1. Advanced Management Insight
The Management Control System for the World of Management 2.0
Synopsis
Because it is universally integrated and socially aware, Web 2.0 provides a revolutionary opportunity to create a system for
managing business performance in the form of a neural network of people and information, self-aware, self-monitoring, and self-
correcting. This white paper describes principles currently used for organizational management versus the highly integrated
opportunity for an advanced management system available in the world of "Management 2.0." It is excerpted from our
submission to the McKinsey/Harvard Business Review Challenge: “What new management practices can Web 2.0 tools and
technologies enable?”
The Challenge and Opportunity
Leveraging human capital, best practices, quality assurance (QA) and Six Sigma techniques
is a critical success factor for any business. Whatever management control system (MCS) is
used for Management 2.0, ideally it must be simple to implement, as simple as setting up a
spreadsheet or checklist. This introductory narrative describes the ideal management
system for any business, the constraints that keep us from implementing it today, and some
of the potential critical success factors.
Goals and Objectives of an Ideal Management System
The management control system (MCS) of a business governs collection and flow of
information and also acts to set standards for governance, control, and visibility of business
data. It is meant to ensure the proper flow and use of information upward to various
management levels. It is also meant to serve the purpose of being a conduit of downward-
and-across goals, objectives, standards, best practices, and governance and
communications.
Top executives understand that the design and execution of the management system is one
of the few ways in which they can effectively direct the energy of their business. The goals
and objectives of the ideal management system, and the underlying requirements for our
vision of “advanced management insight,” include the following:
Provide information flow through the organization to enable visibility and governance
Provide true insight by including human feedback, judgment, perspective
Provide properly distilled key information to all levels of management to provide managers and
executives visibility into operations
Allow upper management to advise and consult with lower and peer management
Provide risk assessment and governance facts and warnings
Make available a common data platform for all management use
Provide a common language of facts and rules for governance of the company
Drive a fact-based culture and reduce anecdotal and story-telling management practices
Build a historical repository of operational data and facts, and a consistent audit trail
Spread knowledge and best practices and validate their degree of execution