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20 Years of Management Philosophy

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IT Manager's World

Technology has spawned fundamental changes in organizations, and management thinking has had to face additional challenges.

From the Lean Model to the New Century

The 20th century was the 100th year of management as a specialized discipline, and the 100th year of what management scientist Stewart Crenna called "fun, innovation, and progress". From the cult of "scientific management" that began in the industrial age, to the discovery of the "human being" on the production line, to Drucker's discovery and definition of the enterprise, especially in the knowledge economy, to concerns about women's potential and interests in the workplace. interests of women in the workplace.

Management is closely related to business development. 1998 saw the Dow Jones rise to 9,000 points; Microsoft's market capitalization reached $262 billion, surpassing General Electric, which was then the largest company in the United States. ...... The Asian financial crisis continued to sweep across Asia: from July 1997 onwards, the Asian financial crisis was a major factor in the development of the Asian economy, and it has been a major factor in the development of the Asian economy.


The financial crisis that occurred in East Asian countries such as Thailand, Indonesia, Malaysia and South Korea wreaked havoc on the economies of these countries, which showed negative growth in 1998 ......

Under the economic climate, management writings also reflect where the anxiety of the enterprise lies In 1993, the publication of "Business Reinvention" (author: James Ciampi, Michael Gammer) became the bible to reduce the size of the enterprise, that year is IBM "elephants began to dance" of the transformation of the year; published in 1994, "the rise and fall of strategic planning" (author: Henry Mintzberg) and "the big future of competition" (author: Henry Mintzberg) and "the big future of competition" (author: Henry Mintzberg). Competition for the big future" (authors: Gary Hammer, C.K. Prahalad) announced the arrival of a new era of strategy, published in the same year, the "long-lasting business" (authors: James C. Collins, Jerry I. Porras) has become the 20th century in the 1990's with one of the most important management works, which for the long-lived enterprises characterized by the description of: The characteristics of long-lived enterprises: An understanding of the environment in which they are located, and a strong understanding of the environment in which they are located, and a strong understanding of the environment in which they are located. strong> Sensitive to their environment, cohesive and strong sense of identity, tolerant, financially conservative.

And in production practice, Toyota Lean became the most sought-after model in the 1990s. Lean production is built on three simple principles. The first is just-in-time (JIT), production must be closely linked to market demand; the second is that everyone is responsible for quality, and any quality defects should be corrected as soon as they are identified; and the third is the "value stream", which is the idea that a company should not be viewed as a series of unrelated products and production processes, but rather as a series of unrelated products and processes, and should be viewed as a series of unrelated products and processes. The third is the "value stream", which cannot be viewed as a series of unrelated products and production processes, but rather as a continuum, a stream that includes suppliers and customers.

But all of this was challenged by the new paradigm, and in 1999, Dell Computer rose to fourth place on Fortune magazine's list of America's most admired companies, behind General Electric, Coca-Cola, and Microsoft. This company leveraged the model to leverage its technology.

This e-commerce pioneer, with the help of the Internet and customers to establish a direct link, on the one hand, customers can order the products they need, on the other hand, from an operational point of view, there is no intermediary, reduce inventory, and improve the efficiency of logistics and distribution with the help of technology, which makes the overhead very low, and opens up another possibility of growth in the development of the enterprise. The development of computers, the Internet, and other technologies has revolutionized the way we do business, and has had a profound impact on management.

The disruptive innovation represented by Dell is the transmutation from the beginning of technology. 1997, Clayton Christensen in the Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail). In 1997, Clayton Christensen coined the term "Disruptive Technologies in The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail. Since then, the disruptive innovation represented by Internet companies has been a tumultuous two decades.

Management Fever in China

Since its inception in 1998, the management section of IT Manager's World has been devoted to introducing cutting-edge management content, with the most impressive introductions to Drucker's ideas and Mintzberg's. In 2006, the management guru Mintzberg visited China again at the invitation of IT Manager's World. In 2006, the management guru Mintzberg visited China again under the invitation of IT Manager World. In the "Where is Management Going" Interpretation Masters Forum, Mintzberg emphasized that "leadership ability cannot be taught". This is his second visit to China after a 20-year hiatus. 1986, when he first visited China to give lectures, he was an ordinary foreigner in the eyes of the Chinese, while on his second visit, he was a well-known celebrity. However, nearly old Mintzberg is still interested in China, once again came to the Renmin University of China to speak, he was overwhelmed with emotion, China's changes make him unimaginable, "the Chinese people's horizons are more open than before".

