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symposium-1354524
You’ve probably heard of lean thinking,
Key Management
Key Management Models gives you short, practical use it and a final analysis, which presents a
manufacturing management at the Department
overviews of the top classic and cutting edge critical summary assessing whether it really
Key Management
of Management of Technology and Innovation
management models in an easy-to-use, ready works. It is packed with illustrative case
Department of RSM Erasmus University.
Models
reference format. Whether you want to remind yourself examples and figures to illuminate the ideas.
He has written several books and articles
about models you’ve already come across, or want to At the end of each summary, you’ll really
on operations and innovation management.
find new ones, you’ll find yourself referring back to it know where you stand.
again and again. And you’ll wonder what you ever did
Gerben van den Berg holds an MSc in
without it! Whatever your background, this book
business administration from the University of
Groningen. He works at Berenschot as a senior will show you dozens of new ways to
IF YOU WANT TO BE A MODEL MANAGER, improve your business. At the very least,
strategy consultant, giving advice to executive
KEEP THIS BOOK CLOSE AT HAND you will never have to admit you don’t
boards and management on strategy,
governance and organization. He is also
(co)author of several books and articles
Other titles in the series: The 60+ models every know your way around the latest trendy
management term!
concerning strategic management.
Key Management Ratios manager needs to know
Master the essential numbers that
Models
Paul Pietersma MSc. BA is a strategy Marcel van Assen, Gerben van den Berg
measure the success of your business
consultant and managing director of Business & Paul Pietersma
Strategies at Berenschot. He has more than
Key Marketing Metrics
10 years of experience in the consultancy
Make sure you get the most out of
business during which time he has advised
your marketing by learning about the
many CEOs and boards of directors on
most valuable marketing metrics ever 2nd Edition
a variety of strategic issues. He has won the
Dutch Professionals Award of Management
Consultancy, he has published several
articles on strategy and he is the (co)author
of two leading Dutch strategy books
2nd Edition
‘Het Strategieboek I’ and ‘Het Strategieboek II’.
BUSINESS
Visit our website at
www.pearson-books.com Visit our website at
www.pearson-books.com
That’s why we work with the best minds in business and finance
to bring cutting-edge thinking and best learning practice to a
global market.
Contents
v
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vi CONTENTS
A01_VANA9106_02_SE_PRE.QXP:A01_VANA9106_02_SE_PR 17/10/08 15:18 Page vii
Marcel van Assen (1969) is a senior consultant within the operations management
group at Berenschot, and assistant professor of manufacturing management at the
department of management of technology and innovation of RSM Erasmus
University. He has a deep understanding of the issues that affect manufacturing,
supply chain and strategic management, resulting from his extensive consulting
experience, which encompasses operational excellence, outsourcing and contract
manufacturing and value-innovation, using tools such as strategic conversation,
road-mapping and foresight.
He holds an MSc in mechanical engineering from the University of Twente, an
MSc in business administration (strategy and organisation) from the Open
University, and a Ph.D. in business administration from the Erasmus University
Rotterdam. As an associate member of ERIM (Erasmus Research Institute of
Management), his research interests focus on both strategic innovation manage-
ment and operations management in knowledge-intensive (high-tech)
manufacturing firms, clusters and networks. In addition, he is co-author of several
books and articles on operations and innovation management.
Gerben van den Berg (1979) is a senior strategy consultant for the business strat-
egies group at Berenschot. He advises the boards of directors and management of
start-ups and established companies industry-wide on strategic business planning
and organisational restructuring issues, such as M&A, reorganisation and out-
sourcing. An alumnus from the University of Groningen, where he read business
administration (with two majors), he is also a co-author of Excellence ⫽
Optimisation and Innovation; and co-author of The Strategy Book II, a leading title on
strategy published in Dutch. He has also published several articles on strategy and
business planning.
Paul Pietersma (1965) MSc, BA, is a senior strategy consultant and managing
director of Business Strategies at Berenschot. He has more than 10 years’ experi-
ence in the consultancy business, during which time he has advised many CEOs
and boards of directors on various strategic issues. He won the Dutch Professionals
Award for Management Consultancy in 2006. He has published several articles on
strategy and is the co-author of two leading books on strategy – The Strategy Book
I and The Strategy Book II, both published in Dutch.
vii
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Publisher’s Acknowledgments
viii
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p.27. Reprinted by permission of Pearson Education, Inc., Upper Saddle River, NJ.;
Figure 35.1 reprinted with the permission of The Free Press, a Division of Simon &
Schuster Adult Publishing Group, from A FORCE FOR CHANGE: How Leadership
Differs From Management by John P. Kotter. Copyright © 1990 by John P. Kotter, Inc.
