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A New Way to Help Top Managers Succeed

Significance Of The Accelerated Experience Method

Customized Management Development:  The significance of the Accelerated Experience Method should be evaluated in two  ways:  first, as a technique to assist managers to learn how to perform specific jobs; and, second, as a means of improving on experience as a teacher.

The practical  value of the Accelerated Experience Method is that is a precise and powerful method to assist managers to learn how to handle the problems and opportunities they are likely to face in the jobs they are expected to perform. 

The method stands in sharp contrast to generalized education and training programs that teach concepts and theories but are not concerned with the day-to-day practice of management.  Equally important, it rejects the notion that managers can increase their  effectiveness by   learning general principles that are unrelated to the specific jobs they must perform.  The Accelerated Experience Method is designed to replace “off the shelf,” “one size fits all” development programs with customized programs that are job-specific and industry-specific.

The method is consistent with the main conclusion of Professor Gabarro’s research on management succession, namely, that “the all purpose general manager who can be slotted into just any organization, function or industry exists only in management textbooks.”   It agrees with his findings that job and industry experience are important and “are not to be ignored in succession planning.”    It seeks, therefore, to be precise in developing managers for the specific jobs they are expected to perform. 

The Accelerated Experience Method gets its power by using the successful experience of managers to identify the problems and opportunities other managers should be prepared to handle.  It recognizes, moreover, that to teach managers precisely what they need to know to be successful, even the size of the organization must be taken into account, as the programs for publishers of large newspapers and small newspapers demonstrate. 

Improving on Experience:  The Accelerated Experience Method accepts as truisms the statements that “experience is a manager’s best teacher” and that there is “no substitute for experience.”  It recognizes, however, that ordinary experience is an imperfect teacher that leaves most manager “too soon old and too late smart.”   It seeks, therefore, to improve on a manager’s own experience by using a new kind of experience that is a faster and better teacher. 

Its basic objective is to assist managers to gain the “right” kind of experience—the kind they need to prepare themselves for the jobs they are expected to perform.  It seeks to minimize, but not entirely avoid, the lessons unsuccessful  experience has to teach.  Its purpose is not to teach managers how not to manage.  It does, however, use the experience of “turnaround” managers to teach managers how to avoid mistakes that could lead to their failure. 

The Accelerated Experience Method improves on successful experience as a teacher in three important ways.  First, it teaches managers before they are tested on the job.  It helps them learn what they need to know to succeed before they are put in a position where they might fail.  A manager’s ordinary experience does it the other way around; it tests managers before it teaches them. 

Testing managers is an effective way to get their attention, however.  For this reason, the Accelerated Experience Method uses this same technique.  It confronts managers with problems and opportunities and “scores” them on the way their decisions and actions would have worked out in the actual situation, before they discover what would have been the best way to handle the situation they found themselves in.  the main difference is that ordinary experience subjects them to the risk of ruining their careers, whereas the Accelerated Experience Method only lets them risk losing a contest in the classroom. 

The second way the Accelerated Experience Method improves on ordinary experience is by assisting managers to learn much faster then their own experience on the job can teach them.  Ordinary experience is a painfully slow teacher because much that takes place on the job is routine, repetitive or trivial.  Few managers experience more than 40 or 50 significant new problems or opportunities in a year.  Most have considerably fewer learning experiences, especially after their first year on the job. 

The Accelerated Experience Method is able to reproduce and compress into one week as man as 150 of the significant situations successful managers have experienced on the job.  Thus, managers are able to get in one week the decision-making experience they would need three years or more to get on the job.  This is illustrated by the comment of Roger G. McGruder, Managing Editor/News for the Detroit Free Press who observed after participating in the program for publishers of large, daily newspapers:  “What we did was experience six years in the life of a newspaper, all wrapped up in a computer program, in five days.” 

In order to assure that managers will learn what experience has to teach them, the Accelerated Experience Method reproduces all five steps in the learning process managers experience on the job.  Only two of these steps are used in conventional management education programs [i.e. (1) identifying and analyzing a problem and opportunity and (2) deciding on a course of action].  The last three steps are crucial to a manager’s development, however.  Teaching managers without using the last three steps is like teaching baseball players, tennis players, and golfers how to improve their swing without letting them know what happened to the ball after they hit it.  These steps include: (3) obtaining “feedback” on the outcome of each decision, (4) “living” with the consequence of each decision and action—or inaction, and (5) evaluating the impact of each decision on results which is referred to as decision analysis.  The fifth step is particularly important because, if managers do not analyze the impact of their decision on results, they cannot learn how to avoid repeating their mistakes.  All they can do is practice their mistakes which slow learners sometimes do even on the job.  In requiring managers to take time out from the competition periodically to analyze their decisions, the Accelerated Experience Method is more likely than ordinary experience to assure that managers learn from their mistakes as well as their successes. 

