Management Science.

Billions of humans have been pulled out of abject poverty over the last hundred years or so. For sure, technology has advanced slowly throughout human history and is now accelerating at a breakneck speed; there have been more technological advances in the last 10 years than the last 7,000 years combined. With more than 200 million manufacturing and service businesses of all shapes and sizes now operating on the planet, you could make a strong case that the discipline of "Management Science" has played a central role in human development and success. Homo sapiens are extremely complex and dynamic creatures, and their ability to create, communicate, calculate, lead, and build teams and organizations - and focus them on a common goal around a set of common operating principles to do remarkable tasks and activities - is rather extraordinary. The unique capability of management is one of the important things that separates us from all the other 8.7 million species in the Animal Kingdom. A core human capability and competitive advantage is Management Science. The study and improvement of management knowledge and skills is very important. Excellent managers shape and change the world in positive ways.

The "Father of Management Science" is often considered Frederick Taylor, the mechanical engineer from Pennsylvania, who after getting fired from Bethlehem Steel because of his radical ideas on improving efficiencies rattled the establishment and unions, wrote in 1911 the classic and defining business book that endures, The Principles of Scientific Management. He was the driving force behind the so-called Efficiency Movement that transformed America into the world’s most dynamic and powerful economy. Beginning in 1881, Taylor started his various motion studies focused on work processes, and the bold idea that effective and advanced management techniques affected the overall productivity and achievement of workers: You could increase the output of an individual or team by 30%, 200%, or more by the way you managed them? Some interesting studies involved shovel sizes and variability in lighting. He discovered that the thousands of small and large ways a manager plans work and does analysis of processes and outcomes, and the way he/she engages, coaches, and inspires individual workers and work teams directly impacts the quantity and quality of outputs or results. Radical stuff, right? In 1911 Taylor's ideas were very radical and disruptive. Colleges started to create business degree programs around Taylor’s concepts and book; Dartmouth College introduced the first management program in 1900. Harvard soon followed and started an MBA program in 1908; 80 students enrolled. Wharton introduced their first MBA class in 1921; Stanford added an MBA program in 1925; MIT did the same thing in 1931. The management revolution was just beginning.

Business academia and management practitioners often debate where this “management science” spark originated? It is always a good discussion over a coffee or beer. By the time Taylor started his studies in 1881, America and many parts of the world had closed the books on the First Industrial Revolution (1760 to 1840) and were deep into the Second Industrial Revolution (1840-1914); the technological leaps in steel manufacturing was exciting and Frederick Taylor was working right in the middle of the industry. Until they fired him. They crucified him because of his ideas; but he was undaunted.

Where did this all begin? Some argue that the genesis of the “Management Science Revolution” actually started way back in 356 BC with Alexander the Great. As you recall, he was the young Macedonian born to King Philip 2 and Queen Olympia. Young Alexander was personally tutored and mentored by Aristotle; Alexander was trained by Aristotle in the "Jedi Knight-ways" of physics, mathematics, ethics, psychology, and many other critical subjects. (His military training came from his father and many brilliant generals.) Many of the subjects Aristotle taught Alexander were the early foundations of good management; humans have always responded to good management techniques and approaches. In a short 13-year span, Alexander the Great would become one of the greatest military (and management) leaders the world had ever seen. Alexander built a global empire with trusted generals and millions of “managers and workers” that conquered countless armies and kingdoms. Before his death, Alexander ruled from Greece to Egypt, and all the way over to Asia. He developed and directed his generals and other “management” players to plan, align, and execute “activities” with precision and results. Alexander the Great never lost a single battle and was known to create extreme loyalty in his armies and kingdoms. Especially if you were aligned to his vision, plan and management approach.??

The Management Science world has had a number of “gems’ that helped build our modern economic capabilities as we now enter the early years of Industry 4.0; also referred to as The 4th Industrial Revolution. Before Taylor, an important piece of the management science story is strategy. Strategy is clearly rooted in the planning and activities of the military: the science and art of employing political, economic, psychological and military forces to accomplish a task. In addition to Alexander the Great, some of the most important players and strategy "thinkers" were Sun Tzu (544 BC-496 BC), Hannibal (247 BC-184 BC), Genghis Khan (1162-1227), Napoleon Bonaparte (1769-1821), and Carl Von Clausewitz (1792-1831). More than 400,000 MBAs (140,000 in U.S.) are awarded every year, and many MBA programs still include a study of these leaders and their ideas. Von Clausewitz’s book, On War (1832), is still often required reading in MBA strategy classes.

Taylor was the early pioneer of the emerging management revolution unfolding within the 2nd Industrial Revolution, but we had Peter Drucker (1909-2005) come along right behind him. Drucker is still considered by most to be "the greatest management thinker in the 20th century." Every newly minted-MBA in America has studied Drucker’s work in detail. Harry Igor Ansoff (1918-2002) is still considered the “Father of Strategic Management” and his large body of work is the foundation for many modern management tools and thinking. (For example, most leaders still use his famous “9-Box” to make strategic decisions.) Another interesting character in this story line: The brilliant young man who was born in a rural-Wyoming shack and went on to study at the University of Colorado and Yale, Edward Deming (1900-1993) became America’s “Greatest Management Consultant” and his work is the foundation of modern consulting companies. McKinsey, Boston Consulting Group, and Bain & Company can trace their DNA and success to the groundwork created by Ed Deming (along with Frederick Taylor and Peter Drucker.) Deming is a national treasure in the world of management science and consulted with global executives and political leaders. Then the cast of characters in the management science story grew quickly and included a lot of game changers: Henry Ford (Ford Motor Company), William Durant (General Motors), Sam Walton (Walmart), Jeff Bezos (Amazon), Bruce Henderson, Bill Bain, Tom Peters, Michael Porter, Daniel Goleman, John Kotter, Marshall Goldsmith, Jim Collins, Clay Christensen, Renee Mauborgne, and many others.

Connecting the dots between the foundations of people, processes and best practices in the discipline of management science brings us to our current spot in the emerging 4th Industrial Revolution. The so-called smart manufacturing revolution, also known as Industry 4.0, is using advanced technologies to connect machine to machine communication and IoT platforms; and leveraging artificial intelligence, smart sensors, big analytics, 3D printing, advanced robotics, and a basket of other futuristic technologies that are both exciting and scary. Change and revolution is always frightening. Industry 4.0 and Management Science also represent new, bold thinking and remarkable opportunities. The management science “ghosts” of Taylor and others from the past are encouraging us to go boldly into the future. Will we? Do we have the leadership and courage? Do we have the tools? Are the animal spirits stirring? We have learned many important lessons needed for this new strategic inflection point in our economic evolution. Managers of all types and levels need to be bold, informed, and confident. Ideas, strategy, technology, agility, teamwork and collaboration, and excellent management are more important than ever before to ensure successful futures for our children.?