Challenges of Changing Management Systems

Since the dawn of modern management systems and large corporations, the transformation of organizations has always been a challenge, and this challenge has become increasingly so in the age of new knowledge and development across all domains of human endeavor. When organizations do not develop and change to transform themselves, like any living thing, the end of life manifests, as seen in the increasing short-term life span of commercial organizations in the S&P 500 over the last one hundred years.

Small and medium business owners/investors also see similar challenges in optimizing their business value holistically and leveraging that for further development. Why does this happen when there is a market for products and services?

A study by Santa Fe Institute researchers found that the probability of a company listed on the S&P 500 surviving for 50 years was around 15% in the 1970s, but this had decreased to just 5% by the 2000s.

Why do we have this state of affairs in the management systems?

The following provides some perspectives on these challenges.