Hack
Hack: Advanced Management Insight
by Tony Salvaggio - President & CEO
at Computer Aid, Inc.
Co-Authored by Dave Smith , Bart Carpenter, Roger Nagel, Joe Zielinski, Steve Heilenman, Peter Balestrini, Peter Detweiler, John Proctor, Peter Lechner, Linda Schultz, Gene Clater, John Bowen, Matthew Peters, Richard Wood
July 18, 2011 at 8:34am
Contribution Summary
Summary
Web 2.0 provides a revolutionary opportunity to create a system for managing business performance in the form of a neural network of people and information, self-aware, self-monitoring, and self-correcting. This submission describes principles currently used for organizational management versus the wonderful opportunity for a highly advanced management system available in "Management 2.0." We believe the appropriate management control system for the future is what we call "Advanced Management Insight" (AMI). We believe it will be a means to transcend and bring alive a complete framework for managing a business. The AMI architecture and real-world implementations have been proceeding for the past five years. We believe it is not only a revolutionary concept, but also a practical and easy-to-implement approach.
Moonshot(s)
Problem
Human capital is a critical asset to all businesses, and the problems associated with capturing it and leveraging it are well known. One of the primary problems all managers have is implementing newly gained knowledge and putting best practices into action. Whatever management information system is used for Management 2.0, it must be simple to implement, as simple as setting up a spreadsheet or checklist. This narrative describes the ideal management system for any business, the constraints that keep us from implementing it today, and some of the potential critical success factors.
Goals and Objectives of an Ideal Management System
The management information and control system of a business governs collection and flow of information and also acts to set standards of governance, control, and visibility of business data. It is meant to ensure the proper flow and use of information upward to various management levels. It is also meant to serve the purpose of being a conduit of downward-and-across goals, objectives, standards, best practices, and governance and communications.
Top executives understand that the design and execution of the management system is one of the few ways in which they can effectively direct the energy of their business. The goals and objectives of the ideal management system, and the underlying requirements for our vision of “advanced management insight,” include the following:
- Provide critical information flow throughout the organization to enable visibility, control and governance
- Provide true and insightful information to management by including human feedback of stakeholders
- Provide properly distilled key information to all levels of management to:
- Understand what is occurring in their business, providing visibility into operations and into results
- Allow upper management to use their knowledge and judgment to evaluate operations
- Allow upper management to advise and consult with lower and peer management
- Provide risk assessment and governance facts and warnings
- Make available a common data platform for all management use
- Provide a common language of facts and rules by which the company is managed and governed.
- Drive a fact-based culture and reduce anecdotal and story-telling management practices
- Build a historical repository of business operational data and facts, and a consistent audit trail
- Allow for the spreading of knowledge and best practices
In summary, the management control system is the “prescribed information system used by management to ensure the clean and honest flow of information,” one that provides for efficient management interaction within the organization.
Classic Management Model
In the classic model, information flow is often a collection of individually prescribed networks created by whoever the current managers are and their view of their own needs, which often changes. It is directly related to the immediate focus of the individual management unit.
Human feedback data is seldom considered part of the information flow and is seldom formally solicited or required. Human opinion/perspective from the participating stakeholders is typically provided by word of mouth in meetings, the hallway, or at the coffee pot. It is seldom in the record, or in individual written reports. The end result is that the left hand often can’t know what the right hand is doing. At the operational level, individual islands of information and knowledge exist within a segment of the organization, and the collective knowledge of the lowest-level workers is never captured, much less leveraged.
Moreover, as personnel change, the information desired and the upward flow change. History is often lost, i.e., the meaning of the empirical data. The objectives, data flow, etc., run the risk of disrup
tion and change with every significant change of manager, executive, or subject matter expert. Judgment and analysis within the information flow is then highly impeded by new or less capable managers. Top management seldom has a comprehensive information flow within the organization. Instead of a constantly improving information flow, they face a constant change and lack of overall design.
All organizations have a constantly changing mix of individuals of various capabilities, experience, and talent. Knowledge drain is a fact of life, particularly in the social world of Web 2.0. Not everyone can be an “A” player, but the classic model fails to maximize the knowledge of the “A” players and to lift up, monitor, and systemically improve the B, C, and D players.
Constraints of Management 1.0
Multiple constraints impede the successful execution of current management systems, including all of the following.
- Information tends to often flow only vertically in a silo-like fashion.
- Two forms of data exist: operational (empirical) data, and feedback data (verbal perspective, opinion, judgment, etc.). Both are important.
- Classically, there is no formal record maintained of the feedback data.
- There are many human data filters where individuals chose to decide which information flows upward, goes into the record, is changed, emphasized or filtered.
- True management review and governance is extremely time-consuming or difficult, and in most cases is done with incomplete and filtered information.
- Smooth information flow and easy reuse of data is limited or non-existent.
- Information, facts, risk, etc., can be hidden, either intentionally or unintentionally.
- Bad news is often filtered for too long by individuals before being communicated to management.
- There can be little formal checking and quality assurance (QA) of data and information as the data flows within the organization
- Formal records or repositories of information sometimes exist but they are most often islands of data that tend to serve operational objectives well and to serve management visibility, governance, etc., poorly. Determining a true history is difficult.
- These systems are hard to modify. As the business grows and adapts to a changing world, the management control system itself is unable to adapt. Whatever change is possible requires computer programmers, many of whom do not understand the business. And the implementation cycle is months and sometimes years, by which time the business has moved in another direction.
Solution
Advanced Management Insight is a revolutionary framework for the design, build, control, and operation of a business’s management data and human reporting. It provides a business knowledge and quality assurance management control system. Its primary purposes are to (1) programmatically define the gathering and flow of information in one or all business units and (2) allow for seamless knowledge dissemination into and within the business. All of this is done by easily designing and networking individual “control rooms” into a comprehensive network, a business intelligence and reporting system.
As an integrated repository of human knowledge within an enterprise, AMI provides a bold new frame of reference for effective management. We see it as a means to drive knowledge across the enterprise and retool management to perform more effectively in a 2.0 world. We also foresee challenges and tremendous potential for managing a transparent "democracy of information."
.
Management 2.0 Model: Advanced Management Insight
As noted, the 2.0 community is a neural network. It has a repository of knowledge, is aware of its mission, and is a growing and learning entity that will broadcast “critical insights” to stakeholders and provide unfiltered access to information. Its lowest unit of self-management is what we call a cell.
