The New Management Model Is Customer Driven

Introduction:

Unlike the oîd model, the new management model is customer driven. The companies we will introduce make it their business to get and stay close to their customers.

Customer Requirements:

THEME 1

The first theme is that management should focus on creating and delivering the best net value to the customer, not maximizing stock price, return on investment, or shareholder equity—the typical measures of corporate per-formance.

THEME 2

The second majör theme is that managers must design and con-tinuously improve organizational alliances and consensus thinking that will. cut horizontally across vertical organızational struchıres; integrate corpo­rate functions such as engineering, manufacturing, and finance; and foster teamwork.

• Both themes fit the new management model. Both require a drarnatic shift in thinking.

• American businesses define themselves by financial mea­sures.

• When Fortune Magazine announces its latest list of 500, it places the successes and the failures into three categories:

(1) biggest money makers and losers,

(2) biggest sales increases and decreases, and

(3) best and worst investments.

• Studies by accountants and consultants at Ernst & Young have suggested that some companies have wasted millions of dollars on such quality ini-tiatives as team building, benchmarking, and reengineering.

• The primary difference is that the losers, without un-derstanding their own systems first, adopted programs they had seen work for others.

• The winners become "systems thinkers" who integrate these initiatives into a broader process of continuous improvement.