15/11/2016

TheManagementRevolutionThat'sAlreadyHappening

Leadership
MAY 30, 2013 @ 05:43 AM

32,386 VIEWS

TheManagement
RevolutionThat's
AlreadyHappening
Steve Denning, CONTRIBUTOR
I write about radical management, leadership,
innovation & narrative. FULL BIO
Opinions expressed by Forbes Contributors are their own.

Theonlywaytodogreatworkistolove
whatyoudo.
SteveJobs
Whatonearthishappeningtomanagement?
Formerlyselfevidenttruthsarebeingcast
aside.Thesacredgoalofmaximizing
shareholdervalueisnowthedumbestidea
intheworld.Thesearchfortheholygrailof
sustainablecompetitiveadvantageisnow
recognizedasfutile.Theessenceof
strategyseenascopingwithcompetitors
isobsolete.Theunidirectionalvaluechain
theverycoreof20thCenturymanagement
thinkingisnowaproblem,notasolution.
Theshorttermgainsoflargescaleoff
shoringofmanufacturingarerecognizedto
havecausedmassivelossofcompetitive
capacity.Supposeddistinctionsbetween
leadersandmanagershavecollapsed.Totop
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itoff,aslewofrecentmanagementbooks
suggestthattodaysorganizationsrepresent
afailuresodeepandpervasivethatthereare
hardlywordstodescribeit.Averitable
revolutioninmanagementisunderway.

Althoughthesebookshavemany
antecedents,thestirringsoftherevolution
beganinearnestin2009withGaryHamels
declarationinthelandmarkHBRarticle,
MoonShotsForManagement,followinga
colloquiumwithdistinguishedthought
leaders:
Tomorrowsbusinessimperativeslie
outsidetheperformanceenvelopeof
todaysbureaucracyinfusedmanagement
practicesEquippingorganizationsto
tacklethefuturewouldrequirea
managementrevolutionnoless
momentousthantheonethatspawned
modernindustry.

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Inthe20thCentury,firmshadoftenbeen
successfulbyfollowingthepreceptsof
hierarchicalbureaucracy:focusonmaking
money,tellemployeeswhattodo,
controlperformancethroughrules,roles,
plansandreportsandachieveefficiency
througheconomiesofscale.
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Inthelastquarterofthecentury,corollaries
wereadded:focustightlyonmaximizing
shareholdervalue,strategyisaboutcoping
withcompetitionandlowercostsbyoff
shoring.Theseprinciplesworkedsolongas
oligopoliesdominatedthemarketplace.
Firmscouldsucceedwithlimitedinnovation,
oftenbycopyingwhathadalreadybeen
pioneeredbyothers.
ThenglobalizationandtheInternetchanged
everything.Customerssuddenlyhadreal
choices,accesstoinstantreliable
informationandtheabilitytocommunicate
witheachother.Powerinthemarketplace
shiftedfromsellertobuyer.Customers
startedinsistingonbetter,cheaper,quicker
andsmaller,alongwithmoreconvenient,
reliableandpersonalized.Continuous,even
transformational,innovationhavebecome
requirementsforsurvival.
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Hierarchicalbureaucracycouldntcope.
Attemptsatachievingcontinuousinnovation
ledtounmanageableinternalcomplexity,
whileattemptsatlimitinginnovation
acceleratedorganizationaldeath.
AsAllenMurraynotedintheWallStreet
Journal,firmspracticingtraditional
managementmissedgamechanging
transformationsinindustryafterindustry
computers(mainframestoPCs),telephony
(landlinetomobile),photography(filmto
digital),stockmarkets(floortoonline)not
becauseofbadmanagement,butbecause
theyfollowedthedictatesofgood
management.

