8.9.2008 von pit.

Isn’t that funny

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24.7.2008 von pit.

The SW behemoth wants to reduce it’s development cost. according to an interview in financial time (de), the goal is 12% of the sales volume. Mr Kagermann mentions that the current R&D budget of 14% would be to much especially compard against competition. He adds, that this isn’t a move to further outsource R&D. reminds me at mid 90’s when DEC had about 27% R&D cost, and compared it against other having about 10%. At DEC, this started a new round of budget wars, and reductions of a couple of good projects. I hope that SAP doesn’t follow this path, as in todays market it’s really hard to differentiate yourself against others, and which department would be better qualified as think tank. But maybe it’s just the first pavement of Mr Apothekers road to leading the company. He’s the first coming with a sales background. Until today all had some engineer related education….

Update
theregister reports that the UK SAP User group foments revolt over massive price hike.

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21.7.2008 von pit.

Even I mostly look at the technical aspects, I also like to read about economics and advances in management. It’s not that I don’t grant upper management their salaries, I just get upset when the sole source for cost reduction is getting rid of of your employees. Of course there are circumstances when you don’t have another choice, but you seldom read about first having tried other alternatives. That’s one of the reasons I like to read Gary Hamel

Before getting rid of somebody, have your posed yourself (the company) questions like the ones in management moonshot

As I’ve reflected on these questions over the past few years, three big and meaty problems have taken shape in my mind:

Challenge #1: How can we build organizations that are as nimble as change itself—not only operationally, but strategically?

Why should it take a crisis to drive deep change? Ruinous write-downs, convulsive reorganizations, swingeing lay-offs, plummeting market value—everyone pays the price when companies fail to reinvent themselves in a timely manner. In a world of accelerating change, organizations large and small must become as adaptable as they are efficient. Yet most management processes do little to facilitate ahead-of-the-curve adaptation. As a result, deep change is too often episodic and crisis-driven, and too seldom continuous and opportunity-driven.

Challenge #2: How can we make rule-breaking innovation a systemic capability—how can we give everyone the chance to be an innovator?

Look on the Web and you’ll discover a world of hackers, mixers, mashers, bloggers, and podcasters. Yet at work, too many people are viewed as little more than semi-programmable robots. Yet today, as the barriers that once protected industry incumbents come tumbling down, innovation is the only antidote to margin-crushing competition. Unfortunately, though, management was invented (a hundred years ago and more) to engender conformance and alignment, rather than contrarian thinking and bold experi¬mentation—another reason it must be reinvented root and branch.

Challenge #3: How can we create work environments that inspire individuals to give their very best of themselves—that truly inspire human beings?

In today’s “creative economy,” it’s not enough to have employees who are biddable, industrious and intelligent, since these human capabilities are rapidly becoming commodities. Instead, value creation depends on the willingness of employees to bring their initiative, creativity and passion to work each day—human capabilities that are, quite literally, gifts. While traditional management systems are good at compelling obedience and harnessing expertise, they often discourage extraordinary contribution. As result, most people bring only a fraction of their capabilities to work each day, and earn no more than a meager emotional return on the time they invest in their jobs.

These are the management problems I care about—and they reflect the systemic incompetencies—the in-built design flaws, if you will—of the hierarchical and bureaucratic management model that still predominates in most commercial and public sector organizations. These are the big problems we currently beavering away on at the Management Lab.

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