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What This Is All About There are many ways to systematically solve problems - but only one way to systematically avoid them: the cybernetic way. The design of a system to avoid problems must begin with the permanent realities at the core of all beings and things - their function. At the same time, it needs to integrate today's perception of the problem if it is to be understood at all. This is why I gave this book a title relevant to most top managers' world view: Corporate Policy and Governance. Only a few such managers, however, will be familiar with its content: the constants of how complex…mehr
What This Is All About There are many ways to systematically solve problems - but only one way to systematically avoid them: the cybernetic way. The design of a system to avoid problems must begin with the permanent realities at the core of all beings and things - their function. At the same time, it needs to integrate today's perception of the problem if it is to be understood at all. This is why I gave this book a title relevant to most top managers' world view: Corporate Policy and Governance. Only a few such managers, however, will be familiar with its content: the constants of how complex systems work - how general systems policy and its Master Controls can be used to organize organizations in such a way that whatever needs to be organized in them will organize itself. Every organization, and indeed every human being, senses the effects of the profound change we have been undergoing ever since the age of complexity dawned. Almost everybody senses that rapid change is increasingly part of everyday life. Many people today - in particular those carrying great responsibility - find they can only fulfill their tasks at the expense of their personal lives. Hardly anybody would doubt that we need new foundations for management that are better suited to meet the new challenges than those still in use. With this volume of my series Management: Mastering Complexity, I am presenting the key element of what general management needs in this age of complexity: the chief prerequisite for the organizations of the future, organizations that will work autodynamically. However, the concept will only unfold its elementary power, as it were, in conjunction with both the entire book series and the Malik Management System. Only when all other parts of the system work together can it achieve its maximum impact. This is why I start by explaining the concept and the logic of the series on the following pages. Everything to be said about the subject of this book is much easier to express (and even easier to implement) in models than to put in succinct words without exceeding the scope of a book. Some of the paragraphs may therefore seem superfluous to one reader while another will find them to be precisely what he needs to understand the subject matter well. That is the price of rigorous management writing: it needs to use a language suited for everybody yet sometimes requires newly invented terms. The questions as to what exactly needs to be done in corporate policy and governance can only be answered individually for each organization. With this book, I am making available a fully equipped toolbox, so to speak, along with the operating instructions for each of the tools, so that top managers will be able to perform the necessary craftsmanship in their organizations. Directions regarding this volume and the entire series are given before Part I. That part then describes the key premises to be observed in order to master complexity. It also contains a roadmap for developing a corporate policy as I understand it. The roadmap explains how the remaining three parts of the book are structured. Part II explains the concept of a Master Control in complex systems: what it is, how it works and what it is needed for. The modules of Master Control will be presented in Part III. In Part IV, I will address top executives in charge of developing a corporate policy, explaining what needs to be done in order to achieve the system behavior required and what Master Controls managers need to apply to themselves. The appendix provides some concise information on the Malik Management System. At this point I want to thank Maria Pruckner for her invaluable help in structuring and formulating this manuscript. As a student of Heinz von Foerster and an experienced management practitioner, and with her profound knowledge about the cybernetics of complex systems, she has helped me to better sort out my own thoughts and their cybernetics. The interaction of speech and thinking is one of her specialties. There is hardly anything that could be more important for an author and his readers. Further, my thanks go to the members of the Board of Directors and the Group Management Board at Malik Management, in particular to Elisabeth Roth, Walter Krieg, and Peter Stadelmann for relieving me of some of my management tasks while I was writing this book. It is a principle of mine not to publish any of my books until their content has proven valid in years of cooperation with hundreds of managers - including clients as well as colleagues in various top management bodies - and after both critical discussions and field tests have been passed. I owe my sincerest thanks to all of them.
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Prof. Fredmund Malik numbers among Europe’s leading management thinkers. As a consultant and management instructor for the last 30 years he has advised, educated and shaped executives at all levels and in all industries. He himself has been a successful entrepreneur for decades as CEO and principal of Malik Managementzentrum St. Gallen, with roughly 200 employees in St. Gallen, Zurich,London, Vienna, Shanghai and Toronto.
