On The Human Side of Enterprise

I recently finished reading the classic The Human Side of Enterprise by Douglas McGregor. Below are selected excerpts from the book that I found particularly insightful:

1- “It seems clear to me that the making of managers, in so far as they are made, is only to a rather small degree the result of management’s formal efforts in management development. It is to a much greater degree the result of management’s conception of the nature of its task and of all the policies and practices which are constructed to implement this conception. The way a business is managed determines to a very large extent what people are perceived to have “potential” and how they develop. We go off on the wrong track when we seek to study management development in terms of the formal machinery of programs carrying this label.”

2- “All managerial decisions and actions rest on assumptions about behavior…We can improve our ability to control only if we recognize that control consists in selective adaptation to human nature rather than in attempting to make human nature conform to our wishes.”

3- “The desirable end of the growth process is an ability to strike a balance – to tolerate certain forms of dependence without being unduly frustrated, and at the same time to stand alone in some respects without undue anxiety.”

4- “The power to influence others is not a function of the amount of authority one can exert. It is, rather, a function of the appropriate selection of the means of influence which the particular circumstances require. Conventional organization theory teaches us that power and authority are coextensive. Consequently, relinquishing authority is seen as losing the power to control. This is a completely misleading conception.”

5- “The central principle of organization which derives from Theory X is that of direction and control through the exercise of authority – what has been called “the scalar principle.” The central principle which derives from Theory Y is that of integration: the creation of conditions such that the members of the organization can achieve their own goals best by directing their efforts toward the success of the enterprise.”

6- “Confidence thus rests heavily on the subordinate’s belied in the integrity of the superior, When one is dependent, any suspicion that the superior cannot be fully trusted arouses anxiety.”

7- “To be sure, some people are dishonest. The question, however, is whether it is cheaper to setup procedures for dealing with the bulk to honest people or to build procedure for dealing with the dishonest few. In this field (retailing) at least, the data are clear: the former strategy is economically superior.”

8- “There are at least four major variables now known to be involved in leadership: (1) the characteristics of the leader; (2) the attitudes, needs, and other personal characteristics of the followers; (3) characteristics of the organization, such as its purpose, its structure, the nature of the tasks to be performed; and (4) the social, economic, and political milieu…This is an important research finding. It means that leadership is not a property of the individual, but a complex relationship among these variables.”

9- “Let us consider some of the important environmental conditions which affect the growth of managers…(1) economic and technological characteristics of the industry and the firm, (2) policies and practices of the company, and (3) the behavior of the immediate superior.”

10- “If a climate and soil conditions conducive to growth are created by the way management manages, the cream will rise to the top, in the sense that individual managers throughout the whole organization will be involved in a process of self-development leading to the realization of their full potentialities.”

11- “In view of the complexities and difficulties involved in improving managerial competence through classroom learning, our expectation should be modest. This is not to undervalue the contributions of classroom education, but to suggest that managers sometimes expect formal education to relieve them of responsibility for the growth on the job of their subordinates.”

12- “What distinguishes such groups (really good top management team or series of staff meetings or committee)? … (1) The atmosphere…tends to be informal, comfortable, relaxed…(2) There is a lot of discussion in which everyone participates…(3) The task or the objective of the group is well understood and accepted by the members…(4) The members listen to each other!…(5) There is disagreement…(6) Mist decisions are reached by a kind of consensus in which it is clear that everybody is in general agreement.”

13- “Management is severely hampered today in its attempts to innovate with respect to the human side of enterprise by the inadequacy of conventional organization theory…It is not important that management accept the assumptions of Theory Y. These are one man’s interpretations of current social science knowledge, and they will be modified…It is important that management abandon limiting assumptions like those of Theory X, so that future interventions with respect to the human side of enterprise will be more than minor changes in already obsolescent conceptions of organized human effort.”

14- “The purpose of this volume is not to entice management to choose sides over Theory X and Theory Y. It is rather, to encourage the realization that theory is important, to urge management to examine its assumptions and make them explicit. In doing so, it will open a door to the future.”

Regards,

Omar Halabieh

The Human Side of Enterprise

CIO Perspectives

I recently read CIO Perspectives by Dean Lane (The Office of the CIO). Dean was kind enough to send me a copy, after reading his earlier work CIO Wisdom.

As with CIO Wisdom, this book is a collection of articles by various IT executives on topics of relevance to CIOs and IT professionals at large. The topics are grouped into four broad categories: Finance and Performance, Customers/External, Internal Process, and Learning and Growth. What sets this book apart is the diverse perspectives gained from the contributing authors as well as the breadth of topics covered that include the people, process and technology aspects.

