Rule No. 6 for 21st Century Business Management: Plan and govern the transition from today’s value to approved strategic value
Submitted by bcfc on July 3rd, 2009
Rule No. 6 of the Ten Rules for 21st century business management states: Plan and govern the transition from today’s value to approved strategic value. This rule requires the development of management capital in strategy to plan the strategic business, in tactics to evaluate and assess progress of the current to strategic business, and in intelligence to anticipate opportunities, threats, and new developments. The rule must be followed to ensure good corporate governance.
20th century strategies are planned and described by laying structures over the business
Strategies are planned today by laying structures over the business such as corporate plans, maps, investment analyses, budgets, etc. Separate and unrelated plans are often prepared for operations, finances, information technology, capital development, human resources, and other areas. The strategic business is not defined and strategies do not relate to the actual business. Goals and value creation are estimates and projections rather than the planned transition from the existing business. The rigid structures laid over the business conflict with the actual changing business and do not provide a foundation for good corporate governance.
Corporations govern by enforcing rules, because they cannot govern the business
Corporate governance is an unsolvable 20th century management problem that arises because corporations do not organize and manage the business. [more...]
