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Published by: Harvard Business Publishing
Published in: "Balanced Scorecard Report", 2000

Abstract

HBR OnPoint Articles save you time by enhancing an original Harvard Business Review article with an overview that draws out the main points and an annotated bibliography that points you to related resources. This enables you to scan, absorb, and share the management insights with others. The hierarchical organization based on the strategy-structure- systems doctrine of management no longer delivers competitive results. While a top-down structure of corporate divisions gives managers tight control and allows companies to grow, it also fragments resources and creates a vertical organization that prevents small units from sharing their strengths with one another. Structural fixes, such as skunk works, alliances, and acquisitions, have not solved the problem. Based on a study of 20 companies with vanguard management styles, the authors predict a managerial revolution that will focus on horizontal processes rather than vertical structures. The job of management will be to promote three core organizational processes: frontline entrepreneurship, competence building, and renewal.

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Abstract

HBR OnPoint Articles save you time by enhancing an original Harvard Business Review article with an overview that draws out the main points and an annotated bibliography that points you to related resources. This enables you to scan, absorb, and share the management insights with others. The hierarchical organization based on the strategy-structure- systems doctrine of management no longer delivers competitive results. While a top-down structure of corporate divisions gives managers tight control and allows companies to grow, it also fragments resources and creates a vertical organization that prevents small units from sharing their strengths with one another. Structural fixes, such as skunk works, alliances, and acquisitions, have not solved the problem. Based on a study of 20 companies with vanguard management styles, the authors predict a managerial revolution that will focus on horizontal processes rather than vertical structures. The job of management will be to promote three core organizational processes: frontline entrepreneurship, competence building, and renewal.

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