What Are Three 21st Century Challenges in Strategic Management? Answer Many challenges face a manager in the 21st century. A looming challenge in strategic management right now is globalization. Another is a volatile world economy. A third challenge in 21st century strategic management is the ever changing environment of government regulations, both domestically and internationally.
Globalization is the international integration of intercultural ideas, perspectives, products/services, culture, and technology. Ethics and Governance
Corporate governance is centered on ethics, with management being responsible for their actions on a global scale. Embracing diversity in the workforce, including different cultures, genders, ages, and dispositions, is highly valuable due to globalization. Achieving career success and personal fulfillment relies on effective human resource management, which involves empowering employees with the required tools and skills. Additionally, technology management plays a crucial role in mitigating risks associated with new technology and harnessing its operational advantages.
Competition Managers should possess an understanding of a company’s competitive advantage and should be able to transform this understanding into a strategy that takes into account the competitive landscape. One useful framework for considering challenges is the PESTEL framework, which emphasizes six critical factors that management should consider when dealing with the overall business environment. Additionally, a report by Randstad provides valuable insights and interesting statistics on the future landscape of managerial roles, referred to as the Managers of Tomorrow.
According to Gary Hamel’s book “The Future of Management,” the key to long-term success in business is not operational excellence, technological advancements, or new business models. Instead, it lies in management innovation – adopting new approaches to talent mobilization, resource allocation, and strategy formulation. In this article, we will explore future predictions and discuss how to exert influence over them. The question arises: Who wants to be a supervisor? According to Randstad’s report, current employees have mixed perceptions about the effectiveness of their managers and are somewhat pessimistic about their prospects for becoming supervisors in the future.
The report emphasizes that discovering and training future managers is becoming an essential requirement in today’s workplace. However, there is a problem: upcoming generations of employees are not enthusiastic about taking on managerial roles. Employees observe their managers and notice the extended work hours, increased responsibilities, and limited financial rewards. The main reason why employees shy away from becoming managers is because of the heightened stress involved. What aspects of a managerial position do employees find appealing?
Despite the notion that future generations may not currently embrace the role of a manager, Ranstad’s report offers some insight into what employees find appealing about being a manager. So, what exactly makes management more attractive? According to the report, it may start with rethinking the concept of management. When employees were asked to provide reasons for wanting to be a manager, the responses were surprising. Notably, power, status, and money were absent from the list. The top reason cited was the opportunity to share knowledge with others. The second reason was the ability to contribute to the success of an organization, while the third reason was the ability to influence decisions.
Some Goals for the Future In February, the Harvard Business Journal released an article showcasing 25 Stretch Goals for Management in the 21st Century. Here are a few noteworthy points from the article:
1. Redefine the work of leadership. The concept of a leader as an heroic decision maker is no longer feasible. Leaders should instead be seen as social-systems architects who facilitate innovation and collaboration.
2. Establish internal markets for ideas, talent, and resources. Markets are more effective than hierarchies in distributing resources, and companies should adapt their resource allocation processes accordingly.
Depoliticizing decision-making and utilizing the collective wisdom of the entire organization is essential. Decision processes should be free from biased positions. Additionally, it is crucial to enhance managerial skills by supplementing traditional deductive and analytical abilities with conceptual and systems-thinking skills. According to the Harvard Business Journal’s article “25 Stretch Goals for Management,” these approaches are necessary. Furthermore, the modern work environment requires frontline supervisors who are highly skilled and distinct from the past’s command-and-control leaders. Therefore, it is essential to provide supervisory training for tomorrow’s supervisors today.
People are no longer interested in working for someone who only gives orders and evaluates once a year. Nowadays, employees are seeking leaders who can develop, support, and coach them, as well as keep them engaged. In the popular Supervisory Series I by ERC, starting on September 8th, participants will learn the necessary skills to manage and interact with others, including emotionally charged situations. They will also gain the ability to apply these skills in any leadership setting. This program is ideal for those seeking organizational promotions and preparing to become future managers.
SEPTEMBER 1, 2010 BY JORRIAN GELINK 1 COMMENT The control an organization has over the execution of its vision and achieving high performance lies in the people decision process. Simply displaying mission statements and core values on the walls is meaningless unless the actions towards the people are in line with the organization’s core vision. While delivering a message on the significance of gaining new markets, promoting an associate based on “long tenure” despite their focus on retaining older clients falls short.
