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    Exclusive
    Shifts in economy alter work, organizations
     
    By Marjorie Teresa Perez
    Marketing Columnist
     

    WHAT is required to succeed in business and in management is a formula that’s been shifting over the past decade or two in some very important ways. Career paths and approaches to work that were winners throughout much of this century are no longer paying off well. Nevertheless, a significant number of people are still trying to use the old strategies, with frequent encouragement from most major institutions: big business, big labor, government and education.

    A shift in what is required to succeed is being driven by many factors, none of which is more important than the globalization of markets and competition. Globalization is increasing the rate of change and producing both more opportunities and more hazards. Put succinctly, people who are prospering nowadays are finding ways to capitalize on these opportunities. Those who are failing are being strangled by the hazards.

    Most of those who are doing well today in business and management are capitalizing on globalization by pursuing career paths that are less linear, more dynamic and more unstable than mid-20th century norms. They are also increasingly associated with small business and entrepreneurs, not the big and bureaucratic “corporate” world, with consulting and other services that help big business from the outside, with leadership, not just management, and with financial deal-making.

    In an exclusive interview a day before his Tuesday talk, dubbed “John Maxwell Live in Manila” at the Edsa Shangri-La Hotel, America’s No. 1 leadership mentor and best-selling author Dr. John C. Maxwell told the BusinessMirror: “We’ve done some major changes. In the 1980s, the key word was management. Everybody tried to manage a business. In the 1990s, it went from management to leadership and the reason for that is we change things so quickly.”

    According to Maxwell, successful use of these new strategies requires high standards, a drive to compete, self-confidence in competitive situations and a willingness to keep growing and learning new things. In the current economic environment, people who fear competition, want security and demand stability are often sinking like rocks in water.

    “Management almost assumed things are going to stay very stable and pretty well-set. Leadership assumed things are going to change. And today, we’ve gone from another level of leadership. Just like a single person leading an organization to a team of leaders,” he stressed.

    Maxwell explained how paths to success at work have been changing over the past decades. It relates to an important set of changes occurring in the world of business, to individuals who are sometimes controversial, to career paths that will surprise many people, and to a powerful set of economic forces lurking in the background. Although no one would have predicted this 10 or 20 years ago, the shift in the economy is altering the nature of managerial work, career paths  and the structure and functioning of organizations, wage levels and much more. It is revealing to look at some people who have crafted traditional careers as professional managers, often in large firms. By many measures, most of those people have been significantly less successful. They typically have less real power or authority. And they often report either facing more problems or receiving less personal satisfaction from their work.

    Are people getting smarter? “Yes,” Maxwell replied. Being successful, according to him, is controlled [by us]—through the choices we make. “I think fulfillment of life or fulfillment of job doesn’t always equate to financial success. I know a lot of people [who are well-off] but are not considered fulfilled or have peace of mind. There are those who have less but have a sense of purpose and of course, [are] at peace within themselves.”

    Providing leadership

    Executives must still usually know how to manage, but without leadership and some negotiating skills their career advancement is increasingly being limited. Outstanding managers are described as people who are disciplined at planning and budgeting. They take time to plot what actions, taken by whom, and at what cost, would achieve various goals. They are also said to be very systematic about maintaining organizations that can accomplish those plans. They select good people, train them, put the right person in the right job, communicate plans and delegate. And they are described as skillful at monitoring organizational results versus plans, spotting deviations, and quickly getting activities back on track. As a result of these actions, outstanding managers are unusually successful at making organizations function the way they are designed to function.

    Outstanding leaders are described as people who made sure that an organization has clear and sensible direction, usually by helping create a vision of the future and strategies for achieving that vision. Leaders are said to communicate that direction widely and in such a way as to get relevant parties to both understand it and believe it appropriate. Great leaders are also described as being unusually good at motivating or inspiring people, so that when progress toward a vision encountered serious problems there is enough energy to break through the barriers. In doing this, leaders are said to produce change—developing new organizations or businesses and helping old ones adapt to a shifting business environment.

    “We have a team of good leaders—we get a lot of good thinking, good ideas, consensus leadership which is much better than what I would call change leadership top-down,” Maxwell pointed out.

    Given all that has been spoken and written about leadership, one might expect to find hundreds of personal or career dimensions on which leaders are different, since they are seen to be a “breed apart.” When this author began analyzing the information Maxwell had given, she fully expected to find that the leaders would be a recognizable subgroup on many personality, background and career dimensions. This has not proven to be the case. The implications are most intriguing, especially regarding how people can reasonably expect to be able to grow into effective leaders.

    Today, success in managerial jobs increasingly requires leadership, not just good management. Even at lower levels in firms, the inability to lead is hurting both corporate performance and individual careers. Organizations that stifle leadership from employees are no longer winning.

    “My goal is always to add value to people. The effect on leadership is to build real leaders,” Maxwell concluded.

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