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Initiallymatureproductsandfirmswere
wipedoutbyupstartsthatofferedcheap
substitutestotheirproducts,firstcapturing
lowendcustomers,andgraduallymoving
upmarkettopickoffhigherendcustomers.
Thenchangeaccelerated.Suddenlyentire
productlineswholemarketscouldbe
destroyedalmostovernightascustomers
defectedindrovesasaresultofbigbang
disruption.Disrupterscameoutofnowhere
andwereeverywhereatonce.Disruption
happenedsoquicklyandonsuchalarge
scalethatitwashardtopredictordefend
against.
Evenashierarchicalbureaucracywasfailing
intheprivatesector,itspracticeswere
infectinggovernment,nonprofits,education
andhealth.Reformshereusuallyinvolved
stricterimplementationofhierarchical
bureaucracyratherthanashifttowards
moreproductivemanagementpractices.Asa
result,performancewaspushedevenfurther
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fromthefrontierofwhatispossible.Since
thepubliciscomingtoexpect
responsivenessfromthesesectorssimilarto
thatoftheprivatesector,satisfaction
steadilydeclined.
Newwaysofleadingandmanagingemerged
Yetinthismorechallengingcontext,some
organizationsforgedahead.
Applemetthediverseneedsofhundredsof
millionsofindividualiPhoneusersby
launchingitsownecosystematechnology
platformthatenabledhundredsofthousands
ofdeveloperstocreateAppsthatcouldmeet
everyconceivablehumanneedandtooffer
themdirectlytocustomers.Theresultisan
iPhonethatiseasilyadaptedtomeetthe
needs,preferencesandpassingwhimsof
everysingleuserafeatinconceivablewith
traditionalmanagementpractices.
Salesforceachievedcontinuousinnovationin
aglobalcomputersystem,withmorethan
twomillionsubscribersand30millionlines
ofcode,whereevenasingletinyerrorcan
causetheentiresystemtocrash.Self
organizingteamsachievecontinuous
innovationbyworkinginshortiterative
cyclesoftestdrivendevelopmentwithdirect
customerfeedbackastheworkproceeds.
TheUSmilitarycopedwithasymmetric
warfareagainstelusiveterroriststhrough
missioncommand,anapproachbuilton
decentralization,spontaneity,informality,
looserein,selfdisciplineandinitiative.It
drawsonabilityfromallechelons.Its
communicationsaremultidirectional
interactions,notjusttopdowndirectives
(seechart).

Apple,SalesforceandtheUSmilitaryarenot
alone.Amazon[AMZN],Salesforce[CRM],
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WholeFoods[WFM]Toyota[TM],Haier
Group,Li&Fung[SEHK:0494]andZara
[BMAD:ITX]areotherprominent
exemplarsoffundamentalchange,along
withthousandsoflesserknownfirms.The
transitionishappeningnotjustinhightech,
butalsoinmanufacturing,books,music,
householdappliances,automobiles,
groceriesandclothing.
Noneoftheseorganizationshasarrivedat
anyfinalstateorequilibrium:ineachcase,
managementpracticescontinuetoevolve.
Norisanyoftheseorganizationsperfect,as
theyhavetocopewithacontextthatisfilled
withcontradictions.Theirvirtueliesinthe
creativeenergywithwhichtheyare
pioneeringnewwaysofaddingvalue.
TheprinciplesoftheCreativeEconomy
Ineffect,themanagementrevolution
foreshadowedbyGaryHamelhasalready
begun.Anewkindoforganizationis
emerging,capableofachievingboth
continuousinnovationandtransformation
alongwithdisciplinedexecution,whilealso
delightingthoseforwhomtheworkisdone
andinspiringthosedoingthework.These
organizationshavemovedtheproduction
frontierofwhatispossible.Aneweconomy
theCreativeEconomyhasappeared.
Thenewwayofoperatingcoexistsinthe
economyalongwiththeold,sometimeseven
inthesameorganization.Forexample,GEis
afirmthatisstilllargelypracticing
traditionalmanagement,althoughpartsofit,
suchasGEHealthCare,havebegunto
operateinamoreagilefashion.

