008 by Aidan.

While in Israel this week, I was again amazed at the contrasts in that country. Everywhere you look there are contrasts. There are contrasts between buildings that date back thousands of years standing next to new modern high tech office space. Contrasts between the old rules and ways and the very technically savvy nation that is Israel today. (Some of the worlds most important software and hardware designs come from Israel).  

There are contrasts within the people too. In business the Israelis are extremely blunt and open. It comes across as being agressive. However when you talk to them outside of work, they are very friendly and are really proud of their country, so they want you to enjoy it.

It’s always a pleasure visiting there and seeing these contrasts first hand.

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6. March 2008 by Aidan.

Take a look at the “Eazzzy Camera” from South Korean designer Sung Woo Park . So simple. No viewfinder, focus settings, anything. Point, shoot and plug it into your USB port to see what you got. Great idea.

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6. March 2008 by Aidan.

I attended the SEMI  ISS Conference in Malta this week. This conference is a good opportunity for all of the key people from the European Semiconductor industry to get together and discuss the current status and future for the industry. A couple of key topics that came up for the industry were the problems due to the Euro:$ exchange rates and the decisions some companies are making to cut back on Capital spending. Since the European  industry incurs most costs in Euro’s but sells most products in US$ then the margins are closing because of the weakening US$. This is happening at the same time as the ASP’s (Avg. Selling Price) are declining, which is adding to the problem. The other problem is the reduction in Capital Spending by Semiconductor Manufacturers. There are many reasons behind this but one of the key issues worldwide is that because of the problems with the world markets everyone is looking at the balance sheet now. This forces a short term outlook. In the short term you can improve your balance sheet by delaying or postponing capital spending. However the problem is that this will delay ramping of your output and R&D efforts that will have a lot term effect. It’s incredibly that a lot of the pressure is coming from Financial Institutions, who themselves lost more money in Q4′07 than the total Semiconductor Cap Ex for 2 years! 

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