Corporate apocalypse - Management Today - The Diigo Meta page

• 09 Jan 09
  

  Bertrand Duperrin

  The bomb that has blown up the heart of the world's financial system was not primarily financial. It's true that finance provided the high explosive in the shape of the structured vehicles, collateralised debt obligations (CDOs) and derivatives devised by the rocket scientists of Wall Street and the City. But it needed a detonator to set them off: the unfit-for-purpose management model that has governed the way our companies work for the last 40 years.

  pull downturn management management2.0 garyhamel peterdrucker crisis creativity efficiency trust performance performancemanagement

  • This is the challenge for Management 2.0: reorienting management from compliance to creativity, from flogging efficiencies out of existing resources to generating new ones, from zero-sum to positive-sum by recognising, as Hamel says, the commonsense proposition that in the long term the corporation can only prosper if employees, suppliers, the community and indeed the planet do too.
  • First, many of the 'grand challenges' put forward in the discussions - the need for companies to articulate a purpose beyond making money (a conference near-consensus), distributed leadership and strategy- making, the fostering of community and citizenship, building trust - are not new at all. It's more that they have been driven to the periphery of management concerns by the treadmill of Management 1.0.
  • There are plenty of others. The granddaddy of Management 2.0 firms is Toyota, the exactly reversed image of GM: employing market pull rather than marketing push, economies of scope rather than scale, putting workers rather than computers in control of the work.
  • What do such companies have in common? First, incorporation of broader societal concerns.
  • Second, they have a determination to make their own rules.
  • Third, governance for them is based on strong internal values rather than an external rulebook.
  • Fourth is trust - an abused word, but without which no lasting relationship is possible.
  • Finally, there's a preference for intrinsic reward - the work itself - over extrinsic reward.
  • This list is not exclusive: finding ways to break the dead hand of conventional budgeting and performance management is high on the Management 2.0 agenda.

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