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Abstract
Structure follows strategy; and systems support structure. In the high- growth environment of post-World War II, a management doctrine rose up around these two aphorisms. But today the business environment has changed. A change in management doctrine is needed to match this new landscape. After 5 years researching 20 leading European, U.S., and Japanese companies, the authors concluded that senior managers must change their own priorities and way of thinking. Beyond designing corporate strategy, they must shape a shared institutional purpose. They must expand their focus from devising formal structures to developing organizational processes. And more than just managing systems, they must develop people. Top management''s role in the companies researched already reflects the changes the authors prescribe. Consequently, 3M has managed to retain an entrepreneurial spirit despite its $14 billion bulk. ABB transformed two "also-ran" companies into the leading competitors in the global power-equipment industry. And companies like AT&T, Royal Dutch/Shell, Intel, Andersen Consulting, Kao, and Corning are doing well despite what some predicted as the inevitable decline of large corporations.
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Abstract
Structure follows strategy; and systems support structure. In the high- growth environment of post-World War II, a management doctrine rose up around these two aphorisms. But today the business environment has changed. A change in management doctrine is needed to match this new landscape. After 5 years researching 20 leading European, U.S., and Japanese companies, the authors concluded that senior managers must change their own priorities and way of thinking. Beyond designing corporate strategy, they must shape a shared institutional purpose. They must expand their focus from devising formal structures to developing organizational processes. And more than just managing systems, they must develop people. Top management''s role in the companies researched already reflects the changes the authors prescribe. Consequently, 3M has managed to retain an entrepreneurial spirit despite its $14 billion bulk. ABB transformed two "also-ran" companies into the leading competitors in the global power-equipment industry. And companies like AT&T, Royal Dutch/Shell, Intel, Andersen Consulting, Kao, and Corning are doing well despite what some predicted as the inevitable decline of large corporations.