Why New Management Models Are Needed: And the New Management Capabilities

Annika Steiber ()
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Annika Steiber: Menlo College

Chapter 1 in Leadership for a Digital World, 2022, pp 3-14 from Springer

Abstract: Abstract This chapter explores the shortcomings of traditional management approaches, explains why our current time is one of rapid, constant change, and outlines the new capabilities that firms now need. The typical Industrial Age management model is a bureaucracy, focused on cost-efficiency and control. It enables a company to perform complex tasks repeatedly and reliably. However, when the task is to change the task, as in reorienting the firm to pursue new lines of business, nearly all features of the old model become obstacles to change. Today’s world demands the ability to navigate such shifts frequently, because all firms and industries are surrounded by multiple forces of external change—including new developments in technology, social and demographic changes, the effects of globalization, and changing patterns of energy use in response to ecological concerns. Per David Teece et al. (Strategic Management Journal, 18(7), 509–533, 1997), companies must now have “dynamic capabilities,” which consist of “sensing” early-stage shifts in the marketplace or competitive landscape, rapidly “seizing” new opportunities, and continually “transforming” the enterprise for more changes to come. These capabilities, in turn, are best delivered by a management model that is people-centered, geared to ongoing change, ambidextrous, highly open and networked, and that takes a systemic view of the firm and its environment.

Keywords: Teece; Dynamic capabilities; Human centric; Open innovation; Ambidextrous; Systemic; Drivers of change; Technology; Demographics; Globalization; Sustainability; Management (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/978-3-030-95754-4_1

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