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Theshiftisthusnotoneofnewfirmsvs
oldfirms.AsBillFischer,thecoauthorof
ReinventingGiants(2013),says,Someold
economyfirmsarepracticingcreative
economymanagerialapproaches,yet
receivinglittleornorecognitionforit.
Whatittakestoprosperintodaysdifferent
contextisnowdiscernable.Aseriesof
articlesinStrategy&Leadershiphas
sketchedtheradicallydifferentprinciplesof
leadershipandmanagementbywhichthese
organizationshaveachievedahigherlevelof
performance(seebelow).
Asetofbookshassimilarlybeendelineating
theprinciplesandpractices.Oncesacred
andsupposedlytimelesstruthsof
managementandleadershiparebeing
discarded.Newmovementsare
spearheadinganddisseminatingthechange
(seelistbelow).Businessschoolsare
recognizingthattheyfaceacrisisof
irrelevanceandarebeginningtoreflectthe
shift.
Acoherentconstellationoffundamentally
differentprinciplesinleadershipand
managementhasemerged.Theprinciples
involvenotmerelytheapplicationofnew
technologyorfixesortweakstohierarchical
bureaucracy.Theyrepresentaparadigm
shiftinthestrictsenselaiddownbyThomas
Kuhn:adifferentmentalmodelofhowthe
worldworks,leadingtoadifferentwayof
thinking,speakingandactingintheworld.
Noneoftheprinciplesorpracticesis
individuallynew.Whatisnewis
implementingthemtogetherinadisciplined
waytogetworkdone.
Thenewmanagementcanon

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Thenewmanagementcanon
Thebooksandarticlesdescribingthenew
paradigmconstituteacanonofradically
differentmanagement.Itisappropriatethat
differentwritersarefleshingoutthecanon.
Thenewmanagementparadigmisalarge
ideaanddifferenttakesonitcanhelpusget
ourmindsaroundit.
Despitedifferencesinterminology,emphasis
andcoverage,thecommonalitiesinthese
booksaremoresignificantthanthe
differences.Infact,thedifferencesbetween
themareminorcomparedtothegulf
between,ontheonehand,thewaymost
largeorganizationsareactuallyledand
managedtodayand,ontheother,theway
thesebookssaytheyoughttobeledand
managed.
Thebooksandarticlescontaininsightsthat
areunmistakablyrelevanttothe21stCentury
workplace.Whiledrawingonthewisdomof
history,thesebooksarenotthincopiesof
whathasbeensaidmanytimesbefore.They
cometotermswiththetruthofourtimes.
Theirpassionhelpsusrecoverasenseof
wonderintheworkplace,enablingustolook
attheworldafreshandseehowtruly
inspiringcreativeworkanddelighted
customerscanbe.
Leadersneedtoseethatthebooksand
articles:
recognizeaparadigmshiftinleadershipand
management
recognizeacoherentconstellationof
businessprinciples,notabundleof
individualfixes
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distinguishtheprinciplesofthenew
paradigmfromtheindividualsandfirms
practicingthem
separatecoreprinciplesfromamultitudeof
relatedpractices
distinguishdriversfromresults
reflectanhistoricalawarenessofatransition
ofonetypeofleadershipandmanagementto
another
depicttheshapeanewkindofeconomythe
CreativeEconomy
arepassionateintheircallsforadifferent
future.

Twelveofthebookshavebeendiscussedin
earlierarticles:includingFixingtheGame
(RogerMartin),WhatMattersNow(Gary
Hamel),ReorganizeforResilience(Ranjay
Gulati),ThePowerofPull(JohnHagel,
JohnSeelyBrown,LangDavison),The
InnovatorsPrescription(Clayton
Christensenetal),TheLeadersGuideTo
RadicalManagement(StephenDenning),
TheLeadersDilemma(FranzRslietal),
ConsciousCapitalism(JohnMackeyandRaj
Sikodia),Peak(ChipConley),TheLean
Startup(EricRies),TheUltimateQuestion
2.0(FredReichheldetal)andLeadershipin
aWikiWorld(RodCollins).
Sixrecentadditionstothecanondraw
attentiontocomplementaryaspectsofthe
newparadigm:TheElasticEnterprise
(2012)byNicholasVitalariandHaydn
ShaughnessyTheEndofCompetitive
Advantage(2013)byRitaMcGrathFlat
Army(2013)byDanPontefract:The
ConnectedOrganization(2013)byDave
GrayEnterpriseSoftwareDelivery(2013)
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byAlanBrownandReinventingGiants
(2013)BillFischeretal.Eachofthenew
bookscontributestoinstitutionalizingthe
paradigmshiftindifferentways.(see
FeaturedReadingsbelow).
Whatthecanoncontributes
Leadersshouldrecognizethattheseeighteen
booksrepresent,noteighteenunrelatedsets
ofideas,butratheronecoresetofideas
explainedineighteendifferentways.

