Page 53 - (DK) The Business Book

START SMALL, THINK BIG 51

The development of infrastructure Enablers are the realm of middle managers,
and the strength of a new layer of according to Michael Hammer’s analysis of the
middle management were key science of management. When implemented
and maintained efficiently, they foster
factors in the evolution of UK retailer
growth and turn the vision of
Cath Kidston from a single store Middle
senior executives into reality.
in 1993 to more than 120 global managers
branches and concessions by 2013, Process
with stores throughout Europe and
Asia, and plans to expand into Design
North America. Widely renowned Infrastructure
for its vintage fabrics, wallpapers,
and brightly painted junk furniture, Performance management
Protocol
Kidston’s initial growth, as is
common with many single-founder Responsibilities
start-ups, was slow. In the early
days, monthly accounts took six
weeks to prepare and clashes
between IT systems caused issues
with cash-flow projections and
supply-chain management. It took
nine years to open a second branch,
and another two before the third. down, stifling innovation and have since helped Renault Samsung
Following a buy out in 2010, hindering growth. As markets and Motors gain a footing within the
Cath Kidston became partly owned technology move ever faster, South Korean automotive market.
by a US private-equity group, with process must not blind managers to Business leaders dismiss the
Kidston herself retaining about 20 opportunity, and systems must not value of middle management, and
percent of stock. As expansion took restrict strategic agility. For the value of process, at their peril.
hold, the company started to move example, Motorola continued to Without middle managers who are
from ad-hoc processes to a more invest in satellite technology able to evolve a leader’s vision into
planned approach. Specialized throughout the 1990s even after reality, many businesses would be
managers and consultants were competitors had switched to stuck like those of the pre-railroad
brought in to help build capacity for cheaper, more effective ground- era, destined to remain small, local,
growth. New departments were based cell towers. and family run. It is the science of
added, including design, buying, Habit can also twist logic. So management that enables business
and merchandising, and systems habitual, for example, were the evolution and growth. ■
were introduced. Most importantly, claims of ethical behavior from
middle management gained Dennis Kozlowski, CEO of Swiss
experience of what it takes to open security company Tyco International,
and run a new store. The lessons that he seemed able to divorce the
from earlier mistakes were reality of his own behavior from his
integrated into procedures and rhetoric—in 2005 he was convicted
policies; by building on experience, of corporate fraud. Habit can also If you can’t describe
every new store opening became lead to hubris. Buoyed by his what you are doing
easier than the last. business’s accomplishment in as a process, you don’t
electronics, in 1994 Samsung CEO know what you’re doing.
Excess and habit Lee Kun-Hee believed that the W. Edwards Deming
The dangers of processes and of same approach would lead to
hierarchy (if it becomes excessive) success in the car market, but the
are that they may begin to grip the venture struggled and was rescued
organization too tightly. Protocol in 2000 by Renault. The experience
and bureaucracy can wear people (and habits) of Renault’s managers