Below are excerpts of key learnings from this book:

1- Guiding Principles for Successful M&A: “1) People are number one. 2) Speed is king. 3) There must be IT governance. 4) Design for scale and reliability. 5) Use common project management methodology. 6) Communicate effectively. 7) Align IT with other business function.”

2- Zero Based Budgeting: “Know the critical influencers of IT cost, keep the executive team informed and involved, be flexible, and treat your budget as a tool you use to align IT with the business.”

3- Business Immersion: “Business immersion is about learning how business functions based on your own observations and through the perspectives of your peers from within their functional areas. It involves making an assessment of the challenges and opportunities affecting each, and how this information relates to the company’s strategy and financial objectives.”

4- Software-as-a-Service (SaaS): “…SaaS could create an opportunity for IT to grow from a (seemingly) ineffective cost center to a proactive technology strategy center, from deploying and maintaining software to a service-centric entity, supporting the business goals of the enterprise.”

5- Commitment and Delivering: “IT serves two internal customers. One is the executive management (the true customer) and the other is the end users. These two customer’s needs are not necessarily aligned.”

6- Phases of Corporate Lifecycles: “1) Spark it: Building/adding short-term capacity with low investment, 2)Grow it: Creating sustainable capacity for ongoing business operation and growth, 3) Hold it: Controlling costs in the face of steady capacity use and risk avoidance, 4) Trim it: Retreating or diverting to alternate modes of operation”

7- Leadership Characteristics: “What are the hats that a CIO juggles every day? 1)  Officer: Be a full business participant 2) Visionary: Look to the horizon! 3) Technologist: Know the field and the market.4) Educator: Teach, teach them all! 5) Controller: Process and method makes it all tick and tie. 6) Executioner: Get it done or get it gone. 7) Firefighter: First responders save the day.”

8- IT Governance: “There are four categories of IT governance: 1) Investment governance…2) Execution governance…3) Operational governance…4) Organization governance.”

9- Elements of Communication: “Message…Transmitter…Receiver…Medium.”

10- Communication in Information Technology: “Communication in the business environments is critical to the success of any undertaking. Good communications cannot ensure good results, but bad communications will most certainly fuel poor results.”

11- Keys to CIO Success: “1) Understanding of the business…2) Project management…3) Customer and client relationships.”

12- CIO as Anthropologist: “The anthropological CIO reminds him- or herself that the ultimate goal is to introduce the most effective, not necessarily the most efficient, process and technology. Effectiveness is based as much on acceptability within a company’s culture as it is on best practices; the most efficient processes and technologies are ineffective if the community refuses to adopt them, undermines their implementation, or mounts an outright insurgency…Introducing change means learning about these soft aspects of the organization and navigating a course that flows with rather than against the cultural currents that travel through it.”

13- Innovation: “Innovation seems to be most recognizable as revolutionary, but it is only one of three main classifications of innovation: incremental innovation, evolutionary innovation, and revolutionary innovation.”

Regards,

Omar Halabieh

CIO Perspectives

 

 

On CIO Wisdom

I just finished reading CIO Wisdom – Best Practices from Silicon Valley’s Leading IT expert by Dean Lane.

This book is a collection of articles on topics of concern and relevance for not only CIOs by IT leaders at large. These articles are written by various authors, which ensures varied perspectives – based on their experiences. Topics range to include the people, process and technology aspects of the profession. To mention a few: Communications, IT Organization, Governance, Architecture, Strategic Outsourcing,  IT Infrastructure Management and Execution etc.

What sets this book apart is the breadth of topics covered in terms of applicability and importance to overall success of the IT organizations. While at a first glance the articles may seem disparate, there are a number of key themes/messages that emerge. Each topic is discussed enough to give the reader a basic and clear understanding, but given the book’s breadth, once cannot expect each topic to be covered in full depth. The later would require many volumes.

CIO Wisdom is a recommended read for any IT leader seeking to gain a broader understanding of the IT organization it’s challenges and opportunities.

Below are excerpts from the book that I found particularly insightful:

1- “In each business and historical phase, the position of CIO can be seen as a mirror of the broader environment.”

2- “For many years, successful CIOs have been business strategists, capable of translating the value of technology in terms that can be understood by the business leaders of the institutions. Now that skill set is being externalized…The new CIO must be an entrepreneur, a matrix manager of teams that do not report to IT and may not even belong to the company, an architect and e-business visionary, an evangelist, a relentless recruiter, a mentor, and an expert in psychology as well as the implementation of (constant) change management.”

3- “The CIO is a mirror of the institutions…The CIO is a mirror of a global economy…The CIO is at the center of our cultural crossroads…The CIO is a change agent for business processes and cultural norms…The CIO is a mentor and a leader…The CIO is the gatekeeper of the company’s intellectual assets and operational resources.”

