Navigating the Complexity of the New World
Buch, Englisch, 401 Seiten, Format (B × H): 156 mm x 233 mm, Gewicht: 785 g
ISBN: 978-3-593-50611-1
Verlag: Campus Verlag GmbH
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.
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Contents
Preface 19
Strategic Solutions for REvolutions 19
The New Challenges 19
The Right Knowledge 21
The Right Strategy for the Great Transformation21 23
The Revolution in the Great Transformation21 24
Innovative, Intelligent and Right Solutions 25
Strategy: Navigating Effectively Through the Complexity of the Great Transformation21 26
Key Propositions 28
A Word On the Terms Used 30
Part I: Strategy for the Great Transformation21
1.What Strategy Looks Like When the Future is Unknown 37
2.The Great Transformation21 41
The Old World Ends as a New World Is Born 43
Megachange in Megasystems 44
The Current Crisis as the New World's Birth Pangs 45
It Takes More than Economics to Understand the Global Economic Crisis 46
Anglo-Saxon Corporate Governance-A Machine of Destruction 47
Complexity and Management Crisis: The Absence of Neuronal Systems 50
Third Act of the Crisis: Deflation 51
The New Way of Functioning: Mastering Complexity 53
3.When You Do Not Know What You Need to Know: The Minefield of Strategic Errors 55
Strategic Delusion by Operational Data 55
Operational and Strategic Management 60
Strategic Thinking Traps 66
Part II: Strategy as Master Control in the Wholistic Management Systems
1.Making Companies Function Well 77
Enhancing Management Impact Through Management Support Systems 77
Right and Good Management-Universally Valid 78
Management, Financial Markets, and Alpinism 81
A Practical Hint for Readers in the Know 82
What are Master Controls? 83
The Basic Management Model and Its Basic Concepts 84
Management of Institutions: The General Management Model 85
Management of People: The Standard Model of Effectiveness, or "Management Wheel" 88
The Integrated Management System-IMS 89
Integrated Strategy as a Top Cross-Divisional Function 92
2.Providing Direction Through
Corporate Policy and Business Mission 95
The Right Purpose 95
The Right Mission 100
The Right Performance 106
Part III: Mastering Complexity Through Reliable Navigation in Any Circumstance
1.Revolutionizing Strategic Navigation 113
The Malik-Gälweiler Navigation System 114
The Right Strategy for a Future Unknown 117
Putting an End to Arbitrariness in Strategy Design 117
Looking Further Into the Future-Without Forecasts 119
Time Constants and System Dead Time 119
Limitations of the Market Economy:
Why Economists Do Not See Far Enough 120
What Must Be Monitored: Variables for Control and Orientation 121
Reliable Function With Cybernetic Control Systems 122
2.Reliable Control Through Cybernetic Navigation 124
First System Level: Liquidity 124
Second System Level: Profit 129
Third System Level: Current Profit Potential (CPP) 131
Fourth System Level: Future Profit Potentials (FPPs) 136
3.Setting the Right Strategy, Irrespective of Economic Climate: The Strategy Map 143
The Solution-Invariant Customer Problem 147
Solution Technologies 154
Socioeconomic Trends 157
Market Position 159
Investments and Cost Reduction Potentials 166
Research and Development Objectives 168
Finance and Balance Sheet Variables 170
Part IV: Following the Change: Success Factors for Your Current Business
1.No More Blind Flying: PIMS-The High Art of Strategy Development 175
Strategic Leadership 176
The PIMS Revolution 178
Strategy at the Strategic Business Unit Level 179
Discovery of the "Laws of the Market Place" 179
A Brilliant Research Idea: Profits Are Driven by Structure, not the Industry 181
New Benchmarking Based on the Biological Pattern 182
The PIMS Database Suites 183
Universally Valid Factors Determine Seventy-five Percent of Profits 185
Answering Key Questions of Strategy 187
Eight Key Factors for Success 188
2.Strategic Core Knowledge: A Cornucopia of Insights 189
Market Position 189
Stability of Results Over Time 190
A Seeming Anomaly Tri
Contents
Preface 19
Strategic Solutions for REvolutions 19
The New Challenges 19
The Right Knowledge 21
The Right Strategy for the Great Transformation21 23
The Revolution in the Great Transformation21 24
