4GM English

8/6/2019 4GM English

1/24

Introduction to Fourth Generation

Management for Members of

Industry, Government and Education

Enrique R. Suarez

International Management Consultant &Professor

[email protected]


2/24

Themes

Changing the Way We

Manage in Industry,Education and

Government

Three Approaches for

Better Results

The Four Generations of

Management

The Deming Chain

Reaction How to Create and

Maintain Gains

How to Create a Winning

Work Environment


3/24

Changing the Way We Manage

As a management consultant and Baldrige Examiner, Ihave studied, visited, and evaluated companies whosemanagers told me how great their companies were, how

well they were doing, and how they were getting betterevery year.

Having studied and evaluated companies that weremaking real progress, I could see these companies werenot as good as they thought they were. Where they sawimprovement, I saw inefficiency. Where they saw gains, Isaw a lack of real interest and concerns for customers.Where they saw effective action, I saw managersunintentionally making matters worse.


4/24

Getting Better Faster

Time


5/24

A Message from the President of International

Educational Enterprises:

In business we all want better figures: higher sales,lower costs, faster cycle times, lower absenteeism, lowerinventory, rapid learning and a better return on our

investment.

In government we all want more efficiency, more ethicsand a new socio-economic paradigm that can benefit allof its citizens.

In education, we all want higher performance andlearning organizations.


6/24

There Are Three Ways to Get

These Results:

1. Improve the System: make fundamental changes that

improve quality, prevent errors, and reduce waste.Example in industry: reducing in-process inventory by

increasing the reliability of operations.


7/24

Continue... Example in government: decreasing poverty by

increasing our understanding of what are the main

determinants of economic prosperity, growth and

development in a nation and how they work as a system

so that policy makers can make better informed

economic decisions for the nation as a whole.

The need for collaboration by members of industry,education and government


8/24

Continue...

Example in education: increasing the joy of learning in

the students by decreasing the heavy reliance of schoolsystems on standardized tests as the only medium to

improve the learning performance of the students.


9/24

Continue...

2. Distort the System: get the demanded results at the

expense of other results. Example in industry: You

want lower inventories? No Problem! Inventories

miraculously disappear... But at what cost elsewhere?!


10/24

Continue...

Example in government: government policies that

encourage the heavy concentration and allocation ofgovernment and industry (capital) resources in one or

two cities at the expense of the economic and social well

being of other cities of the nation.


11/24


12/24

Continue...

3. Distort the Figures: Use creative accounting. Example

in industry: Oh, we do not count those as inventoryany more...They are on the books of our suppliers.


13/24

Continue...

Example in government: overeliance on exports based

on natural resources industries as a means to increase

the number of jobs in the economy to boost keyeconomic indicators or the Gross National Product of a

nation when most of the international competition is

increasingly knowledge based.


14/24

Continue...

Example in education: overreliance on grades (externalmotivators) as a means to boost the learningperformance of the students.

The results are obvious: students concentrate on gradesor numbers (and manipulate or distort them) instead of

concentrating on learning and on the joy of learning(intrinsic motivators).


15/24

The Four Generations of Management

Thought

The history of management thought teaches us that

there have been four broad general management

models that have been used to achieve higher quality,productivity and competitiveness in organizations.

They are:


16/24

1st Generation: Management by

Doing

In the first generation of management the "manager"

does the task himself or herself. Capacity andproductivity under this system are, of course, limited.

The Multifaceted work of the artisan before the industrial

revolution focusing in the final product.

Pride of Workmanship.


17/24

2nd Generation: Management by

Directing (Taylor & Fayol)

Also called Scientific Management, this system allows

experts to micromanage, leveraging their influence bygiving strict instructions on how to accomplish a task and

what standards should be maintained.

The focus is on mass production (quantity) instead ofquality.

Management by Specialists


18/24

3rd Generation: Management by

Objectives/Results

Under this management system (MBO), the workforce isgiven quotas or targets and told to figure out themethodology for accomplishing the task independently.

The focus is in achieving financial goals (numericalresults) as the main indicator of company success asopposed to improving processes constantly.

This view does not recognize the intedependencyamong the parts within a system which leads to the sub-optimization of the system as a whole.


19/24

A dedication to quality, as the customer defines it

A scientific approach to rapid learning

Creation of team relationships both inside and beyond

the business organization.

The Three Key Elements of

Fourth Generation ManagementAre:


20/24

4th Generation Management

Quality

Scientific

Method/System

Thinking

All One

Team


21/24

W

hat is Required for theTransformation to a System?


22/24

The Deming Chain Reaction

Improve

Quality

Reduce

Costs

Improve

Productivity

Reduce

Prices

Expansion of

Markets

Stay in

Business

Creation of

JobsBetter ROI


23/24

Eight Factors and the

Consequences of Omitting AnyofThem:

Aim: No aim, no sense of direction

Philosophy: no philosophy, no followersVision: no vision, confusion

Strategy: no strategy, false starts

Skills: no skills, anxiety

Resources: no resources, frustration

Rewards: no rewards, bitterness

Organization: no organization, no coordination


24/24

If you would like to know more about Fourth Generation

Management, please contact Enrique R. Suarez at:[email protected] and/or contact him in Spain

at: 34 648 972 648

What Method are you Using and

with What Results?

Documents

4GM English