As stated in the preface, the overall purpose is to explore and develop the foundations of expert leadership, entrepreneurship and management knowledge and understanding in the following areas:
- the relationship between society and technology, and the effects on businesses and organisations;
- the fact of business and businesses providing the core of the social infrastructure on which we all depend;
- how technologies evolve in relation to organisational, organised, collective and individual behaviour, both in response to human demands, and also in providing new outlets for human and social as well as economic value;
- how technologies deliver (and fail to deliver) profitable, effective and valuable products services processes and activities, and the reasons for this;
- how technologies evolve as the result of social as well as economic demands and pressures;
- how technologies are controlled and directed by human (professional and non-professional) behaviour.
These are key issues for anyone in leadership, management, executive and other key positions. These are key issues also for entrepreneurs. These issues are then set in the following context:
- all progress is dependent upon how humans react and respond to their environment;
- what is important and developed is driven by specific human (individual and collective) demands, needs and wants;
- staff management is about maximising and optimising 60ā75% of total return on investment;
- people live as well as work in organisations; and so organisations are social as well as technological and economic and productive entities;
- organisations exist in a social as well as economic context and environment;
- the capacity of technology doubles every 18ā24 months (Mooreās Law); and this doubling of capacity every 18ā24 months can be traced back at least 5000 years.
Every development is then related to social and economic drives, and to the responses that generate human invention and ingenuity. As above, human ingenuity is founded in the need for progress, and this is inherent within humanity, collectively and individually.
Collectively, society and groups of people demand products and services that are of personal, social and economic value, and which enhance every aspect of their lives; and technology and IT are expected to further enhance these products and services, making them ever more valuable, reliable and socially and economically desirable.
Individually, people demand instant and assured gratification, satisfaction and convenience, in whatever terms these issues are defined. On an individual basis, gratification, satisfaction and convenience are defined at every moment of every day; and again, technology is expected and requiredāand demandedāto be a key part of the infrastructure that delivers, whenever and wherever the question arises.
Leadership and Management
In this context, āmanagementā is a body of knowledge, skills and expertise which must be applied in ways demanded by the particular organisation in which the individual manager is working; and in ways demanded also by the particular environment in which activities are being conducted. Leadership expertise is a key part of management. This expertise is founded in knowledge and understanding of the following:
- achieving things through people;
- achieving things for people;
- making a profit and delivering performance;
- using scarce resources; and planning, organising, controlling and accounting for resources;
- improving and developing products, services, service and processes;
- coping with change and uncertainty;
- environment knowledge and understanding, and working within the constraints of the environment;
- setting collective and individual standards of conduct, behaviour and performance;
- technological knowledge and understanding;
- financial knowledge and understanding;
- risk knowledge and understanding;
- providing leadership expertise and capability.
This knowledge, understanding and expertise has to be applied on a varying and contextual basis, both in terms of the organisation for which the work is carried out and the expertise applied, and also in terms of the daily situations in which individual managers find themselves.
Leadership and management are carried out in and on behalf of organisations; and organisations operate in their environment. Organisations have their own life, direction, legal status, permanence and identity; and are energised by people, and their expertise, skills, talents and commitment.
Clearly, many organisations do still need to command huge and expensive premises, offices, factories, hospitals, shops, airports and other facilities. There is nothing wrong with this (indeed there is everything right with it) so long as the structure remains a matter of constant review; so long as the resource bases can sustain it; and so long as it continues to be as fully effective as possible in terms of serving its purposes overall. Fixed premises provide often critical opportunities for substantial business development.
However, the primary purposes of product and services delivery, and service excellence, have caused leaders, entrepreneurs and managers to look at alternative means of āorganisingā. For example:
- federated and virtual organisations depend entirely on their people working from home, the car, flexible locations, business centres and hotel facilities;
- some organisations develop and sustain highly profitable business wholly or mainly through social media;
- some organisations are able to place all of their business processes and functions online; and this means that there is no need for anything but a very small core and often flexible use of premises.
Whatever form of organisation is chosen or demanded, the key factors remain the ability to produce and deliver the required volumes of products and services to every customer or client who needs or wants them, in the volumes and quality needed and expected. So long as this is achieved, any and every form of organisation may be effective in its own terms. The form of organisation chosen also provides the context for the key management tasks and priorities, as above and as follows.
Achieving Things Through People
At the core of this is the need to maximise and optimise the return on investment in the staff; staff costs normally account for between 60 and 75% of working capital. Achieving things through people is a key priority because no managerial activity takes place in isolation from staff and their expertise. The capabilities, commitment and willingness of people have to be harnessed in ways that are of value to the organisation. To do this effectively requires a knowledge and understanding of organisational, collective and individual human behaviour, with especial reference to how people act and react in particular situations and circumstances; and how people act and react in response to specific incidents and events, and to crises, emergencies and change.
Achieving Things for People
Achieving things for people, in particular meeting and responding to the legitimate demands and expectations of customers, suppliers and shareholders, is also essential. The requirements of everyone involved must be satisfied or else the customers will go elsewhere, suppliers will seek other outlets for their materials and expertise, and backers will seek alternative organisations and ventures in which to invest.
Customers require confidence in the products and services on offer. Customers require that their demands for quality, durability and volumes of products and services are met. Customers expect to be able to return to the company or organisation for product and service upgrades, maintenance, replacement and repairs.
Suppliers require steady and known volumes of business; and so they will gravitate towards those organisations that deliver this on long term and more or less assured bases.
Shareholders and other backers and financial interests require assured levels of returns, both in share values and also in dividend repayments, as a prerequisite to investment.
Achieving things for people is therefore based on a combination of effective organisation, together with the confidence and assurance that comes from producing and delivering excellent and profitable products and services.
Making a Profit
All organisations must make a profit. āProfitā needs to be defined by all organisations and their managers in their own terms. Profit is composed of the following elements:
- Surplus of income over expenditure, which requires full and detailed knowledge and understanding of product and service surpluses and losses; and also to include surpluses and losses per location and per customer;
- Organisational reputation and confidence,...