All business organizations are made up of collections of management units, i.e., a group or groups of people overseen by a manager. In most businesses, this will be a department, work group, or other similar business unit. As with any organization chart, the cell can also contain underlying cells, such as a division made up of underlying departments or a department made up of underlying teams.
Cells have their own rules of engagement, focused on how to accomplish their work. The information that the cell uses to manage itself contains both hard data, such as key performance indicators (KPIs) and other numerical data; and soft data, such as opinions, perspectives, and similar human knowledge about the business and the work at hand.
The challenge for Management 2.0 is to create a common, easy-to-modify system that will synthesize rules, procedures, data, and information from the business environment and from the peop
le impacted by it. In AMI terms, we envision a control unit that manages this flow of hard and soft information. AMI is designed to automate and institutionalize both the objective (empirical) and subjective (human) knowledge needed to manage a business. It enables a business to intermingle this hard and soft data. In point of fact, the 2.0 business must have this enhanced view of its operations in order to remain competitive.
This allows us to leverage knowledge, shown as “K” in the diagram. This allows AMI to know what data to collect, who to collect it from, and who to notify in exception conditions. This includes incorporating perceptive information from all stakeholders and reacting to it, where appropriate.
The AMI Control Room: An Early Warning System
One of the key purposes of a great management system is to promote identifying and using knowledge across the enterprise and to create a system to gather and disseminate knowledge in a business. This knowledge occurs in the form of books, best practices, rules of engagement, checklists, etc. There are endless elements of knowledge that we are constantly trying to move into the working elemental cells of the business, so as to confirm that knowledge is indeed being leveraged at the operational levels. So the ideal management system is focused on the flow of information through the business, through the management system itself. It is very focused on widening knowledge, spreading and pushing it into the business. Leveraging knowledge has consistently proven to have a great return for any business.
A key operational component for industries such as space flights, television broadcasting, and nuclear engineering is the use of a control room. A nuclear control room sits above the power plant, so to speak, constantly monitoring readings from all systems. The control room is all electronic. It’s got all the information. It’s got knowledge and algorithms about why this temperature is too high, or too low; combinations of readings and algorithms. Its first job is to be a “canary in the mine,“ to provide warnings of danger based on sensory perception. However, a nuclear control room is much more sophisticated than a canary. It’s not just a reactionary warning to current conditions, such as the presence of carbon dioxide. Because of the continual increase of knowledge, having the right intelligence embedded within the system, and the flow of information to the control room itself, nuclear control rooms have become extremely sophisticated and even predictive. They operate within a trajectory of information flows and provide early warnings of things that might happen.
One of the key discerning points for Management 2.0, and the revolutionary aspect of AMI, is the introduction of similarly intelligent “controls rooms,” i.e., the capability for greater quality assurance, within the management control system. These are intellectual control rooms, data flow controls throughout the whole management system. Imagine a pipeline of information flowing between all the management cells of a business. AMI applies the concept of having a “best manager” or “best consultant” functioning as a control unit on this pipeline, constantly examining the flow of data through it, constantly setting up dials and dashboards for warnings and analytics, constantly creating and enhancing the electronic repository of all this information. Like our nuclear control room, the AMI control room is aware of past performance, current operating conditions, and potential danger to the business. It has become a living, breathing organism, with intellect.
Control rooms thus provide a unique opportunity to apply internal and external knowledge to operational activities. They synthesize historical data with current knowledge and predict future courses of action. AMI is designed to enhance the sharing of information and provide agility in control rooms to allow rules and reasoning procedures to be adapted as needs dictate. In designing it, we enabled “double loop” learning as defined by Argyris and Schön (1978: 2, and 1996:28 ff). Their classic single-loop example is a thermostat that turns on/off based upon the temperature of the room. If we apply double-loop thinking, we realize we aren’t trying to control temperature at all; what we’re trying to control is "comfort." So we modify our model to incorporate measures and controls for humidity, air flow, and other characteristics in addition to temperature that impact our situation. This is what the AMI control room allows us to do. An individual manager can establish new perceptive qualifiers at any time, and thereby expand or transcend the current paradigm for monitoring and control. This is indeed a new paradigm, one which will enlarge the frame of management capabilities.
This in turn allows total transparency into the operational environment. It addresses these critical factors:
Like an Excel Spreadsheet
The nuclear control room functions as a power center, usually at the center of the organization. The AMI control room, by contrast, is a "bottom up" model, where every single entity uses a control room - and shares its information across the organization. It is also easy to implement, similar to plugging an air filter or carbon monoxide detector into every room in your house. Democracy of information means that everyone has a control unit, a sensory monitory; it also means all control rooms are cognizant of all other control rooms, so that all can leverage the collective information of the neural network.
The concept of AMI, control rooms, and knowledge flow is wonderful, but it has to be implemented in a “traditional” computer system. Historically, we have spent decades doing analysis and architecting management information systems. Years writing, programming and testing them. And after we accomplish a certain level of success, they remain at heart computer systems: changes are difficult and time-consuming. The technology, in fact, can stifle the flexibility we need in order to remain competitive.
What managers need is an implementation method as easy to use as an Excel spre
adsheet, a model that allows a manager to build a control room very, very quickly. Where he/she can very quickly define the data, the rules, and what these mean to the specific business unit. And where the manager can quickly change dashboards, events, rules, etc., as easily as he/she can modify a spreadsheet. That’s because in the 2.0 world, once you build your control room, you need the ability to change it easily. It’s not that you’d “like to,” it’s that you “NEED to” build those control rooms in a matter of days, not in months. You need to be able to build those control rooms without access to a computer engineer. The manager is the one who understands the business. The manager understands the data. He/she is the is the one who needs to be able to define it and use it to manage the cell.
Imagine that one of us can build a control room to monitor our business unit or department or other organizational entity, just like the nuclear control room. And every manager in the organization can set up one for his/her business unit. And each control room is like a LEGO piece, that we can snap together into a coherent, integrated system. The assembled structure is able to leverage the collective awareness of ALL control rooms, so that a control room at any location in the structure is instantly aware of potential problems anywhere else in the enterprise. This is true democracy of information. All pieces constantly aware, all assembled by business managers, none requiring computer engineers.
