Management systems
By Dave Whittemore · Updated
What are Management systems?
Martin and Lafley's fifth question: what systems — metrics, review cadences, resourcing rules — are required to support the choices and capabilities. The feedback loop that detects when the chosen position is drifting; the part most strategies omit and the reason most fail in execution.
How Management systems work
A strategy with no management system decays into the org's default behavior within a few planning cycles. Input metrics (what the firm controls) matter more than output metrics for this purpose.
The question to ask of a company
What system would tell leadership within a quarter if a core capability eroded or a competitor's move invalidated the how-to-win?
Examples
- Amazon's WBR and input metrics.
- OKRs when tied to the strategy's actual choices; not when they are a list of departmental goals.
Who names it
| Author | What they call it / where it appears |
|---|---|
| Martin & Lafley | What management systems are required? (cascade question 5) |
| Rumelt + | Proximate objectives |
| Bezos / Collins + | Controllable input metrics; the weekly business review |