One of the most frequent topics in conversations with managers is the limits that everyone comes up against at some point. Boundaries are important to all of us – they let us distinguish things from one another, finish one thing, start another; they are also self-protection. But boundaries show us again and again how stretchable
After defining the corporate purpose, the second fundamental decision is the company’s mission, also referred to as the corporate or business mission. The mission defines the task the company is to fulfil at the operational level, that is, its business activity. Typical mission decisions include positioning in the premium or low-price segment, or focusing on
Sound corporate management requires the right purpose. The corporate purpose determines strategy, structure, and culture. If the purpose is wrong, the company cannot be managed correctly. In a free economy, there is the freedom to choose the wrong purpose. This freedom, however, is deceptive, as it leads to dangerous misjudgments. Wrong purpose decisions are shareholder
There are numerous and widespread errors and misunderstandings about management. They hinder the progress of management theory and, above all, they prevent effective management practice. 1. The opinion that only top managers are managers This misunderstanding of management narrows the view to the very top executives – a picture that is still shaped by the
The following principles for turning intentions into results are among the milestones of effectiveness for individuals and organizations. Especially in times of growing complexity and hard-to-predict change, implementation is the measure of managerial professionalism. Focus on the few Anyone who wants to achieve something must learn to concentrate on a few things. Few things –
Among the highest achievements in management are innovations. Genuine innovations break through what previously seemed to be a firmly established framework and redefine boundaries completely. They establish something radically new, a new paradigm, a new way of thinking, often even a worldview or a philosophy of life. They open up something that did not exist
If there is one overarching objective for corporate leadership, it must be this: maximize customer value-not, as is often assumed, maximize profit. Maximizing customer value can hardly ever be wrong; profit maximization, by contrast, almost always leads systematically and inevitably to wrong paths in the medium to long term. Making customer value maximization
Looking Back at Oneself Effective leaders take time at the beginning of the year for an honest review. They ask themselves: What were my goals? What did I achieve – and what not? Why? What did I do well? Where did I make lazy compromises? Which opportunities did I miss? What did I overlook? What
Management is often mistakenly understood as the art of becoming rich, famous, or powerful. Professional management has as little to do with that as a cheap TV crime show has with real police work. There is fundamental confusion about what management is, what it should be, and what it must not be. Many definitions are
The growing complexity of today’s environment compels top management to operate on a higher level of effectiveness. Either it establishes the steering and regulatory capabilities required by the natural dynamics of complex systems, or it fails under their force. The decisive conditions driving this development are already in place: Complexification is a present reality. With