The third way Accelerated Experience Programs improve on ordinary experience is by  giving managers an opportunity to experience the future.  Ordinary experience is a backward looking teacher that know nothing about the future.  It only teaches managers the lessons they needed to learn yesterday.  And, as we have already seen, it encourages managers to continue to do what they learned to do in the past.   The Accelerated Experience Method, in contrast, attempts to teach managers what they will  need to know tomorrow, particularly how to manage change. 

Tom Peters, of “In Search of Excellence” fame, says there are no longer any excellent companies.  No company is safe, he says:  Too much is changing.” To compete successfully in the future, he contends companies must have “leadership that loves change instead of fighting it.” As Horace McDowell, CEO of Parkin-Elmer, points out, however, everyone “agrees on the need for change but getting it into the nervous system is a different matter.” And as Jeremy Main observed in Fortune Magazine, “The task is to train managers to deal with constant, rapid change.  Nobody yet has any idea how you  go about doing that.” 

The Accelerated Experience Method, on the contrary, uses the experience of technological innovators to assist both experienced and inexperience managers to learn how to manage changes they will have to deal with in the future.  In the newspaper publishers’ program, for instance, participants must decide what to do about electronic pagination, a new method of making-up a newspaper by computer.  Electronic pagination is one of several technological developments that may change the way newspapers are produced  in the future.  Although most newspapers do not plan to adopt electronic pagination until the technology is perfected and its economics are improved, one technologically advanced newspaper is planning to introduce electronic pagination as soon as possible. 

The technical, financial and management studies of that newspaper and the experience it has had to date are used in the newspaper programs to assist new publishers to acquire the knowledge and skills they will need in order to decide when to adopt the new technology and how to handle the problems and opportunities it will create, if—and when—their newspapers adopt it.  By using the experience of technological innovators, Accelerated Experience assists other managers to learn what their own experience cannot teach them.  Thus, it improves on ordinary experience as a teacher. 

Computer-based Management Simulations Compared:  The Accelerated Experience Method, as has been explained, achieves its effectiveness by linking the case method and the computer in a way that greatly improves the teaching and learning process.  This improvement could not be achieved by either the case method or the computer alone.  Future improvements undoubtedly will be made by the computer because it has the potential to revolutionize education and training just as it is revolutionizing communications and production.  The computer has not yet significantly changed the way managers learn, however, because it has only been used to doing what is easy for computers to do; namely, manipulate numbers.  Computers have not been used extensively to teach managers how to manage people.  But management is the art of getting results through others.  If people are left out, the essence of management is left out.  What is being taught is budgeting, financial planning or economics, but it is not what managers, especially general managers and chief executive officers, most need to know to perform their jobs effectively.  We should not be surprised, therefore, that computers alone have not yet significantly changed the way managers are taught or learn. 

This is not to say that computer-based management simulations and exercises have not made a contribution to management education and training.  Their contribution has been limited, however, largely to the quantitative tasks of management.  The most widely used computer-based simulations are business games and they are games without people.  Exceedingly few are concerned with the day to day practice of management.  Fewer still deal with the functions performed by general managers and chief executive officers.  None, to my knowledge, reproduces all the significant problems—financial and non-financial—handled by successful managers over a period of days, weeks, or years.  None, therefore, teaches managers what experience in a specific job teaches them.

Computer-based management simulations, nevertheless, have some of the same features as the Accelerated Experience Method.  Many use competition to stimulate interest.  Many also are designed to assist managers to improve their decision-making skills, particularly their financial skills.  And most computer-based programs give participants “feedback” on their decisions.  All too often, however, the feedback participants get is based on theorectical models.  These models reflect someone’s perception of the way business “ought” to work—not the way it actually works.  Some management simulations create the impression, for instance, that if you spend enough money on research and development, you will gain product leadership; if you spend enough money on advertising, you will increase sales and gain market share; and if you spend enough money on training, you will have more productive employees.  Perhaps this is the way business “ought” to operate, but it is no the way it actually operates. 

The danger with computer-based simulations that use theoretical models is that they will teach managers what “ain’t so,” and will leave them unprepared to cope with the real problems they must handle on the job in a highly complex and rapidly changing world.  The only way to avoid this danger is to program the computer to deal with real problems and to provide feedback based on what actually happened in real situation.  This, of course, is what the computer is programmed to do under the Accelerated Experience Method

A Renaissance In Management Development:   The “sink or swim” method of management development is responsible for rising failure rates among new general managers and for increased recruiting of outsiders for key management positions.  It is no longer realistic for companies to expect their top management candidates to learn by trial and error on the job.  Their experience is too slow and unreliable to be relied on to teach them how to perform their jobs successfully. 

The trends that are threatening the careers of top management candidates and the competitive strength of more and more companies will not be reversed, however, unless our companies give their top management candidates a great deal more help in learning their jobs than they have given them in the past.  What is needed is a genuine renaissance in management development. 

But what will bring this renaissance about?  Why will companies that have neglected the development of their top management candidates for years suddenly change their behavior?  Why will companies decide that developing insiders is better than recruiting outsiders? 

