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For decades, managers have been focused on efficiency. From Frederick Winslow Taylor and his Principles of ScientificManagement early in the 20th century to more modern practices like Six Sigma, executives continually honed their operations to achieve maximum productivity at minimal cost.
In the recent past, businesses had only external, third party vendors to rely on for major projects, operational emergencies, and other labor-intensive initiatives that required resources they did not have. Both industrial, machine-like robots and digital, computerized robots have revolutionized the way companies operate.
And so the power of incumbency, firm competencies, and market share is giving way to the ability to engage across companies and industries, innovate, individualize, and deliver. This isn’t a retread of scientificmanagement , nor is it an updated take on scenario planning. It’s an entirely different animal.
More importantly, business education needs to evolve once again, revising its goals to educate leaders of the future who have a new set of skills: sustainable global thinking, entrepreneurial and innovative talents, and decision-making based on practical wisdom. Historically, business schools have so far been through two waves.
Whether you’ve heard of them or not, two gurus from the early 20 th century still dominate management thinking and practice — to our detriment. It has been more than 100 years since Frederick Taylor, an American engineer working in the steel business, published his seminal work on the principles of scientificmanagement.
And so the power of incumbency, firm competencies, and market share is giving way to the ability to engage across companies and industries, innovate, individualize, and deliver. This isn’t a retread of scientificmanagement , nor is it an updated take on scenario planning. It’s an entirely different animal.
The question is: How will management advance to influence the path and force of these revolutions? But increasingly this industrial-age management mindset is becoming an impediment to our fully realizing the promise of the digital revolution’s technologies. Our ways of measuring success are reductive and backward-looking.
With Frederick''s Taylor invention of scientificmanagement in the 1880s, and its subsequent assimilation into what we now consider modern management, organizations have used logic and rationality to the eliminate waste, to seek efficiency, and to transfer human knowledge to tools and processes.
This was the era of scientificmanagement, when experts like Frederick Winslow Taylor kept busy measuring factory workers' every motion with the aim of improving productivity. John Hartford applied such scientific thinking to the grocery trade. Their gambit worked.
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