Preston Bottger

By Professor Preston Bottger

As big surprises and difficult challenges await executives moving from functional to general management responsibilities, IMD researchers have developed a five-point activity guidance system designed to help General Managers focus their time and energies in pursuit of the firm’s purposes.

While management literature over the past half century has been rife with models by academics and consultants to help general managers assess their tasks and get into action, the new model stands out in its simplicity. In particular, it assists in diagnosing tasks to be done and people to be listened to, influenced and organized, as well as discouraging users from relying on past experiences and models that won’t serve them well in their new position.

Recognizing the complexity of general management and the breadth of overview and depth in particular details that the role requires, the model has been used in coaching and consulting discussions with several hundred executives as they move toward or actually grapple with the realities of general management, helping them move away from functional or narrow perspectives.

One GM, but many parts to play…

This GM guidance system comprises five core activities -- originating, designing, energizing, integrating and protecting -- that summarize General Managers’ contribution to the creation and maintenance of the firm’s economic and social wealth, providing a clear roadmap that outlines the choices available to them and their responsibility in fulfilling them. How does all of this translate?

The GM as an originator

GMs are ultimately responsible for business development, and as such, must recognize and nurture new ideas that can be built into robust business models. Equally, originating a competitive focus for the business unit requires decisions and actions in two areas – economics and social responsibility.

As a designer

While it is vital to articulate a theory of the business and a purpose that captures people’s imagination, the GM must also ensure that the model is implemented. This is the domain of design – in which the GM has responsibility for over-arching and broad design decisions, requiring optimal assignment of responsibilities and reporting relationships so that they support people in working toward strategic goals. Similarly, the engineering of cultural changes in a unit also starts with effective design.

As an energizer

It goes without saying that GMs energize others by ensuring adequate material rewards. Beyond this, however, high-performance GMs energize their people by selling them exciting missions that feature a powerful mix of: ‘never-been-done-before’; a major stretch in technical and political terms, but do-able; clear social and human benefits beyond the economic value created; and for the implementers, financial and career rewards that fully and fairly reflect the scale of the investors’ capital gains. All of this, it goes without saying, must be pervaded by a thrill of engagement stemming from …. the GM’s own intellectual, emotional and physical vitality conveying and spreading the thrill of engagement to others.

As an integrator

When individuals have been energized into action, ideas and initiatives invariably arise and need to be aligned. It is the GM’s lot to decide which to pursue and which to abandon, in order to retain focus. As one GM in the software sector remarked, innovation comes from saying no to many things. The GM is the role-model for concentrating on the things that really matter.

As a protector

And last, but not least, GMs have a protecting role to play – nurturing and protecting the unit’s assets – both tangible and intangible - people, processes and technology – from threats, risks and attacks. A strong GM, ready to fight for resources and to protect the unit from significant threats, gives added confidence to the members. This protection works on two levels – firstly, by allowing people to concentrate their time and energy on their jobs, and secondly, by showing symbolically that there is a real desire for people to be personally successful.

Not what you know, but knowing what to do …

Producing GMs is expensive and difficult – because there are no shortcuts - for either companies or candidates. Aspirers to general management will have to change mindsets and habits, go through the pains of learning (and unlearning), and move into new functional, business and geographical areas. Used appropriately, IMD’s new five point guidance system will help even the most ill-prepared general manager to be energetically ingenious in all aspects of leading a successful business.

Professor Preston Bottger teaches on the Program for Executive Development as well as the Leading the Global Enterprise and the Orchestrating Winning Performance programs. He also teaches in IMD’s Partnership Programs.