All rights reserved.; Figure 36.1 from reprinted by permission of Harvard Business
Publishing. From “Purchasing Must Become Supply Management” by Peter Kraljic,
Harvard Business Review, issue 9/1/83. Copyright © (1983); all rights reserved.;
Figure 39.1 from Compensation by Milkovich, G.T. and Newman, J.M. (New York:
McGraw-Hill, 2007) © The McGraw-Hill Companies, Inc; Figure 40.1, MINTZBERG,
HENRY; STRUCTURE IN FIVES DESIGNING EFFECTIVE ORGANIZATION, 2nd
Edition, © 1992, p.154. Reprinted by permission of Pearson Education, Inc., Upper
Saddle River, NJ. Reprinted with kind permission from Henry Mintzberg; Figure 41.1
from “The Global Procurement and Supply Chain Benchmarking Initiative”,
Monczka, Robert M., Michigan State University, Unpublished. With kind permission
from Robert M. Monczka, Ph.D., Michigan State University; Figure 43.1 from QUICK
RESPONSE MANUFACTURING: A COMPANYWIDE APPROACH TO REDUCING
LEAD TIMES by Rajan Suri. Copyright 1998 by Taylor & Francis Group LLC – Books.
Reproduced with permission of Taylor & Francis Group LLC – Books in the format
Tradebook via Copyright Clearance Center.; Figure 44.1 from THE FIFTH DISCI-
PLINE by Peter M. Senge, copyright © 1990, 2006 by Peter M. Senge. Used by
permission of Doubleday, a division of Random House, Inc; Figure 46.1 from The
EFQM Excellence Model for self-appraisal. EFQM: Brussels, Belgium; Figure
49.1 from reprinted by permission of Harvard Business Publishing. From “The
Balanced Scorecard: Measures That Drive Performance (HBR Classic)” by Robert
S. Kaplan; David P. Norton, Harvard Business Review, issue 7/1/05. Copyright ©
(2005); all rights reserved.; Figure 55.1 and Figure 55.2 reprinted with kind permis-
sion from Henry Mintzberg
In some instances we have been unable to trace the owners of copyright material,
and we would appreciate any information that would enable us to do so.
PUBLISHER’S ACKNOWLEDGEMENTS ix
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Preface
Management models are not only tools for professionals and managers but essen-
tially they are a way of communicating. Management models bridge differences in
abstraction and provide comprehensiveness. Berenschot has a long lasting tra-
dition of both application and development of management models. This started in
1938. The year our company was founded and continued over the years. The
models show the variety of academic disciplines from which they originated.
Elements of the early engineers approaches as just as much visible as influences
of social sciences.
This new edition of Key Management Models reflects the scope of Berenschot and
its consultants. And it shows the necessity of keeping on track when it comes to
new developments.
I thank all our consultants who provided input for this Key Management Model
edition and extend these feelings to the authors of the previous edition, Frans
Stevens, Wouter ten Have and Steven ten Have. I’m confident that we will continue
this tradition in the future.
Prof. Dr. Theo Camps
Chairman Berenschot Group
Management models are designed to resolve common problems and challenges in
business. At best they will provide a new way of seeing a situation that will result in
positive change. The models may be applied strategically, tactically or operationally;
some are problem-solving tools, designed to improve efficiency and effectiveness;
most are designed to solve specific problems arising out of a specific situation.
Unfortunately, no management model, or group of models, can guarantee that a
manager or consultant will deal with an organisational problem objectively and to
the best of their ability; and the vast array of management models on offer can be
bewildering, for managers and consultants alike. Models can none the less provide
valuable insights and a sound framework for making appropriate business choices.
Management models and theories can help managers and consultants to gain
clarity in business by reducing the complexities and uncertainties involved – nothing
more, but definitely nothing less.