Thecommonthreadsinclude:
1)Thebooksrecognizeaparadigm
shiftinleadershipandmanagement
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Theparadigmshiftinvolvesnotmerelythe
applicationofnewtechnologyorasimpleset
offixesoradjustmentstohierarchical
bureaucracy.Itmeansbasicchangeinthe
waypeoplethink,talkandactinthe
workplace.Thebooksrecognizethe
paradigmshift,andaddressthedeep
changesinattitudes,values,habitsand
beliefsinvolvedinthechange.
Whereasthetraditionalmanagement
pursuedanethosofefficiencyandcontrol,
oftentreatingbothemployeesandcustomers
asthingstobemanipulated,thenew
paradigmthrivesontheethosof
imagination,exploration,experiment,
discoveryandcollaboration.Itdealswith
employeesandcustomersasindependent,
thinking,feelinghumanbeings.Itembraces
complexityasanopportunity,ratherthana
hurdletobeovercome.
Amongthebookswiththeclearest
articulationoftheparadigmshiftareFixing
TheGame,TheElasticEnterpriseand
ConsciousCapitalism.
2)Thebooksdescribeacoherent
constellationofprinciples
Thenewparadigmisacoherent

constellationofprinciples,practices,
attitudes,valuesandbeliefs,notjusta
unconnectedbundleofmanagement
gadgets,processesortechnologies.The
booksrecognizethatbreakthroughsoccur
notfromindividualprocessortechnology
changesbutratherwhenthegoals,
principles,practices,valuesandattitudes
jointogethertoformainteractingand
consistentsetoforganizationalpossibilities.
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Manyoftheprinciples,processes,practices
andtechnologiesoftheparadigmshifthave
existedforsometime,includingcustomer
focus,teams,empowerment,Agile,values,
horizontalcommunicationsandsoon.Butin
traditionalmanagement,thoseelements
havebeenplayingaminorortemporaryrole
asoptions,orcomplements,tothebasicway
ofdoingthings.Nowtheseelementshave
movedtocentrestageandrepresentthe
necessarycomponentsofthenewnormal.
Amongthebookswiththeclearest
articulationoftheshiftinmanagement
paradigmareReorganizeForResilienceand
LeadershipInAWikiWorld.
3)Thebooksdistinguishprinciples
fromindividualsandfirmspracticing
them
Writersareoftendazzledbythesuccessof
leaderslikeSteveJobsatApple,JeffBezosat
Amazon,MarcBenioffatSalesforceandare
temptedtoviewtheiridiosyncrasiesthrough
rosecoloredglasses.
Forthemostpart,booksinthenew
managementcanonavoidthispitfall.They
focusonprinciples,practices,valuesand
attitudes,notheroworship.Insteadof

sayingorimplying:DowhatSteveJobsdid
orDowhatAppledid?theysay:follow
theseprinciples,practices,valuesand
attitudes,whichwerewhollyorpartially
exemplifiedinthebehaviorofSteveJobs
andApple.

FlatArmyisparticularlygoodatputting
SteveJobsinperspective.FlatArmy
acknowledgesthat
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Applewasthemostvaluablecompanyin
history,andJobswasinnovative,
relentless,futuristic,charismaticand
successful.
YetJobsisfarfromaperfectmodel:
Coupledwithhisbrilliancethatwas
acknowledgedbythemainstream,
however,wasadarksidealeader
extremelyclosedtomistakesandfailures,
whowouldflyinto(documented)fitsof
rage,havetyrannicaloutbursts,and
berateApplestaffinpublic.Heeven
expressedanarrogantcontemptforother
peoplesideasorcelebratedthemashis
own
Applemightbeevengreaterthanitis
todayifJobshademployedamore
collaborativeleadershipmodelnotonly
withthosewithinhisinnercirclewhich
hedidexquisitelybutalsowithhisentire
Appleemployeecommunity.
4)Thebooksseparateprinciples
fromamultitudeofrelatedpractices
Manythingsneedtobedoneforan
organizationtobesuccessfulintodays
marketplace.Mybookonradical

