Rüegg-Stürm / Grand Managing in a Complex World

The St. Gallen Management-Model
1. Auflage 2019
ISBN: 978-3-8463-5299-1
Verlag: UTB
Format: EPUB
Kopierschutz: 6 - ePub Watermark

E-Book, Englisch, 200 Seiten

Organizational value creation is becoming increasingly complex. The St. Gallen Management Model presents two perspectives for this: The task perspective discusses the design fields of an integrative management practice in the interplay of environment, organization and management. The practice perspective illuminates the prerequisites of effective and responsible management practice.

Autoren/Hrsg.

Rüegg-Stürm, Johannes

Grand, Simon

Inhaltsverzeichnis

Preface 5
Acknowledgments 6
How best to approach this book 9
INTRODUCTION 19
1 Why is a detailed examination of management more important than ever? 20
2 Organizational Value Creation: The Key Reference Point of Management 22
2.1 Value Creation as Outcome and Process 22
2.2 Value Creation as Organizational Achievement 23
2.3 Primary and Supplementary Value Creation 24
2.4 Value Creation in Environment-Organization Interaction 25
2.5 Types of Organizations 26
2.6 Organizational Value Creation as Management Focus 28
3 The St. Gallen Management Model (SGMM) 28
3.1 What are Models for? 28
3.2 What does the SGMM achieve? 29
3.3 Overview of the SGMM 30
3.4 The Development of the SGMM 33
3.5 Environment, Organization, and Management: A Systems-Oriented View 34
THE TASK PERSPECTIVE 39
Overview 40
1 Environmental Spheres 44
1.1 Economy 45
1.2 Technology 46
1.3 Nature 47
1.4 Society 48
1.5 Relationships between Dynamic Environmental Spheres 49
2 Stakeholders 50
2.1 Individuals, Communities, and Organizations 50
2.2 Stakeholder Concepts 51
2.3 Interrelations between Different Stakeholder Concepts 52
3 Interaction Issues 54
3.1 Concerns and Interests 54
3.2 Norms and Values 55
3.3 Resources 56
3.4 The Importance of Interaction Issues for Normative and Strategic Orientation 56
4 Processes 58
4.1 The Growing Importance of Process-Oriented Design Work 58
4.2 Process-Oriented Design Concepts 60
4.3 Process Categories 62
4.4 Process Development 68
5 Structuring Forces 70
5.1 Governance 71
5.2 Strategy 72
5.3 Structure 80
5.4 Culture 86
6 Development Modes 92
6.1 Optimization and Renewal 93
6.2 Effectiveness and Efficiency as Development Focus 95
6.3 Organizational Change: Content and Relationship Dimensions 96
6.4 Impact Intensity of Organizational Change 97
Task Perspective: Core Statements 100
TRANSITION TO THE PRACTICE PERSPECTIVE 103
1 Organization and Management: A Complexity-Appropriate Approach 104
2 Increasing Complexity and Experiencing Contingency 105
2.1 Hallmarks of Management Work: Volatility, Uncertainty, Complexity, Ambiguity 105
2.2 The Enlightenment: Driver of Innovation and Change 107
2.3 The Multi-Option Society: A Challenge for Management Practice 112
2.4 Consequences of Increasing Complexity for Value Creation 114
3 Practice Perspective: Scientific Foundations 116
3.1 Practice Theory 117
3.2 Autopoietic Social Systems Theory 120
3.3 Common Features of Practice Theory and Autopoietic Social Systems Theory 127
THE PRACTICE PERSPECTIVE 131
Overview 132
1 Value Creation 138
1.1 Differentiation 139
1.2 Resource Configuration 146
1.3 Value Creation Processes 148
1.4 Decision-Making Practice 154
1.5 Relationship Culture 167
2 Orientation Framework 170
2.1 Operational Orientation 174
2.2 Strategic Orientation 175
2.3 Normative Orientation 179
3 Environment 184
3.1 Environmental Spheres 186
3.2 Stakeholders 188
3.3 Conditions for Existence 191
4 Management Practice 198
4.1 The SGMM’s Understanding of Management 199
4.2 Manager Communities 208
4.3 Design Platforms 210
4.4 Design Practices 214
4.5 Language of Reflection 223
4.6 Key Manifestations of Management Practice 226
Practice Perspective: Core Statements 228

