“Fashionable management school theory appears to have lent undeserved credibility to some chaotic systems.”
This line leapt out from the 571-page UK parliamentary review of banking published on Wednesday. It’s in the conclusion to the passage criticising the way in which banks applied the “three lines of defence” risk control framework – line managers, risk controllers and compliance staff, and internal audit. Read more
Companies are woeful at strategy. How can they get better? And who should be helping them do so?
These are important questions, which Kim Warren, who has taught strategy at London Business School for 20 years, addresses in a pungent new e-book The Trouble with Strategy, published by his strategy training company. It contains a strong call to arms to the big management consultants which, he says, “have been strangely absent from the discussion of what needs to be done”. Why is that? Read more
David Willetts, Britain’s universities minister, has a bee in his two-brained bonnet about flawed incentives for British business academics.
Prestige in business schools comes from doing research and being published in peer-reviewed journals, he told an audience of managers, academics and members of parliament in London on Tuesday, launching a discussion of whether poor management is holding back growth. It’s a theme he’s touched on before in relation to wider scientific and academic research. Mr Willetts says that as the lead journals are US-based, they tend to be interested in sophisticated analysis of historical, mainly American, industry data:
We’re rewarding British academics and British business schools for analysing American industries… It’s not at all clear to me that this the right set of incentives.
This has an unwelcome tinge of nationalism but it is hard to argue with the underlying point. Read more