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By Vlatka Hlupic (auth.)

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Additional info for The Management Shift: How to Harness the Power of People and Transform Your Organization for Sustainable Success

Sample text

For example, the ROA for US firms has steadily fallen to almost one-quarter of 1965 levels despite improvements in labor productivity; the “topple rate” at which big companies lose their leadership positions has more than doubled, suggesting that “winners” have increasingly precarious positions; the US competitive intensity has more than doubled during the last 40 years, increasing rivalry and the pressures companies are facing; increasing customer disloyalty indicates that customers also seem to be gaining and using power, enforcing the need for companies to focus on customers rather than share price.

The Shift Index in 2009 highlighted long-term performance challenges of companies. For example, the ROA for US firms has steadily fallen to almost one-quarter of 1965 levels despite improvements in labor productivity; the “topple rate” at which big companies lose their leadership positions has more than doubled, suggesting that “winners” have increasingly precarious positions; the US competitive intensity has more than doubled during the last 40 years, increasing rivalry and the pressures companies are facing; increasing customer disloyalty indicates that customers also seem to be gaining and using power, enforcing the need for companies to focus on customers rather than share price.

3 shows a summary of theories, concepts and terms used within traditional and new management paradigms. A number of leading management thinkers have criticized the current state of management research and pedagogy, including Porter and McKibbin,83 Leavitt,84 Mintzberg and Gosling,85 and Pfeffer and Fong. They argue that there is a lack of impact of management research on management practice as well as a lack of effectiveness of management education for business performance of students. Even more importantly, Ghoshal87 argues that outdated management paradigms and academic research related to the conduct of business and management have had some very negative influences on the practice of management, and by propagating ideologically inspired amoral theories, business schools have freed their students from any sense of moral responsibility.

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