Every decision regarding upward, downward, or lateral movement is scrutinized not only by individuals within the department or division, but also by those who assess the requirements for advancement within the organization. Present-day management must adhere to two fundamental steps to foster future management. The first step is assessing an individual’s integrity, as it forms the foundation for any promotion and is critical to the organization’s integrity. Integrity is not acquired within an organization; it is a personal attribute that others can easily evaluate.
Managerial integrity is like an eternal garment that can never be removed – it is always on display for everyone to see and react to. Whether it is strong or weak, the level of integrity is apparent and elicits corresponding responses. It takes less than a month for the lack of managerial integrity to become evident, but once the character’s integrity is compromised, the damage becomes visible at the same time. Numerous examples highlight the vulnerabilities of a manager’s integrity, such as favoritism, apprehension when dealing with competent subordinates, shifting blame onto others, avoidance of performance-related discussions, and favoring individuals who resemble oneself. These are among the primary issues plaguing inadequate management in today’s world.
The people of the organization can forgive upper management for promoting someone new to a role, but they will never forgive a promotion of someone lacking integrity. Organizational Performance. The organization must promote based on performance – clear results achieved by executing tangible goals. Behavior that leads to results must also be considered. Any manager who promotes based on performing the right behaviors but not achieving results demonstrates ignorance of the organization’s goals. Others will view this type of poor promotion as “as long as I do what my manager tells me, who cares if I need to perform”.
Not only will you damage your business, but you will also deter others from desiring promotion within the organization. Poor promotion planning also leads to doubts about whether someone can handle a new role; what is needed is factual evidence of their performance. The most damaging outcome is not just average performance from a candidate, but under-performance, as co-workers will not take their objectives and goals seriously and upper management will be seen as favoritism towards friends.
Continuous poor promotions using this approach can lead to subordinates leaving the organization due to favoritism or, even more concerning, it can undermine the organization’s objectives as individuals prioritize befriending their superiors over achieving results. The future managers must possess both integrity of character and a track record of delivering results for the organization. By placing emphasis on these two criteria, the organization ensures fairness and accountability within its teams. Failing to meet either of these criteria not only jeopardizes the organization’s performance but also discourages others from seeking promotion opportunities.
The true control of the organization lies in effectively placing the right people in the right positions for the right reasons. Jorrian Gelink, a Management Architect, suggests that HR managers of the future will have five key roles. There is speculation that these HR directors may not have a distinct appearance, and some theorists even argue that they may already be obsolete. This is not a new concept, as there have been numerous calls for change in the HR profession since the 1990s. A notable example is Fast Company’s 2005 article titled “Why We Hate HR,” which garnered attention for its critique on the intelligence and value of HR.
Jacques Fitz-Enz and other practitioners argue in favor of decentralizing HR by assigning its competencies to different departments. However, I strongly disagree with this perspective as people are essential to every aspect of an organization and should therefore have a dedicated team of professionals focusing on their needs.
I believe that HR has a chance of succeeding, but it will necessitate a significant change in thinking and a deliberate shift in focus towards what truly matters to the organization in order to enhance workforce performance and development. In order for HR to stay relevant, it must operate under the assumption that the organization is financially supporting its services and could withdraw that support at any moment. The following are five roles that the future HR Leader will need to fulfill in order to change this perspective and provide genuine value to the organization: Strategic Investor Today’s HR team is under immense pressure, excessively occupied, and overwhelmed.
With numerous clients having an enormous number of requirements, we constantly move from one project to another without pausing to comprehend the purpose behind it, the desired outcome, and whether or not we have achieved the desired results. Reflect on this. If HR functioned as a company offering services and products to an organization, wouldn’t we have to view our work as strategic investments, providing appropriate products and services at a price acceptable to the customer? We cannot be all-encompassing and do everything. We must learn to deliver our work in areas where it brings value and consistently assess the effectiveness of that delivery.
Sticking with the concept of Human Resources as “all things people” for a minute, it is obvious that a significant component of that role is the facilitation of relationships within and outside the organization. While the act of “building relationships” is indeed part of this, it does not encompass everything. Undoubtedly, HR requires trusted relationships with executives, peers, the HR team, and employees. However, Human Resources should not limit themselves to just these connections; they must also foster relationship building vertically and horizontally across levels, business units, and with the broader community.
Relationships within the organization can hinder its success, but HR has the opportunity to play a crucial role in bringing people, teams, and the organization together to drive business success. Often, HR professionals focus on developing the skills and talent of others while neglecting their own team. However, we cannot neglect our own team if we expect to effectively influence and facilitate positive change within the organization.