4- “The first 90 days is the most important period in your CIO career at a new company…Focus on three major projects: a tactical plan to address time-critical issues and decisions, an IT organizational analysis with recommendations, and an IT strategic plan for the next two years…Establish a strong rapport with management during this time-frame, as you will need management support to implement your recommendations.”

5- “I believe, however, that there are five especially important fundamentals that a CIO needs to be cognizant of, regardless of the current focus. If internalized by IT staff, these fundamentals can dramatically transform a technology-centric IT organization into a business-focused one, almost without effort: passion, humility, openness, clarity, agility.”

6- “Technology by itself can never make a business more agile, but the right IT people applying the right technology at the right time can.”

7- “How to make yourself a better communicator: assess yourself, know your audience, set and manage expectations, insist on accountability, be aware of the political environment.”

8- “You can have an immediate impact in the area of training by utilizing internal resources to increase an employee’s knowledge about the processes or issues facing a company. By reserving the first half-hour of staff meetings for training…you can enable the most knowledgeable person associated with a ggiven process to provide 30 minutes of useful instruction.”

9- “More than one book has made reference to the following four elements, which must be present for communication to be possible: Message – An idea, concept, or som other form of notification. Transmitter – Someone or something that originates and sends the message. Receiver – Someone or something that gets the message. Medium – The means or vehicle by which the message is sent.”

10- “…Although published plans and strategic roadmaps are useful, planning skills and the capability for strategic thinking have the most significant value to the CIO, both personally and within the IT organization.”

11- “It is important for a CIO to have a philosophy around budgeting…Some philosophies that you may see include: Budgeting is a necessary evil…The budget is the Bible…The budget is a guide…The budget is an opportunity to influence change and support overall corporate direction…this is the most effective in our opinion.”

12- “IT marketing is the art of appropriately setting expectations between customer and service provider such that both entities enjoy a mutually beneficial economic relationship.”

13- “Jim Hackett: “The popular notions of the last decade were for companies to become customer-centered. Theories abounded that if you paid attention to what your customer wanted, you couldn’t go wrong. But the truth is that customers often ask you to do wrong things, not because they’re difficult to deal with but because they just don’t know better. The distinction is moving from customer-focused to user-centered, and the ability to understand the users of their products is a cultural shift that corporations have to make.”"

14- “Once IT’s marketing advocate is identified, the lifecycle…borrowed from sound CRM best practices should be applied. In short, the plan is to engage, transact, fulfill, service, and report.”

15- “Good metrics should be used to guide the development of strategic objectives, narrow investment opportunities to minimize wasted capital, and continually evaluate status to ensure that progress is being made.”

16- “Although it may sound trite, in all of our years combined, we have learned to never fear a negative result of discovery. Such a discovery represents the opportunity you were seeking in instituting this discipline by which you will make change for the better.”

17- “Facts are the fundamental entities that an organization deals with…Data is integrated, ordered facts…Information is ordered data…Knowledge is ordered information within the context of experience in similar situations…Understanding is organized knowledge…Enabled intuition.”

18- “Project success is a function of RS^2 and VEC^3,  RS^2 is {Resource, Scope, Schedule}. VEC^3 is {VxExC1xC2xC3}, where V=Vested interest (that is, aligning the vested interests of key stakeholders), E=Ego (that is, understanding the values and culture of stakeholders), C1=Communication and alignment with executive management, C2=Communication and alignment with your peers, C3=Communication and alignment with all doers (implementers).”

Regards,

Omar Halabieh

CIO Wisdom

On Leadership is an Art

I recently finished reading Leadership is an Art by Max De Pree. As Max best puts it: “This book is about the art of leadership: liberating people to do what is required of them in the most effective and humane way possible. It is not a book of facts or history. Though I like to tell stories, the book is not filled with anecdotes. Since it deals more with ideas and beliefs and relationships, it has to do with the “why” of institutional and corporate life rather than the “how”..Those results, however, are only a way to measure our resourcefulness at a point in time, mile markets on a long road. Why we get those results is more important. That’s what this book is about.”

The book is covers various leadership topics  such as communication, engagement, story telling etc. in a very concise and illustrated manner. Max adds a number of stories from his own experience at Herman Miller. This book forms a great leadership/management handbook, that should be kept at hand to server as a refresher and primer. As the author words it: “It will be worth a lot more to you if you finish it, if you have made it truly your own book.”

Below are selected excerpts from the book that I found particularly insightful:

1- “Any concept of work rises from an understanding of the relationship between pitchers and catchers alike…The right to be needed…The right to be involved…The right to a covenantal relationships…The right to understand…The right to affect one’s own destiny…The right to be accountable…The right to appeal…The right to make a commitment.”