The first edition of Key Management Models was published in 2003. At that time
our highly respected colleagues (Steven ten Have, Wouter ten Have and Frans
Stevens) rose to the challenge of imposing some sense of order on the range of
models available, and drew up an overview of the most frequently used and quoted
management models. In the present edition, we have revised and further developed
their overview. We have revisited the world’s classic and best-known models, and
have discovered that not all of them are used as frequently in daily practice as we
had thought. Some are too theoretical or outdated; whereas other, lesser-known or
new models are now in common use. We have therefore updated the previous
x
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edition with up to 60 of the management models that are in most frequent use. In
addition to a brief description of each model and suggestions as to its application,
we include a description of how to use it. For the ‘diehards’ among our readers, we
have added recommended reading and, where appropriate, have drawn attention
to the potential limitations or shortcomings of each model.
We arrived at the final selection of management models by asking managers and
consultants from various disciplines which models they use in their work. For this
purpose, we defined a model as a tool that can be employed (either for process and /
or analytical purposes) to enhance the daily functioning of the business, by
improving both management methods and the performance of the organisation; or
to solve related problems. As a result, our compilation reflects ideas and insights
that are ‘proven technology’ and is largely the result of practical rather than literary
research. The criterion for inclusion, therefore, was not whether the models selected
are scientifically or technically profound, but whether they actually work.
This book is intended neither as a ‘top 60’ of popular or ‘hyped’ management
models, nor as a prescription for ‘good’ management and organisation. In order to
identify more clearly the variety and function of the models and the differences in
their scope, we have grouped the models into six distinct and sometimes overlap-
ping categories (see ‘Using the book’); in this way we aim to put each individual
model into perspective, and into the context of management models in general.
Descriptions of each model, and an overview of how and when to use it has also
been included, to reduce the risk of managers being tempted to view the next
popular model that happens to be ‘hyped’ as being the ultimate solution for their
organisational malfunctions.
Some of the models stand up to a high degree of scientific scrutiny, but many
are simply memory aids. The majority provide useful ways of ordering reality. They
offer a common language with which to compare performances and challenges,
and solve problems. They contain inspiring characterisations, but above all, they are
of great practical value (and are used on a daily basis) when it comes to analysing
situations and identifying possible courses of action.
It is with both pleasure and pride that we present this compilation. We are confi-
dent that the managers and consultants who use it will possess the necessary
maturity, intelligence and discernment to place the models we have included into
perspective, and will use them to act on sound, creative, consistent management
and advice. It was never our intention to produce a comprehensive overview of all
management models; our aim is rather to supplement the readers’ existing knowl-
edge by providing additional ideas and insights, and sound, easily comprehensible
descriptions of actual and frequently used models. Thus enriched, managers and
consultants will be able to determine quickly which model is most appropriate for a
given situation, while also recognising its limitations. This ties in neatly with our daily
field of work, where we face the extremely difficult task of successfully managing,
changing and providing contingent advice simultaneously. We view this book as a
means of not only giving expression to this complexity, but also of making it more
manageable, by providing models to reduce complexity and visualise reality, so that
management issues can be discussed based on a ‘common language’.
It is impossible to thank personally all of those who have been involved in the
PREFACE xi
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publication of this book. Invaluable work was carried out behind the scenes by
Catherine Zijlstra, Noortje de Lange and Charlotte van der Heyden. Without their
efforts, getting this book to publication would have been a very different story. Bart
Koops, Jeroen Nijzink, Karin Stalenhoef, Klaas de Gier, Laurens Friso, Lotte van der
Veer, Luddo Oh, Maartje Elderhuis, Marijke ten Have, Mark Nijssen, Michiel Baldal,
Rob de Groot, Tim Krechting, Titia Tamminga, Vera van Vilsteren and Wouter de
Wolf have also helped to describe some of the models. We would like to thank these
colleagues for their valuable efforts and commitment. Special thanks go to Luc
Steenhorst for his support. Finally, we would like to thank our employer, Berenschot,
for the time and support given to revise Key Management Models. The company has
remained the innovative front-runner among Dutch consultancy firms since its foun-
dation in 1938.
We wish all who read this book, much energy and many constructive results from
applying the models. Use the models wisely in your own specific context: struc-
turing reality is completely different from managing reality.
Marcel van Assen
Gerben van den Berg
Paul Pietersma
xii
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[ PA R T O N E ]
Strategic models
These models help to analyse and plan a company’s strategic
position and provide answers to strategic questions.
