Conventional Planning based on linear logic requires
forecasting of the future so as to prepare a strategy
for execution a plan. This plan then becomes the
blue print that directs the
operating staff towards action - 'Output'.
The instruction TO DO becomes
policy for OUTPUT, & becomes
the critical function of - the executor - the
manager whose linear function is to DO as per
plan & specified by policy.
With Hierarchies getting flatter, and outputs increasingly
controlled by digital software and hardware
systems. The "to do" for output
is continually getting more automated through
digital technologies that now require lesser people.
We are infact automating "the tangible and
thereby reducing them as the differentiators within
competetion. The result is reduced and eroding
margins from tangible investments and planning"
We have already started to experience
the declining or static rates of growth despite
huge investments in automation of production based
systems.
The future is indicating the
increasing economic dominance of INPUT
based services which are either within pre or
post production, and almost all INTANGIBLE
and dependant on environment. They all require
changed responses.
Flattening of management structures
is an acknowledgement & acceptance of this
Non Linear Era and its poor forecastability .
Managing change requires greater discretion &
flexibility closer to the point of action.
In this nano-second fast changing market we are
increasingly unable to lay down POLICY & "to
do" norms that are sustainable. Today "to
do" policies are restrictive for operational
managers as they prevent flexibility, discretion,
and adaptability for the doer.
We need to leave the "to
- do" decisions to the executor; The man
on the job, on the street and within the market.
While being necessary this also raises the level
of human resource human and endorses the existing
need for giving more “discretion”
to our employees. Each Employee can then evolve
into a self manager which identified by NLT as
our 'basic need for future management'.
Where policy remains based on "to-do" lists as specified
by top management we find that a progressively
greater investment
is required to execute every next introduction.
They require a LARGER volume to permit amortization.
We see more spend on
fire fighting to maintain output because changing
market conditions make it difficult for the executors
to adhere to "to-do" policy norms.
NLT identifies a planning tool that would be more
effective within uncertainty
Companies should now plan based
on making lists and identifying their policy based
on what "they will not do!"
This allows the management to
empower executors to do as per market needs and
changing environments. BUT this needs to be within
some policy! These also should be based on what
the company has identified that it will not do!
Top management would thus be able to drastically
reduce decision making within day to day operations,
by defining WHAT NOT TO DO, based on resources,
market conditions, priority and as a corporate
objective.
NLT calls this 'Planning by Negation'! While negation
policies will themselves require change, in a
Non Linear era they would prove to be far more
durable when compared to linear direction based
to-do policies.
Negation based planning can even
help define the future objectives to be based
on what the unit or corporate will not do as an
operations Policy - for the next time frame and
superseding the last negation policy.
This is ideal for “small
business” which must compete within the
vagaries of uncertainty - and because they do
not have the resources that SEEMS to be required
for the long gestation that seems to have become
the standard acceptance in todays markets.
We currently see 'flexibility' as a unique corporate
quality. With negation based planning it can become
a common skill.
Examples: A negation based policy can be
one that decides that- “It will not”.
Oversupply the market to achieve
sales.
Provide credit to move product.
Cut prices to sell unless it is
to dispose and close the product line.
Add product range only to maintain
sales.
Increase prices to cover expenses,
it will only cut costs - and so on!
Another Company within the same industry
or product group could have a list that could have the inverse
objectives and yet their policy would make sense BECAUSE it
is based on their circumstance and objective.
While holding prices could be a sign of strength
for one corporate based on their objective and circumstance.
Another could use price cutting to be their “volume strategy”
- and therefore despite having a different list, Both would
be correct.
In a non linear era we must get away from
seeking to find success based old emulation models.
Formulae are dead and every company and product
must seek to identify and survive based on its
differentiators NOT similarity or equality. Negation
based objectives should be more enduring and considered
to be based on integrity because the intent is
retention.
(see 'Human Values
incorporated with Economics' )
The natural ability to conform
to negation policies for an extended period would
determine the mettle of a Company, its management
policy, and its practical understanding of market
realities and markets.