Collections of Control Rooms: Management 2.0
This is the absolute, stunningly simple value proposition, this ability to combine control rooms into higher-order, more complex management groupings. The strength of the AMI model lies in its ability to network all cells in the enterprise, and to add new cells as a business organi
zation changes. These changes can occur in the form of mergers and acquisitions, or by extending the model to incorporate entities previously excluded from AMI. They can also occur when a management cell splits into smaller ones. The management model for the 2.0 world must allow an infinite number of control rooms. With increased complexity, the guidance available is much more than the sum of its parts. This is the concept of “a rising tide floats all boats.” AMI allows managers to leverage the human insight of the “A” players so that B, C, and D players function on the same level as “A” players. This is a true democracy of information.
With the addition of formal and informal systemized knowledge relevant to the operation of the management cell, we can achieve better outcomes with fewer resources. We do so by:
Architectural Principles
Advanced Management Insight is a revolutionary concept for managing business performance in the Web 2.0 world. At its core is a management control unit, with five components. These are summarized in the accompanying AMI graphic, showing input in the form of operational information and the expert knowledge system; output via the analysis and presentation system, including active warnings; and a comprehensive data repository for all management information. At its heart, of course, is the AMI control room.
Each component has a specific function:
This combines quantitative data with subjective team feedback to present a constant stream of operational data to the AMI Control Room. It imports data from existing data systems and gathers “feedback” from the ground up, in the form of stakeholder responses to prompts. This is normally yes/no, e.g., “Do you have the tools you need to complete your task?” These are role-specific, so that all participants in a process are prompted with identical status checks.
This is a library of expert knowledge including best practices, KPIs, standard processes, and management expertise. It represents a systematic application of best practices and standard processes, augmented with discrete business knowledge from the specific organization. This allows the organization to meld its own knowledge with that of the external enterprise.
This takes the data from the AMI Control Room engine and provides robust visibility and insight into the status of the business. For upper management, it comprises robust, interactive dashboards that provide “at a glance” access to enterprise data with the ability to drill down into the empirical data and the subjective assessment of that data by participants. This provides management with insight into the opinions and awareness of issues that affect the business. It also serves as an early-warning system.
This is the repository of historical data, findings, and analysis. It reflects all ongoing data as well as data from prior review cycles. It is much more encompassing than traditional business intelligence data, because it incorporates subjective knowledge. It is a comprehensive diary for all reviews throughout the life of a business.
This is the core of AMI, the brains of a control room. It ensures that the organization conducts consistent, phase-by-phase QA review. It achieves this by constantly feeding operational and human data through several core systems to identify risks, any activities off track, and compliance with best practice. It has a built-in issue tracking system and a risk-assessment and scoring engine. It performs KPI scoring and reporting and schedules QA reviews and monitors QA compliance.
This is the absolute, stunningly simple value proposition, the ability to combine control rooms into higher-order, more complex entities.
As an integrated repository of human knowledge within an enterprise, AMI provides a bold new frame of reference for effective management. We see it as a means to drive knowledge across the enterprise and retool management to perform more effectively in a 2.0 world. We also foresee challenges and tremendous potential for managing a transparent "democracy of information."
.
Management 2.0 Model: Advanced Management Insight
As noted, the 2.0 community is a neural network. It has a repository of knowledge, is aware of its mission, and is a growing and learning entity that will broadcast “critical insights” to stakeholders and provide unfiltered access to information. Its lowest unit of self-management is what we call a cell.All business organizations are made up of collections of management units, i.e., a group or groups of people overseen by a manager. In most businesses, this will be a department, work group, or other similar business unit. As with any organization chart, the cell can also contain underlying cells, such as a division made up of underlying departments or a department made up of underlying teams.
Cells have their own rules of engagement, focused on how to accomplish their work. The information that the cell uses to manage itself contains both hard data, such as key performance indicators (KPIs) and other numerical data; and soft data, such as opinions, perspectives, and similar human knowledge about the business and the work at hand.
The challenge for Management 2.0 is to create a common, easy-to-modify system that will synthesize rules, procedures, data, and information from the business environment and from the peop
le impacted by it. In AMI terms, we envision a control unit that manages this flow of hard and soft information. AMI is designed to automate and institutionalize both the objective (empirical) and subjective (human) knowledge needed to manage a business. It enables a business to intermingle this hard and soft data. In point of fact, the 2.0 business must have this enhanced view of its operations in order to remain competitive. This allows us to leverage knowledge, shown as “K” in the diagram. This allows AMI to know what data to collect, who to collect it from, and who to notify in exception conditions. This includes incorporating perceptive information from all stakeholders and reacting to it, where appropriate.
The AMI Control Room: An Early Warning System
One of the key purposes of a great management system is to promote identifying and using knowledge across the enterprise and to create a system to gather and disseminate knowledge in a business. This knowledge occurs in the form of books, best practices, rules of engagement, checklists, etc. There are endless elements of knowledge that we are constantly trying to move into the working elemental cells of the business, so as to confirm that knowledge is indeed being leveraged at the operational levels. So the ideal management system is focused on the flow of information through the business, through the management system itself. It is very focused on widening knowledge, spreading and pushing it into the business. Leveraging knowledge has consistently proven to have a great return for any business.
A key operational component for industries such as space flights, television broadcasting, and nuclear engineering is the use of a control room. A nuclear control room sits above the power plant, so to speak, constantly monitoring readings from all systems. The control room is all electronic. It’s got all the information. It’s got knowledge and algorithms about why this temperature is too high, or too low; combinations of readings and algorithms. Its first job is to be a “canary in the mine,“ to provide warnings of danger based on sensory perception. However, a nuclear control room is much more sophisticated than a canary. It’s not just a reactionary warning to current conditions, such as the presence of carbon dioxide. Because of the continual increase of knowledge, having the right intelligence embedded within the system, and the flow of information to the control room itself, nuclear control rooms have become extremely sophisticated and even predictive. They operate within a trajectory of information flows and provide early warnings of things that might happen.One of the key discerning points for Management 2.0, and the revolutionary aspect of AMI, is the introduction of similarly intelligent “controls rooms,” i.e., the capability for greater quality assurance, within the management control system. These are intellectual control rooms, data flow controls throughout the whole management system. Imagine a pipeline of information flowing between all the management cells of a business. AMI applies the concept of having a “best manager” or “best consultant” functioning as a control unit on this pipeline, constantly examining the flow of data through it, constantly setting up dials and dashboards for warnings and analytics, constantly creating and enhancing the electronic repository of all this information. Like our nuclear control room, the AMI control room is aware of past performance, current operating conditions, and potential danger to the business. It has become a living, breathing organism, with intellect.