1
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M01_VANA9106_02_SE_C01.QXP:M01_VANA9106_02_SE_C01 16/10/08 08:13 Page 3
Ansoff’s product /
market grid 1
3
M01_VANA9106_02_SE_C01.QXP:M01_VANA9106_02_SE_C01 16/10/08 08:13 Page 4
Product
Present New
Mission
Market Product
Preset
penetration development
Market
New Diversification
development
B
New
Market geography
w s
Ne ce
vi s
e r
/s ie
Present
A c ts log
t u n o
en od ch
es Pr te
Pr
Present New
Market need
Figure 1.2 Ansoff’s dimensions of the geographic growth vector: market need,
product/services technology and market geography
These three dimensions together form a cube. They offer a variety of combinations
and strategic directions for a firm. Extreme choices are on the one hand to continue
serving current regions with existing technologies to fulfil traditional needs or on the
other hand to enter new regions with new technologies to fulfil new needs.
When to use it
Deciding a direction and a strategy for corporate growth depends upon a number
of factors, including: the level of risk involved, the current set of products and
markets, and whether the organisation wants to develop new or existing products
or markets. In order to plan for the future in a systematic way, it is vital that man-
agers understand the gap between the firm’s current and desired position. The
Ansoff product / market grid and the Ansoff cube can be used as a framework to
identify the direction and opportunities for corporate growth.
Ansoff introduced four components that cover the portfolio strategy and help
specify the desired future business scope:
1 Geographical growth vector
2 Competitive advantage;
3 Synergies;
4 Strategic flexibility.
The geographical growth vector can be determined with Ansoff’s cube, by con-
necting the current scope of business with the desired future business scope.
A competitive advantage is needed to both to enable the chosen scope, but also
to be able to sustain en route towards it. The competitive advantage can be any-
thing from a core competence or a patented technology to offering better after sales
service to clients than your competitors.
As a third strategy component, Ansoff suggests taking account of the synergy
between the firm’s competencies. This not only enables economies of scale but
also can strengthen the firm’s competitive position.
The fourth, and final, strategic component is the strategic flexibility. It is aimed at
minimizing the impact of unforeseen events and seeks to discard all unnecessary
‘ballast’.
The four components are interlinked. Optimizing one of the components is likely
to depress the firm’s performance on the others. In particular, maximizing synergies
is very likely to reduce flexibility. The process of selecting and balancing the stra-
tegic objectives is a complex matter.
How to use it
To use the product / market grid in practice, an organisation must first assess its
existing product–market combinations and corresponding levels of competitive
advantage. Then, its desired future business scope is to be chosen as the geo-
graphical growth vector within the Ansoff cube.
Next, the feasibility of the chosen scope and direction should then assessed with
an analysis of the combination of the intended direction and extent of corporate
growth and the firm’s distinctive competitive advantages (core competences). Not
only should there be the means that enable the chosen scope, those means should
also provide the firm with a sustainable competitive advantage.
Iwan Turgenjeff
Gedichte in Prosa.
Übertragen von Th. Comichau. Mit Titel und Zierleisten
von Heinrich Vogeler-Worpswede.
Zweite Auflage.
Geheftet M. 2.–; in Leinen M. 3.–; in Leder M. 3.50.
Nicht das klare Filigranwerk der scharfen psychologischen
Beobachtung oder das hohe künstlerische Können in der knappen
Darstellung nimmt an Turgenjeffs »Gedichten in Prosa« gefangen
(das sind hier beinahe nur nebensächliche technische Vorzüge), aber
jene umfassende, ich möchte sagen russische Liebe gibt diesen
kleinen Kunstwerken Farbe, Grundton und Seele. Die Liebe zu allem
Geschauten ist die Signatur reifer und echter Künstler. Es ist die
Liebe eines feinen Menschen, in dem ein beständiges stilles Schauen
lebt, ein schwermutvolles Schauen über graue, weite Gefilde; er liebt
diese Gefilde und alle Kreatur, die auf ihnen leidet und lebt, weil sie
auf ihnen lebt. Das ist eine seltsame Erscheinung bei diesen
russischen Künstlern, daß sie ihre Menschen lieben um des Bodens
willen, auf dem sie geboren sind.
(Die schöne Literatur.)
