In the year 2013 there is still a crisis in management. This dates back 100 years and can be traced to the days of the Ford Motor Company. When Henry Ford was producing black Model T cars, a man by the name of Frederick Taylor invented what is known today as scientific management. Managing employees meant defining and applying strict rules, procedures and processes to employees working on the production line. Taylor’s management model worked because the objective was based on producing the greatest quantity of cars in as short a time period as possible. Workers didn’t have to think but needed to maximize their efficiency and productivity.

After World War II, the economy in the Western world started to boom and consumer choice started to become a reality. Consumers didn’t just want black Model T cars – they wanted red, white, yellow and blue – all available with a variety of options. Marketing departments evolved to deal with the realities of  consumer behaviour, market segmentation and competition. Suddenly managers had to learn how to think strategically. HR departments evolved to start to focus on the people factor and how to motivate employees. The managerial function changed from one that focused on efficiency to one that had to also include creativity and adaptability.

Today we are truly in a knowledge economy. Gone are the days when competitive advantage is based on real estate, financing, technology or efficiency. An organization gains an edge by attracting and retaining top talent who use their brains to out-think competition. And yet management in modern organizations has not kept up with today’s focus on depending on workers who must be nimble, innovative and team-oriented. Taylor’s scientific management model, which has been taught in MBA programs and practiced in organizations for over 100 years still prevails. We need a revolution in management!