In mid-April to the end of nearly 10 days, Mintzberg has been in China's Shanghai, Hangzhou and Beijing to make speeches and discussions, and visited several enterprises in Wenzhou, although he is 67 years old, but his ideas are still sharp, vision is still sharp, he proposed that China can learn from the West's best things, but do not just imitate the development model of others, you can through their own experience to open up a path of independent innovation. He suggested that China could learn from the best in the West, but not just imitate others' development models, and could open up a path of independent innovation through its own experience. He also gave advice to Chinese entrepreneurs: "It is dangerous to emphasize too much on personal strength in business; leaders should not take themselves too seriously, but keep a humble mindset." This is a Chinese expression of his critique of the heroic view of leadership. In his eyes, if China creates a group of "corporate heroes", it could be very dangerous.

A background that cannot be ignored is that Tencent, founded in 1998, Alibaba, founded in 1999, and Baidu, founded in 2000, have formed a triad in the 21st century, and have created disruptive innovations in a number of fields, while traditional enterprises (non-Internet enterprises) have experienced generalized anxiety. The well-developed and complete management science in the West provides an antidote for CEOs.

The emergence of MBA education in China in the 1990s has also contributed to the boom in management discussions. Case teaching methodology, discussion, practice sessions, so that Tsinghua, Peking University and other major institutions, as well as China Europe Business School, Cheung Kong Graduate School of Business and other business executives are widely enthusiastic about the double advancement of knowledge and networking, and even gave birth to a senior group model of the Gobi walk and other MBA events after 2000, the formation of a new industry.

Winter for management?

Several industrial revolutions brought about by technology have created new productive forces, which have brought about changes in value creation and distribution patterns, which in turn have affected changes in organizational behavior. Such changes from the first industrial revolution to the fourth industrial revolution, it is not difficult to see such a trajectory.

And the management science built on the industrial society, in the Internet and the impact of emerging technologies also encountered challenges. In the form of business organizations established for the purpose of reducing costs and increasing productivity, countless people are attached to the organization for the purpose of obtaining value distribution. Reduced transaction costs through the Internet make external transaction costs equal to or even lower than internal transaction costs, and new forms of collaboration beyond the established organization allow elements of the business organization to be fundamentally altered. R&D, finance, personnel, supply chain, etc. can be realized in the form of outsourcing, people can exist independently of the organization.

The processes ensured by the hierarchical system have become increasingly rigid, and the constraints of one employee corresponding to one position have made it impossible for organizations to respond to rapidly changing market demands. The blurring of organizational boundaries is more akin to the pan-organizational form of "free association of free people" advocated by the Internet.

In fact, the rise of big data and the Internet of Things (IoT) has provided a more accurate basis for corporate decision-making, as well as a reference for understanding human behavior, and providing improved solutions for employee interviews, compensation and benefits, exit possibilities, and working lunch arrangements.

As Internet companies grow, the changes they bring to management also accomplish new patterns. The culture of engineers became the new guiding light of business. According to Larry Page, co-founder and CEO of Google, "At Google, we try to implement an autonomous way of thinking into every aspect of the business." Thus, attracting the creative elite at Google became the company's mission because "the creative elite understand that the business plan is far less important than the pillars that support it."

In an Internet industry where technology reigns supreme and employees are empowered, the understanding of management is turned upside down. "Silicon Valley is as much about playground offices filled with snacks as it is about hoodies and jeans, and it's about innovating, innovating, and reinventing.

New Business Organizations

Matrix organizations and amoeba organizations are all trying to transform the hierarchical system, but the question is: Is there a form of organization that can adapt to decentralized management?

Holacracy is one answer. Brain Rorberson, the founder of Holacracy, was one of the catalysts for this change. Incubated by a software company called Ternary, it is one of the many democratic forms of organizational governance, the best practices of which were compiled by the company's founder, Brian Robertson, in 2007, and developed into an organizational system called Holacracy. 2010 saw Robertson create the In 2010, Robertson created the Holacracy Constitution, which sets out the core rules and practices for the system and supports related company practices.