There are no clear answers to these questions, but there are at least two possibilities.  One is that companies will recognize that developing their managers, particularly their top managers, is essential to their competitive health.  Most companies are acutely aware of the competitive threat that faces them.  Many are beginning to teach their managers competitive and marketing strategy.  Many of the are establishing competitor intelligence functions.  Al that remains is for them to recognize that assisting their top  managers to learn how to perform their jobs more effectively is a key to their competitive strength. 

Oddly enough, German and Japanese companies operating the U.S. may alert them to the competitive advantage to be gained by improved training of their managers and employees.  German and Japanese companies, which do not recruit outsiders for top management positions, recognize that their training programs are an important source of competitive advantage.  Indeed, their companies have been running advertisements in the U.S. press to inform their customers and the public of the role training plays in their competitive strategies. 

The U.S. subsidiary of Siemens, the giant German electronics company, recently ran a series of ads in newspapers such as The New York Times and magazines such as Business Week to announce that training “assures our position as a world class company.”   Under headlines such as “Training—The Competitive Edge” and  “Training to Win the World Market,” Siemens described its comprehensive management and technical training programs and advertised that, 

“Hundreds of our employees travel abroad every year for advanced courses that run from one week to a year or two.  In short, constant specialized training is one of the ways we are fulfilling our commitment to keep our customers and employees working smarter, not just harder.  A sure way to keep us all ahead of the competition in a rapidly changing, increasingly tough and complex high technology workplace.” 

At the opening of its automobile plant in Flat Rock, Michigan, Mazda Motor company’s president, Kenichi Yamamoto, announced that Mazda had “launched what my be the most painstaking recruitment and training program in automotive history.” He stated:  “Without the right people, our highly automated $550 million U.S. plant wouldn’t be worth a dime.” The advertisement explained: 

An intensive five-stage screening process was used to select 3,500 workers from a mass of 96,500 applicants.  Those hired then participated in a rigorous 10-week training course, followed by off-line training with a team leader.  Throughout, the new workforce was introduced to the Mazda Way of Open Management and Worker Participation. 

The advertisement concluded:  “When completed, this exhaustive process will have cost a great deal of time and money.  Yet we believe it will pay dividends in quality and productivity worth far more.” 

The second catalyst that may stimulate a renaissance in management development is recognition by boards of directors and chief executive officers that there is a faster and better way to develop their top managers than by trial and error on the job.  If board members and CEOs become convinced that their key managers can be developed in a fraction of the time now required by ordinary experience, a great many companies will embrace the new methods.  If they believed their general management candidates can learn in one week to handle the problems and opportunities successful managers needed three years to learn in similar jobs, there is little doubt that companies will give them that training.  If they believed their top management candidates can gain in five or six weeks the decision-making experience they would need ten to twelve years to learn in functional job-rotations assignments, most companies will give them that training.  If they believed their managers can learn in a few days how to handle the changes they will face in the future, most companies will train them to manage these changes. 

Only three Accelerated Experience Programs have been developed to date, however.  And they have been customized for newspaper publishers and advertising agency general managers and managing directors.  Therein lies the rub.  The production of additional customized programs is not a trivial task, even though it is manageable.  Companies and trade associations may be reluctant, however, to invest the resources that are required to produce customized programs for their managers, until there is more proof that the methodology is really effective.  If they wait, progress will be slow and the renaissance may be a long time in coming. 

The danger to American industry is that their world competitors may adopt the new instructional technology first.  German and Japanese companies already consider management training to be an important part of their competitive strategy.  They already are spending significant amounts of money on training.  And they are quick to adopt new technologies which they believe will give them a competitive edge. 

As Lester E. Thurow, Dean of MIT’s Sloan School of Management, has pointed out: 

“For two or three decades after World War II, America had effortless technological leadership—it had no peers either as an inventor or a user of new technologies.  Now that era is gone, too.  America faces foreign competition; Japan, West German, South Korea, Taiwan, that are certainly America’s equal when it comes to rapidly employing new technologies.” 

For a variety of reasons, as Thurow explains, American managers “procrastinate, waiting for it to become clear which technology is best.  By the time the answer is clear, foreign firms may have a two or three year lead in understanding and employing the new technologies.” 

There is nothing about the Accelerated Experience Method that others cannot duplicate.  If American companies wait until the potential of the new method is clear beyond doubt, our world competitors “may have a two or three year lead in understanding and employing” the new technology.  If that happens, the renaissance in management development may not take place in the United States and our worldwide competition may discover another “sure way” to keep “ahead of the competition in a rapidly changing, increasingly tough and complex high technology workplace.”

Introduction

Recruiting
Outsiders
for Top
Management

Why
General
Managers
Fail

Lessons for
CEOs and
Boards of
Directors

A
Breakthrough
In
Management
Development

Significance
Of The
Accelerated
Experience
Method

Conclusion

 

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