A Personal Summary and Thoughts
The basic premise of Management Reset, as stated in the introduction, is “not about convincing you that organizations need to be sustainably effective; it is a book about how organizations can be sustainably effective.” The book opens with a brief management history that imparts the business, social, and economical backgrounds and well as a basic vocabulary and explanation list used in the rest of the book. We are introduced to Command and Control Organizations (CCOs), High Involvement Organizations (HIOs), and the approach that the book will focus on Sustainable Management Organizations (SMOs). We are given a general summary of the shortcomings of the former two systems or management, as well as a summary of why the reset is needed and the major components required to sustain the change. The new SMO approach employs the concepts that; They do not fear change, they embrace it, they value people, both employed and served, they actively support social well being, they consider the communities in which they operate equal to the profits and bottom lines they seek to achieve. The SMO concepts of “Organizational effectiveness” and the four core issues to “The Way Organizations Are Managed” are introduced in this section, and are the key concepts discussed throughout the rest of the book. Organizational effectiveness states sustainable effectiveness should be achieved in three areas: people, planet, and profit, also known as the “triple-bottom line.” The performance should be evaluated using two questions. “Does the organization generate sustainable outcomes and act responsibly toward all stakeholders?” and “Can the organization sustain effectiveness?” The four core issues of the way organizations are managed must fit business model and be sustainably effective. The core issues are used to section the remainder of the book and are as follows: “the way value is created,” “the way work is organized,” “the way people are treated,” and “the way behavior is guided.”
The Way Value is Created
While discussing the first issue, the main concepts are the different strategies and the methods of developing them. The idea of the “robust strategy” is brought through to this book an expanded upon. The need for a clear identity (long-term aspect of the strategy) and the intent (the short-term aspect of the strategy.) This section states that an identity both flows from and helps create in culture and mission. The main idea being, to comprehend a company’s approach to value, you must understand its identity. It is important for the organization to have a strong and well-defined identity, to ensure future strategic intents are aligned with the overall mission. With this frame of thinking in mind, this section outlines new views on creating value. The book concedes that financial value is very important but brings to light how the profit is made and what it is subsequently spent on. The strategy’s view on ecological value shows that organizations must not only be aware of their carbon footprint, but taking proactive measures to reduce it. In line with this strategy, organizations social value is measured by their treatment of their employees as well as communities, cultures, and countries in which they operate. The important fact to remember about SMOs is that they exist by a series of flexible momentary strategic advantages, strategic intent. Their mindset is one that “the ability to change drives performance because no advantage is expected to last.” As opposed to the former methods of management, SMO are able to adapt to take advantage of opportunities as well as withdraw if the venture was a mistake. They are able to achieve this ability by adjusting their breadth, aggressiveness, and differentiation. In developing a strategy, SMO use a process called “futuring.” The foundations of this process being: current performance is an much a function of preparation as it is execution, to look at...