This can become the 'cornerstone for evaluation
of future management'.
BUT a “will not do” negation policy must
like any other be reviewed as per change. The frequency of
change would indicate a weaknesses, based on poor fundamentals,
lack of market knowledge, or just sudden events. We also need
to accept that in a Non Linear era we have to be prepared
for unexpected events like war, political change, natural
disasters etc.
Non Linear Thinking accepts that contradiction
within similar environments is a natural feature of the future.
Negation can create a powerful positioning
for every business entity as a natural creation,
and can become its policy based on its own resources.
Every company would have a natural exclusivity
- creating more synergies and less conflict
Even Governments could prioritize their a national
or regional economies by deciding “what
they should not to do” - in order to insure
better utilization of their resources. Social
Investments and Inputs would then be based on
inherent local resources needs, strengths &
skills, with less dependance on external help-
insuring a better return and focus on existing
resources.
In the future every corporate or entity can be
sucessful based on their “difference”
and be recognized for the “integrity”
of their"will not do" policy. Emulation
of a historically successful output formula, in
this Non Linear era no longer provides the same
return as the past model proposed or indicated.
HONESTY CAN THUS BECOME AN ECONOMIC TOOL
FOR BETTER PROFITS.
The Management philosophy of the future
should be based on the knowledge of the 'durability
of commandment over doctrine'. Even a
changed Commandment is indicative of strength
as its acknowledgment and framework is based on
transparency. It is clear because it is based
on "WILL NOT DO"!
WE see visible change where in almost all institutions
and corporates erstwhile rules and policy - are
replaced by “objectives and mission".
The constant erosion of human values has resulted
in our having to face a continuously rising “costs”
for integrity and successful execution. We need
to pay more and more to the fewer number who manage
and control investments. NLT indicates that this
narrowing of dependance on a few is almost proportionate
to the narrowing of integrity and the lack of
it. This is therefore a systems flaw and not necessarily
a lapse of human character. This is a failure
of our management systems and not human morality.
Example: We see that customer
care is providing a higher economic return than
any level of technology and capital investment.
But to most - this is still considered an intangible
input linked to integrity - despite the proof
of its economic link and success.
Paradoxically this very NATURAL INPUT has become
the privy of a few dynamic corporates. Why shouldn’t
this be the norm rather than exception? Most recently
successful corporates have proved that human value
objectives are more durable as they have given
more profit than old “output values”
and mere “targets”.
Though most companies have framed objectives,
many consider them to be more philosophical than
missions. The hypocrisy usually lies in the denial
that reality is controlled by economics &
within rapidly changing conditions - they may
have to be frequently compromised or abandoned.(for
economic reasons)
Most successful companies have used integrity
as the cornerstone for tangible profit and growth.
We MUST inform and teach our students as future
managers to consider integrity as a management
system and a profit making tool, rather than an
intangible
moral component. This would make the tenets of
planning more effective, and less philosophical.
The recent CEO backlash within the erstwhile
hallowed Fortune corporations is an example of
the failure of their management philosophy where
the linear logic of economic motivation had turned
nonlinear because it had long surpassed the stage
of RELATIVE SATURATION.
What are the tangible components of integrity
and character within management?
Paradoxically - positive attributes and traits
- are just clichés that are external adjectives
that can be created and manipulated. The real
traits are revealed by “Negation”.
We can appear to have discipline and character
by conforming to social norms, visible token gestures,
social profile based charity, and “doing”
what is visibly moral and pious. These are “clichés”.
To “abstain” requires greater strength
than to merely conform.
The most difficult is to List 'WHAT WE
HAVE DECIDED NOT DO' - and stick to it!
Since the future is not emulating a past pattern,
conventional forecasting based on action plans
are Impractical to sustain.
Negation can show and build MORE integrity for
a corporate THAN action!
While this logic may feel alien- in practice it
will feel right. It is only our reflex pushed
by OLD systems that make us retain an output focus.(see
'Input v/s Output
- a contradictory relationship')