Control rooms thus provide a unique opportunity to apply internal and external knowledge to operational activities. They synthesize historical data with current knowledge and predict future courses of action. AMI is designed to enhance the sharing of information and provide agility in control rooms to allow rules and reasoning procedures to be adapted as needs dictate. In designing it, we enabled “double loop” learning as defined by Argyris and Schön (1978: 2, and 1996:28 ff). Their classic single-loop example is a thermostat that turns on/off based upon the temperature of the room. If we apply double-loop thinking, we realize we aren’t trying to control temperature at all; what we’re trying to control is "comfort." So we modify our model to incorporate measures and controls for humidity, air flow, and other characteristics in addition to temperature that impact our situation. This is what the AMI control room allows us to do. An individual manager can establish new perceptive qualifiers at any time, and thereby expand or transcend the current paradigm for monitoring and control. This is indeed a new paradigm, one which will enlarge the frame of management capabilities.
This in turn allows total transparency into the operational environment. It addresses these critical factors:
- Available operational data (Where are we now?)
- Desired happenings (Where do we want to go?)
- Internal or external benchmarks (What is our target? What are the danger signs?)
- Must-do items (What are my checkpoints?)
Like an Excel Spreadsheet
The nuclear control room functions as a power center, usually at the center of the organization. The AMI control room, by contrast, is a "bottom up" model, where every single entity uses a control room - and shares its information across the organization. It is also easy to implement, similar to plugging an air filter or carbon monoxide detector into every room in your house. Democracy of information means that everyone has a control unit, a sensory monitory; it also means all control rooms are cognizant of all other control rooms, so that all can leverage the collective information of the neural network.
The concept of AMI, control rooms, and knowledge flow is wonderful, but it has to be implemented in a “traditional” computer system. Historically, we have spent decades doing analysis and architecting management information systems. Years writing, programming and testing them. And after we accomplish a certain level of success, they remain at heart computer systems: changes are difficult and time-consuming. The technology, in fact, can stifle the flexibility we need in order to remain competitive.
What managers need is an implementation method as easy to use as an Excel spre
adsheet, a model that allows a manager to build a control room very, very quickly. Where he/she can very quickly define the data, the rules, and what these mean to the specific business unit. And where the manager can quickly change dashboards, events, rules, etc., as easily as he/she can modify a spreadsheet. That’s because in the 2.0 world, once you build your control room, you need the ability to change it easily. It’s not that you’d “like to,” it’s that you “NEED to” build those control rooms in a matter of days, not in months. You need to be able to build those control rooms without access to a computer engineer. The manager is the one who understands the business. The manager understands the data. He/she is the is the one who needs to be able to define it and use it to manage the cell. Imagine that one of us can build a control room to monitor our business unit or department or other organizational entity, just like the nuclear control room. And every manager in the organization can set up one for his/her business unit. And each control room is like a LEGO piece, that we can snap together into a coherent, integrated system. The assembled structure is able to leverage the collective awareness of ALL control rooms, so that a control room at any location in the structure is instantly aware of potential problems anywhere else in the enterprise. This is true democracy of information. All pieces constantly aware, all assembled by business managers, none requiring computer engineers.
Collections of Control Rooms: Management 2.0
This is the absolute, stunningly simple value proposition, this ability to combine control rooms into higher-order, more complex management groupings. The strength of the AMI model lies in its ability to network all cells in the enterprise, and to add new cells as a business organi
zation changes. These changes can occur in the form of mergers and acquisitions, or by extending the model to incorporate entities previously excluded from AMI. They can also occur when a management cell splits into smaller ones. The management model for the 2.0 world must allow an infinite number of control rooms. With increased complexity, the guidance available is much more than the sum of its parts. This is the concept of “a rising tide floats all boats.” AMI allows managers to leverage the human insight of the “A” players so that B, C, and D players function on the same level as “A” players. This is a true democracy of information. With the addition of formal and informal systemized knowledge relevant to the operation of the management cell, we can achieve better outcomes with fewer resources. We do so by:
- Deploying an agile management information flow
- Integrating hard and soft data
- Eliminating human data filters of bad news – or exaggerated good news
- Providing formal checkpoints and quality assurance (QA) of information and information processing
- Ensuring formal records of information exist within a permanent repository
- Providing the ability for true management review and governance without the time-consuming efforts of
needing to form a management picture of the past - Making all this easy to modify by formalizing the cell model in a control room environment
Architectural Principles
Advanced Management Insight is a revolutionary concept for managing business performance in the Web 2.0 world. At its core is a management control unit, with five components. These are summarized in the accompanying AMI graphic, showing input in the form of operational information and the expert knowledge system; output via the analysis and presentation system, including active warnings; and a comprehensive data repository for all management information. At its heart, of course, is the AMI control room.
Each component has a specific function:
This combines quantitative data with subjective team feedback to present a constant stream of operational data to the AMI Control Room. It imports data from existing data systems and gathers “feedback” from the ground up, in the form of stakeholder responses to prompts. This is normally yes/no, e.g., “Do you have the tools you need to complete your task?” These are role-specific, so that all participants in a process are prompted with identical status checks. This is a library of expert knowledge including best practices, KPIs, standard processes, and management expertise. It represents a systematic application of best practices and standard processes, augmented with discrete business knowledge from the specific organization. This allows the organization to meld its own knowledge with that of the external enterprise.
This takes the data from the AMI Control Room engine and provides robust visibility and insight into the status of the business. For upper management, it comprises robust, interactive dashboards that provide “at a glance” access to enterprise data with the ability to drill down into the empirical data and the subjective assessment of that data by participants. This provides management with insight into the opinions and awareness of issues that affect the business. It also serves as an early-warning system.This is the repository of historical data, findings, and analysis. It reflects all ongoing data as well as data from prior review cycles. It is much more encompassing than traditional business intelligence data, because it incorporates subjective knowledge. It is a comprehensive diary for all reviews throughout the life of a business.
This is the core of AMI, the brains of a control room. It ensures that the organization conducts consistent, phase-by-phase QA review. It achieves this by constantly feeding operational and human data through several core systems to identify risks, any activities off track, and compliance with best practice. It has a built-in issue tracking system and a risk-assessment and scoring engine. It performs KPI scoring and reporting and schedules QA reviews and monitors QA compliance.This is the absolute, stunningly simple value proposition, the ability to combine control rooms into higher-order, more complex entities.
