What they’re talking about, and many organizations and management strategists are grappling with, is the concept of Management 2.0, a new style of management supposedly better suited to the Web 2.0 age. With the growing maturity of the Internet and the arrival of Web 2.0 posing unprecedented challenges, Harvard Business Review says management — rather than technological — innovation has become the key driver of economic value worldwide.
And Hamel, visiting professor of strategic and international management at the London Business School who The Economist calls “the world’s reigning strategy guru”, is convinced traditional management has reached the end of the road. In his view the old management principles, with their focus on “incrementalism” (improving the same product or service with more efforts), are irrelevant. What matters today is strategic innovation. “The last decade was all about deal making and reducing costs. General Electric was a good example of this era. This approach doesn’t work any more,” Hamel has said.
“The efficiency-focused management model has run its course,” Hamel argues in his book The Future of Management. “To see the future of management, look to the Internet, open source, free markets and democratic institutions.”
Unprecedented competition and massive changes in business environment make it high time to usher in an entirely new set of management principles based on high-order innovation that breaks industry mores and achieves true engagement with human talent in the company. Hamel says the planning, organizing and controlling models, which have served us well for a century, won’t help companies solve 21st century problems. Instead, in an era marked by global competition and commoditization, adaptability, speed and creativity are essential for survival. Web 2.0, he says, empowers individuals with information; aggregates collective wisdom; links buyers and sellers and enables creative expression.
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