Management concepts trace back to ancient Egypt and to General Sun Tzu’s “The Art of War” in the sixth century BC. Accounting practices also existed since early civilization, but business management as a discipline is a relatively new concept that took hold near the turn of the twentieth century. After Henry Towne and others laid the groundwork for the science of management in the 1890s, early classical management theorists included Frederick Winslow Taylor, who studied workflows and published “The Principles of Scientific Management” in 1911, and Henry Foyal, who developed a functional view of management and published “Administration Industrielle et Générale” in 1916.
Management theories evolved throughout the twentieth century, but with recent advancements in accounting disciplines, data collection, and data assessment, the science of business management is at the forefront of a new phase.
Early management concepts in the modern era focused on people-centric business processes and later turned to technology as a source for efficiency improvements. Now we are in the midst of the Information Age, a period when the ability to manage and leverage information determines the success of companies. The competitive stakes are growing as corporate management proficiency is accelerating.
In the Information Age, we are embedding the science of business management in technology systems and standard business processes.
Looking within this current management discipline wave, data acquisition and analysis to date have focused mostly on closed-system business processes and workflows to improve organizational efficiency piecemeal. Meanwhile, efforts to improve overall corporate management efficiency and strategic planning have achieved limited success.
IMT believes this is about to change.
Advancing to Risk-Optimized Decision Making in the Information Age
Business management trends within the Information Age are fundamentally shifting toward planning and decision making leveraging enterprise risks as a strategic differentiator. Risk management has long been a core management concept in the financial management, banking, and insurance sectors, but is now gaining traction across industries and across business units within corporations.
Corporate managers, shareholders, and regulators acknowledge the benefits of effective enterprise risk management, but where do business leaders turn when they want to assess and manage their top corporate challenges and risks? Typically, it is a variety of experts and products that may include CFOs, general counsels, actuaries, business consultants, business analytics software, corporate dashboards, insurance advisors, and insurance brokers, among others.
In the past two decades, pioneers established a Chief Risk Officer role to help assess and develop enterprise-wide risk management from the board room perspective. While highly successful in some cases, most in this professional track have been disappointed by the sluggish acceptance of this management role in the broader market. The underlying challenge is that risk management is not a role or a product, but is instead a business discipline that should be embedded throughout management layers.
IMT believes we are at the first stages of implementing risk management as a core business discipline applied across enterprises. The discipline will be supported by a perfect storm of advances in processes and technology for data acquisition, business analytics, and decision rules that will elevate the science of corporate management with risk optimization.
Researching Current Trends in Management
IMT researches and analyzes current trends in business management that support improvements to enterprise decision making efficiency as a discipline. This includes trend analysis from the following perspectives:
- Corporate management best practices
- The broadening application of actuarial science
- Management recruiting and education
- Management consultant offerings
- Technology advances in supporting...
- Enterprise Risk Management (ERM)
- Data acquisition
- Data mining
- Data management
- Data analytics
- Decision support
- Setting decision rules
- Data visualization
- Advisory services from insurance consultants and brokers
- Government regulation
- Ratings agency assessments
The combination of advances in business school risk training, data collection, information technology, actuarial science, business consultant risk management advice, and insurance advisory services is vastly changing business management disciplines today. Collectively they will break down the barriers of organizational silos and politics that have been preventing more effective assessments and management of key corporate challenges.
As the digitization of corporate information grows exponentially, the IT products and applications in development today will enable companies to better meet the rising risk management efficiency expectations of shareholders, industry standards, the SEC, and other regulatory agencies.
Intelligent Management Trends analyzes and reports on the latest management concepts, education, business consulting practices, technology, and actuarial science that are carrying us forward to the next crest of business management discipline.
Business success is based on the ability to marry the best of managerial science with entrepreneurship and ingenuity. Stay ahead of the curve by implementing management best practices for identifying and addressing your company’s greatest challenges. Join IMT in advancing the science of business management by sharing information about the services or products you have to offer and by making use of IMT business research products and industry trend consulting services.