Practical Impact
The Management 2.0 information and control system will benefit all decision-makers at all levels of the organization. We believe Advanced Management Insight will function as a knowledge reservoir that is all of the following:
- Complete
AMI is holistic, including economic, political, demographic, and other information. It is also global and will include information from outside the organizational boundaries of the business entity. This includes customers, suppliers, shareholders, legislators, etc.
- Subjective
AMI contains empirical data, such as that found in production or accounting systems, but the data will be correlated to opinions, perceptions, concerns, attitudes, needs, wants, skills, etc. It will be objective data wrapped with subjective knowledge. AMI will continuously, dynamically, and pro-actively obtain information from multiple human sources.
- Infinitely Connected
Democracy of data means that all stakeholders are enabled to access all information, thereby creating a web of unlimited connections.
- Self-Aware
AMI will monitor information by inference rules, such as an inference engines deploying artificial intelligence; it will pro-actively trigger human assessment of what it finds. All data will be situationally aware, able to self-identify deviations from nominal states and potential risks, and trigger alerts and dynamically seek data.
Benefits
AMI supports the 2.0 manager by providing benefits in four areas:
Information Flow
- Establishes a prescribed, but easily modifiable information network that will constantly gather empirical data and feedback data (personal perspectives) from all relevant sources of information.
- Builds a complete data repository as a natural by-product of the normal work flow.
Knowledge Repository
- Allows for a permanent and easily accessible common repository of the organizational information data.
- Continuously monitors the information flow and has intelligence, review, and quality assurance of the data, its use, and value.
- Easily facilitates the addition of a “growing and endless” addition of nodes of knowledge, intelligence, and control rooms at low cost, rework, or time delay.
Speed to Market
Managers can modify their view of business – and act on the knowledge they are acquiring – in a matter of hours and days, instead of the weeks and months needed to modify current management information systems. AMI is a model allowing managers to implement their own configuration without requiring computer programming.
Human Knowledge
- Incorporates 360⁰ degree feedback into actionable information for management.
- Provides “intelligent” analytics to help management understand current-state data, the emerging risks, and trend information.
- Automatically maintains a permanent diary and repository.
- Implements a self-learning and heuristic system.
- Opens role-based actionable information to all levels of management.
- Dramatically reduces or eliminates the hiding and filtering of bad news and information.
- Enables and solicits mass team feedback, advice, suggestions, and collaboration.
- Encapsulates organizational knowledge into the organizational data flow.
In short, AMI elevates the information flow from being a report of “what happened yesterday” into a dynamic new model that provides a comprehensive knowledge base and intelligently active review system that will automatically assume many of the current QA functions embedded in the management review process. AMI provides a solid knowledge base for operational analysis and improvement of people, processes, and effectiveness. It makes the management information system alert, warning sensitive, and predictive.
Challenges
We believe the primary challenges for implementing AMI are socio-cultural in nature. In implementing AMI, management must lead the organization in understanding the need for, and value of, comprehensive data.
As noted, a rising tide floats all boats. We also anticipate that AMI will enable the organization to elevate the effectiveness of all stakeholders. If our B, C, and D players are now as effective as our "A" players, we'll have a stellar team. We also won't need as many managers.
First Steps
The first step toward revolutionizing Management 2.0 is to address these challenges, primarily in the form of management education and training. We anticipate the following steps vis-a-vis our moonshots:
- Enlarge the frame of management education
Business KPIs and subjective perceptions are a fact of life. The ability to correlate the two in a meaningful fashion, especially from across the enterprise, is a paradigm shift. We need to teach our managers how to leverage this collective wisdom, how to apply insight in what will become an open organization.
Moreover, AMI enables the electronic equivalent of "management by walking around" in a virtual enterprise, where stakeholders are physically dispersed at multiple locations. This provides an entirely new frame of reference for 2.0 managers, and they will need training in how to best use it to manage people across an "e-enterprise."
- Retool management for an open world
In a similar fashion, 2.0 managers will need to apply new management techniques to "manage" a shifting mass of people, projects, and cells -- many of whom are not "owned" by the business. In the borderless world of Web 2.0, the entities participating in a business enterprise may be internal; they may be external. AMI opens the knowledge base to an infinite number of participating cells; 2.0 managers need to learn how to then energize, mobilize and "manage" them.
Knowledge has always been an asset to businesses. What's different in Management 2.0 is that knowledge has also become an active tool in the business, both a strategic and operational tool. We will need to train our managers how to use it better -- how to partner with it, accept it, and deploy it.
- Create a democracy of information
When awareness and knowledge is spread across the enterprise, all stakeholders are in fact empowered to act. AMI allows managers to "control" employee behavior by ensuring that everyone is on the same page, so to speak. Instead of issuing edicts, 2.0 managers will need to learn how to manage by transmitting knowledge.
"Democracy of information" doesn't negate the fact that organizations are vertical and that someone above you is paying your salary. Providing total transparency enables all stakeholders to work with the same set of data, tools, and business objectives. By creating an enterprise model for collecting subjective knowledge, in fact, AMI becomes objective in removing the emotion-filled judgments or hype from the business model. At the operational level, it means the first-level employees in fact can work with totally objective business rules.
Life happens, and change is part of it. Technology architects are already dealing with designing and creating a constantly changing management system. This is one of the most technically challenging, and exciting, environments my industry has faced in the past 30 years. With AMI (http://www.amiplatform.com/default.aspx?pageid=2777) we are attempting to create an infinitely open architecture that “automates” human knowledge across an enterprise. We are in effect trying to automate knowledge across the known universe while simultaneously anticipating the unknown. From our perspective, we have created an AMI 1.0, and we are eagerly awaiting our next steps as we move toward 2.0.
Credits
John Bowen, Peter Balestrini, Bart Carpenter, Gene Clater, Peter Detweiler, Peter Lechner, Steve Heilenman, Roger Nagel, Matthew Peters, John Proctor, Tony Salvaggio, Linda Schultz, Dave Smith, Richard Wood, Joe Zielinski
Advanced Management Insight by Tony Salvaggio is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 United States License. 
