Management Reset Essay

3434 words - 14 pages

Management Reset
A Personal Summary and Thoughts

The basic premise of Management Reset, as stated in the introduction, is “not about convincing you that organizations need to be sustainably effective; it is a book about how organizations can be sustainably effective.” The book opens with a brief management history that imparts the business, social, and economical backgrounds and well as a basic vocabulary and explanation list used in the rest of the book. We are introduced to Command and Control Organizations (CCOs), High Involvement Organizations (HIOs), and the approach that the book will focus on Sustainable Management Organizations (SMOs). We are given a general summary of the ...view middle of the document...

The Way Value is Created
While discussing the first issue, the main concepts are the different strategies and the methods of developing them. The idea of the “robust strategy” is brought through to this book an expanded upon. The need for a clear identity (long-term aspect of the strategy) and the intent (the short-term aspect of the strategy.) This section states that an identity both flows from and helps create in culture and mission. The main idea being, to comprehend a company’s approach to value, you must understand its identity. It is important for the organization to have a strong and well-defined identity, to ensure future strategic intents are aligned with the overall mission. With this frame of thinking in mind, this section outlines new views on creating value. The book concedes that financial value is very important but brings to light how the profit is made and what it is subsequently spent on. The strategy’s view on ecological value shows that organizations must not only be aware of their carbon footprint, but taking proactive measures to reduce it. In line with this strategy, organizations social value is measured by their treatment of their employees as well as communities, cultures, and countries in which they operate. The important fact to remember about SMOs is that they exist by a series of flexible momentary strategic advantages, strategic intent. Their mindset is one that “the ability to change drives performance because no advantage is expected to last.” As opposed to the former methods of management, SMO are able to adapt to take advantage of opportunities as well as withdraw if the venture was a mistake. They are able to achieve this ability by adjusting their breadth, aggressiveness, and differentiation.
In developing a strategy, SMO use a process called “futuring.” The foundations of this process being: current performance is an much a function of preparation as it is execution, to look at the future as much as possible, and spending time reflecting and learning on practice. This process is distinguished by time and goals. Every goal needs to be financial, social, and environmental in nature. The time frames in which to plan for these goals must include short-, medium-, and long-term elements. The long-term planning uses scenarios to reduce future surprises and increase the number of available options. Medium-term planning generates forecasts and a list of the organizations capabilities. Short-term planning is controlled by strategic intent, and generates the current profits. The downfall of many CCO and HIO is spending too much time on the current trends when it should be spend on long-term issues.
The Way Work is Organized
The main concepts in this section include; board governance, structure for sustainable effectiveness, and sustainable work systems. In the issue of corporate boards, the overall result is poor performance. To counter this SMO employ a board governance model. The book goes into great...

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