Tuesday 31 July 2012

What it means to become better - as an executive

What it means to become better - as an executive


What makes you learn? What gives you the certainty that you have become better? Are you better now than what you were a year ago? The starting point here is that you are already an experienced actor, so you know what it takes to fill your position in your organization and you start to be ready for more challenging tasks. You also know where you are good if not excellent and you also know that in some areas you could be much better.

As such it is an interesting question how you would like to proceed from your current setting: do you want to be even better in the future? Probably, many of us has this kind of an stance to our existence. I would imagine that rather few like to be worse off in the future as compared the present situation by their own will. Whereas I dare to guess that there are very special individuals who by themselves feel that they have reached the high level which is possible for any human being to ever reach and thus they would like to stay where they are, but perhaps this attitude is somewhat rare (thank goodness).

But, what does it mean to be better, what is most important? Do you want to be wiser, or more efficient, or faster, or more energetic, or more caring, or what? Do you want to be better decision maker, better coach, better in presenting your arguments, or better in selling or managing sales people, or what? Or do you want to better in choosing right customers, excellent people in your team, predicting this year volumes and big events, anticipating where problems and new opportunities will emerge, do want to be better in initiating forceful action, or finding energizing vision for your organization, or what?

Also it is intriguing to think what kind of words and thinking patterns would be used if this text would belong to the wholly different realm of life than business and organizational reality. What if we would examine wheather sports enthusiastics would like to be better. I guess they certainly would like to improve their performance and we have a pretty good idea what it would mean (eg. more meters, less seconds, etc.). But what if we think for instance religious life, would people like to be better on that arena? Probably, also there the improvement in very fundamental way seems to be the goal, although it gets different forms and manifestations in different religions. Hence the desire to become better seems to be very prevalent human desire, which we can encounter in different spheres of life.

Let us zoom back to business life, and let us ask what it means to become better in that form of life? I would imagine that we might think that - of course we know the answer. Perhaps we have something in our mind and we think that it is self evident what it means to become better. However, perhaps this is one of those moments when we think that we know the answer but when we pause to think we may notice that the answer what we have in our mind is not at all self evident or that at least our answer does not cover the whole question.




In principle there are four different perspectives in evaluating whether someone is better than before:

1) Output perspective.
This is the simpliest perspective where something concrete is measured.In case someone is able to connect more pieces than before or make more phonecalls that before or do more interviews than before then s/he is better when things are estimated from this angle.

Clearly the problem here is that very rarely if ever anything like this is essential when we estime performance of an executive. Hence this level is rarely very useful. As such simple measurements do not capture the essence of the executive work and in any case quality is often much more important than quantity (eg. person makes more phonecalls in such a way that more people in the network becomes irritated - hardly an improvement).

2) Profit perspective
Here the crucial figure can be found from income statement. You might think that this solves all the problems in evaluation, because business is about profit and in case an executive is able to deliver more profit s/he becoming better. End of the story.

There is no denial that this measurument has its merits and this measument is the corner stone of modern business thinking. However, also this measurement is deficient in some important respects. For instance, any organization is part of a much larger world where everything is in the constant change. Sometimes some wave of change helps some organization to improve its results, sometimes something in the wider world makes it difficult or impossible for a certain organization to succeed, in particular when some periods are examined. Hence it can be difficult to say what part of the change in a profit figure relates to the actions taken (or not taken) by a certain executive.

3) Expert evaluation
Here the other experts evaluate performance. Clearly experts are not confined to one number or numbers in their evaluation, instead they can try to see the big picture and even the whole picture as far as it is possible for anyone. It is certain that this evaluation is actually in very wide use in the executive world. Even when officially evaluation is done on the basis of some numbers, be it a profit figure or figures from a balanced scorecard or any other metrics, even then people (experts) decide how we should read and interpret the numbers. In the business world experts use all the time their judgement in deciphering that when we can consider some performance as excellent and when as less excellent.