Patent application approved 6/21/11, No. 11/321.649
Tags
human feedback, management cell, learning, control room, visibility, control, optimization, risk assessment, governance, insight, operational data, knowledge, hard data, soft data, analysis, learning
Helpful Materials
Reference: Argyris, C., & Schön, D. (1978) Organizational learning: A theory of action perspective, Reading, Mass: Addison Wesley.
Argyris, C. and Schön, D. (1996) Organizational learning II: Theory, method and practice, Reading, Mass: Addison Wesley.
For more information on Double Loop Learning see: Smith, M. K. (2001) “Chris Argyris: theories of action, double-loop learning and organizational learning,” Encyclopedia of Informal Education, http://www.infed.org/thinkers/argyris.htm
Computer Aid, Inc, is the founder and sponsor of the IT Metrics and Productivity Institute (ITMPI). Related references to management best practice appear at the ITMPI web site: http://itmpi.org/
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Comments
Jen Boyer
July 27, 2011 at 10:22amGreat article and concept - web 2.0 and dramatic technology changes are driving a major shift in our behaviors, work environment and communications - the management system must change to support the new world. Combining immediate human stakeholder input with the "hard data" management system outputs as mapped to an organizations best knowledge/practices is truly unique in the level of information, visibility and predictability such a system can provide.
Joe Monteleone
July 27, 2011 at 8:16amLove the value this could bring. Agree with your comments regarding the culture challenges. From a leadership standpoint, getting to believe the value is worth making this a priority and putting "skin in the game", this would be the toughest challenge.
Diane Pammer
July 25, 2011 at 7:57pmVery interesting management method. From a developer's point of view, it would be very helpful and time-saving to have access to a knowledge base of the existing business processes and rules.
Steven A. Dailey
July 25, 2011 at 7:12amFinally, a management concept that delivers real value from IT to the Business. This is a much needed concept as our business leaders depend more and more on IT delivering results that have a direct impact to the bottom line. As IT leaders, we've all faced the challenge of "what we don't know or how did we go from GREEN to RED over night". This risk management approach provides all levels of management the needed "early warning system" which in turn allows them time to mitigate the identified risk before it becomes an organizational crisis. This is especially needed when dealing with virtual teams across the globe. With this tool's ability to collect and display "hard" data from a variety of existing tools; and it ability to survey and display "soft" data from the minds of key stakeholder, you have a risk management system that captures what is going on in your environment. The result is a much stronger organizational alignment, focus and success ratio then ever before. CAI this is a welcomed methodology and service suite.
June Kupstas
July 22, 2011 at 9:29amTruly revolutionary; this tool can change how management at all levels is performed, and can allow businesses to spend more time reacting to data instead of searching for and collecting it.
Stephen Silver
July 23, 2011 at 8:19amThis is a brilliant representation of the large enterprise Governance & Risk Management system of the future. One where information, people, knowledge, process and metrics are in a constant state of flux. One where it's virtually impossible to know what is actually happening throughout the enterprise at critical operational levels, and how to handicap and manage risk. One which a small group of C-level executives has no realistic hope of effectively governing on it's own. Not your executive team? You are absolutely certain that your core processes and checklists are being adhered to? Think again. You know you have the expert bench-strength to mitigate the risk of dangerous knowledge drain? Doubtful. Your dashboards are capturing the truth and providing reliable early warning signals? Unlikely. You have the business under control? If only you knew. The truth is, even the most "buttoned down" organizations are usually just a blink away from going off the rails. This article and solution shines the headlights on reality and proposes an extremely innovative solution to governing large enterprises today. Bravo!
John Russo
July 21, 2011 at 8:30amIt appears this approach can truly provide a full 360 view of any business or organization activity. Combining hard data with inference, judgment, and experience is what management is all about. This approach appears to do just that, but in addition, automates, leverages, and institutionalizes much of the inference, judgement, and experience. I think this would absolutely help a manager to concentrate and act on the critical few things that need to be acted on. If you are managing dozens of projects or activities, I could see this as an essential approach and tool to adopt. For new and younger managers, this seems like a good way to get smart fast.
Christian DE NEEF
July 21, 2011 at 3:42amIt's interesting to see how several hacks are calling for open data -- open management. The networked control room is certainly a powerful concept. The way it is presented (and named) calls for an essential question, however: do we need control of facilitation? I believe that if we would “make available a common data platform for all management use, and provide a common language of facts and rules by which the company is managed and governed” this could be very powerful if it is used for increased employee autonomy and empowerment, not if it is the basis for a (different kind of) control system!? Besides, I certainly disagree on the “Ideal Management System” to reduce the role of story-telling... It's the combination of factual data and well-built stories that is powerful as a management & communications tool! - @cdn
Greg Ehrlacher
July 19, 2011 at 11:57amThis is a fantastic concept...definitely takes everything to the next level.
David Boyer
July 19, 2011 at 9:28amVery insightful piece. As an operations manager for an extremely complex 24X365 delivery center with many different clients, product offerings, and people .....this is the kind of tool and methodology that offers on demand, real-time data of both a qualitative and quantitative nature. That "blended package" of information enables management at all levels to make more informed, proactive decisions. A must have addition to any organization with a remote/distributed workforce as a way of collecting qualitative information with limited "interpersonnal" interaction.
Gene Clater
July 18, 2011 at 2:01pmThe concepts and methods as proposed in this hack have the potential to radically change the way businesses operate and are managed. I totally agree with the analogy of the Borg. As this initiative has matured, I was constantly reflecting on the analogy... where data is constantly gathered - both hard data as well as experiental and opinions. Allowing an environment where decisions can be facilitated by absolute actions, such as in an automated control room, or via suggestive alternatives, to be enacted upon based on human analysis and experience.
The more information that can be gathered and analyzed, in a timely manner, the higher the potential for better decision making... at all levels of an organization - up, across and down, even in somewhat disassociated cells. This suggested management approach has the potential to really expand how collaboration and social media technologies, combined with data and rules engines can be leveraged to facilitate earlier and better decision making.
Another key aspect of this approach is that the historical data, decisions and learning survive the inevitable changes in people and organizations, thus alowing a continual progression in improved decision making.
Jared Zane
July 18, 2011 at 1:44pmI believe AMI to be extremely innovative. It takes management for the entire business to a whole new level.
