Corporate Policy and Governance (ePub)

(and even easier to implement) in models than to put in succinct words without exceeding the scope of a book. Some of the paragraphs may therefore seem superfluous to one reader while another will find them to be precisely what he needs to understand the subject matter well. That is the price of rigorous management writing: it needs to use a language suited for everybody yet sometimes requires newly invented terms. The questions as to what exactly needs to be done in corporate policy and governance can only be answered individually for each organization. With this book, I am making available a fully equipped toolbox, so to speak, along with the operating instructions for each of the tools, so that top managers will be able to perform the necessary craftsmanship in their organizations. Directions regarding this volume and the entire series are given before Part I. That part then describes the key premises to be observed in order to master complexity. It also contains a roadmap for developing a corporate policy as I understand it. The roadmap explains how the remaining three parts of the book are structured. Part II explains the concept of a Master Control in complex systems: what it is, how it works and what it is needed for. The modules of Master Control will be presented in Part III. In Part IV, I will address top executives in charge of developing a corporate policy, explaining what needs to be done in order to achieve the system behavior required and what Master Controls managers need to apply to themselves. The appendix provides some concise information on the Malik Management System. At this point I want to thank Maria Pruckner for her invaluable help in structuring and formulating this manuscript. As a student of Heinz von Foerster and an experienced management practitioner, and with her profound knowledge about the cybernetics of complex systems, she has helped me to better sort out my own thoughts and their cybernetics. The interaction of speech and thinking is one of her specialties. There is hardly anything that could be more important for an author and his readers. Further, my thanks go to the members of the Board of Directors and the Group Management Board at Malik Management, in particular to Elisabeth Roth, Walter Krieg, and Peter Stadelmann for relieving me of some of my management tasks while I was writing this book. It is a principle of mine not to publish any of my books until their content has proven valid in years of cooperation with hundreds of managers - including clients as well as colleagues in various top management bodies - and after both critical discussions and field tests have been passed. I owe my sincerest thanks to all of them.

Openness, Universal Validity 105 Ethics and Morality 108 What Should Be Regulated? 110 4.Navigating in Complexity - Models for Overview, Insight, and Perspective 111 Brain-Like Models 111 World - System - Model - Concept 113 The Model as a Thinking Tool 115 Realization and Understanding by Means of Regulation Models 116 Knowing What the Talk Is About: The Babylon Syndrome 119 Like a Brain: Operations Room - Management GPS 120 Three Purpose-Oriented Models 122 Basic Model for Corporate Policy 123 Farewell to Hierarchy: Embedding Replaces Ranking 125 Recursive Logic for Cybernetic Systems 129 Specialists, Generalists, Specialists for General Subjects 131 Three Subconcepts for Master Control 132 The Best Media for Master Control 134 Part III Instructions for SelfOrganization 137 1.What the Organization Should Do: The Business Concept 139 The Purpose of the Organization 140 The Business Mission 159 Performance of the Institution: The Cockpit 167 REvolutionizing Corporate Control through CPC towards Brain-Like Processes 177 The Cybernetic Power of Purpose and Mission 185 2.Where the Organization Has to Function: The Environment Concept 188 What Needs to be Considered? A Common Topographical Map 189 The Master Control Model for the Environment 194 Master Controls for the Environment Model 201 Categorical Change 217 3.How and With What the Organization Should Function: The Management Concept 221 The Same Management Everywhere and for All 222 Tapping the Performance Potential 223 Inducing Self-Organization 224 Management Models for Master Control 225 The General Management Model 226 The Standard Model of Effectiveness - or "Management Wheel" 228 The Integrated Management System (IMS) 232 Navigation instead of Documentation 237 An Overview of the Master Control "Management Concept" 238 Implementing Corporate Policy: Order is Law times Application 239 Management Training and Development: Return on Management Education 241 Management Education is Critical for Success 242 Charts of the Malik Management System (MMS) 244 Part IV Sovereignty and Leadership through Master Control 251 1.Order, Time, Peace 253 Their Working Conditions: Proliferating Complexity 254 Their Task: Total System Master Control 255 Their Challenge: Change Leaders 255 Their Choice: Making Use of Complexity 257 Their Conflict: Categorical Change 257 2.Top-Management Frame of Reference for Change Leaders 259 In the Cross-Hairs of Total System Control 259 The Future is Created Now - Or It Has Been Missed 261 3.Mastering the Master Controls - Source of Leadership 267 Master Control through Corporate Policy 267 Master Control through Corporate Modes 269 Master Control through Corporate Issues 272 4.A Look Forward - Current Top Management Issues 274 Informing and "Educating" Shareholders and Representatives of the Financial Sector 274 What is Profit? What is Wealth? 275 Entrepreneurship and Top Management 276 The Importance of Knowledge 276 Thinking through the Strengths 277 Developing Top Performers 277 What is a Functioning Society? 278 What Is the Meaning of Responsibility? 278 Top Managers' Compensation 279 5.The Crisis of Top Executive Bodies and Their REvolution 280 Lack of Theory for Top Management Structures 280 Will Formation Works Differently Today 281 Breeding Ground for Conspiracy Theories 282 Why Traditional Corporate Governance Is Not Enough 283 6.REvolution: From Chief Executive Officer to Master Control Function 285 Supercontrol instead of Superperson 285 Total System Master Control Function 286 Functioning instead of Personifying 291 7.Top Management Teams 295 Three Prerequisites 295 Six Rules 297 8.Master Controls for Leadership 300 What Distinguishes Leaders 301 Leadership Arises - From a Situation 302 Master Controls for True Leadership 302 Charisma? 308 9.Heuristics for Winners: The Logic of Succeeding 310 Principles for Assessing the Situation 312 Principles for the Ability to Direct and Relate 315 Principle of Proximity to Information 320 Principles for the Power of Conviction 322 Epilogue 324 Appendix 327 The Malik Management System And Its Users 329 Designations and Identities 330 History of Development 330 Applications and Effects 331 Autonomy for Management and Managers 332 Modularity and Interfaces 333 A Management System for Self-Thinkers 334 Potential for Success Increasing With Qualification 334 Self-Motivation for Self-Developers 335 Care versus Kudos 336 Authors and Acknowledgments 337 About the Author 338 Literature 340 Index 346