Friday, March 04, 2005

2 25

Dilip 2 25

If it is true that capital goes where it can grow the most, and corporations will continue to try to make the most profit by reducing labor costs, when will outsourcing stop? Clinton contended that American workers would maintain the highest level of productivity and innovation, but that contention is in serious doubt. How can any country keep its jobs from moving to other countries?

What is the role of government? This question comes up when the economy goes through a radical transformation. Outsourcing is a surface symptom of radical transformations. Situations described in FIASCO and Nickel and Dimed are other indicators or transformation. There is a sizeable number of people making minimum wage; if you are single and earning minimum wage, you can make inasmuch as you are willing to live the American (d)ream, with a small d. In America, the ideal is to live independently; this often translates into living by oneself. Independence means not having to share space. Cultural constraints do not enable strangers to live together; in many restaurants that employ immigrants, many sleep on floors, cars, and tents. If minimum wage will not rise to a level of living wage, how can this problem be addressed? How can we establish a housing scheme that will help people improve their economic situation? An innovation is needed.

Nickel and Dimed brought out sympathy in a reader, FIASCO brought out disdain and outrage. FIASCO is a “tail wagging the dog” story; management of money is as far from material production as possible; nothing is produced, and the process of managing money becomes more and more abstract.

Can the market be constrained to consider the human cost? How can the market be managed to take humans into consideration? How to cope with incessant change?

Discussion: Money rules, but what about the economy needs to be regulated, and who should regulate this process? Why are the Chinese pushing for regulation in the midst of growth? Why do Americans resist it?

Leading Change – Michael Beer

Formula for Change:

Amount of Change = (Dissatisfaction x Model x Process) > Cost of Change

Dissatisfaction should be generated to motivate employees to change.

Change will not work unless a change of behavior is demanded. (Process) The change in the Model will dictate how behavior ought to be changed. Together, these factors have to exceed the cost of change, or change will not happen.

Why Change Programs Don’t Produce Change – Beer, Eisenstat, Spector

The key figure in change isn’t a CEO, but a unit manager.

Two assumptions:

1) Mission Statements transform corporations
2) Employee behavior is changed by altering structure and systems.

Aligning work is the key to effective change; upper management lends guidance and support, and share successes when it is time to institutionalize change.

Six Steps to Change:

1) Mobilize commitment to change through joint diagnosis of business problems
2) Develop a shared vision of how to organize and manage for competitiveness
3) Foster consensus for the new vision, competence to enact it, and cohesion to move it along
4) Spread revitalization to all departments without pushing from the top
5) Institutionalize revitalization through formal policies, systems, and structures
6) Monitor and adjust strategies in response to problems in the revitalization process

There is no change unless employee behavior changes. Telling them to behave differently will not do, a situation must be created that will force behavior change.

Managing Change: The Art of Balancing – Duck

Every part of a company is interdependent.

“Management is the message.” The behavior of management around the change sets the tone for employees.

Communication and feelings are important. Complaining is allowed, as long as employees are willing to work toward solutions, as long as the criticism is constructive. Allowing visits to “Pity City” creates trust. By the same token, people are allowed to celebrate their little victories.

Change is the time of most anxiety and mistrust. People want to know they are not about to lose their jobs. Duck promotes capability and predictability, so that people know what is expected and are given the tools to succeed in a new environment.
Transition Management Teams, 8-12 talented leaders who make the transition a reality, is the CEO’s “national guard”.


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