Managerial skills, personal skills, and managerial tasks must be combined into principles of managerial effectiveness to implement an enterprise’s theory of the business. These principles include the discipline of innovation and entrepreneurship.
This is true for all knowledge work. “Generalists”—and this is what the traditional business enterprise, including the Japanese companies, tried to develop—are of limited use in a knowledge economy. In fact, they are productive only if they themselves become specialists in managing knowledge and knowledge workers.
Whenever a big organization gets into trouble—and especially if it has been successful for many years—people blame sluggishness, complacency, arrogance, mammoth bureaucracies. Plausible explanations? Yes. But rarely the relevant ones or correct.
Note: I am trying to understand this statement in the context of my experience in Families SA. Is THOB the issue here? Yes, there are multiple other issues and the challenges of child protection but is there something more fundamental about this?
It is the customer who determines what a business is. It is the customer alone whose willingness to pay for a good or for a service converts economic resources into wealth, things into goods. What the customer buys and considers value is never a product. It is always utility, that is, what a product or a service does for him.
Note: The Job to be Done.