Dr. John Psarouthakis, Executive Editor, www.BusinessThinker.com. Founder and former CEO, JP Industries, Inc, a Fortune 500 industrial corporation. Adjunct professor, Strategy and Acquisitions, Ross School of Management, University of Michigan
This is the 5th of short articles of my thoughts about Leading and Managing winning companies.
The development of a winning strategy requires that the the leadership of the company considers the interrelated dynamics between the enterprise itself, its customers, and its competitors. This strategy in turn must be implemented through “effective corporate actions resulting from superior decisions, which in turn rest heavily on solid management practices rather than luck or general business acumen” according to Professor J. Frank Yates** of the School of Business at the University of Michigan. A good decision manager understands the process of making good decisions and in the turn helps others within the organization to learn the good decision process. This is of extreme importance to understand before a Strategy and a plan to implement this strategy is developed.
The implementation and the results there of depend entirely on the ability to make and implement good decisions. Myself as a practitioner and academic on strategy formulation and implementation, can attest to the fact that absent of the above abilities no strategy developed can be successful.
Dr. John Psarouthakis, Executive editor, The Business Thinker magazine, and Founder and managing director, JP Management Center, llc.
A lecture at the Institute for Advanced Studies in the Humanities, University of Edinburgh, Scotland.
We have been in the midst of a fundamental and historic shift of how the economies around the world develop. With the collapse of communism, the centralized and state control model of the economy has also collapsed. Other socialist State models, i.e., Sweden, UK before Margaret Thatcher, have also collapsed. What we have now, however, imperfect it maybe, is the model of the “Free Market.”
This shift is occurring in parallel with two other sociopolitical expressions:
- Smaller government, though the last couple years this seems to have moderated quite a bit
- The need, indeed the demand by our society to provide assistance, protection, and distribution of economic benefits a “fair” way
What we are witnessing is a major shift on “how we can fulfill our expectations of a humanistic society” while we keep the state’s interventions and control power at minimum.
Before I deal with this question (shift) let me digress in to a bit of history . . . . After all, how can a Greek like myself discuss such matters without referring to HISTORY .
These great shifts of power are not without precedent. What is new is the rapidity of change that we are witnessing. When such major shifts of power occurred in the past, they had a great impact in the ways the society functioned. Examples:
- The emergence of secular values over religious values and authority during the 16th, 17th and 18th centuries. Power centers changed. Princes of church gave way to princes of land, who, in turn, gave way to the chiefs of industrial, commercial and financial wealth.
- Societal institutions and the most firmly established organizations were forced to conform or disappear with the passage of time.These shifts took place not without sacrifice of then well established ways of life. Now, let’s get back to the question I posed earlier. Let me repeat it.
A book review by Dr. John Psarouthakis, Executive Editor, www.BusinessThinker.com
This book eloquently and effectively “talks’ about the complexity of our world today and particularly about the complex systems in Business. It is a fascinating read and amazingly effective in communicating the complexity and what to do about it. In one page Peter presents the thermodynamic property of Entropy and Heisenberg’s uncertainty principle and being understood. That is an achievement in itself since Entropy is inter-wound with the second law of thermodynamics and the other with quantum mechanics! Not a simple achievement.
Though I believe complexity has existed for as long as humans began to deal in groups those early people and for many thousand of years they dealt with complexity with simple linearity approach
Because the complexity and the changes that came with it then occurred at a very slow pace and the linear approach was practical and effective. Today the change comes at a high acceleration rate that we do not have the time to deal with the gross deviations that linearity will require to deal with the issues at hand. Adding to this is the great interdependence of our activities on a global scale and instantly felt effects of actions occurring on the other side of the glob from us, etc.
This book, not only made me more acutely aware of the complex world we live in, but also provided me with approaches to the complexity so that I can deal with it and not fall in to “panic”!
I strongly recommend this book that deals with difficult concepts in a way that we build our confidence in dealing with the complexities of today’s business world.