Abstract
Today’s business world is one in which “change itself has changed,” becoming more rapid, pervasive, and ongoing. For most firms, this requires a fundamental re-invention of management, as the typical corporate bureaucracy cannot respond well to rapid changes. This chapter outlines the shortcomings of old-style management and reviews the multiple forces of change that prevail today: technological change, demographic and social change, globalization, and energy and environmental factors. These in turn point to a need for “dynamic capabilities” (per David Teece): the ability to sense and seize new opportunities while reshaping the enterprise accordingly. The chapter closes with some characteristics that a new management model should have, including a people-centric innovation culture, flexible and ambidextrous structures, and active engagement with the firm’s larger ecosystem.
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Notes
- 1.
Hamel (2012), p. 85.
- 2.
A concept introduced in Utterback and Abernathy (1975).
- 3.
For a scholarly summary of these features, see Henry Mintzberg’s description of the “Machine Bureaucracy” model in Mintzberg (1980).
- 4.
Ford and Crowther (1922), pp. 72–73.
- 5.
Kodak’s decline has been extensively documented and analyzed. See for example Hamm and Symonds (2006).
- 6.
Harreld et al (2006).
- 7.
Birkinshaw (2016).
- 8.
Hamel (2009).
- 9.
Florida (2002), p. 5.
- 10.
Gratton (2011), pp. 23-48.
- 11.
See for example Friedman (2015).
- 12.
IBM Institute for Business Value (2015).
- 13.
World Values Survey (2017).
- 14.
See for example Florida (2002), pp. 152–154 and 166–176.
- 15.
Porter (1979).
- 16.
Leonard-Barton (1992).
- 17.
Teece et al (1997).
- 18.
Kleiner (2013).
- 19.
Gary Hamel (2009).
- 20.
O’Reilly and Tushman (2013).
- 21.
Henry Chesbrough (2003).
- 22.
Professor Eric Rhenman, a pioneer in systems thinking, introduced this definition.
- 23.
Skarzynski and Gibson (2008).
- 24.
Bahrami (1992).
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Steiber, A. (2018). A New Model for a New World: Why It’s Needed and What It Consists of. In: Management in the Digital Age. SpringerBriefs in Business. Springer, Cham. https://doi.org/10.1007/978-3-319-67489-6_2
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