Forbes and Fast Company praised his development of Holacracy as "a management system that has a deep understanding of how to manage and run an organization quickly, flexibly, and successfully to achieve its goals. It frees companies from the soon-to-be-obsolete top-down authoritarian planning." Brian Robertson is more than happy to emphasize that collocation is not a management model, but a technology.

By itself, the CEO formally relinquishes managerial authority to a management committee established under the company's internal "constitution," and instead assumes responsibility for reorganizing the company's small team of employees. Under this system, the company's organizational structure is "decentralized" and the employees are regrouped freely into small groups. Within the teams, each person chooses his or her own role and his or her own goals.

This means that the collaborative system transforms the definition of a job from one that is defined by "people and positions" to one that is defined "around tasks" and is frequently updated. The Harmonization System is one of the most powerful organizational expressions of Agile management. This new Internet-based organizational architecture and management system helps teams and individuals within an organization to complete tasks in a faster, more innovative, flexible, streamlined, and peer-to-peer interactive way. At the same time, the structure of the Huddle System is clearer, and who is responsible for what and who makes which decisions are clearly defined and strongly enforced on a dynamic system.

The technology was first used by a handful of companies in 2009, and then made famous by Zappos, the online e-commerce company owned by Amazon, in 2013, and then in China in 2015. Hopping system has created a wave in Silicon Valley due to the use of a number of internet companies including Google. As of today, more than 1,000 companies around the world are operating a hopscotch. Nearly 100 companies, including Danone and Decathlon, have been using the system since 2015, and it is also being used by Swiss online financial data analytics companies associated with banks.

Also making every employee a boss, like the co-location system, is China's Haier Group. The white goods giant has split its huge organizational structure into platforms as well as a variety of micro and micro, allowing for new experimentation with the organizational structure, followed by the formation of an eco-enterprise in the age of the Internet of Things. From 2005, the current Haier Group Chairman of the Board of Directors, CEO Zhang Ruimin put forward the "human single integration" model, in the twelve years of exploration, this reform has always insisted on the main line of human value creation. In fact, as long as the organization is composed of people, there is no difference in the driving force behind. The "human-single" is the source of this driving force, so that employees become autonomous people, so that creators directly connected to the user, for their own definition of value,

Starting from the enterprise platform, employee creators, user personalization to the emergence of Raytheon's new three-board listing of such a sample of small micro. Zhang Ruimin, chairman of the board of directors and chief executive officer of Haier Group, called 2017 "the first year in which the 'human-single' model took root and blossomed." And in 2018, Zhang Ruimin put forward the ecosphere, eco-income, eco-brand "three life" system, forming the practice of management mode in the era of the Internet of Things.

*** Benefit Corporation

Another exploration of the organizational model is the B-type (Benefit Corporation) enterprise. Since its inception, the corporate system has been inextricably linked to social responsibility. In what form can this innate problem be solved? What is the future of corporations and management? Management guru Drucker praised the concept and management of the social enterprise as representing the future of management.

The so-called "social enterprise" is a company or organization that operates and manages itself through corporate and commercial methods to achieve certain social objectives. Unlike traditional charitable organizations that rely on donations, they are run on a for-profit model and are primarily designed to achieve social goals by reinvesting much of their surplus back into the business or the community, rather than maximizing the interests of shareholders and business owners.

B corporations, on the other hand, must consider the impact they have on all stakeholders - including employees, suppliers, communities, consumers, and the environment - not just shareholders. In other words, it's a way of redefining business success that encompasses "corporate governance," "environmentally friendly," "community-based," "employee care," and "employee engagement. "B-Business advocates that companies should not only be "the best in the world", but also "the best for the world". The B-shaped enterprise advocates that the enterprise should not only be the "best enterprise in the world", but also "the best enterprise for the world".

If in the past two hundred years, corporations laid the foundation for global economic wealth, and wars between nations were replaced by inter-corporate competition and cooperation, then in the next one hundred years, as societies become more affluent, B-corporations will take root, sprout, and thrive across the globe, and social entrepreneurs will be able to create fairer societies and more sustainable tomorrows under this new form of organization.

Author 丨 Zheng Yue

WeChat Editor | Zhou Xingru

Review Editor | Zheng Yue

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Technology driving business change