The document outlines key trends in strategic management from the 1990s to the 2000s. It discusses the turbulent global environment organizations faced with events like the dot-com bubble burst, corporate scandals, and terrorism. It also summarizes influential strategic concepts like shareholder value and core competencies. Finally, it explores emerging trends in organizations, leadership needs, and the competencies required of business leaders in the new economy.

3. US Labor Productivity: Annual Changes in Non-Farm Output per Hour Worked, 1990-2006

4. Return on Equity of US Manufacturing Corporations, 1990-200 3 Source: US Bureau of the Census

5. The value of mergers and acquisitions worldwide Source : Thomson Financial Securities Data

9. The Need to Redesign Organizations THE PAST THE FUTURE Emphasis on control Emphasis on co-ordination Decisions located centrally Decisions located where relevant knowledge exists Simple structures , u nified line of command Multidimensional structures Diffused authority, but clear responsibilities Single performance goal Multiple performance goals Organization by design Self organization

10. Emerging Organizational Forms Process-based Organizing around business processes organizations Organizing around corporate processes - entrepreneurial process - competence building process - renewal process From unitary to parallel Separate coordination structures for structures different processes . E .g. 3M ’s product development structure; separate structures for TQM and change management Project-based organization E.g. engineering cos., consulting firms , also manufacturing cos. e.g. Oticon Network and v irtual E .g. e lectronics in Silicon Valley , c lothing o rganization and packaging equip ment in Italy Organizing for capability Shifting emphasis of organization development design from control to coordination