Beyond Control: Managing Strategic Alignment through by Fred Lachotzki

By Fred Lachotzki

Know-how has made it attainable to use a brand new administration philosophy. Leaders can permit move and nonetheless be on top of things. they could contain key humans with no wasting momentum. businesses can continually degree organizational potential over the years, and correctly benchmark 'soft' administration components, and a digital CEO place of work particularly does paintings. based on 3 key insights (the working enviornment; coping with through pull and push; and the web-based discussion centre), past keep an eye on deals a progressive version for transferring the administration concentration from based keep watch over to guided interplay. utilizing this procedure businesses can construct a participative working process that creates house for managers to excel, and avoids the disagreeable surprises that may result in company scandals.

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He might not have been fully interested in the details as long as the results were delivered. If they weren’t, he could always replace the old manager and find a better one. More or less the same was happening in the relationship between some senior managers and their outside directors. Partly driven by the fact that there was too little time to think deeply about what key performance indicators should be used to supervise the company over the long run, managers and directors tended to concentrate mostly on financial indicators.

Stakeholders can only take action if they can identify measurable discrepancies. Shareholders and their representatives are always in an easier position because the financial bottom-line is quite visible. In 2004, various investor activists forced the chairman of oil giant Shell to leave, stopped an expensive acquisition by mobile phone company Vodafone and stripped Michael Eisner, Disney’s CEO, of his role as chairman. Customers can switch and talent can leave but how many of these other stakeholders have well-defined key performance indicators (other than financial ones) that can influence management appointments or rewards?

In a period of growth, and with CEOs who also chaired boards – or, on a twotier board, CEOs who had extremely strong characters and therefore more or less ruled the meetings – not enough people forced more internal transparency. Nowadays, both internal and external key stakeholders seek insight into the real quality of the company’s leadership. Is its management board really meeting every week and for how long? Who is present on a formal basis and who chairs these meetings? Transparency about the actual behaviour of the CEO and his board often provides a better THE CORPORATE BLACK BOX 23 insight into the status of the company than data coming out of the annual report.

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