Top 40 management models


"All models are wrong, but some are useful." George Box, 1979.

Most management models are simple tools, frameworks or checklists. And any self-respecting model also has a self-explanatory (often 2x2) matrix to go with it, of the sort that looks good in a PowerPoint presentation, or on a flipchart or whiteboard.

That being said most of the models below are based on theories, and all have been checked out in practice. They provide a means of framing (the useful bit!) strategic, functional, process or people-orientated issues; and are of course a source of plenty of jargon to use in meetings...

            

So here's an A to Z of helpful Management Models:

¤ Activity-based costing. A way of calculating the 'true' cost of products or services by attributing indirect costs, based on what is actually required. Read this insightful Economist article.

¤ Ansoff's matrix. The classic marketing matrix which contrasts products with markets and helps to identify growth opportunities. Check out the Ansoff website.

¤ Balanced scorecard. A performance management tool that adds the customer perspective, operational requirements and organisation's growth potential to the usual financial stuff. More information at Balanced Scorecard.

¤ Boston Consulting Group (BCG) matrix. A method of exploring the priority that should be given to different products/services (and the identification of 'dogs', 'cash-cows' etc). Find out about the Growth Share Matrix (it's other name) from this well written Wikipedia entry.

¤ Benchmarking. A systematic way of comparing an organisations processes and performance against a (valid) standard. Read about it at Management About.



¤ Burke Litwin model. An approach that links organisational change with performance. Read the highly digestible summary at Coaching Cosmos.

¤ Business process re-engineering. A method of trying to develop cross-functional working processes, i.e. it works on the principle that integration is good. Check out this great Team Technology article.

¤ Capability maturity model. A way of trying to match the maturity (stage of development) of an organisation with its IT needs. Good material at the Software Engineering Institute.

¤ Change quadrants. Change approach that contrasts whether an organisation is 'hot' or 'cold' (openness to change), and whether proposed change is 'hot' or 'cold' (forced or planned). Read the description on Schachinger's blog.

¤ Chaos model. The bit that comes before things are organised! More of a metaphor, but it does allow you to vigorously scribble all over a flipchart! Read this Wisegeek piece.



¤ Porter's five forces. A model that lets you identify the five main competitive forces on a product/service (or industry), and thus its relative attractiveness. Read this speedy rundown at Quick MBA.

¤ Core competencies. No, not what you're thinking! This is a way of helping managers think inside-out (the bit they usually do) and outside-in. Pop over to Tutor 2U to find out more.

¤ Core quadrants. A way of working out your core quality - the essential you! More info from Daniel Ofman.

¤ Covey's seven habits. Best-selling, seven 'habit' approach to being a successful manager, or how to be highly effective in life and business. Visit Stephen Covey's website.

¤ Deming cycle. All that learning cycle stuff that you have half forgotten, but this time applied to continuous improvement (Act-Plan-Do-Check). Read this treatment at Vector Study.



¤ EFQM excellence model. A framework for assessing the aspects of performance that make an organisation successful (or not). More details from the horse's mouth at EFQM.

¤ Economic value added. A financial measure that shows the 'true' economic profit of an organisation. Visit Investopedia for the lowdown.

¤ Fifth discipline. The five things (systems thinking, personal mastery, mental models, shared vision, team learning) that define a learning organisation. More info on the SOL website.

¤ Force field analysis. A technique for identifying the forces that help or obstruct change. Read this erudite description at Mind Tools.

¤ Greiner's growth model. A method for looking at the five generic growth phases (creativity, direction, delegation, coordination, collaboration) of an organisation. Some more details at Epress.



¤ Hofstede's cultural dimensions. A handy way of preventing cultural misunderstandings through an appreciation of power distance, uncertainty avoidance, individualism (vs. collectivism), masculinity (vs. femininity) & dynamism. More from Geert Hofstede himself...

¤ Just in time (JIT). A way of speeding up customer response while keeping a minimal inventory of widgets. Check out this University of Cambridge site for a full explanation.

¤ Kaisen. An approach that supports a continuous process of incremental improvement (kai=change; zen=to become good). Visit Value Based Management for a quick appraisal.

¤ Kotter's eight phases of change. A way of avoiding some of the common pitfalls of change implementation by moving through eight phases, e.g. establish a sense of urgency, create a coalition, develop a clear vision… etc. Check out the idea at Kotter International, where else!

¤ Market attractiveness - business attractiveness (MABA) analysis. As the name implies this is a way of comparing the relative market attractiveness of a product/service with its business attractiveness. More information at 12 Manage.



¤ Marketing mix. This is also known as the 'Four Ps' (product, place, promotion, price) and is an aid to developing a marketing strategy. Want to know more, try Net MBA.

¤ 7-S framework. A framework (shared values, strategy, structure, systems, skills, staff, style) for thinking about how to organise a business. You'll find more details at the London Management Centre site.

¤ Mintzberg's configurations. A method of trying to decide what drives organisational decisions and activities, through an analysis of organisational 'type', e.g. entrepreneurial, machine, professional, diversified… etc. There's a fabulous explanation at Proven Models.

¤ Nolan's IT growth stages. A way of examining an organisations data processing growth, through an understanding of six phases (initiation, expansion, control, integration, architecture, maturity). Visit Wikipedia for a pretty good explanation.

¤ Open systems model. A model for diagnosing the strategic environment and any organisational problems. More information at Reflect Learn.



¤ Organisational elements model (OEM). A useful tool for indentifying the link between inputs and results. A quick review here at Deb Wagner.

¤ Overhead value analysis (OVA). A technique for optimising the effectiveness of indirect activities and services within an organisation. Read this good Harvard Business Review article.

¤ Problem tree analysis. Nothing to do with troublesome hedges (!), but a way of illustrating the links between a set of complex problems or relationships by fitting them into a hierarchy of related factors. Visit this ODI resource for more details.

¤ Risk management matrix. This identifies key risks and their likely impact, and ways of responding to different levels of risk. A good explanation at Rule Works.

¤ Risk reward analysis. A bit like the above with more of a strategic twist. It leads to an assessment of the relative attractiveness of a range of strategic options. Visit Expert Programme Management for more information.



¤ Seven forces model. The seven forces that make change happen (necessity, vision, success, spirit, structure, capabilities, systems). Read more at Change Management.

¤ Stakeholder management. How to identify the individuals/groups who will either be affected by change, or be able to (positively) impact the change process. Full explanation at Project Smart.

¤ SWOT analysis. A way of showing the current position of an organisation (or product/service) in terms of internal strengths and weakness and external opportunities and threats. Great description and some practical help at Mind Tools.

¤ Value-based management (VBM). A management approach that is aimed at maximising shareholder value. Turn to McKinsey if you want to know more...

¤ Value chain. Cost and competitive advantages are found in the chain of activities that a business performs in order to service its customers. Get your chain sorted out (logistics, operations, marketing etc) and you've got a differential advantage. Learn more at Marketing Teacher.

And finally...

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