Mistakes of Mainstream Management - Chapter 1

[๐— ๐— ๐—  ๐—ฆ๐—ฒ๐—ฟ๐—ถ๐—ฒ๐˜€] The most misunderstood concept: Planning

In my 23 years of corporate experience, I committed so many mistakes and category errors just by embracing the prevalent management practices without thinking. But, this is not surprising!

It took us over 5000 years to apply the concept of โ€˜wheelsโ€™ to luggage. This underscores our human tendency to be โ€˜domain dependentโ€™. We often struggle to transfer insights and solutions across different disciplines, even if the application seems obvious in retrospect.

The field of management is inherently multidisciplinary, and integrating ideas & insights from other fields has the potential to profoundly transform it.

With todayโ€™s post, I will start cataloguing my scar tissues and kick-off a new series called Mistakes of Mainstream Management (MMM) and start with the concept of โ€˜planningโ€™ and look at it from the lens of another field, complexity.

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"๐—ช๐—ฒ ๐˜‚๐˜€๐—ฒ๐—ฑ ๐˜๐—ผ ๐˜€๐—ฎ๐˜† ๐˜๐—ต๐—ฎ๐˜ ๐—บ๐—ฎ๐—ป๐—ฎ๐—ด๐—ฒ๐—บ๐—ฒ๐—ป๐˜ ๐—ฑ๐—ฒ๐—ฎ๐—น๐˜ ๐˜„๐—ถ๐˜๐—ต ๐˜๐—ต๐—ฒ ๐—™๐—ข๐—จ๐—ฅ ๐— '๐˜€: ๐— ๐—ฒ๐—ป (sic), ๐— ๐—ฎ๐˜๐—ฒ๐—ฟ๐—ถ๐—ฎ๐—น๐˜€, ๐— ๐—ฎ๐—ฐ๐—ต๐—ถ๐—ป๐—ฒ๐—ฟ๐˜†, ๐— ๐—ผ๐—ป๐—ฒ๐˜†. ๐—ง๐—ผ๐—ฑ๐—ฎ๐˜† ๐˜๐—ต๐—ฒ ๐˜€๐˜๐˜‚๐—ณ๐—ณ ๐—ผ๐—ณ ๐—บ๐—ฎ๐—ป๐—ฎ๐—ด๐—ฒ๐—บ๐—ฒ๐—ป๐˜ ๐—ถ๐—ป๐—ฐ๐—น๐˜‚๐—ฑ๐—ฒ๐˜€ ๐˜๐—ต๐—ฒ ๐—™๐—ผ๐˜‚๐—ฟ ๐— '๐˜€, ๐—ฏ๐˜‚๐˜ ๐—ถ๐˜€ ๐—ฏ๐—ฒ๐˜€๐˜ ๐—ฑ๐—ฒ๐—ป๐—ผ๐˜๐—ฒ๐—ฑ ๐—ฎ๐˜€ ๐—–๐—ข๐— ๐—ฃ๐—Ÿ๐—˜๐—ซ๐—œ๐—ง๐—ฌ."

- Stafford Beer

Table of Contents

Corporate Planning

Many of the mistakes of mainstream management are fundamental and the remedies I suggest are as nuanced as the topic itself. To set the record straight, Iโ€™m not saying donโ€™t do any planning. For example, I planned to write this post today.

But, the pitfalls lie in how we approach planningโ€ฆ For example: Central Planning - the segregation of โ€œplannersโ€ and โ€œdoersโ€, the bureaucracy & ceremonies that lead to wasted energy and time, coercing employees to conform to โ€œthe planโ€, etc.

We continue to do very detailed long-range planning and get surprised when the conditions around us rapidly change. We lived through a global pandemic and yet fail to learn lessons from it.

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Corporations are in love with the idea of the strategic plan. They need to pay to figure out where they are going. Yet there is no evidence that strategic planning works - we even seem to have evidence against it.

- Nassim Nicholas Taleb

Today's post is dedicated to the Systems Thinker Russell Ackoff, whose insights I have generously applied in this post. Ackoff's teachings have given me so many โ€˜Aha!โ€™ moments over the years... Ackoff elegantly articulated the situation that most of Corporate America finds itself in...

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โ€œโ€ฆ corporate planningโ€ฆ is like a ritual rain dance; it has no effect on the weather that follows, but those who engage in it think it doesโ€ฆ Much of the advice & instruction related to corporate planning is directed at improving the dancing, not the weather.โ€

- Russell Ackoff

Taking Ackoffโ€™s advice, this post will NOT help you get better in doing any of the following theatrics of Corporate America:

  • Quarterly Business Plan

  • Annual Financial Plan

  • 3-Year Roadmap Plan

  • 5-Year Strategic Plan

But, it is intended to help you get better at actually getting stuff done. More importantly, if you are thinking about jumping into entrepreneurship from a corporate job, it will help you avoid taking the mistakes of mainstream practices with you.

With that context, let's talk about โ€˜planningโ€™. As Russel Ackoff put it,

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A paradox that American management has been unwilling to face: The more accurately you can predict, the less effectively you can prepare. The better you can prepare, the less need there is for prediction. Therefore trying to do both is absolute nonsense.

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