What did Jeff Bezos do in 2002 to turn Amazon into the business ecosystem that it is today? He discovered how to scale his operations very fast, across multiple markets, and how to follow up on business opportunities and customer needs across industries with blinding speed. Today, companies worldwide scramble to copy Amazons explosive growth and diversified business. In the following, we will outline how to do it, and do it in such a way that it leads to broader prosperity and innovation for society: A lifetime opportunity for entrepreneurs. Digitalization today increasingly dissolves the borders between industries and markets. The accelerating market dynamic means that businesses can no longer afford to bet their income […]
Richard Straub worked for IBM for much of his life. He is now director of the Drucker Forum. He tells Peter Day how the Forum began, and how Professor Drucker’s ideas maintain their relevance in a much-changed business world.
Whilst the need for growth is accepted as a way of reducing social inequality and improving the chances of a dignified and socially inclusive society, we cannot continue to do that in a way driven by the need for ever more acquisitions of goods. That method is an inherently wasteful use of resources, and skewed towards over consumption in more developed countries. There has to be better, more inclusive ways of growing, and I suggest that one could be through the Circular Economy, which involves resources and capital goods reentering the system for reuse instead of being discarded, thus saving on production costs, promotes recycling, decreases waste, and enhances social performance. When CE models are […]
“Growth and Inclusive Prosperity”, requires nothing less than a transformation in management theory and practice, and the next evolution of capitalism, which I call Valueism – “business and capitalism focused on value creation”. It stands in contrast to the current model which is focused more on value extraction. A well-functioning system will recognise the link between good governance and leadership, employee engagement, productivity, growth and prosperity. And value, which does not only mean monetary value, is the golden thread that connects them all. It is the product of them all, and the means of measuring performance of each element and of the whole system. Today, in many nations, prosperity is not inclusive. It is not […]
In their inaugural article, Richard Straub and Julia Kirby concluded that managers must ‘make the most of human potential, and manage to make prosperity inclusive’. This sounds like what good management is all about. David Hurst’s article, then positioned management as a means to cultivate prosperity. He ends by quoting Clay Christensen ‘Management is the most noble of professions if practiced well’ suggesting management as an occupation that helps others learn, grow, take responsibility and contribute to team success. This is more about good management. And the scientific evidence is overwhelming: good management matters! But how do we know? As a manager, I would be interested in finding my own response or at least have […]
Altruism perfectly fits in with inclusive prosperity. Open innovation (OI)-driven growth with knowledge, competencies, and skills freely exchanged across cultural groups is the zeitgeist of the 21st century, characterized as it is by its emphasis on the widest possible access to new knowledge and resources, producing beneficial effects in new entrepreneurial ventures. Emerging from this is a hybrid culture reflecting various strands of OI, in which altruism can be included together with open experimenting that can be unconventional. Stating that altruism is serving OI is tantamount to saying that altruism is a practical social innovation. Inward-looking, selfish organizations minimize cooperation and so stifle open innovation. Altruism opens up a promising prospect for an outward-looking approach […]
The theme of the 2017 Global Drucker Forum to be held in Vienna later this year is “Growth & Inclusive Prosperity – The Secular Management Challenge”. Dictionary definitions of prosperity mention a condition of being successful or thriving, especially economic well-being – a desirable accompaniment of living. What’s the essence of living then? Three Viennese psychotherapists came up with three distinctly different answers: Sigmund Freud (1856-1939) claimed that it was the ‘will to pleasure’ Alfred Adler (1870-1937) argued that it was the ‘will to power’ Viktor Frankl (1905-1997) contended that it was the ‘will to meaning’ All of them have a kernel of truth, for it’s difficult to imagine humans flourishing without each of these […]
Fifteen year ago, David Brooks described a specific kind of young people in an essay titled “The Organization Kid”. They were the highest achievers of American top universities. In his words, “their [schedules] sounded like a session of Future Workaholics of America: crew practice at dawn, classes in the morning, resident-adviser duty, lunch, study groups, classes in the afternoon, tutoring disadvantaged kids in Trenton, a cappella practice, dinner, study, science lab, prayer session, hit the StairMaster, study a few hours more… […] They are goal-oriented. An activity — whether it is studying, hitting the treadmill, drama group, community service, or one of the student groups they found and join in great numbers — is rarely an end in itself. It […]