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Strategy

Navigating the Complexity of the New World

AutorFredmund Malik
VerlagCampus Verlag
Erscheinungsjahr2016
Seitenanzahl402 Seiten
ISBN9783593435367
FormatPDF/ePUB
KopierschutzWasserzeichen/DRM
GerätePC/MAC/eReader/Tablet
Preis37,99 EUR
This book describes Malik's strategic solutions for the Revolutions of the New World, which are already underway. They are part of the Great Transformation 21 which the author will address in the book.
In the six parts of this book, he will first look at the dynamics of the Great Transformation 21, its inherent risks of crisis and its opportunities, as well as the labor pains that the New World is suffering. After that, he will deal with the amazingly effective cybernetic systems for strategic navigation and the strategy maps required for that, as well as the empirical quantification of businesses, both existing and yet unknown, which will help break the new territory of innovation. Finally, Malik will reveal the patterns that the tidal currents of great transformations invariably follow, as well as the economic dynamics resulting from them and the strategies required to deal with them.
In the last part of the book he will describe the revolutionary new methods that enable us to master groundbreaking strategic change with great precision and unprecedented time compression - at the 'speed of light', so to speak. This way, even enormous corporate growth and size can be managed and turned into true strengths, with perfect ease and using innovative approaches where conventional approaches have proven useless.

Prof. Dr. Fredmund Malik is habilitated Professor of Corporate Governance and an internationally renowned management expert. He is founder and chairman of Malik Management, the world's leading knowledge organization for integrated management systems based on the science of cybernetics. Based in St. Gallen, Malik Management has around 300 employees, offices in six countries, and a network of partner organizations in the fields of cybernetics and bionics. It is the biggest provider of reliably functioning solutions to interconnected problems of organizational complexity and control. Malik Management helps thousands of managers to integrate and improve their knowledge of general management systems via training and intervention.
Malik is the author of more than ten award-winning bestsellers including the classic Managing, Performing, Living. He pens regular columns in opinion-forming media. He is among the most cited and profiled management thinkers of our time. His numerous awards include the Cross of Honor for Science and Art of the Republic of Austria (2009) and the Heinz von Foerster Award for Organizational Cybernetics of the German Association for Cybernetics (2010).

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Leseprobe

Chapter Introduction
The Right Strategy for the Great Transformation21


The Great Transformation21—as I have been referring to the transition from the Old to the New World—will be larger than any other social transformation we have seen so far, as it will span the entire globe.

The more intensely I studied the effective but also explosive power of the Great Transformation and the relevant strategic solutions, the tighter became the limits of language. Describing the complexity of globally interconnected systems and finding words for the simultaneousness of their change dynamics is just as difficult a task as putting a Beethoven symphony in words. Wherever I turn there is a lack of terms to describe the new, its many forms and dimensions, and above all the enormous speed of change as well as the unknowable that comes with it.

The usual superlatives—all the “super” and “mega” terms—, even if they were not as trite as they are, would never suffice to capture the scope of the Great Transformation. Apart from that, these terms originated in the Old World, so they can hardly convey any more than the Old World’s limited power of imagination. Still, occasionally I have to use these terms for lack of better ones (at least to date).

If, for instance, the new methods introduced in this book enable even the most complex decisions to be taken and implemented 100 times faster, to increase team efficiency by more than 80 times, and to find solutions based on maximum consensus in just three days where even the smallest compromise was previously blocked by social gaps, and if this power of solution has led to success in hundreds of applications, without exception—what terms could be considered adequate for such achievements, when the aim is to describe the new dimensions of effectiveness but avoid both grandiloquence and advertising slang?

Historically, previous transformation of a similar kind—in particular in technology and science—have always spawned a new language because the new could not be put in old words. In the social and political sphere, however, new terms will often gain ground when the change itself progresses, or even later than that. For instance, people in the Renaissance age did not know they were experiencing the Renaissance—a term coined as late as in the 19th century. And it was more than 10 years after Columbus had landed in “India” (1492), in 1503, that someone else realized that a “mundus novus”, something completely new, had been discovered—a fact that never occurred to the discoverer Columbus himself in his lifetime. Amerigo Vespucci had never set foot on the continent called “America”—which, however, was rightfully named after him, for he was the one who ultimately identified it.

The Revolution in the Great Transformation21


The Great Transformation from the Old to the New World will fundamentally—and almost completely—change what people do, why they do it and how they do it. It will also change who we are and what concept of the world we have.

It will revolutionize the way society and its organizations function. Functioning twice as well at half the money is just one of many challenges that most people consider impossible to solve—although its solution is already being practiced.

In just a few years’ time it will be with incomprehension and pity that we think back of the sluggish political decision-making processes we have today, of coalitions getting in their own way, of corporate management bodies paralyzing themselves, of slowly moldering change processes, of lethargy and resignation in so many organizations, of monstrous mega conferences that had no impact, and of the cluelessness of global organizations.

With the challenges we are currently facing and which seem to have appeared out of the blue—such as the complete turnaround in energy policy, the rotten financial system, the global debt mountain, and the increasing decay of the social fabric—the limitations of our present problem-solving approaches have become more obvious than ever.