managementin2010notedmorethan
seventypractices.Yetnoonecanremember,
digest,andreplicateseventyseparate
practices.Nordoesoneneedto.Thereisa
shorterlistofcoreprinciplesfromwhich
detailedpracticesflow.Heresmycurrent
list:

ashiftfromagoalofmakingmoneytothe
goalofdelightingcustomersprofitably.

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Innovationandtransformationarenolonger
options:theyhavebecomeimperatives.
ashiftfromcontrollingindividualsto
inspiringcollaborationamongself
organizingteams,networksandecosystems.
ashiftfromcoordinatingworkby
hierarchicalbureaucracywithitsrules,roles,
plansandreportstodynamiclinking,with
iterativeapproachestodevelopmentwith
directcustomerfeedbackandinteraction
withteamsandnetworks.
ashiftfromapreoccupationwitheconomic
valueandefficiencytoanembraceofvalues
thatwillgrowthefirmandtheaccompanying
ecosystems,particularlyradical
transparency,continuousimprovementand
sustainability.
ashiftfromtopdowndirectivestomulti
directionalconversations.Insteadoftelling
peoplewhattodo,leadersinspirepeople
acrossorganizationalboundariestowork
togetheroncommongoals.

Thislistofcoreprinciplesisntnecessarily
final.Theprincipleslistedherehaveevolved
sinceIpublishedmybookonradical
managementin2010.Thereisacontinuous
processoflearning.Betterformulationswill
surelyemerge.Gotasuggestion?Loveto

hearfromyou.

Amongthebooksthatclearlyarticulatea
coherentcoreofprinciples,withoutgetting
lostinamyriadpractices,areReorganize
ForResilience,andFlatArmy.
5)Thebooksdistinguishdrivers
fromresults
Organizationsarecomplexphenomenawith
manyinteractingparts.Therearefewsimple
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causeandeffectrelationships.Inaworldin
whichinspiringthecreativityofemployees
andpartnershasbecomecentralandin
whichinterconnectedcustomershave
becomedominant,thelinearthinkingof
traditionalmanagementwhichtreated
employeesasresourcestobecontrolled
andcustomersasdemandtobe
manipulateddoesntwork.
Sinceeffortstoimposelinearthinkingon
complexsituationsusuallyleadtothe
oppositeofwhatisintended,theprincipleof
obliquitybecomesrelevant,asdiscussedin
JohnKaysbook,Obliquity:WhyOurGoals
AreBestAchievedIndirectly(Penguin,
2012).Whereexplicitarticulationofagoal
willresultinthecomplexenvironment
pushingbackintheoppositedirection,
obliquegoalswilloftenbemoreeffective.
Totakeoneexample:thegoalofdelighting
customersmaymakemoremoneythanan
explicitgoalofmakingmoney.
Anotherexample:thekindofmass
personalizationthatoneseesinaniPhoneis
theresultofcertainleadershipand
managerialpractices.Theaccomplishment
ofmasspersonalizationliesoutsidethe

performanceenvelopeofhierarchical
bureaucracy.Askingahierarchical
bureaucracytoachieveitislikeaskingapig
tofly.Instead,theorganizationneedsto
adoptcertainleadershipandmanagerial
practices,whichthenenablemass
personalization.Masspersonalizationisa
result,notadriver.