Innovative, Intelligent and Right Solutions 25
Strategy: Navigating Effectively Through the Complexity of the Great Transformation21 26
Key Propositions 28
A Word On the Terms Used 30
Part I: Strategy for the Great Transformation21
1.What Strategy Looks Like When the Future is Unknown 37
2.The Great Transformation21 41
The Old World Ends as a New World Is Born 43
Megachange in Megasystems 44
The Current Crisis as the New World's Birth Pangs 45
It Takes More than Economics to Understand the Global Economic Crisis 46
Anglo-Saxon Corporate Governance-A Machine of Destruction 47
Complexity and Management Crisis: The Absence of Neuronal Systems 50
Third Act of the Crisis: Deflation 51
The New Way of Functioning: Mastering Complexity 53
3.When You Do Not Know What You Need to Know: The Minefield of Strategic Errors 55
Strategic Delusion by Operational Data 55
Operational and Strategic Management 60
Strategic Thinking Traps 66
Part II: Strategy as Master Control in the Wholistic Management Systems
1.Making Companies Function Well 77
Enhancing Management Impact Through Management Support Systems 77
Right and Good Management-Universally Valid 78
Management, Financial Markets, and Alpinism 81
A Practical Hint for Readers in the Know 82
What are Master Controls? 83
The Basic Management Model and Its Basic Concepts 84
Management of Institutions: The General Management Model 85
Management of People: The Standard Model of Effectiveness, or "Management Wheel" 88
The Integrated Management System-IMS 89
Integrated Strategy as a Top Cross-Divisional Function 92
2.Providing Direction ThroughCorporate Policy and Business Mission 95
The Right Purpose 95
The Right Mission 100
The Right Performance 106
Part III: Mastering Complexity Through Reliable Navigation in Any Circumstance
1.Revolutionizing Strategic Navigation 113
The Malik-Gälweiler Navigation System 114
The Right Strategy for a Future Unknown 117
Putting an End to Arbitrariness in Strategy Design 117
Looking Further Into the Future-Without Forecasts 119
Time Constants and System Dead Time 119
Limitations of the Market Economy:Why Economists Do Not See Far Enough 120
What Must Be Monitored: Variables for Control and Orientation 121
Reliable Function With Cybernetic Control Systems 122
2.Reliable Control Through Cybernetic Navigation 124
First System Level: Liquidity 124
Second System Level: Profit 129
Third System Level: Current Profit Potential (CPP) 131
Fourth System Level: Future Profit Potentials (FPPs) 136
3.Setting the Right Strategy, Irrespective of Economic Climate: The Strategy Map 143
The Solution-Invariant Customer Problem 147
Solution Technologies 154
Socioeconomic Trends 157
Market Position 159
Investments and Cost Reduction Potentials 166
Research and Development Objectives 168
Finance and Balance Sheet Variables 170
Part IV: Following the Change: Success Factors for Your Current Business
1.No More Blind Flying: PIMS-The High Art of Strategy Development 175
Strategic Leadership 176
The PIMS Revolution 178
Strategy at the Strategic Business Unit Level 179
Discovery of the "Laws of the Market Place" 179
A Brilliant Research Idea: Profits Are Driven by Structure, not the Industry 181
New Benchmarking Based on the Biological Pattern 182
The PIMS Database Suites 183
Universally Valid Factors Determine Seventy-five Percent of Profits 185
Answering Key Questions of Strategy 187
Eight Key Factors for Success 188
2.Strategic Core Knowledge: A Cornucopia of Insights 189
Market Position 189
Stability of Results Over Time 190
A Seeming Anomaly Triggers Discovery of a New Factor 191
Is Innovating a Good Thing? 192
Where Many Businesses Lose Earning Power Without Even Noticing 193
How Important Is Market Growth? 194
Systemic Interconnectedness of PIMS factors 195
PIMS and the Six Central Performance Controls (CPC) 198
The Cybernetics of PIMS Strategy Development 198
Overview: Benefits of PIMS Findings for Top Management 199
Criticism of the PIMS Program 200
What Remains Valid in Business When Everything Changes 201
3.Breaking Strategic Barriers: Three Pioneering Models From PIMS 203
Knowing the Potential of a Business: The PIMS Par Model 203
Learning From Winners: The PIMS Look-Alike Model 206
The Customer Value Map: Using Customer Value and Competitiveness as Reliable Guiding Stars 211
