Pupils 'must adopt Management 2.0'
London Business School's MBA class has been encouraged to re-evaluate traditional management methods.
Faculty member Professor Gary Hamel addressed students in what was the last of the London Talks series at the Royal Institution of Great Britain. He told the class he believed management was the greatest invention of the 20th century and that "the era of the imperial CEO will come to an end".
The old style, what Prof Hamel calls Management 1.0, cannot continue, with innovation only seen to be coming from the upper tiers of an organisation. This method, used for past 100 years or so, sees a large proportion of staff disengaged from their job. So-called Management 2.0 seeks to turn this all on its head and will empower workers to add value to a firm by bringing more creativity and passion to their work.
The class was given the example of Morning Star, a US firm. Each staff member is their own boss, judged by the value they add to the company, the professor said. Decision-making and expertise is passed down the ranks and gives more authority to those on the lower tiers, further adding value.
Prof Hamel insisted that this way of working is more transparent and creates more driven employees who are given the opportunity to take part in their own performance feedback, subsequently being rewarded by compensation.