Amongthebooksthatdobestin
distinguishingdriversfromresultsarethe
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InnovatorsPrescription,LeadershipinA
WikiWorldandLeanStartup.
6)Thebooksacknowledgethe
historyofleadershipandmanagement
Threebehaviorsunderliethegeneralfailure
ofmanagementthinkingtoadvanceasa
discipline.OneistheAmnesia/Eureka!
Syndrome:atendencytoforgetthepast,and
thenrediscoveritwithshrieksofEureka!A
secondistheOldWineinNewBottles
syndrome:minortweaksarehypedasmajor
changes.AthirdistheVirginBirth
syndrome:writersandjournals
systematicallyeliminatetracesofearlier
thinkingaboutthesubjectathandand
presentpreviouslydocumentedideasas
havingavirginbirthwithoutany
legitimateparentage.
Bycontrast,mostofthebooksinthecanon
arecarefultogivecredittopredecessors,
signalalternativeviewpointsand
demonstratesensitivitytotheevolutionof
thesubjectasadiscipline.Amongthebooks
thatdothisbestareThePowerOfPulland
FlatArmy.
7)Thebooksbreakfreefrom
obsoletemanagementideas

Astheparadigmshifttakeshold,once
sacredandselfevidenttruthsarebeingcast
aside.Thegoalofmaximizingshareholder
valueisrecognizedtobethedumbestidea
intheworldandreplacedwithdelighting
customersprofitably.Thesearchforthe
holygrailofsustainablecompetitive
advantageisrecognizedasfutile:
competitiveadvantageisatbesttemporary.
Theessenceofstrategyseenascopingwith
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competitorsisdeclaredtobeobsolete:
strategyisaboutaddingvaluetocustomers.
Theunidirectionalvaluechainthevery
coreof20thCenturymanagementthinking
isreplacedbymultidirectionalnetworks,
inwhichcustomersplayakeyrole.The
shorttermgainsoflargescaleoffshoringof
manufacturingarerecognizedtohave
causedmassivelossofcompetitivecapacity
andnewheuristicsforoutsourcinghave
emerged.Supposeddistinctionsbetween
leadersandmanagersaredissolving:
managersareleadersandleadersalsoneed
tomanage.
Althoughsomeofthebooksinthecanon
havenotbeentotallycleansedfromthis
obsoletethinking,asideaslikemaximizing
shareholdervalueandstrategyseenas
copingwithcompetitionhavebeenaround
solongthattheyaredifficulttoshakeoff,all
thebookscontributeindifferentwaysto
expungingtheseexplodednotionsfromour
thinking.
Amongthebooksinthecanonthatarethe
mostfullyemancipatedfromobsolete
managementideasareTheConnected
OrganizationandConsciousCapitalism.

8)Thebookspointtoanewkindof
economy:

Tovaryingdegrees,thebookspointtothe
emergenceofdifferenteconomiesoperating
atdifferentspeeds.
TheTraditionalEconomyistheeconomy
thatweinheritedfromthe20thCentury
governedbytraditionalmanagement
practices.Itsarealeconomyproducing
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goodsandservices.Manyofthefirmsinit
arestrongandpowerfulandstillhave
plentifulresources,bothtangibleand
intangible.Nowthesefirmshavedifficulty
deliveringwhattodaysmoredemanding,
interconnectedcustomersdesire.
AsTheElasticEnterprisenotes,the
practicesoftraditionalmanagementcreate
profounddiseconomies.Scalehascometo
equatewithsclerosisbecausethecosts
associatedwithorganizingmoreandmore
peoplescalemorequicklythanthe
additionalwealththosepeoplecreate.
Forthemoment,theTraditionalEconomyis
gettingbyoncheapgovernmentmoney
whilewaitingforanimprovementinthe
businesscycle.Butitsproblemsarenot
cyclical.Itisaneconomyinsteepdecline
withagrimfuture.
ThedarkcousinoftheTraditionalEconomy
isFinancialCapitalism.Itisepitomized
bythebigbankswhichareenjoyingrecord
profits,andisalsosupportedbycheap
governmentmoney.Itsfundamentals
remainshaky.Itisaworldoffinancial
instrumentsfocusedonmakingmoneyout
ofmoney,oftendisconnectedfromthereal

economy.Itremainstobeseenwhetherthe
bigbankscanshifttheirenergiesto
reconnectingthefinancialsectortothereal
economyandassistinginthetransitionto
theCreativeEconomy,orwhetheraneven
worsefinancialcrashwillbenecessaryto
achievethenecessarytransition.

