There have been no recent WRs for a while because I am working on a new book. In German; the working title – for now – is „Digital-Management.“
With more than 100 pages written, I will start sharing chapters for feedback soon. If you’re interested in helping the manuscript evolve, please drop me a line. (I am glad to make machine-translated English versions available for interested „non-natives“).
Inspired by the „14 Principles of Management“ by Henri Fayol, a French mining engineer and one of the founders of modern management theory, I am currently working on a chapter on fundamental (management) principles for the digital age.
This is where I would greatly appreciate your feedback. Here is my current – still evolving – list:
Principles for the Digital Age
- First Principles Thinking: First principles thinking is a problem-solving approach that breaks down complex issues into their most fundamental and undeniable truths rather than following conventional wisdom or group-think. Effective solutions can be developed by questioning assumptions and reasoning upward from these foundational principles. Aristotle taught First Principles Thinking to Alexander the Great, and Elon Musk applied it to start SpaceX…
- Systems Thinking: Systems are a collection of interconnected elements that work together to fulfill their function. Systems thinking provides a robust framework for tackling complex issues. By acknowledging interconnections, feedback loops, and the dynamic characteristics of systems, we can create more effective solutions that consider the larger context.
- Simplicity: Influential thinkers, from ancient philosophers to modern leaders, emphasize the importance of simplicity. Our ability to process information and make decisions is limited. Unnecessary complexity causes cognitive overload, hindering productivity and well-being. Embracing simplicity improves efficiency, decision-making, user experience, and effectiveness. Warren Buffett states, “Business schools reward complex behaviors over simple ones, though simplicity is more effective.”
- Iteration: Iterative processes are cyclical, involving cycles of planning, design, implementation, testing, and improvement. They offer advantages like faster time to market, risk mitigation, and flexibility. Examples include Agile methodologies, Lean project management, and A/B testing. These frameworks help tackle complex projects, foster innovation, and promote continuous improvement.
- The Pareto Principle, named after Italian economist Vilfredo Pareto, suggests that 80% of effects come from 20% of causes. For example, 80% of a company’s sales might come from 20% of its customers, or 80% of profits may be from 20% of products. Applying this principle can enhance productivity by focusing on high-impact issues, improve efficiency through better resource allocation, and aid decision-making by pinpointing crucial factors.
- Evidence-Based Decision Making (EBDM) uses the best available evidence for informed decisions. It integrates data and research, contextual information, and experiential knowledge. EBDM includes four components:
1. Best Available Evidence: Data from research and studies emphasizing high-quality, relevant evidence.
2. Contextual Evidence: Specific information about the environment affecting the decision.
3. Experiential Evidence: Insights from personal and collective experiences of stakeholders and experts, aiding practical application.
4. Stakeholder Evidence: Understanding the beliefs and needs of those affected by the decision, ensuring their perspectives shape the process.
- Trusting Guts: Trusting intuition rather than just data can be vital. While data is essential (see above), it shouldn’t overshadow intuition in decision-making. If data feels strongly counterintuitive, it may be flawed and need revisiting. This perspective fosters bold actions and innovation beyond traditional practices. Jeff Bezos, for instance, claims many of his best decisions came from intuition over pure analysis.
- Bias for Action: Fear of mistakes often keeps the status quo. In contrast, those with a bias for action recognize that avoiding change leads to missed opportunities. In dynamic environments, speed is essential for a competitive edge. Many tech firms embed a bias for action in their core principles, emphasizing that most decisions are reversible and don’t need exhaustive analysis. By prioritizing action, organizations can foster evolution and continuous growth.
- Individuals and Interactions over Processes and Tools: The „Agile Manifesto“ emphasizes the importance of valuing „individuals and interactions over processes and tools“ as one of its four core values. Digital or digitized products must meet the needs of users and customers. Effective communication is a critical component of their successful management. Processes and tools can often be rigid and slow to adapt, while human interactions can quickly address issues, solve problems, and pivot strategies as needed.
- Saying „No“: Strategic refusal is critical for success, enabling focus and prioritization. By declining misaligned requests, individuals and companies can allocate resources to high-impact activities. Effective refusal requires understanding requests, analyzing their value, and aligning with goals. Steve Jobs said, „Focusing means saying no,“ highlighting that Apple’s success comes from choosing projects wisely.
Do you have additional suggestions? Kindly click here!
I am looking forward to your ideas or comments!
To hear more about the above topics, also check out our new „Lab-Project“: „Deep Dives with Jane and Austin“, a growing series of quirky shortcasts created from my research materials by using a stack of AI-tools.