The Strategic Framework of Enterprise Evolutionary Management

The ultimate goal of management theory is to serve the practice of management, and the ultimate goal of applying evolutionary management thinking is to gain a deeper understanding of, and a more reliable guide to, business practice.

Evolutionary management's strategic framework is not simply a recipe for enabling a company's chief executive officer to take a holistic view of the turbulence and change in the business environment, so that the company or organization can maintain sustainable development. The strategic construct of evolutionary management consists of the following five components. It is to maximize shareholder value by putting the company's employees first and prioritizing them over financial, economic, and technological resources and goals.

The establishment of a company's strategic focus is necessary to maximize the utility of the company's resources and has also been historically emphasized in management. In the past, strategic focus was measured by financial indicators and consumer satisfaction, and the company's resources were estimated primarily on the basis of technical and financial indicators. In a business environment characterized by intense competition and unprecedented rates of evolution, such estimates of strategic focus are inappropriate.

"The life of a community is not only in the principles it promotes and the clothes it wears. The often unrecognized source of life comes from the unity in community spirit that is built up through cooperation, a unity that allows its members to shape the organization into entirely new forms through their own growth and the changing demands of the times, and any community that does not have this freedom will have its life constrained by its ill-fitting garments, and its work hampered or paralyzed." (Chapter 7 of "Christian Faith and Practice in the Experience of the Society of Friends" The London Yearly Meeting of the Society of Religious Friends (Richmod, Zndiana; Friends United Rress, 1960).)

As it is with communities, so it is with organizations. In the new historical conditions, the sustainability of the competitiveness of organizations can be maintained only if people's creativity is fully developed and their minds and bodies are fully engaged in their work. Vigorous and creative human resources are the basis for maximizing the utility of other resources and the best way to maximize the use of other resources, so the importance of people must be consciously and decisively emphasized in the management of all sectors of the organization.

What we are advocating here, that people come first, is not to be equated with the emphasis on the human factor advocated by the behaviorists, which has been reinvigorated by giving it a new significance for the times. In this era, it should be more practical: it should be the most direct service to the enterprise's sustainable survival goals. The author believes that it should briefly have the following characteristics:

(1) Appropriate inducement to the staff to fully understand what the enterprise will do and the importance of the company's goals, to clarify their own position and role in the enterprise, and to enhance the understanding of the unique value of the individual in the process of realizing the goals.

(2) Integrate the ability of all employees to engage in various production activities creatively and flexibly.

(3) Establishing a set of goal systems and performance awards that are integrated into the overall performance of team departments and the company. In a rapidly changing business environment, sustainable management requires the establishment of a long-term corporate personality that can be recognized by employees, competitors, financial analysts, and consumers in order to increase the profitability of the company by enabling the public to differentiate between this company and others through prices, production volumes, and stock market premiums.

Firms following the principle of "maintaining a sustainable, long-term competitive focus" face the challenge of identifying potential alignment with long-term strategic goals and realizing effective articulation with that alignment.

In this context, determining a firm's long-term competitive focus does not mean adhering to a fixed strategic position. On the contrary, it is through the continuous adjustment of strategic positioning that companies maintain the continuity of the organization's long-term competitive focus. There are many companies that have done well in this regard. For example, Matsushita and Toto in Japan. Because of the increasing complexity of the competitive environment and the continuous penetration of information technology in the field of production, managers must use information as a resource to maintain the strategic advantage of the enterprise, and to ensure the openness and effectiveness of corporate information.

The position of information in production activities has become increasingly important. The value of information is integrated into the business activities of the enterprise and occupies a considerable proportion in the value-added process of the enterprise.

In the latest business developments, information flows from a variety of sources, including science, R&D, and from markets, customers, and competitors, can be obtained at low cost by means of utilizing efficient monitoring systems and information gathering systems. This knowledge can then be processed and applied to activities such as after-sales service, production operations, marketing, distribution, and ecological and socio-environmental impact analysis and measurement.

The strategic principle of information disclosure is not only a matter of technology selection, but also a matter of overall strategy formulation, production and organization construction. Information changes the status and interrelationships of people within the organization by interconnecting the various scattered parts of the company with the overall activities. Information makes the seemingly dispersed production activities such as purchasing, forecasting, production, inventory control, etc. to be integrated into independent and unified online activities. It is information that connects competitive, technological, legal, and managerial decision-making, and by extension, a whole range of activities in the real world of business. It is also information that enables the evolution of inter-firm ****s on a broader industry scale (suppliers, competitors, distributors, consumers, relevant regulatory agencies, subcontractors, etc.). The above links established by information are important determinants of a company's potential profitability and must be taken seriously by companies. As a result of the globalization of the economy and the increasing interdependence of the members of the system, a firm's sustainable competitive advantage is inevitably closely linked to the sustainable advantage of the industry in which it operates. In order to survive in the long term, a company must evolve and develop with the entire industry system, including suppliers, distributors, subcontractors, direct and indirect competitors, etc***.

The long-term survival of a business is becoming increasingly linked to the overall level of development of the industry system in which it operates. Cooperation, alliances, the establishment of *** with the same ethical norms and behavioral patterns on the development of enterprises is important, the establishment of *** with the evolution of strategic partners is not only the purpose of the traditional sense of risk *** sharing, and such strategic partners are not only limited to within the industry. They include new strategic alliances that provide sustainable profit opportunities created with long-term interests and big-picture considerations in mind. Such alliances can include local community organizations, other industry organizations and even public **** bodies. The future of business is increasingly linked to the future of the wider social and ecological environment. It is only through the sharing of resources and responsibility*** that a sustainable and profitable business can be maintained.

The creation of constructive strategic partnerships is not only a fact of life in many areas of business activity, but is also developing at an increasing rate, in an industry where intra-company hyper-cycling creates a "business ecosystem" that enhances the mutual benefit of companies to each other. Michael Porter describes this process as "the jewel in the crown of the industry group" (the jewel that consists, on the one hand, of strategy, structure, and inter-firm competition, and on the other hand, of a series of elemental conditions, demand profiles, and the associated supportive industries, which all contribute to a franchise industry). (the industry that leads to the joining *** with the acquisition of a key competitive advantage).

In contrast to the mergers and acquisitions that typified the 1980s, the establishment of ****evolutionary strategic partnerships is a way of increasing the competitiveness of individual firms rather than increasing competition between them. Such strategic partnerships are a synthesis of elements of the business function as a whole, and, as Japanese management consultant Kenichi Ohmae has pointed out, the advent of an era of economic, technological, and cultural complexity will require businesses to ****take advantage of their resources and enterprises in order to compete effectively. Such cooperation suggests that future competition calls for firms to submit not only to the alignment of short-term interests, but also to the alignment of the long-term interests of the industry as a whole.

5. Continuous monitoring and adjustment of the company's strategic position in the system of this industry

According to the theory of evolution, the development of long-term goals of the organization requires that it must have the concept of sustainable development and the concept of responsibility for the future impact of the organization's actions. But no organization or individual can master an entire environment, an entire industry, and as technology, bargaining power, and legal constraints change, and as other major competitive forces emerge, only those companies that are able to position their business activities according to the specificities of their own industry development, and that do so in a sustainable manner, will be able to gain a long-term competitive advantage.