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Management And Guiding Principles

PERSPECTIVE

All management is based on guiding principles; and the effectiveness of management derives from those principles. This is true whether the principles are appropriate or inappropriate, reasonable or unreasonable, consistent or inconsistent. Similarly, the derivative nature of management holds whether the guiding principles are vague or well-defined, followed faithfully or haphazardly, applied day-to-day by managers who are highly skilled or fundamentally incompetent. Effective management, then, is a product of:

Guiding principles that are appropriate, reasonable, and consistent;

Managers who clearly understand the guiding principles, faithfully adhere to them, and who are fundamentally competent.

It follows from this that the effectiveness of an organization's management is a product of the Principle/People equation:

Principles + People = Outcomes.

The guiding principles for an organization are a composite of underlying assumptions and values that define and direct management practice. 'Assumptions' in this context are beliefs that are held as 'true' without demonstrable proof. 'Values' are those conditions that are held to be inherently and intrinsically 'right.' From this perspective, then, guiding principles are true because they are true and right because they are right.

With the non-empirical, self-justifying nature of guiding principles in mind, an organization has its unique 'culture.' Here, 'culture' refers to the collective beliefs, values, and norms of the organization, where 'norms' are the standards for behavior and interaction within the organization. These standards are, of course, based on the organization's beliefs and values related to how the organization's people 'should' behave and interact both with each other and with people outside the organization. 'Norms' thus define correct and proper behavior.

When norms are understood as following from beliefs and values, the organization's culture can be summarized as its collective sense of;

What is true,

What is right,

What is proper.

At an abstract level, an organization's guiding principles exist within its collective memory and current consciousness; but at a practical, functional level, those guiding principles reside within its people. Each person is a carrier and a conveyer of the guiding principles that direct the organization's day-to-day activities and future 'outcomes.' Those 'outcomes' may be tangible or intangible but are, nonetheless, a product of the collective efforts of people who carry and convey the organization's guiding principles.

PRIDE

Professionalism An organization's achieving its desired outcomes is dependent on its people; so what people bring to the endeavor makes a critical difference. They must be competent to fill their organizational roles. At a minimum, they must have knowledge, skills, and judgement consistent with their positions and responsibilities. In turn, they must apply their knowledge, skills, and judgement in the interest of achieving the organization's desired outcomes. To the extent that the organization's people do not have the requisite knowledge, skills, and judgement for their positions, the organization, through its management, must assure that the needed training and skill development are provided for its people; and as people leave the organization, new people must be recruited who either have or can develop the requisite knowledge, skills, and judgement. Whatever the mechanism, the organization cannot achieve its desired outcomes unless and until the requisite knowledge, skills, and judgement are in place.

Responsibility Assuming that the requisite knowledge, skills, and judgement are in place, the organization's desired outcomes will only be achieved to the extent that its people do the right things right, the first time, every time. Simply having competent people in place is not sufficient in and of itself. Here, doing the 'right' things is not based on training and experience. Rather it is based on understanding and adhering to the organization's guiding principles. It is doing that which is right from a value perspective. Doing the right things right the first time every time means that the organization's people are consistently and conscientiously adhering to its guiding principles.

Initiative Competence plus adherence to guiding principles leads to initiative: people seeing what needs done and doing it because it needs done. Since the organization's people are competent, they are able to see what needs done and have the requisite knowledge, skills, and judgement to do it. Since they adhere to the organization's guiding principles and are committed to its desired outcomes, they do that which needs done. Conversely, if the organization's people do not manifest initiative, there are organizational deficits requiring management intervention. That intervention must be directed to some mix of increasing the competence of the organization's people and increasing adherence to the organization's guiding principles. Increasing adherence to guiding principles, of course, must focus on increasing understanding and acceptance of that which is true, right, and proper from the organization's perspective.

Directedness The organization's people can be competent, do the right things, and manifest a high level of initiative and still not achieve the organization's desired outcomes unless there is a high level of Directedness: focus on attaining optimal outcomes for each situation or circumstance. These optimal outcomes are intermediate steps toward the organization's desired outcomes; and an absence of focus on them decreases the likelihood of achieving the organization's desired outcomes. Conversely, intense focus on intermediate outcomes increases the likelihood of achieving the organization's desired outcomes.

Effectiveness Were the internal and external organizational environments static, professionalism, responsibility, initiative, and Directedness would be sufficient for achieving the organization's desired outcomes; and once people were successful with respect to the intermediate outcomes, they would only need to 'keep up the good work.' Management, then, would be little more than a 'maintenance of effort' process. However, both the internal and external environments change over time; and management is responsible for assuring a continuing fit between the organization and the external environment. Further, the organization's desired outcomes change over time. This change may involve completely different outcomes or changed standards for old outcomes. Whatever the change, yesterday's desired outcomes will not be the same as tomorrow's. It is, then, management's responsibility to keep the organization's people aligned with its changing outcomes. This is accomplished through doing what needs done, evaluating what was done, and doing it better the next time, while concurrently assuring continuous fit with changing internal and external environments and desired organizational outcomes.

The 'people' side of the principle/people equation requires continuous management of Professionalism, Responsibility, Initiative, Directedness, and Effectiveness in relation to changing, desired outcomes in concert with the organization's guiding principles. This leads to the conclusion that PRIDE is and must be the underlying guiding principle for effective management and for effective managers.

