Competing through organizational agility - McKinsey Quarterly - Strategy - Strategic Thinking. Market turbulence did not begin with the fall of Lehman Brothers, and it will not end when the global economy recovers. Indeed, a variety of academic studies—using measures such as stock price volatility, the mortality of firms, the persistence of superior performance, the frequency of economic shocks, and the speed of technology dissemination—have concluded that volatility at the firm level increased somewhere between two- and fourfold from the 1970s to the 1990s (see sidebar, “Recommended reading”). In turbulent markets, organizational agility, which I define as the capacity to identify and capture opportunities more quickly than rivals do, is invaluable. Executives know this: a recent McKinsey survey found that nine out of ten executives ranked organizational agility both as critical to business success and as growing in importance over time.
Strategic agility An effective combination of patience and boldness is easy to recognize in hindsight. Probing for opportunities Mitigating risk. The Future of Management: Is it Deja vu all over again? If you are a regular reader of the MIX, you probably already have a point of view on the future of management. Indeed, the MIX was created to help accelerate the evolution of management, so chances are you have already bought into the argument that we are going through a period of upheaval that will transform the way we work in organizations in the years ahead. I hope and believe this argument is right. And in future blog posts on this site I will discuss examples of some of the changes in management that are currently underway.
But let me develop a contrarian line of argument first, before offering a synthesis. Here's the problem with all this talk of virtual and networked organizations, and this vision of empowered and engaged employees. So there is an enduring puzzle that we need to come to grips with. Why is this? I see four interlinked reasons: First, the traditional model of management is so pervasive that it is still the safe way of doing things. So what does the future look like? We have to change the way we change | Zenna Atkins. We go wrong with change because we make it a big occasion, not an everyday event. Change is every day, by everybody, always. It's not a big party where you rock up once every couple of years, get totally wasted, and then try to live with the consequences. Yet that tends to be how we approach it, particularly in the public sector. Our favourite change is an organisational or departmental structure change. To really embed change it has to a part of the lifeblood of the organisation; it has to happen every day.
Organisations need to have permeable membranes that sense and absorb what's going on around them – customer trends, market changes, shareholder twitters, stakeholder moves and societal trends. For example, the population is turning to the web for advice and consumer choice, so, let's adapt our site a bit, to be both an advice giver and a consumer feedback centre. Equally, we need to have our internal ears open. The future is already here – it's just patchy. Don Sull, Strategy through turbulence - McKinsey Quarterly - Strategy - Strategic Thinking. (4) Twitter / Home. Interview with Julian Birkinshaw: Reinventing Management - Steve Denning - RETHINK.
The Collapse of Complex Business Models. I gave a talk last year to a group of TV executives gathered for an annual conference. From the Q&A after, it was clear that for them, the question wasn’t whether the internet was going to alter their business, but about the mode and tempo of that alteration. Against that background, though, they were worried about a much more practical matter: When, they asked, would online video generate enough money to cover their current costs?
That kind of question comes up a lot. It’s a tough one to answer, not just because the answer is unlikely to make anybody happy, but because the premise is more important than the question itself. There are two essential bits of background here. The first is that most TV is made by for-profit companies, and there are two ways to generate a profit: raise revenues above expenses, or cut expenses below revenues. The other is that, for many media business, that second option is unreachable. Here’s why. The ‘and them some’ is what causes the trouble. Dr.
When Knowledge Sharing Turns to Knowledge Hiding. Title: Knowledge Hiding in Organizations (Subscription or fee required.) Authors: Catherine E. Connelly (McMaster University), David Zweig (University of Toronto), Jane Webster (Queen’s University), and John P. Trougakos (University of Toronto) Publisher: Journal of Organizational Behavior Date Published: January 2011 Why don’t companies investing in knowledge-transfer software see more of an improvement in their information flow? The researchers dub this newfound phenomenon “knowledge hiding.” Some situations involve overt deception, such as when a co-worker provides part, but not all, of the requested information. In the first study, 35 employees at a Canadian financial-services firm completed a daily survey for a week that logged their responses to internal requests for information. In the next study, 194 employees representing a wide variety of organizations, ages, experience, and education levels completed a questionnaire about their experiences with knowledge transfer.
Business Model Innovation – A New Way of Creating and Capturing Value in Organizations. There are numerous claims that Business Model Innovation is extremely important if you want to stay competitive and increase your revenues. Some would even say that Business Model Innovation has a stronger impact on margin growth than product and service innovations and at the same time can disrupt established industries. InnovationManagement asked Business Model Innovation guru Alexander Osterwalder a few questions. How would you shortly describe the main content or cornerstones in Business Model Innovation?
- Business Model Innovation is actually really simple: it’s about new ways of creating and capturing value in organizations. . - Firstly, companies need to find new ways to grow and stay competitive. As a company you need to be prepared for those industry shifts - Secondly, industries are increasingly transforming because of new trends and new insurgents that compete with totally new business models. . - Thirdly, traditional industry boundaries are disappearing. . - There is no doubt. Don Tapscott: Business Models for Five Industries in Crisis - The Source. Don Tapscott Author, Don Tapscott.
By Don Tapscott Editor’s Note: Mr. Tapscott will take your questions in a live chat on Tuesday, July 12 at 4 p.m. London time, 11 a.m. ET. In our 2006 book Wikinomics, Anthony D. However, in the five years since the book’s publication, we’ve noticed something striking: the rate of business model innovation has not accelerated. We’re beginning to understand the reason. 1. Pharmaceutical companies are about to drop off what’s called “the patent cliff”. The global biomedical community is generating about 25 new medicines per year, but only a handful of these are “pioneer drugs” rather than “follow-on drugs”–variants, formulations or combinations of existing therapies. Despite increased research spending the impact on the number of new medicines approved is negligible.
It is in everyone’s interest that those involved in the quest for pioneer drugs share rather than hoard information. Nor is the clinical trial process as open as it could be. 2. 3. 4. 5.
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