Management Problem

In the 21st century, perhaps a management mantra should be expect the unexpected. Times are turbulence, aand for managers trying to succesfully run their organisation, not only do they experience ongoing changes with new technologies and markets trends, but large discontinuities and even crises are increasingly common. Here are some recent high profile example, but indeed these types of unexxpected crises are occuring in virtually all businesses on an increasingly basis:

Middle managers at Pan Pharmacueticals went to work one day to find thatbusiness was anything but 'as usual'. They were shocked to find that their products were found to be contaminated, completedly recalled on a worldwide basis, and that the company was later disolved, costing them their jobs. How could they plan for this?

Massive losses occured at the National Australia Bank, and scandals ranging from board level to those in the treasury operation, led to dramatic loss of reputation, profit and business market share, causing it share price to fall, and driving board members, including thtore managing director , to resign. The bank had prevuiously been the absolute market leader; however, loss of control led to damage to the tune of hundred millions of dollars and a huge fall from grace. Talented executives left and the newly appointed CEO was stranded. many others lost their jobs as a result of this high profile crisis.

Long established building products company, James Hardie, had expanded into the USA and was doing well untill it was hit with very large claims related to asbestos in its older products, which it no longer manufactured. The company quite suddenly and dramatically was under siege, with boycotts, reputation down the gurgler, and a very large financial liability needed to pay for the claims of illness and death caused by its asbestos-laden products.


How can managers cope with the turbulence and crisis that occur more and more in todays workplace? By definition conventional planning techniques do not cope with such events, because they are aimed at managing relatively stable conditions.

Think about the situation facaing senior managers at Pan Pharmaceuticals, National Australia Bank, or James Hardie when their various crises hit. What management style and systems do you think would enable the kind of rapid, flexible response needed to accomplish seemingly impossible goals amid chaos and confusion?