The leaders of these organizations will be pitied and admired at the same time for having given their best and having tried to do their duties even under such inhumane conditions—although their efforts have increasingly failed, as even the most outstanding driver cannot win a race if he is given an outdated car.

Innovative, Intelligent and Right Solutions


At the same time, people will wonder why the new solutions were not made available to those leaders much earlier, in particular as they had long been published by us and applied successfully in hundreds of cases. Anyone who knows these solutions will immediately see how they offer new ways to end crises, and even to use these crises to make inroads into the New World.

For me, the ethical mission resulting from all that is to ensure with all my might that the necessary information about these new, global, society-saving solutions will be spread.

The funds to be freed up by the new solutions—and which are presently and pointlessly tied up in old structures and processes—will be used to create the innovations of the New World, instead of continuing to finance outdated approaches from the previous century.

For instance, one key task will be to establish the new type of high-performance educational institution—preferably outside the current educational system, as this will be the fastest way—and teach the new generation right from the outset of their student careers the leadership skills that, had they been in place, would have had the potential to prevent the current calamity. They include wholistic and networked thinking, familiarity with systemics as the science of entities, practical application of cybernetics as the science of functioning, and the ability to leverage bionics by using evolution’s best solutions to innovate societal organizations.

This would strengthen our social solution intelligence by several orders of magnitude, because all of the above can be accomplished in less than half the time and in one integrated and in itself fully compatible study course.

The present book—just like the other volumes of the series Management: Mastering Complexity—presents the knowledge and approaches required to prevent the immiment social disaster and bring about new prosperity as well as a well-functioning social order well beyond the current political categories of left-wing and right-wing.

Strategy: Navigating Effectively Through the Complexity of the Great Transformation21


In the six parts of this book, we will first look at the dynamics of the Great Transformation21, its inherent risks of crisis and its opportunities, as well as the labor pains of the New World.

After that, we will deal with the astonishingly effective cybernetic systems for strategic navigation, the strategy maps required, and the empirical quantification of existing and new businesses from where the new territory of innovation will be explored.

Finally, I will show the invariant patterns in the tidal currents of great transformations, as well as the resulting economic dynamics and the strategies to deal with them.

In the last part of the book I will describe the most revolutionary tools for social change known to date: the social methodology of Syntegration, which enables us to master ground-breaking strategic change with great precision and “at the speed of light,” compared to conventional approaches, The Syntegration technology helps to manage the growth and size of companies with ease and even turn them into strengths, specifically in cases where conventional approaches have proven to be futile and to paralyze rather than strengthen organizational performance.

The almost magic efficacy of these methods is based on cybernetic communication processes which, to an extent previously unimaginable, enhance collective intelligence and generate social energies. The simultaneous use of innovative system design tools creates highly effective intelligence and power centers for successfully mastering the challenges of even hypercomplex systems as well as their control and regulation. “Mega Change of Mega...