Also this evaluation has its challenges. Who are the experts, how they have created their knowledge base? Are they experts because they know a lot or because they fill some positions (sometimes these things are not the same). Also we may guess that sometimes experts may their own agenda which may affect to way how they exercise their judgement.

4) Self evaluation
Who knows best which particular things in your position are the real challenges and opportunities, who knows best what is difficult for you to do and what you master with ease? Clearly you are in very unique position in evaluating yourself. Old Indian proverb says that before you are able to evaluate another person walk a mile in her/his moccasin. Well, you are doing the walking.

But also self evaluation has its own pitfalls. Perhaps you are you too merciful or too harsh on yourself? Perhaps you use criterias which are not that relevant for those actors who on their part give you the resourses to act or the position to operate.

In sum what do you think when you look the path ahead. When do you will feel that you have become better, when do you know that you have become better? In any case, sunny days and enjoyable trails!




Tuesday 24 July 2012

Business Education - Complex Endeavour

Business Education - Complex Endeavour



What it would mean to become really interested in what happens in this world? Isn't it a basic task for an University to understand better and deeper what is this very world where we we live in? Deeper understanding is crucial because it will also open possibilities to change things when deemed necessary.

One would assume that in business education this kind of an approach is a self evident reality. Business is practical thing and thus business education examines business world and its real challenges and possibilities - so one might think. However perhaps the reality in education realm is much more complicated. In fact it is not clear that  we as business educators can look where we should look. Are the business educators like astronomers who do not dare to look at the sky? Impossible, you may think, perhaps not, bear with me for a moment.

Perhaps you might think that the point here is to ridicule business educators. However, that is not at all the goal in this blog, I wish to be absolutely clear in that respect. Instead the point is to examine why it is most challenging to assume a real life approach in Business education. It would not be an easy stance for anyone involved, as we shall see.

The goal here is not try to cover Business education in its entirety, instead only one perspective is taken under discussion. I will guarantee that already that one perspective will show why real life approach would change a lot and why it would require a lot. It is also proposed here  that this discussion could be applied more generally when Business education is evaluated.

The perspective here is to discuss how local/regional business environment could be viewed as important research topic in Business education which would focus on real world. In fact local reality could be basic starting point in business education, perhaps the curriculum would run as follows: what we have here around us in our region, how those institutions operate, where are their challenges and possibilities, who are the key people, what are the crucial linkages with wider world, which elements determine the success of our area, what kind of actions and decisions could be done to make our region more successful, etc.

It is evident that real world approach would not be a simple solution for Business educators, or for anyone involved (students, wider world). Of course these real life topics as such would be complicated but also it would be most challenging that research would really focus on real organizations and also on named individuals. And now we would not talk about "nice" cases which are brought in the classroom but we would talk about real events, real choices, real capabilities, real organizations and real people in action. Hence we would soon face very complex questions: how much we can know about organizations - how to get information in the first place, what kind of information is already a business secret etc. That kind of questions would surface. And it would be even much more complicated to try to study key players in organizations, who they are, what are their motivations, their capabilities, their plans, etc.

I think this kind of questions may sound immediately somewhat impossible and improper. And the point here is not to suggest that this kind of questions should be asked and discussed. However, at the same we certainly agree that we wish and we must to talk about real life in Business education. Hence what kind of discussions we deem as pertinent and necessary, and where we would go over the line? Quite a conundrum. These are not simple questions.

At the same time the ability to steer forward among these questions will be very important determinant in defining how the Business education will succeed.

What is immediately apparent is that when one wishes to create a world class Business education that will also mean that the key players around the University will also need to be deeply involved in the setting. Are they ready to join in the learning process in which all parties examine the world where we live in? It is so easy for astronomers, Betelgeuse, Rigel and the whole Orion belt does not care a bit of they are examined and thorougly discussed in a classroom (or at least it will take some light years before the possible grievances which they may voice arrive to our planet). Whereas, in real world Business education the setting is totally different. The trust on which any connection can be created and developed is tested continuously.

What is actually the key capability of Business educators?