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17 Nov 09

'The Purpose of a Business is to Create a Customer'

"Packed full of common sense and combined with a strong sense of business’s responsibility to society, two of my favorite Drucker bumper sticker quotes are ‘Knowledge has to be improved, challenged, and increased constantly, or it vanishes‘ and ‘There is an enormous number of managers who have retired on the job‘, which somehow seem to fit together very well."

blogs.zdnet.com/collaboration - Preview

peterdrucker management customers knowledge ROA productivity objectives knowledgeeconomy knowledgeflow

The 200 page report systematically examines trends across 14 industries, to further explore by industry why return on assets (ROA) for U.S. public companies has declined by 75 percent since 1965. John Hagel has fleshed out on his blog a summary of the key perspectives emerging from their industry analysis under the following headings:

* Deterioration in performance is widespread

* Advances in labor productivity fail to improve return on assets

* Innovation, at least as traditionally defined, does not appear to offer a solution

* Traditional measures of competitive intensity understate the challenge

* Worker passion is at very low levels across all industries
Twentieth-century institutions built and protected knowledge stocks—proprietary resources that no one else could access.
4 more annotations...
- The more the business environment changes, however, the faster the value of what you know at any point in time diminishes
- Management by objective works - if you know the objectives. Ninety percent of the time you don’t‘.
- Silos of ‘knowledge stocks’ are often being transferred into newer more powerful ‘collaboration silos’ - modern technologies used in an old fashioned way.
- Drucker’s ‘Management by Objectives‘ - participative goal setting, choosing the course of actions and decision making - works well for larger scale collaboration and is arguably more valid today than it was when he wrote about it in 1954.

18 Jul 09

The Big Shift: Measuring the Forces of Change

To help managers in this decidedly challenging time, we present a framework for understanding three waves of transformation in the competitive landscape: foundations for major change; flows of resources, such as knowledge, that allow firms to enhance productivity; and the impacts of the foundations and flows on companies and the economy. Combined, those factors reflect what we call the Big Shift in the global business environment.

hbr.harvardbusiness.org/...1 - Preview

knowledge competition knowledgeflow ROA flows collaboration problemsolving innovation creativity socialmedia productivity ecosystem

The first, foundational wave in the Big Shift consists of the extraordinary changes in digital infrastructure that enable vastly greater productivity, transparency, and connectivity. Consider how companies can use digital technology to create ecosystems of diverse, far-flung users, designers, and suppliers in which product and process innovations fuel performance gains without introducing too much complexity.
The second wave involves the increasing movement of knowledge, talent, and capital. Knowledge flows—which occur in any social, fluid environment where learning and collaboration can take place—are quickly becoming one of the most crucial sources of value creation.