2- “Roving leaders are those indispensable people in our lives who are there when we need them…Roving leadership is an issue-oriented idea. Roving leadership is the expression of the ability of hierarchical leaders to permit others to share ownership of problems – in effect, to take possession of a situation.”

3- “Just as any relationship requires honest and open communication to stay healthy, so the relationships within corporations improve when information is shared accurately and freely. The best way to communicate the basis of a corporation’s or institution’s common bonds and values is through behavior…What is good communication? What does it accomplish? It is a prerequisite for teaching and learning. It is the way people can bridge the gaps formed by a growing company, stay in touch, build trust, ask for help, monitor for performance, and share their vision. Communication clarifies the vision of participative ownership as a way of building relationships within and without the corporation.”

4- “Good communication liberates us to do our jobs better. It is a simple as that. Good corporate communication allows us to respond to the demands placed on us and to carry out our responsibilities. This really means, too, that leaders can use communication to free the people they lead. To liberate people, communication must be based on logic, compassion, and sound reasoning.”

5- “As a culture or a corporation grows older and more complex, the communications naturally and inevitably become more sophisticate and crucial. An increasingly large part that communication plays in expanding cultures is to pass along values to new members and reaffirm those values to old hands. A corporation’s values are its life’s blood. Without effective communication, actively practiced, without the art of scrutiny, those values will disappear in a sea of trivial memos and impertinent reports.”

6- “Performance reviews, done well, are a good way of re-examining goals, realigning principles and practices, and gauging progress. Everyone should do this. Reviewing performance should be done in a timely way, with the direct involvement of the person whose performance is being reviewed. Both the people and the process should be directed toward reaching human potential.”

7- “…While understanding is an essential part of organized activity, it just is not possible for everybody to know everything and understand everything. The following is essential: We must trust one another to be accountable for our own assignments. When that kind of trust is present, it is a beautifully liberating thing. “

Regards,

Omar Halabieh

Leadership is an Art

On The Truth About Leadership

I recently finished reading The Truth About Leadership – The No-Fads, Heart-of-the-Matter Facts You Need to Know by James M. Kouzes and Barry Z. Posner. This book was recommended to me by my mentor. As the title indicates this is a book about leadership. The authors distill their research and learnings in this area into ten truth “about leadership and becoming an effective leader”.

One of the main premises in the book is: “We tell our audiences that as much as the context of leadership has changes, the content of leadership has not changed much at all. The fundamental behaviors, actions, and practices of leaders have remained essentially the same since we first began researching and writing about leadership over three decades ago. Much has changed, but there’s a whole lot more that’s stayed the same.”

The authors then go on to introduce the ten truths:

1- You make a difference

2- Credibility is the foundation of leadership

3- Values drive commitment

4- Focusing on the future sets leaders apart

5- You can’t do it alone

6- Trust the rules

7- Challenge is the crucible for greatness

8- You either lead by example or you don’t lead at all

9- The best leaders are the best learners

10- Leadership is an affair of the heart

What sets this book apart is the amount of research set forth to bring forward these conclusions in a concise and direct manner. The truths are further supported by stories to further exemplify the behaviors and attributes of leadership. A must read in the area of leadership and remember: “Leadership can be learned”!

Below are some excerpts from the book that I found particularly insightful:

1- “Leadership is not about who you are or where you come from. It’s about what you do.”

2- “The five practices of exemplary leadership…1- Model the way 2- Inspire a shared vision 3- Challenge the process 4- Enable others to act 5- Encourage the Heart.”

3- “Before they are going to voluntarily heed your advice, take your direction, accept your guidance, trust your judgement, agree to your recommendations, buy your products, support your ideas, and implement your strategies, people expect that you will measure up to these criteria.”

4- “The capacity to imagine and articulate exciting future possibilities is the defining competence of leaders. Leaders are custodians of the future. They are concerned about tomorrow’s world and those who will inherit it.”

5- “Here are four actions to keep in mind (trust): Behave predictably and consistently…Communicate clearly…Treat promises seriously…Be forthright and candid.”

6- “This means that you need to find a goal that can sustain your interest and the interest of those around you, for some considerable time. To be the most successful, you and your constituents must have a passion for a purpose and the perseverance to hang with it for the long term. This focus gives meaning to sticking through the hard times and to dealing with the often-inevitable disappointments and setbacks that accompany any significant significant accomplishment.”

7- “Leadership can be learned. It is an observable pattern of practices and behaviors, and a definable set of skills and abilities. Skills can be learned, and when we track the progress of people who participate in leadership development programs, we observe that they improve over time. They learn to be better leaders as long as they engage in activities that help them learn how.”

Regards,

Omar Halabieh

The Truth About Leadership