Management is Engineering

As legend has it, the humanities program at MIT was started by an MIT president who quipped “too many MIT graduates end up working for Harvard and Yale graduates”. The thinking then, which remains to this day, is
that engineering classes make a person narrowly focused whereas humanities classes help a student to see the full picture. Although I can see some truth in this, I would argue that a person is far better equipped to be a great manager having taken engineering than its “softer” alternatives.

What does engineering have to do with management? Systems. If I were to describe any sort of engineering — chemical, electrical, financial, whatever — in one word, it’s about systems. A system is a collection of unreliable components arranged together in just the right way such to create a stable, predictable, reliable outcome. Proteins assembled in a drug, transistors arranged on a chip, mortgages bundled in a CDO (well, maybe a bad example…) — all of these are relatively unstable parts with little use by themselves that become predicable and useful because of their alignment with other parts.

So how is management engineering? A business, by nature, is a system. The parts are the inputs — employees, inventory, capital — and profit is the (hopefully steady) output. It’s popular for business managers these days to say that “the value of our business is our employees”, and that is certainly true, but the human nature of an employee means that they are inherently unreliable. Plans change, new jobs come along, retirement beckons — all of these things mean that the human element of the system needs to be designed to be fault-tolerant. An engineer understands this concept, and has a natural insight into ways of building efficiency and redundancy into the organization. A more streamlined process that reduces needless overlap while maintaining critical redundancies will maximize profit and ensure business continuity.

The sweet spot in management is a manager who can balance the vital “soft” aspects of motivation with the organizational awareness that an engineering background can provide. Either trait by itself can do an adequate job, but the combination creates a truly capable and effective motivator and manager.