V The society of organizations
V An organization is …
* A human group composed of specialists
* Working together on a common task
V The function of organizations
* To make knowledge productive
* The more specialized knowledges are, the more effective they will be
V Have to be put together with the work of other specialist to become results
* Knowledges by themselves are sterile
V Specialist are effective only as specialists—and knowledge workers have to be effective
* The most highly effective knowledge workers do not want to be anything but narrow specialists
V Specialist need exposure to the universe of knowledge
* But they need to work as specialists
* and to concentrate on being specialist
* And for this to produce results, an organization is needed
V Organization as a distinct species
V All one species …
* Armies
* Churches
* Universities
* Hospitals
* Businesses
* Labor unions
* They are the man-made environment, the “social ecology” of post-capitalist society
* Management is a generic function pertaining to all organizations
V The characteristics of organizations
V Organizations are special-purpose institutions
V They are effective because they concentrate on one task
V In an organization, diversification means splintering
* It destroys performance capacity
V Organization is a tool
* The more specialized its given task, the greater its performance capacity
V Its mission must be crystal clear
V Because the organization is composed of specialists
* Each with his or her own narrow knowledge area
V Otherwise its member become confused
* They will follow their specialty
* Rather than applying it to the common task
V They will each define “results” in terms of that specialty
* imposing their own values on the organization
* Only a clear, focused, and common mission can hold the organization together and enable it to produce results
V The prototype of the modern organization is the symphony orchestra
* Many high-grade specialists
* By themselves they don’t make music. Only the orchestra can do that
* Perform because they have the same score
V Results exist only on the outside
* Organizations exist to produce results on the outside
* Discussion of “profit centers” vs. “cost-centers”
* Results in an organization are always pretty far away from what each member contributes
V Results need to be defined clearly and unambiguously
* and, if at all possible, measurably
* Organizations need to appraise and judge itself and its performance against clear, known, impersonal objectives and goals
V “Voluntary” membership and the ability to leave an organizations
* Organizations are always in competition for its essential resource qualified, knowledgeable, dedicated people
* Need to market membership
* Have to attract people
* Have to hold people
* Have to recognize and reward people
* Have to motivate people
* Have to serve and satisfy people
V Has to be an organization of equals, of “colleagues,” of “associates”
V The position of each is determined by its contribution to the common task
* rather than by any inherent superiority or inferiority
* Must be organized as a team of “associates”
V They are always managed
* Have “leaders”
* May be perfunctory and intermittent
* Or may be a full-time and demanding job for a fairly large group of people
V Have to be people who make decisions
* or nothing will get done
V Have to be people who are accountable for the organization’s
* mission
* spirit
* performance
* results
* Must be a “conductor” who controls the “score”
V There have to be people who
* focus the organization on its mission
* set the strategy to carry it out
* define what the results are
V This management has to have considerable authority
* Yet its job in the knowledge organization is not to command; it is to direct
V To be able to perform, an organization must be autonomous
* Cannot be used to carry out “government policy”
V Organization as a destabilizer
V The organization of the post-capitalist society of organizations is a destabilizer
V Its function is to put knowledge to work
* on tools, processes, and products
* on knowledge itself
* It must be organized for constant change
* It must be organized for innovation
V It must be organized for systematic abandonment of …
* the established
* the customary
* the familiar
* the comfortable
* products, services, and processes
* human and social relationships
* skills
* organizations themselves
V Knowledge changes fast
* Today’s certainties will be tomorrow’s absurdities
* Skills change slowly and infrequently
* Changes that most profoundly affect a knowledge do not, as a rule, come out of its own area
* Social innovation is as important as new science or new technology in creating new knowledges and in making old ones obsolete
V Purposeful innovation has itself become an organized discipline
* Which is both teachable and learnable
V Every organization has to build into its very structure the management of change
V Organized abandonment
> It has to build in organized abandonment of everything it does.
V Increasingly, organizations will have to plan abandonment rather than try to prolong the life of a successful policy: practice, or product—something which so far only a few large Japanese companies have faced up to.
* (On this, see Chapter 24, “The New Japanese Business Strategies,” in Managing for the Future (1992).
V The ability to create the new (three systematic practices)
V Continuing improvement of everything it does (Kaizen)
* What every artist does
* Aim is to improve each product or service so that it becomes a truly different product or service in two or three year’s time
V Learn to exploit
* Develop new applications from its own successes
V Learn how to innovate
* Learn that innovation can should be organized as a systematic process
* Then we come back to abandonment and we start all over again
V Post-capitalist society has to be decentralized
V Its organizations must be able to make fast decisions
V Based on closeness …
* to performance
* to the market
* to technology
V to the changes in society, environment, and demographics
* all of which and utilized as opportunities for innovation
* Organizations in the post-capitalist society thus constantly upset, disorganize, and destabilize the community
V The “culture” of the organization must transcend community
* The nature of the tasks that determines the culture of an organization
V If the organization’s culture clashes
* with the values of the community
* the organization’s culture will prevail
* or else the organization will not make its social contribution
V “Knowledge knows no boundaries”
* Of necessity every knowledge organization is of necessity non-national, non-community
* Even if totally embedded in the local community
V The employee society
* Another way to describe the phenomenon of the society of organizations
V Employees who work in subordinate and menial occupations
* Service workers
* The wage earner, the “worker” of yesterday
V Knowledge workers
* 1/3 of the work force
* They own the “means of production”
V Cannot, in effect, be supervised
* Cannot be told what to do, how to do it, how fast to do it and so on
* Unless they know more than anybody else in the organization they are to all intents and purposes useless
* They hold a crucial card in their mobility
* Organizations and knowledge workers are interdependent
* “Loyalty” will have to be earned by proving to knowledge employees that the organization which presently employs them can offer them exceptional opportunities to be effective
* Capital now serves the employee