Definition[ edit ] Strategic management processes and activities Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. Strategic planning is analytical in nature and refers to formalized procedures to produce the data and analyses used as inputs for strategic thinking, which synthesizes the data resulting in the strategy. Strategic planning may also refer to control mechanisms used to implement the strategy once it is determined. In other words, strategic planning happens around the strategic thinking or strategy making activity.
The Gary Hamel Interview: Gary Hamel is a one-man army on a mission: Part strategist, part crusader and orator par excellence, Hamel has for the past three decades, trained his guns on the biggest culprit of them all: His prescriptions, though radical, are often the bitter pill that organizations need to jolt them out of their deep slumber.
While his early books Competing for the Future co-authored with C. Prahalad—the two coined the now-legendary term of core competence and Leading the Revolution were about strategic innovation and competition, his new books The Future of Management and What Matters Now touch upon a more fundamental theme that few management theorists dare to explore—the need to change the very building blocks or DNA of organizations and usher in what he calls Management 2.
Why is that so important? First, do we need to reinvent management?
Second, what are the principles we should use in doing so? Many times I was frustrated because it was just so hard to get organizations to be really truly innovative on a consistent basis, to get them to change ahead of the curve rather than only once the crisis had struck.
That forced me to ask the question: All these organizations around the world are much more alike than they are dissimilar—they have more or less the same approach to strategic planning, to allocating resources, to budgeting, to promotion, to compensation.
In the lateth century, management was invented to solve the problem of efficiency at scale. And we did this. So the traditional management model that was focused on efficiency and productivity has made an extraordinary contribution to human prosperity. I began to realize that today organizations face new problems that are not simply about efficiency and discipline and alignment and scale.
And yet that whole organizational model was built primarily to solve that single problem. Moreover, the way we historically solved the problem of efficiency of scale, was that we built organizations where we deskilled work, put people in silos, specialized their activities, created a very tight matrix of rules and procedures and we valued conformance above everything else: To create very efficient organizations, we had to drive the variety out of those organizations.
We had to drive out the irregularities, and to do that we actually had to drive out the humanity To create very efficient organizations, we had to drive the variety out of those organizations. We had to drive out the irregularities, and to do that we actually had to drive out the humanity.
We wanted organizations that were as efficient as machines and that meant we needed human beings who would behave like machines. We are now facing a set of problems—of accelerating change and hyper-competition and so on—that lie outside the performance envelope of that old management model.Leading the Revolution will inspire innovation at all levels and provide insight into opportunities for rewarding revolutionary thinking in new and bigger ways.” —Arthur M.
Blank, President & CEO, The Home Depot, Inc. Sep 21, · Gary Hamel and Michele Zanini believe that the "hollowing out of middle management" can save $3 trillion per year in the US alone.
While I can't vouch for that number, it's clear that. The dynamic alignment of an organization’s work patterns with the work environment to enable peak performance and reduce costs.
The typical office environment has not changed much in forty years. Seven Myths of Workplace Strategy. Gary Hamel, Leading the Revolution. Competing for the Future, and the author of Leading the Revolution.
Gary Hamel The Future of Management With Bill Breen. 2 Calling for nothing less than a revolution in how large organizations are structured, managed and led, Hamel provides a clear blueprint for building companies that are.
For example, Gary Hamel of the London Business School and co-author of Competing for the Future digresses on how the future is more often created by heretics than by prophets.
Minoru Makihara, president of Mitsubishi Corporation, expounds on leading a vast organization through trust networks. Leading the revolution: An interview with Gary Hamel February · Strategy and Leadership In this interview, international strategy guru Gary Hamel explains the thinking behind his new book.