PRINCIPLES

Keeping in mind that 'principles' are

To understand and further the mission of the company as articulated by the governing body.

To understand and implement the policies of the governing body.

To define and maintain a rational, flexible Organizational Structure within which employees can function with a minimum of administrative and bureaucratic control and interference.

To provide clear, consistent Direction for employees, assuring each employee knows and understands what is expected of him and what behavior and action are acceptable and unacceptable.

To maximize Personal Control for each employee over his company related environment and activities.

Cooperation: Emphasize a helpful, supportive approach to relationships and activities.

Loyalty: Emphasize working with employees by accommodating to special needs and interests and facilitating resolution of problems.

Caring: Emphasize concern for and interest in the activities, successes, and problems of employees.

Sharing: Emphasize talking with employees, reciprocal assistance, and mutual problem solving.

Respect: Emphasize acceptance of employees' beliefs and values, receptivity to employees' thoughts and ideas, and sensitivity to employees' feelings and interests.

Trust: Emphasize giving employees the benefit of the doubt without blaming, accusing, or threatening.

Integrity: Emphasize keeping commitments to and agreements made with employees.

Conflict Resolution: Emphasize identifying, understanding, and working through conflicts and tensions among and between employees.

Headlines for Fri July 03/2009


Job seekers seek solace with fellow faithful
BEVERLY, Mass. (AP) -- Her fellow job seekers offer knowing groans as Diane Castro recalls the day she was laid off: The fear of being summoned to the front office. The phones in nearby cubicles going off like grenades. Finally, a ring at her desk....
European stocks calm as US readies for 4th of July
LONDON (AP) -- European stock markets traded in a narrow range Friday as investors caught their breath after big losses the day before on U.S. jobs data. Wall Street's closure for the Independence Day holiday kept trading volumes exceptionally light....
China Investment buying stake in Teck Resources
TORONTO (AP) -- Mining company Teck Resources Ltd. said Friday it is selling a 17 percent stake to China Investment Corp. for 1.74 billion Canadian dollars ($1.5 billion) in a bid to reduce its debt....


Rogue trades cost oil broker $10m
3 Jul 2009 at 9:19am
A rogue trader at a London-based oil brokerage causes his employer to lose $10m (£6m) after making unauthorised trades.
More backing for Rio cash-raising
3 Jul 2009 at 1:49am
A Rio Tinto rights issue sees strong take-up from existing holders of its Australian-listed shares - after similar UK success.
BA to cut spending by one fifth
3 Jul 2009 at 11:52am
British Airways says it is to reduce capital spending by 20% as it faces falling passenger numbers.


Financial Reform: Industry Objections Increasing
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Steve Jobs' Liver Transplant
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Reporting in Nature Geoscience, two coastal scientists write that rising sea levels, combined with slow Mississippi Delta growth, could drown the Louisiana coast by 2100. Delta expert Ivor van Heerden, who is not involved with the research, discusses the findings.
Politicians Reconsider Drilling Off Florida Coast
1 Jul 2009 at 11:01pm
For years, oil production has been largely banned in the Gulf of Mexico off the coast of Florida. In large part, that's because of concerns that a spill could devastate the state's tourism industry. But now, some elected officials seem willing to take another look at offshore drilling after years of opposition.
17 Miles Of Maine's Kennebec River Restored
1 Jul 2009 at 7:20am
It's been 10 years since the federal government ordered the Edwards Dam on Maine's Kennebec River to be torn down. Regulators had decided that the public would be better served by a free-flowing river than the tiny amount of electricity produced by the dam's hydro plant. Removing the dam has changed the environment — for the better.


The Authors Who Made My 'Day To Day'
24 Mar 2009 at 1:34pm
As a correspondent for Day to Day, Karen Grigsby Bates often reported on books and their writers. She offers an essay musing on her time with the show, including some of her best moments with brilliant authors. Karen Grigsby Bates
A Hip-Hop Farewell
20 Mar 2009 at 12:00pm
If Day To Day were a rap star, how would it say goodbye? "Peace out?" "I'm ghost?" "Let's shake the spot?" A quick look at bidding farewell with hip hop slang. Christopher Johnson
The Writer Who Gave 'Willy Wonka' His Ending
20 Mar 2009 at 12:00pm
The film Willy Wonka and the Chocolate Factory was plenty strange. But the tale of how the ending for the movie was written is every bit as weird. Screenwriter David Seltzer tells the story.


Europe Solves Cell Phone Charger Problem
1 Jul 2009 at 8:21am
The European Union has reached an agreement with all major mobile phone manufacturers to produce a common phone charger. Apart from reducing the frustration of customers juggling incompatible chargers, proponents say the agreement will encourage recycling and reduce electronic waste.
Long Distance Shrinks Amid New Phone Technology
30 Jun 2009 at 11:01pm
The days of constant TV ads and pesky phone pitches to switch long-distance service are long gone. Changes in telecommunications industry ground rules, and new competition from cable, Internet and wireless have transformed the business.
The Extraordinaries: Will Microvolunteering Work?
30 Jun 2009 at 11:01pm
Got five minutes? Rather than check on your car insurance, you can engage in all sorts of do-good efforts these days thanks to a slew of Web sites, including The Extraordinaries, a microvolunteering service. But the idea has plenty of potential pitfalls — and could end up just a flashmob in the pan.
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