Leseproben

THE TASK PERSPECTIVE
Overview
The SGMM’s task perspective focuses on the factual, purposeful handling of tasks and problems related to organizational value creation and critical to an organization’s sustainable success. We use six main model categories (environmental spheres, stakeholders, interaction issues, processes, structuring forces, and development modes) to convey concepts and instruments helpful in analytically capturing and tackling these tasks and problems. These six main model categories are primarily oriented toward business research and practice. The SGMM’s task perspective aims to bring the manifold business management tasks, functions, and concepts into a systematic overall context, and thus to provide orientation, whether in education and further training or in management practice (Figure 4). Since its first publication in the early 1970s, the SGMM has made a concerted effort not to view organizational value creation solely in narrow economic terms. It has instead consistently emphasized an organization’s manifold embeddedness in a complex and dynamic environment. The SGMM understands an organization as a complex, purpose-oriented value creation system, and the required management practice as an interplay of control systems and feedback loops. We deepen this systems-oriented conception of management, and what management really is, in the SGMM’s practice perspective. The SGMM’s task perspective consists of six main model categories: • Environmental Spheres (chapter 1) • Stakeholders (chapter 2) • Interaction Issues (chapter 3) • Processes (chapter 4) • Structuring Forces (chapter 5) • Development Modes (chapter 6) [40] Figure 4: The SGMM’s task perspective [41] These main model categories concern the basic task and design fields of management practice. • Environmental spheres are the key fields of reference for organizational value creation. Those environmental spheres that are particularly important for an organization must continuously be analyzed to identify important changes and trends. • An organization’s stakeholders are individuals, communities, or organizations that are either involved in organizational value creation or are currently or potentially affected by it. Different stakeholders confront an organization with different concerns, needs, and interests. • The latter point to interaction issues, i.e., the key points of reference around which an organization’s communication with its stakeholders revolves. We distinguish between concerns and interests, norms and values, as well as resources. Interaction issues are on the one hand thematic points of reference and on the other tradable goods and rights. • An organization’s labor-based-division value creation activities are distributed across time and space. Their structuring requires processes. Processes are sequential activity patterns that are systematically interrelated and characterizable in terms of their factual and temporal logic. We understand organizational value creation as the interplay between management, business, and support processes. All these processes require careful design, alignment, and integration into a creative and coherent business model. • Organizational life is shaped by various structuring forces. These forces contribute to making everyday organizational flux coherent. They also ensure that processes can produce the desired impacts and results for value creation addressees. Governance serves to define and structure an organization’s purpose, identity, vision, mission, and normative orientation with basic regulations, each defining the roles, rights, and duties of managers. Strategy articulates an organization’s competitive positioning, differentiation, and long-term development direction. Structure embodies the division of labor, i.e., the organizational configuration. Finally, culture expresses an organization’s basic behavioral assumptions, beliefs, rules, values, norms, and attitudes. We associate structuring forces with the idea that governance, strategy, structure, and culture exert an orienting, structuring, and motivating force, i.e., have an “effective influence,” on processes. They do not, however, linearly or causally determine everyday organizational flux. [42] • Environmental dynamics, resulting from the interplay of creativity, epistemological progress (i.e., advances in knowledge), business initiatives, and innovative organizations, but also characterized by political upheavals and societal crises, require every organization to keep developing. Development modes describe basic patterns of how organizations can evolve in a dynamic environment. Optimization efforts take essential provisions, design decisions, and enabling conditions for granted. Everyday organizational flux is optimized within the framework of these provisions. On the other hand, renewal efforts aim to bring about fundamental change. This, in turn, may result in basic changes to parts of organizational value creation or even lead to “reinventing” value creation and environmental embeddedness as a whole. Orchestrating a skillful interplay of optimization and renewal aims to dynamically stabilize an organization’s development. Every successful development depends on continuous stabilization efforts. We present these model categories in detail in the following chapters. In a systems-oriented view, it is important to always consider the reciprocal relations and interactions between these categories. [43] 1 Environmental Spheres We understand environmental spheres as the key contexts of organizational value creation. The SGMM’s task perspective distinguishes four important environmental spheres by way of example: economy, technology, nature, and society. We focus on these four environmental spheres to exemplify important aspects of organizational value creation. Today, value creation is heavily preconditioned and resource-intensive (material and immaterial resources). Resources are produced and traded in the economy, i.e., within a specific space of action and communication. The economy can be understood as a “coordination mechanism” for efficiently developing, providing, and allocating scarce resources. For enterprises, the economy represents the survival space relevant to their existence. Today, value creation (as outcome and process) is characterized by diverse technological applications. Technology innovation is a fundamental progress driver of organizational value creation. Hence, technological developments deserve special attention, as demonstrated by the current digitalization of organizational value creation. Nature is the most basic supplier of resources, spaces for human life and survival, and organizational activity. The current controversies about climate change and ecological (as well as social) sustainability indicate that nature deserves systematic attention. The SGMM has been pointing this out since its inception in the 1970s. Society, as the most comprehensive communication space of human coexistence, shapes how the economy, technology, and nature are interpreted and treated time- and culture-bound. The SGMM regards society as the central communicator and evaluator of economic, technological, and ecological developments. One of today’s key management tasks is to establish the preconditions for two crucial processes: first, recognizing early on fundamental development trends and controversies concerning an organization’s environmental spheres; second, carefully analyzing their concrete significance for the organization. [44] 1.1 Economy The first environmental sphere discussed here – the economy – consists of diverse procurement, sales, labor and financial markets. It is as such the “biotope” or “seedbed” of enterprises and their value creation. The economy’s task is to provide a society with goods and services but also with resources, as needs-oriented and efficiently as possible. This sphere is therefore geared toward efficiently allocating scarce resources. This is meant to ensure that a society’s value creation activities are aligned as effectively as possible with meeting a population’s needs, and thus to optimize societal prosperity. The economy is not only relevant for private enterprises but also for many other organizations that, for example, depend on procuring cheap capital, that seek qualified workers, or that depend on taxpayer money or donations. The following aspects may be highly important for any specific organization regarding the economy as an environmental...

Über Autor(innen)

Grand, Simon
Prof. Dr. Simon Grand arbeitet als Strategiedesigner, Wissensunternehmer und Management-Forscher. Er ist Gründer und akademischer Direktor des RISE Management Innovation Lab an der Universität St. Gallen und Verwaltungsrat.

Rüegg-Stürm, Johannes
Prof. Dr. Johannes Rüegg-Stürm ist Direktor des Instituts für Systemisches Management und Public Governance an der Universität St. Gallen.