What This Is All About 13 Concept and Logic of the Series Management: Mastering Complexity 16 Foundations 16 Connections 18 Possibilities and Limits 18
What Readers Need to Understand in Order to Understand this Book 22 Success Programming Its Own Failure 23 When Thinking Fails to Grow With Practice... 24 Problems and Systems 25 Old and New Sources 26 Cybernetics as a Source of Relevant Insight 27 Two Leaps of Evolution 27 Taking Advantage of Complexity 28 Right Management Is Cybernetic Management 30
Part I From Organization to SelfOrganization 31
1.Manifesto for Corporate REvolution 33 The REvolutionary Transformation 33 Categorical Change - Change of Categories 34 Will the Company Survive? 35 From Money to Knowledge: Will There Still Be Shareholder Meetings? 35 From Knowledge to Insight: Mundus Novus 36 Right Corporate Policy is Systems Policy 37 Management in the Age of Complexity 38 Systemic Corporate Policy 39 Systems Logic and Subject-Related Issues 40 Effective Master Controls 41 Issue Policy vs. Systems Policy 42 Corporate Policy, Systems Policy, Governance 43 Remaining Blind for System-Immanent Natural Forces 44
2.Work Plan for Cybernetic Corporate Policy 47 Roadmap to a Cybernetic Corporate Policy 47 Orientation in the General Management Context 52
Part II New Times - New Management 61
1.Constants through Change: Invariance, Self-Organization, Evolution 63 Safe Landmarks at the Top Level 63 Master Control, Cybernetics, and Governance 71 Two Kinds of Systems - Two Kinds of Management 78
2.Prototypes of System and Self-Organization 89 System Prototype: Water 89 Self-Organization Prototype: Traffic Circle 91
3.Master Control through Corporate Policy 93 What Corporate Policy Is 94 The Core of Functioning 95 Misconceived Pragmatism 96 Examples of Complexity-Compatible Corporate Policy 98 True Leadership and "Great Man Fantasies" 100 Corporate Policy and Solid System Work 101 Noncommittal Nature, Overregulation, Openness, Universal Validity 105 Ethics and Morality 108 What Should Be Regulated? 110
4.Navigating in Complexity - Models for Overview, Insight, and Perspective 111 Brain-Like Models 111 World - System - Model - Concept 113 The Model as a Thinking Tool 115 Realization and Understanding by Means of Regulation Models 116 Knowing What the Talk Is About: The Babylon Syndrome 119 Like a Brain: Operations Room - Management GPS 120 Three Purpose-Oriented Models 122 Basic Model for Corporate Policy 123 Farewell to Hierarchy: Embedding Replaces Ranking 125 Recursive Logic for Cybernetic Systems 129 Specialists, Generalists, Specialists for General Subjects 131 Three Subconcepts for Master Control 132 The Best Media for Master Control 134
Part III Instructions for SelfOrganization 137
1.What the Organization Should Do: The Business Concept 139 The Purpose of the Organization 140 The Business Mission 159 Performance of the Institution: The Cockpit 167 REvolutionizing Corporate Control through CPC towards Brain-Like Processes 177 The Cybernetic Power of Purpose and Mission 185
2.Where the Organization Has to Function: The Environment Concept 188 What Needs to be Considered? A Common Topographical Map 189 The Master Control Model for the Environment 194 Master Controls for the Environment Model 201 Categorical Change 217
3.How and With What the Organization Should Function: The Management Concept 221 The Same Management Everywhere and for All 222 Tapping the Performance Potential 223 Inducing Self-Organization 224 Management Models for Master Control 225 The General Management Model 226 The Standard Model of Effectiveness - or "Management Wheel" 228 The Integrated Management System (IMS) 232 Navigation instead of Documentation 237 An Overview of the Master Control "Management Concept" 238 Implementing Corporate Policy: Order is Law times Application 239 Management T
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