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Are You Creative In Management - Part 2

Part Two 

Regardless of its size, type, operational effectiveness, and regardless of how long an organization succeeded in the past its yesterday’s knowledge is today’s ignorance. It will face difficulties if it does not apply creativity in its management practices, leadership qualities, and its overall operation processes.

In today’s fast-changing environment, and in this competitive economy, any business must be leading in something in order to survive; its products or/and its customers’ service system. However, no business is ever secure in its leadership position. Any business leadership position is short-lived, for; rivals can copy any leading position quickly - except people. In addition, the market and the knowledge are generally accessible almost by all rivals. Hence and therefore, applying creativity in management is a vital part of today’s business success.

In today’s world and in order to succeed – as mentioned in the previous article – an organization must apply creativity in management in its products development, marketing strategies, organization studies, and the list goes on to contain almost everything related to their operations. Creativity in management implies producing or adopting existing knowledge of all kinds to produce something of value, make profit, and achieve economic growth.

However, the economic growth, as Peter Drucker said, “Can no longer come from either putting more people to work, or from greater consumer demand. It can only come from a very sharp and continuing increase in the productivity of the one resource, in which the developed countries still have an edge: the productivity of knowledge work and of knowledge workers”. [Drucker, Peter. F, “Management Challenges For the 21st Century”, 1999]

Creativity in management also implies hiring the best people. Knowing what is best to do to satisfy customers is too important for the organization’s success. The key is that organizations must locate the functions that are most important to customers and locate the best people and utilize their skills and talents to focus on that specific unit performance.

Hiring the right and the best people is one of the most important bases of the future organizational success, and the hiring decision is among the most important and critical decisions made by any organization’s management.

Good employees form a solid foundation for more effective and efficient performance which is one of the most important aspects of any organization's success. Hiring the right person, even though with a higher pay, will insure effectiveness and efficiency in the business process. Paul Russell, the Director of Leadership and Development at Google, said, “Development can help great people be even better— but if I had a dollar to spend, I would spend 70 cents getting the right person in the door”.

Without having the right and the best people in the right positions, neither a company nor its individual units can be turned into exceptional performance. In other words, without having the right people in the right positions, the resources of production will always remain resources and will never become production.

Creativity in management implies implementing all decisions concluded in meetings - having effective meetings. The skill to manage meetings, to develop ideas, and to motivate people to take positive action and implement these ideas is the most critical asset in any career.

Turning meeting into sustained and significant results is a top priority for successful organizations. This requires meeting management skills and techniques before, during, and after the meeting. Neglecting any of these stages, the meeting will not bring the desired results and will be a waste of time, money and energy. However, meetings, in general and in many organizations predominantly have a bad reputation. We all have sat in countless meetings which resulted in a wasted time, frustration, and a general state of stressful dismay of attending meetings. 

According to the research of Dr. Robert B. Nelson, the Director of Institutional Research in the University of Minnesota in the United States, et. al., today, meetings control the way in which people manage organizations and do business. In the United States alone, there are about eleven million meetings occur every day. In addition, most professionals attend around 61.8 meetings per month and the research has indicated that over 50 percent of these meetings’ time is wasted. If we presume, for example, that each of these meetings is one hour long, professionals lose 31 hours (four work days) per month in useless and unproductive meetings. Considering these statistics, it is not a surprise that meetings have such a bad reputation. [Robert B. Nelson and Peter Economy, Better Business Meetings, 1995]

Most organizations set major meetings for solving problems, setting the organization’s goals and objectives, and preparing the present and future plans and strategies for increasing profit, development and growth; however, only few organizations ever realize them.

In Harvard Business Review, October, 2005, Robert S. Kaplan and David P. Norton quoted Chris Zook and James Allen in their book, “Profit from the Core” saying, “Between 1988 and 1998, seven out of eight companies in a global sample of 1,854 large corporations failed to achieve profitable growth”.

The cause of nearly every one of these failures is that things are being done but with outdated ideas, narrow conceptions of problems, and denying the business, the customer and the market realities.

In addition to that, the assumptions, on which the organization has been built and is being run, no longer fit reality.

Organizations must accept the fact that attaining objectives and rapid growth demand a serious rethinking of their understanding of today’s realities, markets, customers and competitors, technology, and their strengths and weaknesses. In other words, organizations must apply creativity in management.

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