MeanwhiletheCreativeEconomy,built
ontheparadigmshiftinleadershipand
management,isbooming.Thisisareal
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economythatgeneratesproductsand
servicesforrealcustomers.Itisbooming
despitetheGreatStagnationsince2008.
AsTheElasticEnterprisepointsout,the
techniquesthatthebestperformershave
inventedwillspuraneweraofeconomic
growthandthattheirlessonsareapplicable
tocompaniesofallsizesWhileother
companieswerelayingstaffoff,thesewere
hiringandcreatingopportunityforvast
ecosystemsofcreativepeoplethese
companieswerenotjustgoodfor
employmentopportunitiestheywere
creatingnewmarketsaswell.Wearetalking
hereaboutrealchange,alongmany
dimensions,bakedintoonecoherentmodel
forhowbusinessshouldbedoneTheseare
thenewscaleeconomicsgrowthwithouta
cripplingincreaseincomplexity
management.
Giventhestarkdifferencesintrajectories
andperformanceofthethreeeconomies,
aggregatenationaleconomicstatisticstend
toconcealwhatisgoingon.InbothEurope
andUS,theTraditionalEconomyisstill
dominant:Asaresult,theUSeconomy
appearstobegrowinganaemicallysincethe
meltdownof2008(theGreatStagnation)

whilemostofEuropeisstillinrecession.
BoththeTraditionalEconomyandFinancial
Capitalismactasdragsonenduring,
widespreadeconomicprosperity.

Amongthebooksinthecanonthatdepict
thebroadereconomicscenemostclearlyare
TheElasticEnterprise,ThePowerOfPull
andConsciousCapitalism.

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9).Thebooksshareapassionateview
ofmanagementsfuture
Passionisnotanattributeusuallyassociated
with20thCenturymanagement.Butbooks
intheradicalmanagementcanonare
imbuedwithit.Thesebooksaspireto
enhancelifebothforthosedoingtheworkin
itandforthoseforwhomtheworkisdone.
TheyfollowthedictumofSteveJobs:The
onlywaytobetrulysatisfiedistodowhat
youbelieveisreallygreatwork.Andtheonly
waytodogreatworkistolovewhatyoudo.
Traditionalworkplacesprovidedfewsuch
opportunities.Thenewmanagementaspires
toprovidethemmostofthetime.
Allofthesebooksshareavisionofhow
thingsmustbe,andinsomecasesalready
are,different.Whilethebooksdontprovide
answerstoalltheproblemsanddifficulties
thatmodernsocietypresents,theyrevealan
enhancedarrayofpossibleresponsestolife
intheworkplace.Thebooksallseekin
differentwaystoshowthesignificant
patternsandpossibilitiesthatliebehind
currentmediocreappearances.Theyhelpus
learnfromthosewhohaveaspiredtodo
better.

Thebooksareinspiredbytheideathat
managementmustembodytruth,bothin
whatissaidandhowitissaid.Clichsabout
themanipulationofsystemsandefficiency
andincrementalfixeswillnotdo.Thetruth
ofourorganizations,bitterand
dishearteningasitis,mustbefacedwith
honestyandimagination.Thesebooksdoso
withaforceandaclaritythathavenotoften
beenheardinmanagementbefore.
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Theyshowleadershowtheparadigmshiftin
leadershipandmanagementgeneratesnot
onlydramaticimprovementsincost,size,
andtimeofproductsandservices,and
enhancementsinconvenience,reliability
andpersonalization,butalsonewwaysof
socializing,newwaysoflivingthese
possibilities,newmeaninginhowtimeis
spentandfreshunderstandingofwhatit
meanstobefullyalive.
Recentadditionstothecanonof
radicalmanagement

TheEndofCompetitiveAdvantage(2013)
byRitaMcGrathregistersthedeathofoneof
thesacredprinciplesoftraditional
management:theessenceofstrategyisthe
identificationofsustainablecompetitive
advantage.Strategyisstuck,Professor
McGrathtellsus.Virtuallyallstrategy
frameworksandtoolsinusetodayarebased
onasingledominantidea:thatthepurpose

ofstrategyistoachieveasustainable
competitiveadvantage.Thisideaisstrategys
mostfundamentalconcept.Itsevery
companysholygrail.Anditsnolonger
relevantformoreandmorecompanies.

