Management by Missions PDF
Preview Management by Missions
MANAGEMENT BY MISSIONS This page intentionally left blank MANAGEMENT BY MISSIONS Pablo Cardona and Carlos Rey ©PabloCardonaandCarlosRey2008 Allrightsreserved.Noreproduction,copyortransmissionofthis publicationmaybemadewithoutwrittenpermission. Noparagraphofthispublicationmaybereproduced,copiedortransmitted savewithwrittenpermissionorinaccordancewiththeprovisionsofthe Copyright,DesignsandPatentsAct1988,orunderthetermsofanylicence permittinglimitedcopyingissuedbytheCopyrightLicensingAgency, 90TottenhamCourtRoad,LondonW1T4LP. Anypersonwhodoesanyunauthorizedactinrelationtothispublication maybeliabletocriminalprosecutionandcivilclaimsfordamages. Theauthorshaveassertedtheirrightstobeidentified astheauthorsofthisworkinaccordancewiththeCopyright, DesignsandPatentsAct1988. Firstpublished2008by PALGRAVEMACMILLAN Houndmills,Basingstoke,HampshireRG216XSand 175FifthAvenue,NewYork,N.Y.10010 Companiesandrepresentativesthroughouttheworld PALGRAVEMACMILLANistheglobalacademicimprintofthePalgrave MacmillandivisionofSt.Martin’sPress,LLCandofPalgraveMacmillanLtd. Macmillan(cid:2)isaregisteredtrademarkintheUnitedStates,UnitedKingdom andothercountries.PalgraveisaregisteredtrademarkintheEuropean Unionandothercountries. ISBN 978-1-349-36240-0 ISBN 978-0-230-59894-2 (eBook) DOI 10.1057/9780230598942 Thisbookisprintedonpapersuitableforrecyclingandmadefromfully managedandsustainedforestsources.Logging,pulpingandmanufacturing processesareexpectedtoconformtotheenvironmentalregulationsofthe countryoforigin. AcataloguerecordforthisbookisavailablefromtheBritishLibrary. AcatalogrecordforthisbookisavailablefromtheLibraryofCongress. 10 9 8 7 6 5 4 3 2 1 17 16 15 14 13 12 11 10 09 08 Contents Foreword vii Part I Myths and Realities of Management 1 Is there a link between corporate culture and profit? 3 2 Different ways of understanding an organization 22 3 What are companies for? 37 Part II In Search of Corporate Culture 4 Cultural problems today 53 5 What is a company’s mission? 66 6 The values of a balanced culture 85 Part III Toward a New Management Model 7 The mission chart 101 8 Mission management tools 124 v vi Contents 9 Mission-driven leadership 145 10 CASE: Sony Spain, the implementation 170 Afterword 193 Notes 197 Bibliography 204 Index 208 Foreword The management by missions (MBM) model presen- ted in this book rests on three pillars: theoret- ical research (literature study), practical research (field study), and implementation consulting (prac- tical application in companies). The first pillar, theoretical research, is the one that answers the following questions: Has anybody writ- ten anything on this subject before? What theories or views have they put forward? We soon realized that, besides the literature we already had in our library, there is a wealth of publications bearing directly or indirectly on the subject of this book. We carried out an in-depth literature analysis on issues such as mis- sion, values, culture, motivation, quality, processes, leadership, and so on. The second pillar of our model is practical research. Initially, in a study carried out in 2000 based on a questionnaire sent to 220 companies, we identi- fied the various relationships between corporate cul- ture and profit. In 2002, we carried out a second study focused on companies’ experiences of defin- ing and implementing a corporate culture. In total, we have collected more than 1300 mission state- ments and values statement from companies around the world. We have used them to determine the main vii viii Foreword characteristics of what might be termed a “healthy corporate culture.” Lastly, since 2003, we have been conducting a third study: a large-scale, in-company study carried out through the International Research Center on Organizations (IRCO) at IESE. To date, more than 100 organizations and more than 6000 managers and middle managers have taken part in this study. Thanks to their collaboration, we have been able to explore the main problems facing companies today and gather a wide range of experiences and ideas about “what to do” and “what not to do” in order to create a successful corporate culture. The third pillar of our MBM model, implementation consulting, is what enabled us to publish this book with the certainty that the proposals and ideas it containshavebeentriedandtestedandactuallywork in practice. As a result, over the last five years we have tested the ideas and solutions described in this book in companies of all sizes in different industries. This book consists of three parts, and the third part is concluded by a practical case in which we explain in detail how a company, Sony Spain, has used MBM to implement a cultural change. The three pillars – theoretical research, practical research, and imple- mentation consulting – are combined in all three parts of the book. In each part, however, they are combined in different proportions. Foreword ix (cid:2) The first part has a greater theoretical content. In this part we explore prevailing assumptions about whatacompanyisandwhatitisfor.Specifically, we discuss the problems and limitations we have observed in modern corporations. This first part, which may seem dry, is crucially important as it contains the key to a deeper understanding of the following two parts. (cid:2) The second part is based mainly on our prac- tical research. In this part we reflect on the main deficiencies and limitations of existing corporate cultures and describe what a corporate culture is, how a mission is defined, what values are most sought after, how to define a “healthy” corporate culture, and so on. (cid:2) The third part is primarily the result of our con- sulting work. In it we present the main tools of MBMandthetypeofleadershipneededtoimple- ment it. These tools and the leadership style we describe mark a path toward a new management model and a new way of understanding the work that managers do. Our aim in this book is not to provide definitive solu- tions to management problems. Nor do we intend this to be an instruction manual on “how to manage a company.” The book is a preliminary proposal about a new way of understanding management. We want to draw attention to the need for a change
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