This video clip offers an insight into why we believe that a new approach to managing people is needed.
Is the management model we’ve been using for 100 years still valid for today’s business environment?
The ‘father of management’ Peter Drucker said that it isn’t: “Organisations can no longer be built on force, they must be built on trust”.
He predicted in 1993 that a new, trust-based management paradigm would have to replace the old, control-based one if organisations in the knowledge economy were to sustain high employee engagement and productivity. Why? Because there is an inevitable cause and effect chain…
employee trust > engagement > discretionary effort > innovation & productivity
Trust is the big issue today in every aspect of 21st Century living. That’s why The Rules of Engagement white paper proposed that ‘Engagement is founded on trust’ .
All the evidence points to one key fact about employee trust – the pivotal role is played by a person’s immediate line manager, team leader or supervisor. As Marcus Buckingham famously wrote, “people join companies, they leave managers!” (First, break all the rules)
Given the organisational imperative today of maximising the potential contribution of every employee, management training should focus on developing the skills to engage with each team member and create a trust-based team climate, should it not?
The reality is, however, that in general this is simply not happening. As a result, the last-Century model is still largely the norm in organisational life; hierarchy, bureaucracy, command and control.
This is a major factor in the current all-time lows we are seeing in employee engagement and directly associated productivity levels.
The National Office of Statistics reported that UK productivity is now more than 30% less than the US and Germany – two of our major international competitors. This calls for changes in the way organisations lead, manage and inspire their people.
That was why the NextGen ManagerProgramme was developed.