By Jeroen Kraaijenbrink, Strategy and Leadership Consultant
The old management paradigm of organizations as profit-generating machines does no longer work. We need a mindset shift to create truly valuable organizations.
The traditional image of an organization is a hierarchy controlled by the top, efficiently producing sellable output, with the single purpose of generating profit or shareholder value.
Luckily, most real organizations today do not fully fit this image anymore. At the same time, though, echoes of the traditional management paradigm are still strongly present in many organizations across the globe.
If we want to create organizations that are truly worthwhile existing, we need to let the traditional management mindset go and replace it by a new one. These are the five mindset shifts of organizational transformation.
From Profit to Purpose
Old: Efficiency drives profit and if we aim to maximize profit, everyone will be better off.
New: Purpose drives everything and if we aim to truly make a positive impact, profits will follow as well.
From Hierarchies to Networks
Old: Intelligent people need to tell less intelligent people what they should do.
New: The unique insights and skills of all are best used in collaborations with others.
From Controlling to Empowering
Old: People are inherently lazy and self-centered and need therefore be monitored and controlled.
New: People are inherently motivated to contribute and need to be empowered to do so.
From Planning to Experimentation
Old: We need to know exactly what is going to happen so that we are prepared and know what to do.
New: We can’t know what will happen, so we need to act and adapt based on what we experience.
From Privacy to Transparency
Old: Knowledge is power and we need to keep our ideas, data and information to ourselves so that no one steals them.
New: Sharing is power and if we share it and educate others as much as we can, they will come to us.
When will your organization make the shift?
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