TheElasticEnterprise(2012)byNicholas
VitalariandHaydnShaughnessyexplains
howfirmsmobilizewholeecosystems.
Highlycompetitivecompanieshave
prosperedthroughthetoughyearsby
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transformingtheirbasicoperational
processes,bybecomingelastic.Theelastic
enterprisecanscaleitsoperationswithouta
parallelincreaseinoverhead.Thesearethe
newscaleeconomicsgrowthwithouta
cripplingincreaseincomplexity
management.
FlatArmy(2013)byDanPontefract
explorestheevolutionoftheideathatan
organizationisacollectionofconnected
humanbeings,notasystemofthingstobe
manipulated.Italsorecognizestheflawed
natureofeventhebestoftheexemplarsof
thenewmanagementparadigm.
TheConnectedOrganization(2013)byDave
Grayexploresthedetailedmanagement
practicesoftheCreativeEconomy.It
discusseshowtheseteams,networksand
ecosystemsoperateandtherolesof
individualsinthem.Ithasaparticularlyrich
discussionoftheshiftfromaunidirectional
supplychaintoamultidirectionalpodular
network,thatcanbereconfiguredonthefly
andsupportedbyastrongplatformthat
servesasabackboneforthepods.
EnterpriseSoftwareDelivery(2013)by
AlanBrownexplainswhythemanagement

ofsoftwaredevelopmentisgenerallymore
advancedinimplementingthenew
managementparadigm:inpart,thisis
becausesoftwaredevelopershadnoother
choice.Inothersectors,firmscouldpursue
losingstrategiesforyears.Insoftware
development,failuretendstobeimmediate
andtotal:afterspendingmorethanabillion
dollars,onecanbestaringabluescreenwith
noideaonhowtofixit.Softwaredevelopers

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evolvedpracticesknownasAgile,Scrumand
XP,thatarenowspreadingtoothersectors.
ReinventingGiants(2013)byBillFischeret
alshowshowevenbigoldfirmsinmature
sectorscanreinventthemselveswithinthe
newparadigm.Itsnotanotherstoryabout
howthishappenedinasexyhightech
sector.Ithappenedinoneofthemostboring
ofalldomains:refrigerators.Thestarofthe
storyisaChinesefirm:theHaierGroup.
Booksinthecanondescribingtheparadigmshiftin
management

Andreadalso:

Leadershipinthethreespeedeconomy
Thedumbestideaintheworld:
maximizingshareholdervalue
HowAmericalostthecapacitytocompete
ThePhaseChangetotheCreative
Economy

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DontDisstheParadigmShift:Its
Happening
Thefivesurprisesofradicalmanagement
_________
Journalarticlesbytheauthor
Thefollowingarticlesontheparadigmshift
inmanagementforthejournal,Strategy&
Leadership,bytheauthorinclude:
Aleadersguidetoradicalmanagementof
continuousinnovation(S&L2010Vol.38,
No.4)
Rethinkingtheorganization:leadershipfor
gamechanginginnovation(S&L1010Vol.
38No5)
Masterclass:Thereinventionof
managementPart1(S&L2011,Vol.39No.
2),
TheReinventionofManagement:Part2:
Practices(S&L2011,Vol.39,No.3)
Masterclass:Theessentialmetricof
customercapitalismiscustomeroutcomes
(S&L2011Vol.39No.4)

Successfullyimplementingradical
managementatSalesforce.comVol.39.No
6)

Frommaximizingshareholdervalueto
delightingthecustomer(S&L,2012,Vol40,
No3)
Thebattletocounterdisruptive
competition:Continuousinnovationvs
Goodmanagement(S&L2012,Vol.40,
No.4)
GaryHamel:leadershipforcontinuous
innovation(S&L2012,Vol.40,No.5)
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