Recession Affects the Thinking of Management
In order to arrive at how the current recession would affect management’s thinking in the coming 5-10 years it might be appropriate to start from what the business leaders were thinking in the years that led to the recession that resulted in introducing such a sever recession. A source writing for the Harvard Business Review had asked three key questions that would be good starting points. What were the top management were thinking while the recession was in the making? How would they allow this to take place? Why were they so late to avert it?
The reason why these questions are important is that it would be possible to spot what went wrong in their thinking and once that is accomplished it will be possible to enable them avoid doing the same mistake. A management strategist called Gary Hamel had issued a review to the Harvard Business Review entitled “Moon Shots for Management”, which were 25 suggestions made by a group of business leaders and scholars who convened together to come up with ways that will revamp how management should continue into the future.
Among the suggestions made some of the key ones were there is a need to re-think the
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What raised such questions is the fear that when managers try to implement these stringent goals relentlessly the end result could be that they will find it difficult to remain within the ethical boundaries, hence could end up jeopardizing ethical business practices. With the same token, there was a suggestion to avoid “quick wins” although they could be useful to managers that are in transition.
The reasoning behind it was although “quick wins” might be beneficial for the time being, their long term benefit for the organization might be harmful where the Harvard Business Review had said that even if “quick wins” are needed by managers to prove themselves, in the long run they could end up hamstringing the success of any organization. This had been true in the US where the long term health and wellbeing of the corporations involved and the economy in general had eclipsed the thinking of those who were at the top managerial positions.
Another area highlighted in the review was the confidence and belief the senior leaders have on CEOs had been wavering for a while. According to a survey made by Booz & Company 46% percent had doubts about the CEOs ability to do their job effectively, which could be translated into a doubt that they could also be lacking the ability to navigate the companies through the current recession. This would lead back to the question on the outset that asks how would the current recession would impact the thinking of the management in the coming 5-10 year, since many of them might not have what it takes to be where they are.