Virtual Organizations and Beyond

The virtual organization is a form where only what is used has tobe paid for. It has the capability of the real organization, butdoes not itself have the tangible facilities and permanentemployees that is the traditional way of meeting the requirementsof customer. It is a concept which gives flexibility, lower overallcost, and reduces the capital needs of a business. It is equallyapplicable to new and established businesses, and can provide bothwith a means of achieving success in business development andrenewal.
Like others in this series, this book provides a practical guidefor managers and entrepreneurs. It shows how those with vision andenergy, who do not have the facilities of a large traditionalcompany, can nevertheless achieve success, with no competitivedisadvantages. The book shows how to expand and grow withoutenlarging the organization, and how to gain access to competenceswithout employing more staff.
Well illustrated with case histories and examples, the bookreflects the experience of the authors in actually applying theconcepts they write about. Checklists and questionnaires areprovided where they are helpful. Practical experience is supportedby research, and the result is a practical guide to setting up andmanaging this new form of organization.
'Bo Hedberg is again out in front and leading us into the future ofmanagement. Managerial insight and advanced technology are makingit possible to create coalitions with the advantages of bothmarkets and hierarchical organizations. In this book, Hedberg andhis colleagues explain how these coalitions work and what they needto work best'. William H. Starbuck, ITT Professor of CreativeManagement, Stern School of Business, New York University
'Professor Hedberg's and his colleagues' pioneering work inidentifying and highlighting what makes virtual organizations tickis very timely. The competitive environment in financial servicesrequires that highly motivated professionals voluntarily sharetheir best ideas and dreams with their leaders to ensure customersatisfaction. The authors have rightly identified this crucialpoint in our success story.' Jan R. Carendi, Senior Executive Vicepresident, Skandia AB and Chief Executive Officer, SkandiaAssurance & Financial Services.Dieses Buch betrachtet Organisationen aus einem neuen Blickwinkel. In geringem Umfang behandelt es neue Gesellschaften, die auch als virtuelle oder Franchise-Gesellschaften bezeichnet werden. Der Schwerpunkt liegt jedoch darauf, alte Gesellschaften in einem neuen Licht zu betrachten; sie zu vergrößern und neue Gesellschaften zu schaffen, die konventionelle Grenzen überschreiten. Ziel des Buches ist es, eine Perspektive zu entwickeln, die es dem Leser ermöglicht, Gesellschaftsstrukturen künftig besser zu verstehen und diese weiterzuentwickeln. (10/97) The Imaginary Organization: Discover a New Perspective.

The Imaginary Organization: Related Theories andPerspectives.

Patterns of Creation, Renovation, and Extension.

Examples of Successful Creation, Renovation, and Extension.

Creation.

Renovation.

Extension.

Observations from the Case Studies.

Focusing Strategy on Core Competence.

Cultivating the Involvees.

Management Control.

Financing and Ownership.

Leadership: More Managing by Fewer Managers.

Creation, Renovation, and Extension: A Summary.

Appendix.

References.

Index. Discover a New Reality;
A Jig-Saw Puzzle of Pre-Existing Parts;
Patterns for Homesteading, Renovating, and Adding New Parts;
Successful Cases;
Homesteading;
Renovating;
Adding New Businesses;
Summary of Findings;
Core Competencies as Strategy;
To Grow and Groom Those We Engage;
Accounting and Control;
Finance and Ownership;
Business Leaders: Architect, Stage Director, and Expectation Builder;
Building and Renovating.

BO HEDBERG is currently Professor of Management and Chairman of the PhD Program at Stockholm School of Business, Stockholm University. He has worked as a consultant to, among others, The World Bank, IBM, Daimler-Benz and Skandia Insurance Group. His specialist areas include organizational learning and design, management information systems, service management and virtual organizations.

GÖRAN DAHLGREN took his PhD at the Stockholm School of Economics. As a consultant, he has advised companies on marketing and strategic change. He is the author of several books in Swedish.

JÖRGEN HANSSON worked as personnel director of leading Swedish corporations and is now a consultant, mainly supporting companies in their development of competitive HR strategies linked to their business. He has written in the area of human resources and management development.

NILS-GÖRAN OLVE is Adjunct professor at Linköping University. He worked extensively in management training, including acting as director of international management programmes. As a consultant, his work currently concentrates on management control issues, in particular the Balanced Scorecard and management of IT.
All four authors are senior partners in ConcoursCepra Management Consultants in Stockholm.

This book is the second in the Wiley Series in Practical Strategy, following Segev: Business Unit Strategy 0-471-97164-2, published July 1997. The aim of this series is to provide managers with books on strategy, strategic management and strategic change, which are helpful, practical, and provide guidance for the practical application of sound concepts in real situations. ‘Bo Hedberg is again out in front and leading us into the future of management. Managerial insight and advanced technology are making it possible to create coalitions with the advantages of both markets and hierarchical organizations. In this book, Hedberg and his colleagues explain how these coalitions work and what they need to work best’. William H. Starbuck, Stern School of Business, New York University ‘Professor Hedberg’s and his colleagues’ pioneering work in identifying and highlighting what makes virtual organizations tick is very timely. The competitive environment in financial services requires that highly motivated professionals voluntarily share their best ideas and dreams with their leaders to ensure customer satisfaction. The authors have rightly identified this crucial point in our success story’. Jan R. Carendi, Senior Executive Vice President, Skandia AB and Chief Executive Officer, Skandia Assurance & Financial Services ‘Bo Hedberg is again out in front and leading us into the future of management.’ William H. Starbuck, Stern School of Business, New York University Virtual Organizations and Beyond Discover Imaginary Systems The virtual organization is a form where only what is used has to be paid for. It has the capability of the real organization, but does not itself have the tangible facilities and permanent employees that is the traditional way of meeting the requirements of customers. It is a concept which gives flexibility, lower overall cost, and reduces the capital needs of a business. It is equally applicable to new and established businesses, and can provide both with a means of achieving success in business development and renewal. Like others in this series, this book provides a practical guide for managers and entrepreneurs. It shows how those with vision and energy, who do not have the facilities of a large traditional company, can nevertheless achieve success, with no competitive disadvantages. The book shows how to expand and grow without enlarging the organization, and how to gain access to competences without employing more staff. Well illustrated with case histories and examples, the book reflects the experience of the authors in actually applying the concepts they write about. Checklists and questionnaires are provided where they are helpful. Practical experience is supported by research, and the result is a practical guide to setting up and managing this new form of organization.