Part V: Ahead of Change: Success Factors for Your New Business
1.Constants in the Currents of Change 223
The Magic of Patterns that Connect 225
We, too, Will Be Replaced: Creative Destruction 226
Symphony of S-Curves: Seeing the Future Clearly 228
Simple Growth Processes 229
From Growth to Substitution 233
When Several Systems Compete for Existence 234
Discovering the Secret Driver of Epochal Change 236
Centennial Cycles: Invention-Innovation-Substitution-Exploitation 238
Was Kondratieff Right?The Rhythm of Long Economic Cycles 241
Self-Destructing and Self-Creating Systems 243
2.Innovating for the Great Transformation21: How to Preprogram Success 246
From the Art to the Craft of Innovation 247
Misconceptions About Innovation 249
3.Mastering Even the Unknown: The PIMS Start-up Strategy 255
Start-ups as a Synthesis of Several Arts: The Secrets of Innovation Success 256
The Right Environment for Start-up Businesses 265
Choosing the Right Strategy in the Right Environment: Knowing, Not Guessing 267
4.Implementing Start-up Strategies: Basic Rules for Effective Innovation 274
1. Go for the Top: Market Leadership and Distinct Changes 275
2. Make Room for New Things 275
3. Separate the Old From the New 276
4. Look for Opportunities in Problems 278
5. Ask Controllers for a Second "First Page" 279
6. Write Down Your Expectations 279
7. Determine Cut-off Points 280
8. Make Sure You Have the Best People 280
9. Run Tests 281
10. Strictly Focus on a Few Things 281
Part VI: Revolutionizing Management Methods: Strategic Approaches Without Time or Space Limits
1.Direttissima: Taking the Most Direct Path to the Right Strategy 285
2.Revolutionizing Change With the Syntegration Method 293
Epoch of New Leadership: Quantum Leap in the Social Technology of Functioning 293
Change and Innovation-Swift and Effective 294
What is the Syntegration Method and What Does it Accomplish? 295
3.The Cyber-Tools 310
SensiMod: The Sensitivity Model As the Organization's GPS 311
EKS: Dynamic Specialization 318
Management System Audit (MSA):New Ways of Functioning and Implementing 325
Operations Room: Implementation With Real-Time Control 330
4.How Even Giants Learn to Dance: HyperSyntegration 337
Appendix
Concept and Logic of the Series "Management: Mastering Complexity" 347
The Malik Management Systems And Their Users 354
What Readers Need to Know in Order to Understand this Book Series 364
Glossary 373
Termin protected by trademark and copyright 385
About the Author 386
Selected affiliations 388
Selected awards 389
Bibliography 390
Index 393
Preface
Strategic Solutions for REvolutions
This book describes my strategic solutions for the REvolutions of the New World, which-although already under way-have yet to be recognized for what they are. That is why most of the measures taken so far are ineffective, with some even having a destructive impact on society.
What I call the New World will be the result of one of the largest global transformations of business and society that has ever taken place. I call it "The Great Transformation21".
The New Challenges
This transformation involves the danger of a social meltdown. At the same time, it also offers a chance for a new economic miracle to bring about a better and more humane social order where organizations function reliably.
What particular course this development will take depends, among other things, on the solutions, methods and tools that leadership elites worldwide can resort to in facing these challenges. It depends on which of the solutions at hand they can identify as genuine solutions, and which they ultimately opt for. One thing is certain: conventional means will not suffice to master the complexity of this transformation, as they have caused much of the current global crisis.
A strong driving force arises from the strategic solutions themselves that I am presenting here. They contribute their share so the upcoming revolutions will happen quickly, while-contrary to previous revolutions-manifesting itself as an innovative breakthrough rather than a violent upheaval.
They liberate us from both, long outdated forms of management and organization and the grotesque limitations of todays's social and political problem-solving processes.
