The St. Gallen Management Model

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1 Haupt Johannes Riiegg-Stiirm & Simon Grand The St. Gallen Management Model English translation of the fourth generation of the German text

2 Preface to the English translation (2015) 1 Overview 5 How to best make use of the text 7 The resolution levels of the St. Gallen Management Model The St Gallen Management Model - effectively articulating the concept of management 24 i 0.1 Management - opening a controversial black box Understanding management as reflexive design praxis Highlighting value creation as the design focus of management 30 Organizational value creation as the design focus of management Modeling management in words and images Reflexivity about management by zooming-in and zooming-out Locating the St. Gallen Management Model in research Conceptualizing the St. Gallen Management Model from a communication-centered perspective Understanding management as communicative praxis 53

3 1. Environment as a landscape of possibilities Developing environment as a landscape of possibilities Defining the existence-relevant space of opportunities Enacting an organization-specific configuration of resources Addressing the expectations of relevant actors Communicatively developing the landscape of possibilities and configuration of resources 66 Understanding the interaction of environmental spheres, controversies, and stakeholders Understanding environmental spheres Environmental spheres are constituted as discourses Environmental spheres are based on a focus Environmental spheres are developed in procedures Environmental spheres impose evaluation criteria Dealing with controversies Controversies question what is taken for granted Controversies are sparked by issues Controversies are formed around positions Controversies are enacted in the media Encountering stakeholders Addressing stakeholders as relevant actors in the environment Stakeholders have impact through relationships Stakeholders condense expectations in the environment Stakeholders care for the representation of positions 102 Page 20

4 2. Organization as a value-creation system Stabilizing the organization as a value-creation system Organizational value creation is a process and a result Organizational value creation is based on collaborative specialization Organizations are constituted as systems Organizations structure themselves Organizations construct themselves through communication 123 Structuring and dynamic development of organizational value creation Developing organizational value-creatiqn processes Value creation requires dynamic development Specialization requires differentiation Processes integrate collaborative value creation Dynamic stabilization is implemented in processes of opening and closing Developing certainties through viable decision-making praxis Decisions embody communicative achievements Decision-making imperatives need to be addressed systematically Efficient decision-making praxis requires routinized forms of processing Effective decision-making praxis requires decision-making capacity Mediating a collective orientation through a frame of reference Coherent decision-making requires a clear view of values The normative perspective clarifies identity and accountability The strategic perspective provides orientation for safeguarding the future The operational perspective coordinates everyday praxis 168

5 3. Management as reflexive design praxis Understanding management as reflexive design praxis Reflexive design praxis is communication praxis Reflexivity about organizational value creation and further development Mobilizing management practices to deal with uncertainty Shared anchoring in diverse communities of practice 182 Strategy work and management architecture Management praxis Management is realized in reflexive design Management facilitates reflexivity 20Q Management creates opportunities Management endorses scalability Corporate governance Corporate governance shapes relationships with the environment Defining system boundaries Institutionalizing executive management Structuring management architecture Executive management Executive management acts with a view to an organization as a whole Defining ideas of success Specifying management praxis Stabilizing change processes 229 Page 22

6 4. Management innovation - reflecting on and shaping the future of management Management innovation is controversial and necessary Management innovation utilizes innovation resources Management innovation requires partnerships of reflexivity and innovation The St. Gallen Management Model is a language of reflexivity for management innovation The St. Gallen Management Model itself is repeatedly subject to innovation 251 List of figures 256 References 258 Index 280

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