Arlene Minkiewicz
July 18, 2011 at 7:46amGreat concept - simple yet powerful! There is a very real need for an organization to get the right data to the right people at the right time. And for that data to be more than just numbers and statistics but to contain real perspective and opinion as well makes the concept even more interesting. Creating an easy to use powerful tool that managers can configure and deploy at will to create a democracy of information is an excellent model for using 2.0 technology to revolutionize management
Arlene Minkiewicz
July 18, 2011 at 7:46amGreat concept - simple yet powerful! There is a very real need for an organization to get the right data to the right people at the right time. And for that data to be more than just numbers and statistics but to contain real perspective and opinion as well makes the concept even more interesting. Creating an easy to use powerful tool that managers can configure and deploy at will to create a democracy of information is an excellent model for using 2.0 technology to revolutionize management
Gail Rolls
July 18, 2011 at 6:14amSimply stated, this approach is very applicable to our IT world in every way! Great job in making what could be challenge very, very manageable.
Geoff Howard
July 17, 2011 at 9:24pmThis approach as many appealing components, the surveys provides a “voice”, the ability to contribute, for all people in and outside the organisation to drive better outcomes. This is aligned in much the same way that makes the web successful, collaboration for a greater result. The other component is the potential to support strong corporate governance where information regarding the operations can be assessed across the organisation. An example is a company sustainability policy where personnel can be surveyed, data collected and assessed against the key indicators and practices then reported to the board. The board achieves visibility and corrective action can be taken. Equally this could apply to any part of the business that requires adherence to regulation and or legislation.
Joseph Shuhay
July 15, 2011 at 1:40pmSo many good points. The idea of identifying emerging risks, and the ability for proactive, as opposed to reactionary tactics is quite attractive.
John Rooks
July 15, 2011 at 12:53pmThis is a great concept that will help transform the management control systems for the Web 2.0 world. The ability to obtain and maintain the human feedback comments from across the enterprise in conjuncion with the operational data will provide a true 360 degree perspective of the organization. This includes visibility into the issues, risks, and critical success factors across the business. By being able to inform management of emerging issues and risks, Advanced Management Insight can help focus efforts on those tasks that truly make a difference for the organization. We should isee increasing levels of organizational effectiveness as this concept takes hold in the marketplace.
The democracy of information facilitated by this concept will allow critical information to flow throughout the enterprise, while at the same time help to break down the traditional, filtered flow of information within organizational silos. In addition, it will finally allow the tremendous resource of the minds of the employees, customers and stakeholders to be fully tapped to the benefit of everyone.
It will also deliver a de facto virtual, management-by-walking-around capability. One of the most effective ways of getting a true picture of what's going on in the organization is management-by-walking-around. This doesn't work so well in today's geographically distributed organizations. The Advanced Management Insight concept allows this capability to implemented regardless of the physical location of the work force.
Benjamin L. Willard
July 15, 2011 at 12:48pmInteresting. The ability to define management cells seems like a needed concept. It brings to mind some of the advances in social media, Google Circles, etc... I wonder if that concept, while designed for social networking, could also be leveraged in Management Insight to allow for a customization of relationships of cells to each other and to the organization, and allow for a modern and dynamic entity relationship.
Joe Hessmiller
July 15, 2011 at 11:56amThis is a very exciting concept that will have a material impact on the behavior of management and workers alike. The lack of complete, objective, accurate and timely information often leads to incorrect decisions, or decision paralysis. Frequent, transparent assessment of performance outcomes and production conditions will provide more comprehensive decision-making information and drive more and better decisions.
It’s also an amazing vision to imagine that alerts, triggered by continuous monitoring of data through expert rules, will make timely response to developing issues possible. Since the management system also knows who is responsible for what, and what actions produce what results, it is able to provide situation-specific information (procedures, recommendations, connections to experts, access to ‘web resources, etc.) just-in-time to the people most able to address the issues before they become more expensive, management-intensive problems.
Jim Phillips
July 15, 2011 at 10:39amGreat concept! This risk management tool allows "management by walk around" (MBWA) in a global, virtual environment. We lost this ability when our project teams were able to be in multiple locations, even different continents. With this tool's ability to collect and display "hard" data from a variety of existing tools; and it ability to survey and display "soft" data from the minds of key stakeholders in the process, whoever they may be; you have a risk management system that approaches "omniscience" relative to what is going on in your environment. This reminds me of the Borg in Startrek, many workers, one "Collective" that represents the total knowledge of all who have been assimilated. The result: near omniscience and a formidable foe. Good luck with this CAI, looks like a winner to me!
Roger Nagel
July 15, 2011 at 10:47amWe were thinking about the "Borg" in developing the concept. We went for the "borg" collective knowledge sharing while retaining the skills, experience and insights of managers through out the organization. Thanks for your comment!
Brian Cameron
July 15, 2011 at 5:11amManagement 2.0 and Advanced Management Insight have the potential to revolutionize the way we think about and manage organizations. The ability to effectively gather and analyze human feedback from multiple sources will change the way we manage individual projects, project portfolios, and organizations overall. These tools are long overdue.
Donald Cox
July 14, 2011 at 10:52pmAdvanced Management Insight answers in a comprehensive and credible way the four important questions all managers need to know: 1) what are we doing, 2) how long will it take, 3) how much will it cost, and 4) what do we need to worry about.
David Garmus
July 14, 2011 at 5:47pmAdvanced Management Insight is a well thought-out and developed methodology to clearly assist a manager in delivering a product within time and budget constraints. It will also aid in managing the expectations of all stakeholders along the way.
Ron Vance
July 14, 2011 at 9:08amThe themes herein really resonate with me. While IT tools have changed over the years, we keep learning the same lessons over as new leaders and staff apply their own experience and frame of reference. Its human nature to filter bad news up the chain of command. Unfortunately, this "exponential spin" often distorts the facts, and leads to slow or inadequate escalation or intervention and too many 11th hour heroics. I learn alot from skip level meetings with front line employees. It's a due process for open and honest collaboration, and most employees take advantage of the opportunity. The AMI process could help nuture a culture of participative feedback, peer reviews and global virtual teams working together on common goals with total transparency. Project methodologies have been around for ages. But the combination of empirical evidence, human intelligence, and risk management principles in a lean, easy to use toolset will surely optimize speed, quality, and employee engagement. That translates into more predictable and repeatable results.
Bart Young
July 14, 2011 at 5:44amI have seen similar ideas in action within smaller teams when they have worked together for an extended period of time. It will be great to see this type of information sharing, knowlege elevation, and risk mitigation etc. at an enterprise level using automated systems.