Since 2011 my "Manifesto for Corporate REvolution" has been laid down in my book Corporate Policy and Governance, the second volume in my series Management: Mastering Complexity. Many of the developments outlined there-and even before-have meanwhile materialized, first and foremost the beginning collapse of the financial system. Further profound changes, such as in technology and the sciences as well as in people's social value structures-in particular those of the younger generation-, in their perspective on and perception of the world, have progressed to a point where they cannot be stopped anymore, so they should be accelerated instead and directed along more constructive paths wherever possible.
So, what most people believed impossible at the time of the above publications became a reality just a few years later. In 2008 I wrote that knowledge would outrank money and information would outrank power. The ongoing self-destruction of the financial system proves my first point; the ever-increasing global impact of the social media proves the second. Ruling and leading will never be the same again.
The financial crisis itself, however, will not be a central topic in this book. I have published everything that needed to be said in this respect in the course of the past 15 years; now I let the facts speak for themselves. The scenarios I have presented-some of them as early as in the 1990s-have come true. The basic pattern of this development is "deflationary depression", accompanied by social impoverishment and revolution-that is, unless economists and politicians do a radical rethink and change their course of action. That is why this book is dominated not so much by analyses as it is by solutions and the tools required for implementation.
The Right Knowledge
The knowledge society in the stricter sense is another topic I will not elaborate on here. I have addressed it in my book Corporate Policy.
Rather, what I make available here is the strategic knowledge that enables top managers in all kinds of organizations to tackle the challenges of the Great Transformation21 reliably, quickly, and effectively. The means to do that are my Management Systems® and the navigation, informatio
Preface
Strategic Solutions for REvolutions
This book describes my strategic solutions for the REvolutions of the New World, which-although already under way-have yet to be recognized for what they are. That is why most of the measures taken so far are ineffective, with some even having a destructive impact on society.
What I call the New World will be the result of one of the largest global transformations of business and society that has ever taken place. I call it "The Great Transformation21".
The New Challenges
This transformation involves the danger of a social meltdown. At the same time, it also offers a chance for a new economic miracle to bring about a better and more humane social order where organizations function reliably.
What particular course this development will take depends, among other things, on the solutions, methods and tools that leadership elites worldwide can resort to in facing these challenges. It depends on which of the solutions at hand they can identify as genuine solutions, and which they ultimately opt for. One thing is certain: conventional means will not suffice to master the complexity of this transformation, as they have caused much of the current global crisis.
A strong driving force arises from the strategic solutions themselves that I am presenting here. They contribute their share so the upcoming revolutions will happen quickly, while-contrary to previous revolutions-manifesting itself as an innovative breakthrough rather than a violent upheaval.
They liberate us from both, long outdated forms of management and organization and the grotesque limitations of todays's social and political problem-solving processes.
Since 2011 my "Manifesto for Corporate REvolution" has been laid down in my book Corporate Policy and Governance, the second volume in my series Management: Mastering Complexity. Many of the developments outlined there-and even before-have meanwhile materialized, first and foremost the beginning collapse of the financial system. Further profound changes, such as in technology and the sciences as well as in people's social value structures-in particular those of the younger generation-, in their perspective on and perception of the world, have progressed to a point where they cannot be stopped anymore, so they should be accelerated instead and directed along more constructive paths wherever possible.
So, what most people believed impossible at the time of the above publications became a reality just a few years later. In 2008 I wrote that knowledge would outrank money and information would outrank power. The ongoing self-destruction of the financial system proves my first point; the ever-increasing global impact of the social media proves the second. Ruling and leading will never be the same again.
The financial crisis itself, however, will not be a central topic in this book. I have published everything that needed to be said in this respect in the course of the past 15 years; now I let the facts speak for themselves. The scenarios I have presented-some of them as early as in the 1990s-have come true. The basic pattern of this development is "deflationary depression", accompanied by social impoverishment and revolution-that is, unless economists and politicians do a radical rethink and change their course of action. That is why this book is dominated not so much by analyses as it is by solutions and the tools required for implementation.
The Right Knowledge
The knowledge society in the stricter sense is another topic I will not elaborate on here. I have addressed it in my book Corporate Policy.
Rather, what I make available here is the strategic knowledge that enables top managers in all kinds of organizations to tackle the challenges of the Great Transformation21 reliably, quickly, and effectively. The means to do that are my Management Systems® and the navigation, informatio
