News: CIPD 2012 - 'Crowdsourcing is the future of management'



Crowd of people

Crowdsourcing is the future of management and organisations that fail to embrace this “management 2.0” model will become increasingly irrelevant, according to leadership guru, Gary Hamel.

Speaking yesterday at the Chartered Institute of Personnel and Development’s annual conference in Manchester, he described old management 1.0 methods that focused on conformism, standardisation and formal hierarchies as a “busted flush” that had to be “replaced from the bottom up” – and he believed that HR were just the people to do it.
 
But in order to adapt to a world of constant change, it was vital to challenge old beliefs and rethink core principles, the director of the Management Innovation Exchange and visiting professor of strategic and international management at the London Business School said.
 
The idea was to take the “technology of management” and find ways to meld it with the most “adaptable and innovative” thing that we as a species had ever created – the social web.
 
Such an approach would involve balancing apparent polar opposites such as the act of ‘evaluation’ with the concept of ‘folkonomies’ or the act of ‘organising’ with the idea of ‘social networks’.
 
“According to Max Weber, the ideology of management is controlism and so it was a given that you’d create stable, reliable organisations. But that’s just table stakes and it doesn’t create value in a changing economy,” Hamel explained. “If you want adaptable, innovative organisations, you need to give people the freedom to think, take small risks, experiment.”
 
Such an approach would mean decentralising power, making it “legitimate to hack management processes” and taking away “the management monopoly on resource allocation” to enable the funding of good ideas.
 
It would also mean allowing “communities of passion” based on advocacy and activism as well as natural hierarchies based on influence to form as they did on the web. “You have to give everyone a voice to change management approaches,” Hamel pointed out.
 
The idea was that every individual was “inspiring, innovative and the like already”, but traditional management processes had tried to go against nature and make them into semi-programmable robots in the workplace. “Our challenge now is to make them human again in order to create success in our organisations,” Hamel concluded.
 
 

 

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Editor's Note - May 10

Had a busy week with two days at the Responsible Business Summit in London. What struck me was the appetite for sustainability in the corporate world. I spoke to senior figures from multinationals who knew wholeheartedly that businesses in the future would not succeed if the society around them failed.

Much of this appetite was understandably focused on collaboration - the future of sustainability. Words that were previously indicative of success - power, might, scale, size - are no longer enough in the open source, peer-reviewed future where opponents will not simply grumble and moan and then leave you in peace. Companies must work with governments, NGOs, charities and social enterprises as a matter of course. And even competitors, where necessary.

Facilitating this collaboration is the big challenge of the next five years. Highly-strung and ego-centric companies, feverish with the need to protect their brand, will struggle the most, but it's either adapt or die.

The business/charity relationship is one of the most interesting focal points. Business power can drive positive social change in so many ways but charities are the key holders to communities. As businesses are expected more and more to play a stake in the future, charity partnerships should be top of the corporate priority list. Businesses that don't work closely with a charity will find themselves with reputational problems.

There's a lot more to CSR, of course, but collaboration is the bedding on which CSR will rest. Businesses can no longer find the answers to all their problems in their own resources and assets.

And for many that's a scary thought.

Any thoughts, thoughts or questions, drop me a line on editor@hrzone.co.uk.

Best wishes

Jamie

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