Some of what is here is very similar to concepts outlined in books like "Business at the Speed of Thought" - Bill Gates and "Continuity Management' - Beazley, Boenisch, Harden; however this takes everything to a whole new level.
"The successful companies over the next decade will be the ones that use digital tools to reinvent the way they work." - Bill Gates
Companies that can respond to business changes in hours instead of weeks will do so because of a very simple idea: the flow of digital information. Of course, a strong cultural component is required. This solution appears to be a good synergy of information flow and positive cultural change. Great Ideas.
Daniel P. Fakla Jr.
July 13, 2011 at 1:15pmThis is a well-designed, well-thought out and effectively presented concept. The process of gathering, sharing and measuring information/data from numerous levels of any organization or project is key to succes and survival. I feel these ideas could be put to excellent use not only in any IT company, but in any area of business where information regarding the health, well-being and success of the projects, products or company as a whole.
Joe Zielinski
July 15, 2011 at 11:22amThis is a great idea. All organizations and their management want to get to the next level they should read and get involved in this solution. To be able to break free of old boundaries is what is needed to expand their organizations, this solution will begin to address their most important assets, their associates and the health of their organization. To be able to gather information from everyone, internal and external to an organization, that will touch a process is very valuable. It gives management the earliest possible vision of what is going on with this process, and will be an early alert for possible corrective action.
Joseph C. Andraski
July 12, 2011 at 6:09pmI am very impressed with AMI and the potential it has to deliver real value with an intuitive approach to information sharing. All levels of management can be significantly more effective by trusting in AMI to provide relevant and actionalble data that is converted to information.
It is truly exciting to imagine the prospects of managing a division or a company with what is delivered by AMI. Down to earh and practicle, it provides the opportunity to successfully compete in a world of constant change.
Best ol luck and success.
Roger Nagel
July 12, 2011 at 11:44amI have been an outside participant in the think tank team developing this submission. It is in my opinion a major step forward in architecting a system that can integrate people and information systems to create value.
The AMI concept of codifying management rules and knowledge in a way that can then be modified by managers not programmers is a major step forward. It has the potential to increase management effectiveness by orders of magnitude. It is potentially even more significant a management tool than the spread was when it was first introduced.
Joe Wisdo
July 12, 2011 at 10:07amHit the bullseye. If management wants to get to the next level they need to break free of old boundaries and begin to address their most important asset, their people and the health of their organization. Visibility, control and governance should be the mantra of every company and every company should seek information from all levels of their organization. Too often, as this Hack describes information is filtered. The 'filtered' data causes unnecessary delays and missed business opportunities.
Imagine how much better a company becomes when their people are all dancing to the music led by the best conductor and developed from the best composer.
Bart Carpenter
July 12, 2011 at 9:00amI have actually seen AMI in action. The most interesting aspect IMHO is the way you can use it to solicit feedback from across the "lower echelons" of the company. As part of doing electronic timesheets every week, everyone in my 75-person organization has to answer a series of questions. (Do you know your assignment for next week? do you have the tools to do it? are there any open issues? etc etc )
It really helps everyone keep theiry eye on the ball. And if there ARE open issues, they get elevated pretty quickly.
Meera
July 12, 2011 at 5:52amThis is a good article that address the concerns of having a unified knowledge management platform across the enterprise. Especially the feedback from employees and customers can be captured.
One would be interested in seeing how this is used in the decision making framework of the organization.
Meera
Dave Cox
July 12, 2011 at 5:33amThis is a foundation that would allow for implementing a very broad set of management controls. This would be the type of tool that would provide immediate benefit and with ongoing use and creativity would ultimately benefit an organization in ways that are not initially obvious.
Matthew Kabik
July 12, 2011 at 5:12amInteresting Article - I can certainly see how this would be particularly beneficial to a group that is scattered over multiple locations (or perhaps even an on-shore group managing an off-shore group). Having the 'soft data' of what resources feel is happening in a project is key to project success - a team leader having that something-doesn't-feel-right feeling has saved plenty of projects, but can't be communicated well without either personal interaction or some sort of tracking system. This solution seems to take this into account.
Dont Wannadisclose
July 11, 2011 at 8:32amGood articla. My point is though, are we empowering everyone in the organization to submit their feedback freely without thinking about any repercussions? Until we instill the sense of security in them, we would not be able to get useful input that would be necessary to make the management 2.0 completely effective.
Capers Jones
July 11, 2011 at 2:40amTony et al,
This is a very solid proposal. My main suggestion is to also include input sources for benchmarks that can be used to compare internal results against other companies. Benchmarks are needed for quality, schedules, costs, professional staff, staff compensation, and a variety of other critical topics.
Capers Jones
aaron.brook
July 10, 2011 at 12:40amYou have an interesting idea.
Maybe I can recommend you a three-stair management.
Three-stair management is a new model (or a new system) based on Maslow's hierarchy of needs.
The model is the same as ordinary stairs. The first step is called the management of regulations with special implication (discussed more fully in the part of solution). I use it to establish a high productive organization that can meet employees’ existence needs.
The second step is called the management of emotion with special implication. I use it to meet employees’ relatedness needs.
The third step is called the management of innovation with special implication. I use it to meet employees’ growth needs.
Then integrating first, second, and third create a new model of three-stair management. I use it to meet all employees’ needs (or Maslow's hierarchy of needs).
So three-stair management can be briefly summarized three points: First, I use the management of regulations to establish a company. Then I use the management of emotion to let employees love this company. And then I use the management of innovation to continue to improve this company.
Please note! A new model means at least two aspects of meaning (they are the key of this hack). On the one hand, every one of these three types of management is Indispensable. On the other hand, these three types of management must be complied fixed order, that is, bottom-up.
A new model,
A simple model,
An orderly model,
A dynamic model,
An open model,
Of course,
It is also a very useful model for various organizations!
Annie Abraham
July 8, 2011 at 10:36pmVery insightful. I consider buyin of senior leadership and changing the culture/ways of working of these individuals a very critical barrier to such transformation. Also with respect to reporting of facts as they happen, such behaviour should be rewarded and not punished. as these early warnings are very crucial for taking appropriate actions. Another aspect I would consider as a key benefit is that teams willbe forced to work towards goals/ KPIs defined and visible. Also reporting and reviews will be very focussed rather than situational.
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Steve Harhart
August 4, 2011 at 8:18amExcellent ideas and an excellent read. Will definitely be sharing this with my colleagues!