Intangible Management: Tools for Solving the Accounting and Management Crisis

INTANGIBLE STRATEGIC MANAGEMENT

Many management methods argue that the only way for a business to be successful is to correctly implement and manage its strategy. From this perspective strategy is viewed as being top-down and rigid. Key performance indicators are put in place to assess the performance of staff and managers based on that strategy. In theory, such a system makes great sense. In practical terms, great difficulties surround the implementation of such systems.

The greatest difficulty is that markets now undergo discontinuous change. In the past markets were not subject to significant change because global markets were unsaturated. Geographical boundaries and tariff protection sheltered local producers from competitive waves. Today, the world is awash with competitive waves that become shorter and more destructive over time. With local tariffs all but removed and local economies subject to significant foreign investment it is harder for companies to devise a strategy that will remain relevant for any period longer than 12 to 24 months. The competitive landscape of the past was a very different place: 30 to 40 years ago managers made 15-to 25-year plans, now strategic plans seldom cover more than 2 years at a time.

Intangible strategic management acknowledges the new rules of the Intangible Economy and formulates strategies with these facts in mind. Because markets now discontinuously change, it is important to move past setting strategies on the basis of continuity. A market now and that same market in 12 months time will be very different.

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