How can trust be facilitated if the HR team is not trusted? The risk manager acknowledges that there are significant risks associated with people in an organization, and it is the responsibility of HR to manage those risks. This does not involve simply enforcing policies and procedures to prevent misconduct, but rather enhancing the leadership team’s capabilities and fostering engagement and commitment within the workforce. The technology geek emphasizes that the future Human Resources Director must rely on credible business intelligence rather than vague references and trendy phrases.
HR leaders need to have a deep understanding of technology systems, data integrity, process improvement, and analytics. It is vital for us to assess our processes carefully in order to ensure the dependability of the business intelligence we provide to our customers. Due to the complex nature of today’s HR systems, it is crucial for HR professionals to be curious and continuously seek ways to improve efficiency and effectiveness through technology. Changing the current way of thinking is not just feasible but necessary, both for our own survival and for the organizations we assist.
The success or failure of an organization relies on the skills and abilities of its people, which is where HR can thrive. The Associate Dean examines VUCA and the significance of managers in a fast-paced world. In a constantly changing and unpredictable environment, businesses must navigate through chaos and complexity. The conventional methods of conducting business have become less rigid than before, offering challenges and opportunities for organizations to make decisions, solve problems, and plan for the future.
Volatility, uncertainty, complexity, and ambiguity (VUCA) is a term originating from military language that is increasingly important for managers to understand the external environment. In today’s global business landscape, it is crucial for managers to possess awareness, preparedness, and the ability to anticipate challenges brought by VUCA. As companies navigate through this chaotic operational environment, they seek a new kind of leader – someone who is well-prepared, aware, and capable of developing strategic plans and making informed decisions.
The Global MBA aims to develop leaders who can help companies stay ahead of trends by providing them with the skills they need. Companies that fail today are those that stick to outdated talent acquisition, management, and workforce planning processes. However, this chaotic environment is here to stay. Therefore, businesses and their leaders not only need to catch up but also find the appropriate talent that can excel and adapt in this setting.
Agility is emphasized in our program as we navigate through the age of innovation, disruption, and globalization. It is no longer sufficient to rely on traditional methods. The unique challenges we face require unique solutions, and business leaders must adapt to the diverse and ever-changing demands placed upon them. With the emergence of new markets, there are both opportunities and obstacles that arise at an accelerated pace. We must be prepared for the future before it arrives, as disruptive innovation has become the norm and competition is extremely intense.
Traditional leadership styles are ineffective in dynamic circumstances. Leadership should reflect the environment and prioritize readiness, foresight, and adaptation to volatility, uncertainty, complexity, and ambiguity (VUCA). It is important to note that there is no universal management approach that suits all situations. Difficult problems necessitate intricate solutions and strategies. Future leaders must excel in various complex environments, staying updated on emerging and established markets, entrepreneurialism, innovation, as well as efficiency and optimization.
Embracing chaos, taking risks, and having the ability to quickly adjust strategies to adapt to changing markets are essential qualities. However, it is equally important to maintain a practical approach and unyielding dedication while also ensuring that employees are fully engaged in the process. The Global MBA program is specifically designed to equip students with the necessary skills through interaction with diverse peers, international travel and work experience, exposure to emerging markets, studying in a mature market, and learning from renowned professors worldwide.
Studying different cases in various industries allows students to analyze strategy and gain knowledge from past failures. Working together extensively helps them develop collaboration skills, leverage strengths, overcome weaknesses, and collectively adapt to the volatile, uncertain, complex, and ambiguous (VUCA) environment of a rigorous 12-month MBA program. How should organizations navigate this intricate external landscape? They should adopt a similar approach. Agile leadership involves utilizing the best combination of skills, leadership styles, and experience to address specific and distinct requirements.
In July, the Global MBA students will embark on International Immersion Projects in various countries. These projects require diverse teams consisting of students with different nationalities, linguistic capabilities, professional expertise, and academic strengths. The projects will focus on a lifestyle brand in China, agri-business in Bolivia, energy and bottom-of-the-pyramid issues in India, eco-tourism in Morocco, small and medium-size sector development in Djibouti, and the wine industry in S.
Africa presents a variety of projects that require a diversified set of skills to be tackled in challenging external conditions. The teams will operate in temperature extremes, ranging from -20°C to +50°C! This also means that the teams are well-prepared to adapt to the changing demands of their various projects in different locations, thanks to their experience in collaborative work and constructive conflict resolution. The successful companies of the future will utilize resources like these to become frontrunners in a world driven by volatility, uncertainty, complexity, and ambiguity (VUCA).