The Business Doctor

'eradicating the Mad Management Virus'

Saturday, 20 March 2010

Update...


After an incredible week of hundreds of emails asking for more and saying well done, I just wanted to update everyone and answer some of the points missed in the programme. I hope this helps.....

This idea started 10 years ago for me, when at the LSE I met a guy called Ricardo Semlar. He owned a company of 4000 staff, made everything from ship pumps to Social Services, all without a single manager in sight. It was remarkable. No plans, strategies, KPI's or anything like that, other than "15% profit, number one in the market, and best quality"..... oh and letting the employee free rein to do it their way! 

He offered an alternative from the ‘machine’ idea of an organisation with people as cogs and not humans. He did it intuitively, not as a result of theory or as a management consultant. Soon after this I discovered Complexity Theory or Human Systems thinking, which in simple terms explains how we ‘operate’ as people, in our systems, life and how this particular organisation stayed together and worked.

So why Public Sector? I started BGCBC over two years ago when the CEO Robbie Morrison invited me in to talk to the Senior Management. They were looking to change the way Public Services operated, whilst improving performance with ever decreasing finances. My theory, tried and tested in business, we thought could do the trick and it did, with amazing results. 

I started with all the Senior Managers, then as an experiment to prove it can be done, Alan Reed volunteered his department, Environmental Services, for the change and this started last October with BBC One in pursuit.

This was NEVER about getting 'rid' of managers (people), only management (the thing they get paid to do). If you get frontline staff to realise that they know the job best, that they can change it to do things better, then the results are amazing. Despite the impression from the programme it took two months to gain trust from the staff, to get them to understand they can change the ‘system’ and deliver a better service to the people of Blaenau Gwent. After all, most if not all of the staff were from the Borough, and customers themselves. 

There are now no 'managers' left in Environmental Services, only a few leaders, and they change according to experience, responsibility, project and needs of customers and councillors.  The money saved by this experiment was/is being invested for the most part back into frontline services. This, is after all, is the main purpose of the whole programme.

You also have to remember that the Binmen and the Garage bosses, were the product of the BGCBC system. They have behaved and acted this way, I suppose, simply as that was what the system expected. They are the product of the way the organisation was structured. They were/are not naturally managers, they became managers because the organisation expected them to and indeed the staff wanted it. They saw only one way of organisation. I showed them that there is an alternative. 

The Binmen have now come on-board and after five months they are now ‘self-managing’, looking to improve services their way and helping to achieve a huge recycling target.

I also have to add that as the ‘Expert’ in all this, I never got paid a penny. I did this to prove to everyone, Councillors, Unions, Academics, more than anyone that if you ask the staff, trust them and let them do it their way to please the public, it is more effective, less expensive and much more efficient. 

Organisations are about people. Leadership is about people. Good leaders sell passion and trust others.  

Thank you everyone who has responded. Its great to have others thinking the same way...
Paul

3 comments:

  1. I have to add another congratulatory word to the many you have received so far.

    You have impressed me even more now that I know you didn't receive a penny for your work. It's a sign of the fundamental change that must have taken place before you began your work. Organisations such as local authorities find it incredibly difficult to accept and action free advice. Individuals as well as organisations often value and trust knowledge by what they pay for it.

    Incredible and once again, Thank you Paul.

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  2. I just saw your program on the BBC iPlayer and was very impressed. As a freelancer I've always felt there was something wrong with the concept of management, more so since I've lived in Spain where strict HR structures are rife. Its often difficult to find sound reasoning and "real-life" examples to explain this feeling which is why I very much enjoyed the program. It was great to see your theories in practice and how even the tough public sector can adapt and become more productive, dynamic and happier.

    A well known Venture Capitalist in computer circles, Paul Graham, wrote about this subject in an essay titled "You weren't meant to have a boss" which if you haven't read already I'm sure you'd find interesting:

    http://www.paulgraham.com/boss.html

    Thanks for the inspiration and I look forward to following your blog in the future.

    Sam Lown

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  3. Hello Sam , got the message earlier and have read the above. Thank you for your comments.

    I have say that I am not a consultant although I go into organisations to help, my help is free and I do so as part of my quest to improve the working life of people and 'managers'.

    I'm sure together we can all make a difference as I am getting hundreds of invites per week to go in and help! Four years ago I had to beat down doors, now they are open and there is a body within willing to listen!

    Times are a changing...

    Thanks all
    Paul

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