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Modulus excellence offers corporate coaching, consulting, training and conference to foster cultures of excellence.

Modulus excellence offre coaching corporatif, consultation, formation et conférence afin de développer des cultures d'excellence.

Management’s two sided coin

Modulus Iterations

Modulus Iterations

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Management’s two sided coin

JF Lavallée

 photo: Mark Sabanathan

photo: Mark Sabanathan

Upside down
Boy, you turn me
Inside out
                     And round and round
” -Diana Ross

 

And so should turn round and round management and entrepreneurship, the two sides of the management coin in a healthy organisation.

Unfortunately, we often are faced with only one side of that coin or even worst, we sometimes fail to recognise that both sides are part of the same piece of spinning management concept.

 As the famous Peter Drucker aptly mentioned:

Management and entrepreneurship are only two different dimensions of the same task. An entrepreneur who does not learn how to manage will not last long. A management that does not learn to innovate will not last long.

To better grasp the importance of the relation between these two functions, we can make a parallel with what goes on inside and outside an organisation.

Our model of cultures of excellence is based on four essential pillars:

-Leadership

-Performance

-Opportunism

-Innovation

all resting around the core concept of Reality.

If we draw a horizontal line right in the centre we now have on the upper part what constitutes the Inside, and in the lower part, the Outside.

Now, before you raise your objection, we agree that you would be right in saying that innovation for example can happen within an organisation and is not necessarily beyond the organisation’s control.

But when you thing about it, what this shows is that *in most circumstances* Leadership and Performance are things which are driven by the inside, by the leaders, by the corporate culture, by the specific measurement indicators etc.

And Opportunism and Innovation are driven by events that happen outside of our immediate circle of control, and influence how we can in turn react. Innovation is always the combination of known elements with unknown and new concepts and elements. These come mostly by looking outside our field, team and company. That is why collaboration and diversity are such a crucial part of innovation.

The same is true for opportunities which often are a mix between what we currently have and offer and an exterior need expressed by a client, a vendor or any other group around the organisation.

 

What happens inside is the responsibility of what we traditionally call Management.

Dealing with exterior events and situations is the responsibility of what we see as the Entrepreneur.

 

Drucker once again states in a blunt and clear fashion what the function of both parties are assumed to be:

Management is assumed to concern itself with efforts, if not with costs only. For effort is the only thing that exists within an organisation. […] Inside an enterprise, there are only costs.
Entrepreneurial activities are focused on the outside, [as] results of any institution exists only on the outside. […] The result of a business is a satisfied customer.

But in reality, the organisation is better served when these two facets work together and are in tuned with each other… and not when separated and unrelated.

Following this line of thought, Drucker concludes:

Management’s responsibility (in its larger definition) is everything that affects the performance of the institution and its results – whether inside or outside, whether under the institution’s control or totally beyond it

 

So...  next time you hear someone within your team complain about the “rigid management” or the “eccentric entrepreneur” with whom he or she has to deal with, don’t hesitate to remind them that they are in fact... two faces of the same coin!

 

The Essential Drucker, Peter F. Drucker, Harper, NY, 2001