Blick ins Buch
Inhaltsverzeichnis
How I Look at Management8
Right and Good Management,in My Definition, Is…9
Contents12
Preface20
Strategic Solutions for REvolutions20
The New Challenges20
The Right Knowledge22
Introduction: The Right Strategy for theGreat Transformation2124
The Revolution in the Great Transformation2125
Innovative, Intelligent and Right Solutions26
Strategy: Navigating Effectively Through the Complexity of the Great Transformation2127
Key Propositions29
A Word On the Terms Used31
Part I: Strategy for theGreat Transformation2136
1. What Strategy Looks LikeWhen the Future is Unknown38
2. The Great Transformation2142
The Old World Ends as a New World Is Born44
Megachange in Megasystems45
The Current Crisis as the New World’s Birth Pangs46
It Takes More than Economics to Understandthe Global Economic Crisis47
Anglo-Saxon Corporate Governance—A Machineof Destruction48
Complexity and Management Crisis:The Absence of Neuronal Systems51
Third Act of the Crisis: Deflation52
The New Way of Functioning: Mastering Complexity54
3. When You Do Not Know What You Need to Know: The Minefield of Strategic Errors56
Strategic Delusion by Operational Data56
Operational and Strategic Management61
Strategic Thinking Traps67
Part II: Strategy as Master Control in the Wholistic Management Systems76
1. Making Companies Function Well78
Enhancing Management Impact Through Management Support Systems78
Right and Good Management—Universally Valid79
Management, Financial Markets, and Alpinism82
A Practical Hint for Readers in the Know83
What are Master Controls?84
The Basic Management Model and Its Basic Concepts85
Management of Institutions:The General Management Model86
Management of People: The Standard Modelof Effectiveness, or “Management Wheel”89
The Integrated Management System—IMS90
Integrated Strategy as a Top Cross-Divisional Function93
2. Providing Direction ThroughCorporate Policy and Business Mission96
The Right Purpose96
The Right Mission101
The Right Performance107
Part III: Mastering ComplexityThrough Reliable Navigationin Any Circumstance112
1. Revolutionizing Strategic Navigation114
The Malik-Gälweiler Navigation System115
The Right Strategy for a Future Unknown118
Putting an End to Arbitrariness in Strategy Design118
Looking Further Into the Future—Without Forecasts120
Time Constants and System Dead Time120
Limitations of the Market Economy:Why Economists Do Not See Far Enough121
What Must Be Monitored: Variables for Controland Orientation122
Reliable Function With Cybernetic Control Systems123
2. Reliable Control Through Cybernetic Navigation125
First System Level: Liquidity125
Second System Level: Profit130
Third System Level: Current Profit Potential (CPP)132
Fourth System Level: Future Profit Potentials (FPPs)137
3. Setting the Right Strategy, Irrespectiveof Economic Climate: The Strategy Map144
The Solution-Invariant Customer Problem148
Solution Technologies155
Socioeconomic Trends158
Market Position160
Investments and Cost Reduction Potentials167
Research and Development Objectives169
Finance and Balance Sheet Variables171
Part IV: Following the Change:Success Factorsfor Your Current Business174
1. No More Blind Flying: PIMS—The High Art of Strategy Development176
Strategic Leadership177
The PIMS Revolution179
Strategy at the Strategic Business Unit Level180
Discovery of the “Laws of the Market Place”180
A Brilliant Research Idea: Profits Are Drivenby Structure, not the Industry182
New Benchmarking Based on the Biological Pattern183
The PIMS Database Suites184
Universally Valid Factors DetermineSeventy-five Percent of Profits186
Answering Key Questions of Strategy188
Eight Key Factors for Success189
2. Strategic Core Knowledge:A Cornucopia of Insights190
Market Position190
Stability of Results Over Time191
A Seeming Anomaly Triggers Discovery of a New Factor192
Is Innovating a Good Thing?193
Where Many Businesses Lose Earning PowerWithout Even Noticing194
How Important Is Market Growth?195
Systemic Interconnectedness of PIMS factors196
PIMS and the Six Central Performance Controls (CPC)199
The Cybernetics of PIMS Strategy Development199
Overview: Benefits of PIMS Findings for Top Management200
Criticism of the PIMS Program201
What Remains Valid in Business When Everything Changes202
3. Breaking Strategic Barriers:Three Pioneering Models From PIMS204
Knowing the Potential of a Business:The PIMS Par Model204
Learning From Winners: The PIMS Look-Alike Model207
The Customer Value Map: Using Customer Valueand Competitiveness as Reliable Guiding Stars212
Part V: Ahead of Change:Success Factorsfor Your New Business222
1. Constants in the Currents of Change224
The Magic of Patterns that Connect226
We, too, Will Be Replaced: Creative Destruction227
Symphony of S-Curves: Seeing the Future Clearly229
Simple Growth Processes230
From Growth to Substitution234
When Several Systems Compete for Existence235
Discovering the Secret Driver of Epochal Change237
Centennial Cycles: Invention—Innovation—Substitution—Exploitation239
Was Kondratieff Right?The Rhythm of Long Economic Cycles242
Self-Destructing and Self-Creating Systems244
2. Innovating for theGreat Transformation21:How to Preprogram Success247
From the Art to the Craft of Innovation248
Misconceptions About Innovation250
3. Mastering Even the Unknown:The PIMS Start-up Strategy256
Start-ups as a Synthesis of Several Arts:The Secrets of Innovation Success257
The Right Environment for Start-up Businesses266
Choosing the Right Strategy in the Right Environment: Knowing, Not Guessing268
4. Implementing Start-up Strategies:Basic Rules for Effective Innovation275
1.Go for the Top:Market Leadership and Distinct Changes276
2.Make Room for New Things276
3.Separate the Old From the New277
4.Look for Opportunities in Problems279
5.Ask Controllers for a Second “First Page”280
6.Write Down Your Expectations280
7.Determine Cut-off Points281
8.Make Sure You Have the Best People281
9.Run Tests282
10.Strictly Focus on a Few Things282
Part VI: Revolutionizing Management Methods: Strategic Approaches Without Time or Space Limits284
1. Direttissima: Taking the Most Direct Path to the Right Strategy286
2. Revolutionizing Change Withthe Syntegration Method294
Epoch of New Leadership: Quantum Leapin the Social Technology of Functioning294
Change and Innovation—Swift and Effective295
What is the Syntegration Methodand What Does it Accomplish?296
3. The Cyber-Tools311
SensiMod: The Sensitivity Model As the Organization’s GPS312
EKS: Dynamic Specialization319
Management System Audit (MSA):New Ways of Functioning and Implementing326
Operations Room: Implementation With Real-Time Control331
4. How Even Giants Learn to Dance: HyperSyntegration338
Appendix346
Concept and Logic of the Series“Management: Mastering Complexity”348
The Malik Management SystemsAnd Their Users355
What Readers Need to Know in Orderto Understand this Book Series365
Glossary374
Termin protected by trademarkand copyright386
About the Author387
Selected affiliations389
Selected awards390
Bibliography391
Index394

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