… Dichtungen eines Greises, die wundersam übergoldet sind von
den letzten milden Strahlen einer zur Rüste gehenden Lebenssonne.
Der Grundakkord all dieser feinen Skizzen, zarten Stimmungsbilder,
epigrammatischen Beobachtungen und verschwebenden Phantasien
ist die Wehmut, die sich mit Tönen statt mit festen Gestalten
begnügt. … Doch wer tiefer zu blicken weiß, sieht hinter diesen
Nebeln um so reiner die Schönheit und die verklärte Weisheitsfülle
eines Menschen leuchten, der auch als Greis nicht aufhörte, ein
großer Dichter zu sein, ja der gerade in seinen letzten Tagen die alte
Romantikerlust wiedergewann, das Ziel, das dem Menschengeiste in
seiner Erkenntnis gesetzt ist, mit der Phantasie zu überfliegen, und
sich auf den lockenden Irrgängen des traumhaft Unbewußten zu
ergehen.
(Westermanns Monatshefte.)
Romane aus dem Insel-Verlag
Lermontoff, Michael: Ein Held unserer Zeit. Ein Roman. Deutsche
Übertragung aus dem Russischen von Michael Feofanoff. Mit
Titel- und Einbandzeichnung von Walter Tiemann. Geheftet M.
3.–; in Leinen M. 4.–; in Leder M. 5.–.
Der russische Dichter des Weltschmerzes hat im
Charakterschicksal seines Helden Petschorin vorahnend
eigenes Schicksal (Tod im Duell nach unstetem
Genußleben) und zugleich einen Typus seines schwer zu
enträtselnden Volkstumes geschaffen. Feofanoff hat das
nachdenklich stimmende Werk, ein Meisterstück
rückgreifender Erzählungsweise, musterhaft verdeutscht.
(Hochland.)
Huch, Ricarda: Vita somnium breve. Roman. Mit Initialen von
Heinrich Vogeler-Worpswede und einem Titelbilde nach Arnold
Böcklin in Heliogravüre. Vierte Auflage. Geheftet M. 6.–; in
Leder M. 8.
Der Roman »Vita somnium breve« von Ricarda Huch ist
mir zu einem wundersamen Erlebnis geworden. Gebannt
las ich die ruhig, klar und schön hinflutenden Sätze,
gebannt sah ich dem Leben der Menschen zu, die hinter
dem köstlichen Gespinst der fein verwebten Worte
aufstanden, deutlich wurden und hinzogen. Seitdem ich
Jens Peter Jacobsens Romane gelesen habe, bin ich nicht
wieder so stark von einem Roman entzückt und
erschüttert worden, höher entzückt und tiefer erschüttert
als vom Leben selbst.
(Münchener Zeitung.)
Huch, Ricarda: Das Leben des Grafen Federigo Confalonieri. 3. bis 5.
Tausend. Geheftet M. 4.50; in Leinen M. 6.–; in Leder M. 7.50.
Der neue Roman von Ricarda Huch ist vor allem eine
erschütternde Seelentragödie von machtvoller und
zugleich feinster Gestaltung. Was Kraft, Leidenschaft,
Gefühl und besonnene Vernunft eines reifen, zur
Meisterschaft gelangten Dichtergeistes mit einem so
bedeutenden Stoffe ausrichten können, das ist hier so
geschehen, daß wir in dem Roman ein vollendetes
Kunstwerk bewundern dürfen. Und nun die Schönheit der
sprachlichen Darstellung, ein beseelter Stil von klassischer
Reinheit auf Grundlage realistischen Denkens!
(Der Bund.)
Pontoppidan, Henrik: Hans im Glück. Ein Roman in zwei Bänden.
Übertragen von Mathilde Mann. Dritte Auflage. Geheftet M. 8.–;
in Leinen M. 10.–.
Als Henrik Pontoppidans Roman erschien, war er das
Ereignis seines Jahrgangs. Inzwischen ist eine Flut von
Romanen an uns vorübergezogen, und immer noch ist
Hans im Glück das Buch, das den stärksten und
geschlossensten Eindruck von ihnen allen macht. Seit dem
Niels Lyhne hat das kleine Dänemark kein so
vollgewichtiges Werk mehr dem übrigen Europa gegeben.
(Münchener Neueste Nachrichten.)
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