4th Global Peter Drucker Forum

The Revolutionary Tenets of Management 2.0
Steve Denning

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Revolutionary changes in the basic tenets of management are under way. Roger Martin has described the overall transition from shareholder value (making money) to customer capitalism (delighting the customer). For firms to navigate the transition to the new ecosystem of “Management 2.0”, they must master five fundamental shifts:   1. The management mindset 2. The role of managers 3. The way work is coordinated 4. The values practiced and 5. The way people communicate.   Five fundamental shifts in management practice   Shift #1: Management mindset: From inside-out to outside in To accomplish the transition to customer capitalism, reflecting the shift in the balance of power in the marketplace from seller to buyer, firms must […]

4th Global Peter Drucker Forum

Can Europe Become an Entrepreneurial Society?

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In his landmark book Innovation and Entrepreneurship, published in 1985, Peter Drucker described the tectonic shift that he perceived in its early stages—the move from an employee society toward an entrepreneurial society. This shift was, and still is, being driven by unstoppable forces such as changing demographics and ever-hastening advances in information and communication technology.   As Drucker lays out what this new society should look like, he builds upon another great thinker of Austrian origin, Joseph Schumpeter, who had positioned the entrepreneur at the heart of capitalism – as the life force of a market-based, competitive, dynamic and wealth-creating economy. The question for Europe is: Has this sea change happened? Have we seen enough […]

4th Global Peter Drucker Forum

“Capitalism 2.0 Leadership and Paradox Management”
Guest Blog Post by Stephen Rhinesmith

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The globalized world of 2012 is locked in a debate about the appropriate role of corporations. Should corporations continue to have as their primary purpose the maximization of “shareholder value,” (Capitalism 1.0) or should they also be concerned also about creating “shared value” for the societies in which they operate and the world as a whole? (Capitalism 2.0). Ultimately this is a paradox that leaders at all levels of society will need to be committed to recognize and manage.   The key aspect of a management paradox is that it contains two equally valid, but contradictory viewpoints which need to be managed over time so that neither one is totally neglected. Work-family balance is one […]

4th Global Peter Drucker Forum

Shareholder Value – a theory that changed the course of history – for the better or the worse?

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During the past 30 years, “maximizing shareholder value” has unquestionably become our dominant economic creed with a vast impact on management practice.   Michael Jensen and William Meckling, authors of the famous 1976 Journal of Financial Economics article “Theory of the Firm: Managerial Behavior, Agency Cost and Ownership Structure,” can rightly claim that their paper changed the way corporations have operated: how they’ve been governed, how their top executives have been compensated, what strategic priorities they’ve set, and how they’ve dealt with their human resources.   One might argue, in short, that the article has had a transformative effect on a broad scale—so much so that we should ask whether the recent worldwide economic crisis […]

4th Global Peter Drucker Forum

Management must be a public concern – putting Europe back on a growth path

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Welcome to the new Global Peter Drucker Forum Blog.   As President of the Peter Drucker Society Europe I would like to introduce myself with this short bio. While I will be the main author I will also invite distinguished guest authors to contribute. The blog will cover key management subjects mainly related to the Drucker Forum.     When we discuss management as a key issue for society these days the word has a mostly negative connotation – we tend to talk about management in terms of the damages that short-termism, off-shoring, greed and bad management (in particular in the financial services sector) are inflicting on society.   A round table last week at […]